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
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RYDEX SERIES FUNDS
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(Exact name of registrant as specified in charter)
9601 Blackwell Road, Suite 500
ROCKVILLE, MARYLAND 20850
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(Address of principal executive offices) (Zip code)
Carl G. Verboncoeur
Rydex Series Funds
9601 Blackwell Road, Suite 500
ROCKVILLE, MARYLAND 20850
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(Name and address of agent for service)
Registrant's telephone number, including area code: 1-301-296-5100
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Date of fiscal year end: MARCH 31, 2005
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Date of reporting period: MARCH 31, 2005
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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.
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
MARCH 31, 2005
RYDEX SERIES FUNDS BENCHMARK FUNDS ANNUAL REPORT
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
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
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LETTER TO OUR SHAREHOLDERS ............................................... 2
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS ............................... 4
ABOUT SHAREHOLDERS' FUND EXPENSES ........................................ 5
PERFORMANCE REPORTS AND FUND PROFILES .................................... 10
SCHEDULES OF INVESTMENTS ................................................. 30
BENCHMARK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES .................................. 90
STATEMENTS OF OPERATIONS .............................................. 94
STATEMENTS OF CHANGES IN NET ASSETS ................................... 98
FINANCIAL HIGHLIGHTS .................................................. 104
BENCHMARK PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES .................................. 112
STATEMENTS OF OPERATIONS .............................................. 113
STATEMENTS OF CHANGES IN NET ASSETS ................................... 114
FINANCIAL HIGHLIGHTS .................................................. 116
NOTES TO FINANCIAL STATEMENTS ............................................ 117
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM .................. 129
OTHER INFORMATION ........................................................ 130
UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS .................. 131
THE RYDEX SERIES FUNDS ANNUAL REPORT | 1
LETTER TO OUR SHAREHOLDERS
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DEAR SHAREHOLDER:
The year ended March 31, 2005 was a difficult one for investors in almost all
asset classes. Markets were--for the most part--range-bound as investors
struggled with concerns driven by widening deficits, record energy prices,
inflation worries, slowing earnings growth, rising interest rates and the
specter of continuing geopolitical dangers such as weapons proliferation and
terrorism. Balancing these concerns were some powerful positives, however.
Consumer sentiment and spending remained buoyant throughout the 12-month period,
both interest rates and inflation remained low and equity valuations were in
line with historical averages.To this it should be added that, although the U.S.
economy's ability to generate meaningful job growth was somewhat of a
disappointment, unemployment remained quite low by historical standards.
Finally, the evident progress in the war in Iraq served to bolster investor
confidence.
Investment returns during this 12-month period reflected this tug-of-war.The Dow
Jones Industrial Average was able to eke out only a 3.56% gain, while the
broader S&P 500(R) Index rose 6.69%. Equity investors remained wary of highly
valued tech stocks as demonstrated by a 0.83% gain in the tech-heavy Nasdaq
Composite. Investors' four-year-long love affair with smaller stocks also began
to wane during this period.The small cap Russell 2000(R) Index returned 5.41%,
trailing the S&P 500 Index by nearly 1.30%.
For investors in international stocks, one additional macroeconomic trend--the
continuing decline in the exchange value of the U.S. dollar--represented a
significant boost to investment returns.The MSCI EAFE Index, which is the
broadest proxy for international stocks in the developed world, returned 11.04%.
Likewise, stocks in the developing markets were strong performers as the MSCI EM
Index returned 13.05% when translated back into U.S. dollars.
The challenge for stock investors during this 12-month period was a distinct
lack of market direction. Markets look forward and, although the earnings
environment can be described as positive, it can also be described as slowing.
S&P earnings for 2004 were up 20%, but by the first quarter, the year-over-year
pace had slowed to 7.5%. Valuations did not represent a head wind, but higher
energy prices certainly did. As oil prices rose to a record $57/barrel, stocks
pulled back. In fact, throughout much of the year, the relationship between oil
prices and stocks was inverse and predictable. If you knew where oil was going,
you knew where stocks were going.
After being the most widely anticipated bond market development that didn't
happen in 2004, long-term interest rates finally rose.The 10-year Treasury Note
finished the first quarter yielding 4.48% from a starting point near 3.84% a
year earlier. Certainly the seven consecutive increases in the federal funds
rate beginning in the second quarter of 2004 played a role; however, other
factors were at work. Primary among these were concerns over the exchange value
of the greenback. Record federal budget and current account deficits prompted
concern that foreign central banks would cease or curtail purchases of
U.S.Treasury securities, necessitating a substantial increase in interest rates
in order to attract overseas capital. Inflation worries also rose to the fore
during this period. In addition to rising energy prices, commodity prices rose
across the board as the voracious Chinese economy sucked up raw materials at a
tremendous rate.The adage that China inflates what it imports and deflates what
it exports was certainly true during this period. So while inflation remained in
check, it was an uneasy balancing act.
Thus it was a good year for investment strategies that were not dependent on a
highly directional market. Sector rotation strategies were profitable for
investors. Rising interest rates at both ends of the yield curve hurt the
financial services and banking sectors, while technology, telecommunications and
transportation were hurt by high valuations and energy costs. Overseas demand
for products boosted the basic materials sector, decreased tax rates on
dividends benefited the utilities sector and the energy and energy services
sectors got a helping hand from rising crude oil prices.
2 | THE RYDEX SERIES FUNDS ANNUAL REPORT
The upcoming year could be more of the same. A substantial reacceleration in
corporate earnings growth, a precipitous decline in interest rates and/or energy
prices and a rapid improvement in the federal budget and trade deficits could
bring upside potential. Downside risks include a freefall in the exchange value
of the U.S. dollar and a dramatic spike in inflation and interest rates (though
this seems remote). Going into the year, economic growth remains sound,
inflation is tame and interest rates are at historical lows.The year will
undoubtedly be a challenge, but, as always, opportunities will exist for savvy
investors.
We appreciate the trust you have placed in our firm by investing with us.
Sincerely,
/s/ Carl G. Verboncoeur
Carl G.Verboncoeur
President
THE RYDEX SERIES FUNDS ANNUAL REPORT | 3
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS
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Many of the Rydex Funds described in this report are benchmarked daily to
leveraged or inverse versions of published indices. To properly evaluate the
performance of these Funds, it is essential to understand the effect of
mathematical compounding on their respective returns.
Because of the nonlinear effects of leverage applied over time, it is possible
for a fund to perform in line with its benchmark for several individual periods
in a row, yet seem to trail the benchmark over the entire period. It is also
possible that a fund that performs in-line with its benchmark on a daily basis
may seem to outperform its benchmark over longer periods.
AN EXAMPLE OF COMPOUNDING
For example, consider a hypothetical fund that is designed to produce returns
that correspond to 150% of an index. On the first day of a period, the index
rises from a level of 100 to a level of 106, producing a 6% gain and an
expectation that the fund will rise by 9%. On the same day, the fund's net asset
value (NAV) increases from $10.00 to $10.90 for a gain of 9.0%-in line with its
benchmark.
On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The
fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund
performed exactly in line with its benchmark, but for the two-day period, the
fund was down 1.8%, while the index was down only 1.0%. Without taking into
account the daily compounding of returns, one would expect the fund to lose 1.5%
and would see the fund as trailing by 0.3% when in fact it had performed
perfectly. This example is summarized in the table below.
INDEX INDEX FUND FUND FUND
LEVEL PERFORMANCE EXPECTATION NAV PERFORMANCE ASSESSMENT
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Start 100 $ 10.00
Day 1 106 6.0% 9.0% $ 10.90 9.0% In line
Day 2 99 -6.6% -9.9% $ 9.82 -9.9% In line
Cumulative -1.00% -1.50% -1.80% -0.30%
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As illustrated by this simple example, the effect of leverage can make it
difficult to form expectations or judgments about fund performance given only
the returns of the unleveraged index.
In general, any change in direction in an index will produce compounding that
seems to work against an investor. Were the index to move in the same direction
(either up or down) for two or more periods in a row, the compounding of those
returns would work in an investor's favor, causing the fund to seemingly beat
its benchmark.
As a general rule of thumb, more leverage in a fund will magnify the compounding
effect, while less leverage will generally produce results that are more in line
with expectations. In addition, periods of high volatility in an underlying
index will also cause the effects of compounding to be more pronounced, while
lower volatility will produce a more muted effect.
4 | THE RYDEX SERIES FUNDS ANNUAL REPORT
ABOUT SHAREHOLDERS' FUND EXPENSES
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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 incur two types of costs: (i) transaction costs,
including sales charges (loads) on purchase payments, reinvested dividends, or
other distributions; redemption fees; and exchange fees; and (ii) ongoing costs,
including management fees, administrative services, and shareholder reports,
among others. These ongoing costs, or operating expenses, are deducted from a
fund's gross income and reduce the investment return of the fund.
A fund's expenses are expressed as a percentage of its average net assets, which
is known as the expense ratio. The following examples are intended to help 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 September 30, 2004 and
ending March 31, 2005.
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
maybe 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 ANNUAL REPORT | 5
ABOUT SHAREHOLDERS' FUND EXPENSES (CONTINUED)
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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 + SEPTEMBER 30, 2004 MARCH 31, 2005 PERIOD*
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NOVA FUND
Investor Class 1.18%++ $ 1,000.00 $1,093.51 $ 6.21
Advisor Class 1.68%++ 1,000.00 1,090.91 8.82
A-Class 1.44%++ 1,000.00 1,092.53 7.55
C-Class 2.19%++ 1,000.00 1,088.33 11.44
URSA FUND
Investor Class 1.37%++ 1,000.00 945.59 6.67
Advisor Class 1.87%++ 1,000.00 942.50 9.11
A-Class 1.62%++ 1,000.00 943.63 7.91
C-Class 2.37%++ 1,000.00 940.18 11.54
OTC FUND
Investor Class 1.18% 1,000.00 1,047.42 6.07
Advisor Class 1.67% 1,000.00 1,043.48 8.55
A-Class 1.43% 1,000.00 1,045.60 7.35
C-Class 2.17% 1,000.00 1,041.67 11.12
ARKTOS FUND
Investor Class 1.36%++ 1,000.00 952.66 6.64
Advisor Class 1.87%++ 1,000.00 950.41 9.13
A-Class 1.60%++ 1,000.00 950.51 7.85
C-Class 2.36%++ 1,000.00 947.54 11.50
MEDIUS FUND
A-Class 1.59% 1,000.00 1,168.75 8.65
C-Class 2.34% 1,000.00 1,164.79 12.72
H-Class 1.60% 1,000.00 1,169.17 8.67
INVERSE MID-CAP FUND
A-Class 1.61% 1,000.00 897.98 7.66
C-Class 2.33% 1,000.00 894.04 11.08
H-Class 1.59% 1,000.00 898.16 7.55
MEKROS FUND
A-Class 1.59% 1,000.00 1,109.22 8.41
C-Class 2.34% 1,000.00 1,104.35 12.34
H-Class 1.59% 1,000.00 1,108.46 8.41
INVERSE SMALL-CAP FUND
A-Class 1.60% 1,000.00 927.55 7.72
C-Class 2.33% 1,000.00 923.99 11.24
H-Class 1.60% 1,000.00 927.92 7.72
U.S. GOVERNMENT BOND FUND
Investor Class 0.89% 1,000.00 1,035.72 4.54
Advisor Class 1.39% 1,000.00 1,034.44 7.09
A-Class 1.13% 1,000.00 1,036.19 5.77
C-Class 1.89% 1,000.00 1,030.73 9.62
6 | THE RYDEX SERIES FUNDS ANNUAL REPORT
ABOUT SHAREHOLDERS' FUND EXPENSES (CONTINUED)
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BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO + SEPTEMBER 30, 2004 MARCH 31, 2005 PERIOD*
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JUNO FUND
Investor Class 1.30%++** $ 1,000.00 $ 969.79 $ 6.41
Advisor Class 1.80%++** 1,000.00 968.06 8.87
A-Class 1.54%++** 1,000.00 969.14 7.63
C-Class 2.30%++** 1,000.00 965.10 11.31
LARGE-CAP EUROPE FUND
A-Class 1.61% 1,000.00 1,145.05 8.65
C-Class 2.36% 1,000.00 1,139.76 12.63
H-Class 1.60% 1,000.00 1,143.64 8.58
LARGE-CAP JAPAN FUND
A-Class 1.59% 1,000.00 1,071.09 8.28
C-Class 2.35% 1,000.00 1,067.13 12.17
H-Class 1.60% 1,000.00 1,071.04 8.29
SMALL-CAP VALUE FUND
A-Class 1.43% 1,000.00 1,079.59 7.43
C-Class 2.20% 1,000.00 1,076.92 11.43
H-Class 1.45% 1,000.00 1,079.59 7.57
MID-CAP VALUE FUND
A-Class 1.42% 1,000.00 1,101.35 7.49
C-Class 2.18% 1,000.00 1,096.85 11.46
H-Class 1.44% 1,000.00 1,101.35 7.61
LARGE-CAP VALUE FUND
A-Class 1.43% 1,000.00 1,060.96 7.40
C-Class 2.18% 1,000.00 1,057.57 11.26
H-Class 1.45% 1,000.00 1,060.96 7.49
SMALL-CAP GROWTH FUND
A-Class 1.43% 1,000.00 1,108.19 7.57
C-Class 2.20% 1,000.00 1,104.52 11.60
H-Class 1.44% 1,000.00 1,108.58 7.62
MID-CAP GROWTH FUND
A-Class 1.46% 1,000.00 1,104.81 7.70
C-Class 2.20% 1,000.00 1,100.61 11.57
H-Class 1.45% 1,000.00 1,104.31 7.63
LARGE-CAP GROWTH FUND
A-Class 1.45% 1,000.00 1,050.37 7.44
C-Class 2.18% 1,000.00 1,046.69 11.18
H-Class 1.45% 1,000.00 1,050.80 7.44
U.S. GOVERNMENT MONEY MARKET FUND
Investor Class 0.84% 1,000.00 1,006.68 4.24
Advisor Class 1.34% 1,000.00 1,004.18 6.76
A-Class 1.08% 1,000.00 1,005.38 5.44
C-Class 1.81% 1,000.00 1,001.82 9.11
THE RYDEX SERIES FUNDS ANNUAL REPORT | 7
ABOUT SHAREHOLDERS' FUND EXPENSES (CONTINUED)
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TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO + SEPTEMBER 30, 2004 MARCH 31, 2005 PERIOD*
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NOVA FUND
Investor Class 1.18%++ $ 1,000.00 $1,019.00 $ 6.00
Advisor Class 1.68%++ 1,000.00 1,016.45 8.55
A-Class 1.44%++ 1,000.00 1,017.68 7.32
C-Class 2.19%++ 1,000.00 1,013.91 11.09
URSA FUND
Investor Class 1.37%++ 1,000.00 1,018.06 6.94
Advisor Class 1.87%++ 1,000.00 1,015.53 9.47
A-Class 1.62%++ 1,000.00 1,016.76 8.24
C-Class 2.37%++ 1,000.00 1,012.96 12.04
OTC FUND
Investor Class 1.18% 1,000.00 1,019.00 6.00
Advisor Class 1.67% 1,000.00 1,016.53 8.47
A-Class 1.43% 1,000.00 1,017.73 7.27
C-Class 2.17% 1,000.00 1,013.97 11.03
ARKTOS FUND
Investor Class 1.36%++ 1,000.00 1,018.11 6.89
Advisor Class 1.87%++ 1,000.00 1,015.53 9.47
A-Class 1.60%++ 1,000.00 1,016.89 8.11
C-Class 2.36%++ 1,000.00 1,013.04 11.96
MEDIUS FUND
A-Class 1.59% 1,000.00 1,016.93 8.07
C-Class 2.34% 1,000.00 1,013.15 11.85
H-Class 1.60% 1,000.00 1,016.89 8.11
INVERSE MID-CAP FUND
A-Class 1.61% 1,000.00 1,016.83 8.17
C-Class 2.33% 1,000.00 1,013.17 11.83
H-Class 1.59% 1,000.00 1,016.93 8.07
MEKROS FUND
A-Class 1.59% 1,000.00 1,016.93 8.07
C-Class 2.34% 1,000.00 1,013.15 11.85
H-Class 1.59% 1,000.00 1,016.93 8.07
INVERSE SMALL-CAP FUND
A-Class 1.60% 1,000.00 1,016.89 8.11
C-Class 2.33% 1,000.00 1,013.17 11.83
H-Class 1.60% 1,000.00 1,016.89 8.11
U.S. GOVERNMENT BOND FUND
Investor Class 0.89% 1,000.00 1,020.48 4.52
Advisor Class 1.39% 1,000.00 1,017.94 7.06
A-Class 1.13% 1,000.00 1,019.26 5.74
C-Class 1.89% 1,000.00 1,015.41 9.59
JUNO FUND
Investor Class 1.30%++** 1,000.00 1,018.42 6.58
Advisor Class 1.80%++** 1,000.00 1,015.87 9.13
A-Class 1.54%++** 1,000.00 1,017.18 7.82
C-Class 2.30%++** 1,000.00 1,013.33 11.67
8 | THE RYDEX SERIES FUNDS ANNUAL REPORT
ABOUT SHAREHOLDERS' FUND EXPENSES (CONCLUDED)
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BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO + SEPTEMBER 30, 2004 MARCH 31, 2005 PERIOD*
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LARGE-CAP EUROPE FUND
A-Class 1.61% $ 1,000.00 $1,016.83 $ 8.17
C-Class 2.36% 1,000.00 1,013.04 11.96
H-Class 1.60% 1,000.00 1,016.89 8.11
LARGE-CAP JAPAN FUND
A-Class 1.59% 1,000.00 1,016.93 8.07
C-Class 2.35% 1,000.00 1,013.08 11.92
H-Class 1.60% 1,000.00 1,016.89 8.11
SMALL-CAP VALUE FUND
A-Class 1.43% 1,000.00 1,017.73 7.27
C-Class 2.20% 1,000.00 1,013.85 11.15
H-Class 1.45% 1,000.00 1,017.62 7.38
MID-CAP VALUE FUND
A-Class 1.42% 1,000.00 1,017.78 7.22
C-Class 2.18% 1,000.00 1,013.93 11.07
H-Class 1.44% 1,000.00 1,017.68 7.32
LARGE-CAP VALUE FUND
A-Class 1.43% 1,000.00 1,017.73 7.27
C-Class 2.18% 1,000.00 1,013.93 11.07
H-Class 1.45% 1,000.00 1,017.62 7.38
SMALL-CAP GROWTH FUND
A-Class 1.43% 1,000.00 1,017.73 7.27
C-Class 2.20% 1,000.00 1,013.85 11.15
H-Class 1.44% 1,000.00 1,017.68 7.32
MID-CAP GROWTH FUND
A-Class 1.46% 1,000.00 1,017.60 7.40
C-Class 2.20% 1,000.00 1,013.85 11.15
H-Class 1.45% 1,000.00 1,017.62 7.38
LARGE-CAP GROWTH FUND
A-Class 1.45% 1,000.00 1,017.62 7.38
C-Class 2.18% 1,000.00 1,013.93 11.07
H-Class 1.45% 1,000.00 1,017.62 7.38
U.S. GOVERNMENT MONEY MARKET FUND
Investor Class 0.84% 1,000.00 1,020.72 4.28
Advisor Class 1.34% 1,000.00 1,018.17 6.83
A-Class 1.08% 1,000.00 1,019.51 5.49
C-Class 1.81% 1,000.00 1,015.79 9.21
* 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.
** THIS RATIO REPRESENTS OPERATING EXPENSES, WHICH EXCLUDE INTEREST EXPENSE
FROM SECURITIES SOLD SHORT.
+ ANNUALIZED
++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 9
PERFORMANCE REPORTS AND FUND PROFILES
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NOVA FUND
OBJECTIVE: To provide investment results that match the performance of a
specific benchmark on a daily basis. The Fund's current benchmark is 150% of the
daily performance of the S&P 500 Index.
Inception: July 12, 1993
For the 12 months ending March 31, 2005, the S&P 500 Index produced total
returns of 6.69%. The fourth quarter of 2004 was particularly strong, despite
the lingering threat of rising interest rates. Over the course of the year,
impressive performances in the energy, utilities and basic materials sectors
provided a boost to the broad market, thanks in part to higher energy prices and
continued expansion of the U.S. economy. The technology and telecommunications
sectors were the hardest hit, suffering from overcapacity and fierce competition
both domestically and abroad.
For the yearlong period, Rydex Nova Fund Investor Class produced a return of
7.63%. Had the Fund perfectly mimicked its benchmark of 150% of the daily price
movement of the S&P 500 Index, it would have returned 6.88%. The apparent
discrepancy between the leveraged and unleveraged indices is the result of
compounding, which is described briefly on page 4 of this report.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
NOVA FUND
DATE C-CLASS S&P 500 INDEX
---------- --------- -------------
3/14/2001 10,000 10,000
3/31/2001 9,875 9,947
4/30/2001 10,975 10,720
5/31/2001 11,030 10,792
6/30/2001 10,585 10,529
7/31/2001 10,354 10,426
8/31/2001 9,358 9,773
9/30/2001 8,185 8,984
10/31/2001 8,385 9,155
11/30/2001 9,311 9,857
12/31/2001 9,404 9,944
1/31/2002 9,138 9,799
2/28/2002 8,846 9,610
3/31/2002 9,345 9,971
4/30/2002 8,472 9,367
5/31/2002 8,358 9,298
6/30/2002 7,411 8,635
7/31/2002 6,506 7,962
8/31/2002 6,513 8,014
9/30/2002 5,441 7,143
10/31/2002 6,121 7,772
11/30/2002 6,631 8,230
12/31/2002 6,036 7,746
1/31/2003 5,752 7,543
2/28/2003 5,596 7,430
3/31/2003 5,619 7,502
4/30/2003 6,310 8,120
5/31/2003 6,827 8,548
6/30/2003 6,920 8,657
7/31/2003 7,068 8,810
8/31/2003 7,263 8,981
9/30/2003 7,145 8,886
10/31/2003 7,737 9,389
11/30/2003 7,836 9,471
12/31/2003 8,393 9,968
1/31/2004 8,644 10,151
2/29/2004 8,847 10,292
3/31/2004 8,637 10,137
4/30/2004 8,411 9,978
5/31/2004 8,574 10,115
6/30/2004 8,814 10,311
7/31/2004 8,322 9,970
8/31/2004 8,326 10,010
9/30/2004 8,456 10,119
10/31/2004 8,615 10,273
11/30/2004 9,140 10,689
12/31/2004 9,591 11,053
1/31/2005 9,173 10,783
2/28/2005 9,450 11,010
3/31/2005 9,202 10,815
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
NOVA FUND
DATE INVESTOR CLASS S&P 500 INDEX
---------- -------------- -------------
07/12/93 10,000 10,000
09/30/93 10,390 10,286
12/31/93 10,699 10,525
03/31/94 9,810 10,126
06/30/94 9,760 10,168
09/30/94 10,320 10,666
12/31/94 10,189 10,664
03/31/95 11,545 11,702
06/30/95 12,947 12,819
09/30/95 14,328 13,838
12/31/95 15,326 14,671
03/31/96 16,345 15,458
06/30/96 17,189 16,152
09/30/96 17,617 16,652
12/31/96 19,508 18,040
03/31/97 19,886 18,523
06/30/97 24,889 21,757
09/30/97 27,256 23,386
12/31/97 27,767 24,058
03/31/98 33,213 27,414
06/30/98 34,272 28,319
09/30/98 28,491 25,502
12/31/98 37,521 30,934
03/31/99 39,373 32,475
06/30/99 42,907 34,764
09/30/99 38,413 32,593
12/31/99 46,525 37,442
03/31/00 47,361 38,301
06/30/00 44,503 37,284
09/30/00 43,284 36,922
12/31/00 37,421 34,034
03/31/01 30,328 29,999
06/30/01 32,598 31,754
09/30/01 25,277 27,093
12/31/01 29,108 29,988
03/31/02 29,005 30,071
06/30/02 23,059 26,042
09/30/02 16,977 21,543
12/31/02 18,894 23,361
03/31/03 17,635 22,625
06/30/03 21,765 26,108
09/30/03 22,526 26,799
12/31/03 26,537 30,062
03/31/04 27,377 30,571
06/30/04 28,001 31,097
09/30/04 26,946 30,516
12/31/04 30,635 33,333
03/31/05 29,466 32,617
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(07/12/93) (10/15/98) (03/31/04) (03/14/01)
- --------------------------------------------------------------------------------------------------------------------------
ONE FIVE TEN SINCE ONE FIVE SINCE ONE SINCE ONE SINCE
YEAR YEAR YEAR INCEPTION YEAR YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------------------------------------------------
NOVA FUND 7.63% -9.06% 9.82% 9.66% 7.09% -9.55% -0.79% 7.39% 7.39% 6.55% -2.03%
S&P 500 INDEX 6.69% -3.16% 10.79% 10.62% 6.69% -3.16% 3.40% 6.69% 6.69% 6.69% 1.96%
- --------------------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
NOVA FUND S&P 500 INDEX
--------- -------------
Other 9.0% 9.6%
Financials 17.4% 20.8%
Information Technology 13.6% 15.9%
Health Care 12.4% 12.4%
Consumer Discretionary 12.2% 11.8%
Industrials 10.7% 11.9%
Consumer Staples 8.3% 10.6%
Energy 7.9% 7.0%
Futures Contracts 58.4%
"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)
- -------------------------------------------------------
Exxon Mobil Corp. 3.2%
General Electric Co. 2.8%
Johnson & Johnson 2.0%
Pfizer, Inc. 2.0%
Bank of America Corp. 1.8%
Microsoft Corp. 1.8%
Citigroup, Inc. 1.6%
Altria Group, Inc. 1.5%
Wal-Mart Stores, Inc. 1.4%
Verizon Communications, Inc. 1.2%
- -------------------------------------------------------
Top Ten Total 19.3%
- -------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
10 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
URSA FUND
OBJECTIVE: To provide investment results that will inversely correlate to the
performance of the S&P 500 Index.
Inception: January 7, 1994
Despite the threat of rising interest rates, the S&P 500 Index produced a total
return of 6.69% for the year ended March 31, 2005. The index's positive
performance meant that Rydex Ursa Fund, which strives to achieve the opposite
results of the index on a daily basis, finished the year with a loss of 5.23% in
its Investor Class, over the same period. Had the Fund perfectly mimicked its
benchmark, it would have lost 5.67%. Because of the effects of daily
compounding, the benchmark suffered a smaller loss than might otherwise be
expected. These effects are described briefly on page 4 of this report.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
URSA FUND
DATE C-CLASS S&P 500 INDEX
------------- --------- -------------
3/15/2001 10,000 10,000
3/31/2001 10,136 9,889
4/30/2001 9,388 10,657
5/31/2001 9,397 10,729
6/30/2001 9,602 10,468
7/31/2001 9,728 10,365
8/31/2001 10,398 9,716
9/30/2001 11,273 8,931
10/31/2001 11,040 9,101
11/30/2001 10,282 9,800
12/31/2001 10,187 9,885
1/31/2002 10,333 9,741
2/28/2002 10,490 9,553
3/31/2002 10,099 9,913
4/30/2002 10,743 9,312
5/31/2002 10,782 9,243
6/30/2002 11,592 8,585
7/31/2002 12,392 7,915
8/31/2002 12,207 7,967
9/30/2002 13,602 7,102
10/31/2002 12,373 7,727
11/30/2002 11,651 8,181
12/31/2002 12,333 7,701
1/31/2003 12,598 7,499
2/28/2003 12,745 7,386
3/31/2003 12,558 7,458
4/30/2003 11,577 8,073
5/31/2003 10,939 8,498
6/30/2003 10,802 8,606
7/31/2003 10,606 8,758
8/31/2003 10,370 8,929
9/30/2003 10,469 8,834
10/31/2003 9,899 9,334
11/30/2003 9,782 9,416
12/31/2003 9,315 9,910
1/31/2004 9,111 10,092
2/29/2004 8,968 10,232
3/31/2004 9,090 10,077
4/30/2004 9,213 9,919
5/31/2004 9,080 10,055
6/30/2004 8,896 10,251
7/31/2004 9,203 9,912
8/31/2004 9,152 9,952
9/30/2004 9,060 10,060
10/31/2004 8,927 10,213
11/30/2004 8,569 10,626
12/31/2004 8,303 10,988
1/31/2005 8,518 10,720
2/28/2005 8,354 10,946
3/31/2005 8,518 10,752
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
URSA FUND
DATE INVESTOR CLASS S&P 500 INDEX
------------ -------------- -------------
1/7/1994 10,000 10,000
3/31/1994 10,500 9,544
6/30/1994 10,540 9,584
9/30/1994 10,200 10,053
12/31/1994 10,372 10,051
3/31/1995 9,637 11,030
6/30/1995 9,056 12,083
9/30/1995 8,562 13,043
12/31/1995 8,283 13,828
3/31/1996 7,985 14,570
6/30/1996 7,779 15,224
9/30/1996 7,706 15,695
12/31/1996 7,275 17,003
3/31/1997 7,254 17,459
6/30/1997 6,231 20,507
9/30/1997 5,880 22,043
12/31/1997 5,749 22,676
3/31/1998 5,147 25,839
6/30/1998 5,064 26,693
9/30/1998 5,614 24,037
12/31/1998 4,656 29,157
3/31/1999 4,505 30,609
6/30/1999 4,266 32,767
9/30/1999 4,604 30,721
12/31/1999 4,078 35,292
3/31/2000 4,026 36,101
6/30/2000 4,214 35,142
9/30/2000 4,345 34,802
12/31/2000 4,790 32,079
3/31/2001 5,502 28,276
6/30/2001 5,228 29,930
9/30/2001 6,151 25,537
12/31/2001 5,572 28,266
3/31/2002 5,535 28,343
6/30/2002 6,372 24,546
9/30/2002 7,495 20,306
12/31/2002 6,811 22,019
3/31/2003 6,955 21,325
6/30/2003 5,996 24,608
9/30/2003 5,826 25,259
12/31/2003 5,195 28,335
3/31/2004 5,084 28,815
6/30/2004 4,990 29,311
9/30/2004 5,095 28,763
12/31/2004 4,685 31,418
3/31/2005 4,818 30,743
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(01/07/94) (08/05/98) (03/31/04) (03/15/01)
- ------------------------------------------------------------------------------------------------------------------------------
ONE FIVE TEN SINCE ONE FIVE SINCE ONE SINCE ONE SINCE
YEAR YEAR YEAR INCEPTION YEAR YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------
URSA FUND -5.23% 3.66% -6.70% -6.30% -5.75% 3.08% -2.02% -5.64% -5.64% -6.30% -3.89%
S&P 500 INDEX 6.69% -3.16% 10.79% 10.52% 6.69% -3.16% 2.86% 6.69% 6.69% 6.69% 1.81%
- ------------------------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
URSA FUND S&P 500 INDEX
--------- -------------
Other 9.6%
Financials 20.8%
Information Technology 15.9%
Health Care 12.4%
Consumer Discretionary 11.9%
Industrials 11.8%
Consumer Staples 10.6%
Energy 7.0%
Futures Contracts -43.5%
Equity Index Swap Agreements -57.1%
"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 derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 11
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
OTC FUND
OBJECTIVE: To provide investment results that correspond to a benchmark for
over-the-counter securities. The Fund's current benchmark is the Nasdaq 100
Index.
Inception: February 14, 1994
The Nasdaq 100 Index is seen by many as a proxy for technology stocks, which,
unfortunately, did not perform well during the year ended March 31, 2005. Unlike
many pure technology indices, the Nasdaq 100 Index did manage to produce a small
gain for the year, rising 3.07% on a total return basis. This modest gain was
due in part to good performances from several stocks in non-technology sectors.
Retailer Sears Holdings Corporation (formerly Kmart) was the top performer in
the index, gaining more than 200%, while casino operator Wynn Resorts nearly
doubled in price. During the year, Rydex OTC Fund Investor Class returned 2.16%.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
OTC FUND
DATE C-CLASS NASDAQ 100 INDEX
-------------- -------- ----------------
3/26/2001 10,000 10,000
3/31/2001 9,372 9,381
4/30/2001 11,054 11,062
5/31/2001 10,669 10,733
6/30/2001 10,837 10,913
7/31/2001 9,933 10,039
8/31/2001 8,628 8,764
9/30/2001 6,828 6,967
10/31/2001 7,958 8,138
11/30/2001 9,289 9,517
12/31/2001 9,146 9,404
1/31/2002 8,971 9,244
2/28/2002 7,858 8,105
3/31/2002 8,393 8,663
4/30/2002 7,339 7,615
5/31/2002 6,946 7,205
6/30/2002 6,017 6,270
7/31/2002 5,515 5,737
8/31/2002 5,389 5,619
9/30/2002 4,745 4,964
10/31/2002 5,632 5,901
11/30/2002 6,343 6,655
12/31/2002 5,573 5,870
1/31/2003 5,548 5,862
2/28/2003 5,690 6,021
3/31/2003 5,741 6,074
4/30/2003 6,218 6,595
5/31/2003 6,728 7,143
6/30/2003 6,720 7,166
7/31/2003 7,121 7,614
8/31/2003 7,456 7,998
9/30/2003 7,188 7,774
10/31/2003 7,791 8,446
11/30/2003 7,833 8,493
12/31/2003 8,059 8,753
1/31/2004 8,184 8,903
2/29/2004 8,067 8,768
3/31/2004 7,874 8,577
4/30/2004 7,657 8,356
5/31/2004 7,992 8,743
6/30/2004 8,251 9,044
7/31/2004 7,615 8,351
8/31/2004 7,406 8,161
9/30/2004 7,632 8,424
10/31/2004 8,025 8,865
11/30/2004 8,469 9,371
12/31/2004 8,736 9,667
1/31/2005 8,184 9,062
2/28/2005 8,126 9,010
3/31/2005 7,950 8,840
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
OTC FUND
DATE INVESTOR CLASS NASDAQ 100 INDEX
--------------- -------------- ----------------
2/14/1994 10,000 10,000
3/31/1994 9,370 9,453
6/30/1994 8,760 8,894
9/30/1994 9,470 9,722
12/31/1994 9,721 9,979
3/31/1995 10,721 11,038
6/30/1995 13,053 13,281
9/30/1995 14,206 14,443
12/31/1995 14,021 14,224
3/31/1996 14,805 15,050
6/30/1996 16,514 16,719
9/30/1996 18,027 18,207
12/31/1996 20,115 20,275
3/31/1997 19,569 19,675
6/30/1997 23,694 23,631
9/30/1997 27,132 27,084
12/31/1997 24,510 24,458
3/31/1998 30,341 30,132
6/30/1998 33,322 33,012
9/30/1998 33,728 33,213
12/31/1998 45,705 45,322
3/31/1999 52,711 51,996
6/30/1999 57,208 56,696
9/30/1999 59,938 59,439
12/31/1999 91,705 91,528
3/31/2000 108,228 108,561
6/30/2000 92,529 92,909
9/30/2000 87,518 88,141
12/31/2000 56,927 57,805
3/31/2001 37,671 38,836
6/30/2001 43,764 45,178
9/30/2001 27,672 28,841
12/31/2001 37,199 38,929
3/31/2002 34,203 35,863
6/30/2002 24,575 25,954
9/30/2002 19,458 20,551
12/31/2002 22,858 24,299
3/31/2003 23,632 25,146
6/30/2003 27,740 29,664
9/30/2003 29,759 32,182
12/31/2003 33,429 36,236
3/31/2004 32,756 35,507
6/30/2004 34,439 37,438
9/30/2004 31,948 34,873
12/31/2004 36,661 40,017
3/31/2005 33,463 36,596
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(02/14/94) (09/22/98) (03/31/04) (03/26/01)
- ------------------------------------------------------------------------------------------------------------------------------
ONE FIVE TEN SINCE ONE FIVE SINCE ONE SINCE ONE SINCE
YEAR YEAR YEAR INCEPTION YEAR YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------
OTC FUND 2.16% -20.92% 12.06% 11.47% 1.48% -21.35% -0.53% 1.80% 1.80% 0.96% -5.56%
NASDAQ 100 INDEX 3.07% -19.54% 12.73% 12.37% 3.07% -19.54% 1.61% 3.07% 3.07% 3.07% -3.02%
- ------------------------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE NASDAQ 100 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE
GRAPHS ARE BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE
FOR ADVISOR CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE
STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
OTC FUND NASDAQ 100 INDEX
-------- ----------------
Other 8.2% 5.7%
Information Technology 56.8% 58.4%
Consumer Discretionary 17.7% 16.8%
Health Care 12.1% 12.9%
Industrials 4.7% 6.2%
Futures Contracts 0.8% 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. 8.4%
Qualcomm, Inc. 5.8%
Intel Corp. 4.5%
Cisco Systems, Inc. 4.3%
Apple Computer, Inc. 3.7%
Comcast Corp. -- Class A 3.3%
Nextel Communications, Inc. --
Class A 3.1%
Dell, Inc. 2.9%
eBay, Inc. 2.8%
Amgen, Inc. 2.4%
- -------------------------------------------------------
Top Ten Total 41.2%
- -------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
12 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
ARKTOS FUND
OBJECTIVE: To provide investment results that will match the performance of a
specific benchmark. The Fund's current benchmark is the inverse of the
performance of the Nasdaq 100 Index. The investment objective of the Arktos Fund
is non-fundamental and may be changed without shareholder approval.
Inception: September 3, 1998
In part because of disappointing returns in the technology and health care
sectors--which comprise a large part of the Nasdaq 100 Index--the Nasdaq 100
Index eked out a mere 3.07% total return for the year ended March 31, 2005.
Rydex Arktos Fund, which strives to achieve results that are opposite the Nasdaq
100 Index on a daily basis, declined 4.44% during the period in its Investor
Class. Had the Fund perfectly mimicked its benchmark, it would have lost 5.93%.
Because of the effects of daily compounding, exacerbated by wide price swings
during the year, the benchmark suffered a larger loss than might otherwise be
expected and the fund lost less than expected. The effects of compounding are
described briefly on page 4 of this report.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
ARKTOS FUND
DATE C-CLASS NASDAQ 100 INDEX
----------- -------------- ----------------
3/7/2001 10,000 10,000
3/31/2001 12,265 7,880
4/30/2001 9,894 9,292
5/31/2001 10,045 9,016
6/30/2001 9,801 9,167
7/31/2001 10,528 8,433
8/31/2001 11,935 7,362
9/30/2001 14,787 5,852
10/31/2001 12,364 6,836
11/30/2001 10,470 7,995
12/31/2001 10,481 7,899
1/31/2002 10,567 7,765
2/28/2002 11,943 6,808
3/31/2002 11,063 7,277
4/30/2002 12,462 6,397
5/31/2002 12,882 6,053
6/30/2002 14,648 5,267
7/31/2002 15,522 4,819
8/31/2002 15,515 4,720
9/30/2002 17,334 4,170
10/31/2002 14,309 4,957
11/30/2002 12,462 5,591
12/31/2002 14,044 4,931
1/31/2003 13,894 4,924
2/28/2003 13,427 5,058
3/31/2003 13,163 5,102
4/30/2003 12,065 5,540
5/31/2003 11,077 6,000
6/30/2003 10,998 6,019
7/31/2003 10,299 6,396
8/31/2003 9,772 6,718
9/30/2003 9,986 6,530
10/31/2003 9,151 7,095
11/30/2003 9,058 7,134
12/31/2003 8,762 7,353
1/31/2004 8,588 7,479
2/29/2004 8,702 7,365
3/31/2004 8,855 7,205
4/30/2004 9,037 7,019
5/31/2004 8,613 7,344
6/30/2004 8,306 7,597
7/31/2004 8,962 7,015
8/31/2004 9,137 6,856
9/30/2004 8,837 7,076
10/31/2004 8,377 7,447
11/30/2004 7,906 7,872
12/31/2004 7,668 8,120
1/31/2005 8,174 7,612
2/28/2005 8,213 7,569
3/31/2005 8,374 7,426
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
ARKTOS FUND
DATE INVESTOR CLASS NASDAQ 100 INDEX
--------------- -------------- ----------------
9/3/1998 10,000 10,000
9/30/1998 8,860 11,130
12/31/1998 6,359 15,187
3/31/1999 5,365 17,424
6/30/1999 4,804 18,999
9/30/1999 4,531 19,918
12/31/1999 2,905 30,671
3/31/2000 2,339 36,379
6/30/2000 2,455 31,134
9/30/2000 2,549 29,536
12/31/2000 3,589 19,371
3/31/2001 4,794 13,014
6/30/2001 3,844 15,139
9/30/2001 5,816 9,665
12/31/2001 4,132 13,045
3/31/2002 4,370 12,018
6/30/2002 5,803 8,697
9/30/2002 6,886 6,887
12/31/2002 5,597 8,143
3/31/2003 5,260 8,426
6/30/2003 4,408 9,940
9/30/2003 4,011 10,784
12/31/2003 3,531 12,143
3/31/2004 3,577 11,899
6/30/2004 3,365 12,546
9/30/2004 3,588 11,686
12/31/2004 3,122 13,410
3/31/2005 3,418 12,263
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(09/03/98) (08/01/03) (03/31/04) (03/07/01)
- --------------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE SINCE ONE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------------------------------------------
ARKTOS FUND -4.44% 7.88% -15.07% -4.92% -11.74% -4.73% -4.73% -5.44% -4.27%
NASDAQ 100 INDEX 3.07% -19.54% 3.15% 3.07% 10.03% 3.07% 3.07% 3.07% -7.06%
- --------------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE NASDAQ 100 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE
GRAPHS ARE BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE
FOR ADVISOR CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE
STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
ARKTOS FUND NASDAQ 100 INDEX
----------- ----------------
Other 5.7%
Information Technology 58.4%
Consumer Discretionary 16.8%
Health Care 12.9%
Industrials 6.2%
Futures Contracts -26.7%
Equity Index Swap Agreements -73.3%
"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 derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 13
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
MEDIUS FUND
OBJECTIVE: To provide investment results that correlate to the performance of a
specific benchmark for mid-cap securities. The Fund's current benchmark is the
S&P MidCap 400 Index. The investment objective of the Medius Fund is
non-fundamental and may be changed without shareholder approval.
Inception: August 16, 2001
Mid-cap stocks have performed very strongly in recent years and the 12-month
period ended March 31, 2005 was no exception. The S&P MidCap 400 Index, which
rose 10.41%, outperformed both the large-cap S&P 500 Index and the small-cap
Russell 2000(R) Index. The mid-cap index was aided by the energy and basic
materials sectors, whose positive performance outweighed technology's
underperformance.
Rydex Medius Fund H-Class returned 12.58% for the period. Had the Fund perfectly
mimicked its benchmark of 150% of the daily price movement of the S&P MidCap 400
Index, it would have returned 13.33%. The apparent discrepancy between the
leveraged and unleveraged indices is the result of compounding, which is
described briefly on page 4 of this report.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
MEDIUS FUND S&P MIDCAP
DATE C-CLASS 400 INDEX
------------ ----------- ----------
8/20/2001 10,000 10,000
8/31/2001 9,870 9,940
9/30/2001 8,007 8,703
10/31/2001 8,390 9,088
11/30/2001 9,254 9,764
12/31/2001 9,870 10,269
1/31/2002 9,719 10,216
2/28/2002 9,629 10,228
3/31/2002 10,599 10,959
4/30/2002 10,457 10,908
5/31/2002 10,143 10,724
6/30/2002 8,989 9,939
7/31/2002 7,660 8,976
8/31/2002 7,644 9,022
9/30/2002 6,661 8,295
10/31/2002 7,036 8,654
11/30/2002 7,619 9,155
12/31/2002 7,110 8,779
1/31/2003 6,766 8,522
2/28/2003 6,491 8,319
3/31/2003 6,503 8,389
4/30/2003 7,188 8,998
5/31/2003 8,128 9,744
6/30/2003 8,251 9,868
7/31/2003 8,653 10,219
8/31/2003 9,203 10,682
9/30/2003 8,985 10,518
10/31/2003 9,945 11,314
11/30/2003 10,438 11,708
12/31/2003 10,655 11,905
1/31/2004 10,979 12,163
2/29/2004 11,336 12,456
3/31/2004 11,389 12,508
4/30/2004 10,794 12,098
5/31/2004 11,073 12,349
6/30/2004 11,422 12,630
7/31/2004 10,565 12,041
8/31/2004 10,483 12,009
9/30/2004 10,930 12,365
10/31/2004 11,201 12,563
11/30/2004 12,198 13,311
12/31/2004 12,870 13,868
1/31/2005 12,341 13,514
2/28/2005 12,936 13,967
3/31/2005 12,731 13,811
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
MEDIUS FUND S&P MIDCAP
DATE H-CLASS 400 INDEX
------------ ----------- -----------
8/16/2001 10,000 10,000
8/31/2001 9,688 9,822
9/30/2001 7,860 8,600
10/31/2001 8,240 8,980
11/30/2001 9,096 9,649
12/31/2001 9,708 10,147
1/31/2002 9,564 10,094
2/28/2002 9,472 10,107
3/31/2002 10,432 10,829
4/30/2002 10,300 10,779
5/31/2002 9,996 10,597
6/30/2002 8,864 9,821
7/31/2002 7,560 8,870
8/31/2002 7,552 8,914
9/30/2002 6,584 8,196
10/31/2002 6,964 8,551
11/30/2002 7,548 9,046
12/31/2002 7,048 8,674
1/31/2003 6,710 8,421
2/28/2003 6,441 8,220
3/31/2003 6,457 8,290
4/30/2003 7,141 8,891
5/31/2003 8,079 9,628
6/30/2003 8,208 9,751
7/31/2003 8,614 10,097
8/31/2003 9,162 10,555
9/30/2003 8,957 10,393
10/31/2003 9,919 11,179
11/30/2003 10,410 11,569
12/31/2003 10,635 11,764
1/31/2004 10,969 12,019
2/29/2004 11,332 12,308
3/31/2004 11,392 12,360
4/30/2004 10,804 11,954
5/31/2004 11,090 12,202
6/30/2004 11,444 12,480
7/31/2004 10,591 11,898
8/31/2004 10,514 11,866
9/30/2004 10,969 12,218
10/31/2004 11,251 12,413
11/30/2004 12,261 13,153
12/31/2004 12,946 13,703
1/31/2005 12,422 13,353
2/28/2005 13,022 13,801
3/31/2005 12,825 13,647
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(03/31/04) (08/20/01) (08/16/01)
- --------------------------------------------------------------------------------------------------------------------
ONE SINCE ONE SINCE ONE SINCE
YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------------------------------------------
MEDIUS FUND 12.58% 12.58% 11.78% 6.92% 12.58% 7.11%
S&P MIDCAP 400 INDEX 10.41% 10.41% 10.41% 9.35% 10.41% 8.96%
- --------------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P MIDCAP 400 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE
GRAPHS ARE BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY; PERFORMANCE FOR
A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
MEDIUS FUND S&P MIDCAP 400 INDEX
----------- --------------------
Other 0.5% 5.2%
Consumer Discretionary 18.5% 19.4%
Financials 16.4% 18.7%
Information Technology 12.9% 14.4%
Industrials 11.9% 12.8%
Health Care 11.7% 10.6%
Energy 7.7% 6.9%
Utilities 6.6% 6.7%
Materials 5.0% 5.3%
Consumer Staples 4.6% 5.3%
Futures Contracts 20.7%
Equity Index Swap Agreements 33.1% 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)
- -------------------------------------------------------
Lennar Corp. -- Class A 1.4%
Weatherford International Ltd. 1.3%
IVAX Corp. 1.2%
Washington Post Co. -- Class B 1.2%
Commerce Bancorp, Inc./NJ 1.1%
Precision Castparts Corp. 1.1%
Lincare Holdings, Inc. 1.1%
Williams-Sonoma, Inc. 1.0%
American Eagle Outfitters 1.0%
Mercantile Bankshares Corp. 1.0%
- -------------------------------------------------------
Top Ten Total 11.4%
- -------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
14 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
INVERSE MID-CAP FUND
OBJECTIVE: To provide investment results that will match the performance of a
specific benchmark. The Fund's current benchmark is the inverse of the
performance of the S&P MidCap 400 Index. The investment objective of the Inverse
Mid-Cap Fund is non-fundamental and may be changed without shareholder approval.
Inception: February 20, 2004
Mid-caps performed very well during the period. Because Rydex Inverse Mid-Cap
Fund is designed to deliver daily performance opposite to the S&P MidCap 400
Index, the Fund's H-Class declined 10.20% during the period versus the
benchmark's gain of 10.41%, as expected.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
INVERSE MID-CAP FUND S&P MIDCAP
DATE C-CLASS 400 INDEX
--------- -------------------- -----------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 10,114 9,882
2/24/2004 10,100 9,898
2/25/2004 10,028 9,961
2/26/2004 9,954 10,046
2/27/2004 9,912 10,085
2/28/2004 9,912 10,085
2/29/2004 9,912 10,085
3/1/2004 9,750 10,248
3/2/2004 9,796 10,212
3/3/2004 9,798 10,207
3/4/2004 9,742 10,264
3/5/2004 9,672 10,329
3/6/2004 9,672 10,329
3/7/2004 9,672 10,329
3/8/2004 9,770 10,230
3/9/2004 9,852 10,152
3/10/2004 10,032 9,976
3/11/2004 10,160 9,868
3/12/2004 9,984 10,025
3/13/2004 9,984 10,025
3/14/2004 9,984 10,025
3/15/2004 10,146 9,856
3/16/2004 10,138 9,869
3/17/2004 9,990 10,001
3/18/2004 10,024 9,964
3/19/2004 10,056 9,891
3/20/2004 10,056 9,891
3/21/2004 10,056 9,891
3/22/2004 10,230 9,724
3/23/2004 10,206 9,746
3/24/2004 10,258 9,695
3/25/2004 10,068 9,871
3/26/2004 10,052 9,884
3/27/2004 10,052 9,884
3/28/2004 10,052 9,884
3/29/2004 9,908 10,021
3/30/2004 9,836 10,085
3/31/2004 9,796 10,128
4/1/2004 9,708 10,213
4/2/2004 9,632 10,266
4/3/2004 9,632 10,266
4/4/2004 9,632 10,266
4/5/2004 9,596 10,350
4/6/2004 9,634 10,298
4/7/2004 9,630 10,301
4/8/2004 9,678 10,246
4/9/2004 9,678 10,246
4/10/2004 9,678 10,246
4/11/2004 9,678 10,246
4/12/2004 9,652 10,272
4/13/2004 9,836 10,091
4/14/2004 9,876 10,047
4/15/2004 9,896 10,029
4/16/2004 9,830 10,083
4/17/2004 9,830 10,083
4/18/2004 9,830 10,083
4/19/2004 9,794 10,121
4/20/2004 9,928 9,979
4/21/2004 9,836 10,071
4/22/2004 9,658 10,241
4/23/2004 9,694 10,204
4/24/2004 9,694 10,204
4/25/2004 9,694 10,204
4/26/2004 9,722 10,162
4/27/2004 9,706 10,180
4/28/2004 9,852 10,021
4/29/2004 10,004 9,872
4/30/2004 10,066 9,796
5/1/2004 10,066 9,796
5/2/2004 10,066 9,796
5/3/2004 9,948 9,887
5/4/2004 9,930 9,910
5/5/2004 9,872 9,959
5/6/2004 10,002 9,842
5/7/2004 10,212 9,631
5/8/2004 10,212 9,631
5/9/2004 10,212 9,631
5/10/2004 10,394 9,469
5/11/2004 10,262 9,593
5/12/2004 10,276 9,567
5/13/2004 10,268 9,579
5/14/2004 10,310 9,550
5/15/2004 10,310 9,550
5/16/2004 10,310 9,550
5/17/2004 10,420 9,438
5/18/2004 10,328 9,524
5/19/2004 10,348 9,499
5/20/2004 10,350 9,502
5/21/2004 10,288 9,550
5/22/2004 10,288 9,550
5/23/2004 10,288 9,550
5/24/2004 10,180 9,649
5/25/2004 9,982 9,835
5/26/2004 9,924 9,895
5/27/2004 9,874 9,949
5/28/2004 9,826 9,999
5/29/2004 9,826 9,999
5/30/2004 9,826 9,999
5/31/2004 9,826 9,999
6/1/2004 9,788 10,031
6/2/2004 9,792 10,030
6/3/2004 9,928 9,890
6/4/2004 9,860 9,960
6/5/2004 9,860 9,960
6/6/2004 9,860 9,960
6/7/2004 9,696 10,129
6/8/2004 9,712 10,112
6/9/2004 9,836 9,988
6/10/2004 9,806 10,014
6/11/2004 9,806 10,014
6/12/2004 9,806 10,014
6/13/2004 9,806 10,014
6/14/2004 9,932 9,872
6/15/2004 9,804 9,996
6/16/2004 9,790 10,014
6/17/2004 9,792 10,007
6/18/2004 9,804 10,008
6/19/2004 9,804 10,008
6/20/2004 9,804 10,008
6/21/2004 9,820 9,982
6/22/2004 9,762 10,038
6/23/2004 9,674 10,127
6/24/2004 9,692 10,112
6/25/2004 9,642 10,158
6/26/2004 9,642 10,158
6/27/2004 9,642 10,158
6/28/2004 9,696 10,105
6/29/2004 9,666 10,135
6/30/2004 9,582 10,227
7/1/2004 9,704 10,099
7/2/2004 9,714 10,078
7/3/2004 9,714 10,078
7/4/2004 9,714 10,078
7/5/2004 9,714 10,078
7/6/2004 9,852 9,939
7/7/2004 9,828 9,968
7/8/2004 9,950 9,847
7/9/2004 9,892 9,895
7/10/2004 9,892 9,895
7/11/2004 9,892 9,895
7/12/2004 9,928 9,870
7/13/2004 9,924 9,880
7/14/2004 9,958 9,847
7/15/2004 9,904 9,898
7/16/2004 9,952 9,829
7/17/2004 9,952 9,829
7/18/2004 9,952 9,829
7/19/2004 9,950 9,839
7/20/2004 9,830 9,955
7/21/2004 10,026 9,752
7/22/2004 10,046 9,733
7/23/2004 10,174 9,620
7/24/2004 10,174 9,620
7/25/2004 10,174 9,620
7/26/2004 10,260 9,536
7/27/2004 10,120 9,665
7/28/2004 10,170 9,616
7/29/2004 10,036 9,742
7/30/2004 10,042 9,749
7/31/2004 10,042 9,749
8/1/2004 10,042 9,749
8/2/2004 10,016 9,765
8/3/2004 10,136 9,659
8/4/2004 10,168 9,627
8/5/2004 10,352 9,446
8/6/2004 10,524 9,292
8/7/2004 10,524 9,292
8/8/2004 10,524 9,292
8/9/2004 10,510 9,307
8/10/2004 10,336 9,458
8/11/2004 10,404 9,399
8/12/2004 10,548 9,269
8/13/2004 10,552 9,262
8/14/2004 10,552 9,262
8/15/2004 10,552 9,262
8/16/2004 10,380 9,415
8/17/2004 10,332 9,458
8/18/2004 10,180 9,597
8/19/2004 10,250 9,533
8/20/2004 10,116 9,659
8/21/2004 10,116 9,659
8/22/2004 10,116 9,659
8/23/2004 10,172 9,605
8/24/2004 10,158 9,621
8/25/2004 10,058 9,710
8/26/2004 10,060 9,714
8/27/2004 10,008 9,762
8/28/2004 10,008 9,762
8/29/2004 10,008 9,762
8/30/2004 10,124 9,650
8/31/2004 10,042 9,724
9/1/2004 9,964 9,805
9/2/2004 9,876 9,892
9/3/2004 9,924 9,846
9/4/2004 9,924 9,846
9/5/2004 9,924 9,846
9/6/2004 9,924 9,846
9/7/2004 9,852 9,920
9/8/2004 9,944 9,827
9/9/2004 9,874 9,897
9/10/2004 9,834 9,937
9/11/2004 9,834 9,937
9/12/2004 9,834 9,937
9/13/2004 9,772 9,999
9/14/2004 9,796 9,976
9/15/2004 9,850 9,922
9/16/2004 9,782 9,991
9/17/2004 9,782 9,990
9/18/2004 9,782 9,990
9/19/2004 9,782 9,990
9/20/2004 9,828 9,945
9/21/2004 9,746 10,028
9/22/2004 9,868 9,906
9/23/2004 9,894 9,876
9/24/2004 9,848 9,930
9/25/2004 9,848 9,930
9/26/2004 9,848 9,930
9/27/2004 9,932 9,833
9/28/2004 9,866 9,902
9/29/2004 9,822 9,941
9/30/2004 9,758 10,012
10/1/2004 9,610 10,158
10/2/2004 9,610 10,158
10/3/2004 9,610 10,158
10/4/2004 9,582 10,189
10/5/2004 9,608 10,164
10/6/2004 9,546 10,229
10/7/2004 9,668 10,101
10/8/2004 9,736 10,031
10/9/2004 9,736 10,031
10/10/2004 9,736 10,031
10/11/2004 9,728 10,033
10/12/2004 9,762 10,002
10/13/2004 9,842 9,918
10/14/2004 9,910 9,844
10/15/2004 9,872 9,882
10/16/2004 9,872 9,882
10/17/2004 9,872 9,882
10/18/2004 9,824 9,931
10/19/2004 9,894 9,859
10/20/2004 9,848 9,903
10/21/2004 9,754 9,998
10/22/2004 9,842 9,908
10/23/2004 9,842 9,908
10/24/2004 9,842 9,908
10/25/2004 9,812 9,937
10/26/2004 9,728 10,006
10/27/2004 9,588 10,161
10/28/2004 9,602 10,150
10/29/2004 9,584 10,172
10/30/2004 9,584 10,172
10/31/2004 9,584 10,172
11/1/2004 9,580 10,173
11/2/2004 9,594 10,161
11/3/2004 9,458 10,298
11/4/2004 9,322 10,447
11/5/2004 9,296 10,475
11/6/2004 9,296 10,475
11/7/2004 9,296 10,475
11/8/2004 9,324 10,438
11/9/2004 9,296 10,475
11/10/2004 9,274 10,501
11/11/2004 9,184 10,602
11/12/2004 9,080 10,722
11/13/2004 9,080 10,722
11/14/2004 9,080 10,722
11/15/2004 9,086 10,713
11/16/2004 9,142 10,649
11/17/2004 9,066 10,737
11/18/2004 9,076 10,730
11/19/2004 9,180 10,605
11/20/2004 9,180 10,605
11/21/2004 9,180 10,605
11/22/2004 9,104 10,685
11/23/2004 9,068 10,729
11/24/2004 8,986 10,822
11/25/2004 8,986 10,822
11/26/2004 8,986 10,830
11/27/2004 8,986 10,830
11/28/2004 8,986 10,830
11/29/2004 9,008 10,807
11/30/2004 9,030 10,778
12/1/2004 8,906 10,921
12/2/2004 8,942 10,877
12/3/2004 8,926 10,907
12/4/2004 8,926 10,907
12/5/2004 8,926 10,907
12/6/2004 8,950 10,875
12/7/2004 9,064 10,723
12/8/2004 9,008 10,789
12/9/2004 8,978 10,836
12/10/2004 8,968 10,850
12/11/2004 8,968 10,850
12/12/2004 8,968 10,850
12/13/2004 8,904 10,927
12/14/2004 8,818 11,029
12/15/2004 8,764 11,099
12/16/2004 8,818 11,031
12/17/2004 8,824 11,027
12/18/2004 8,824 11,027
12/19/2004 8,824 11,027
12/20/2004 8,860 10,977
12/21/2004 8,764 11,093
12/22/2004 8,730 11,130
12/23/2004 8,722 11,143
12/24/2004 8,722 11,143
12/25/2004 8,722 11,143
12/26/2004 8,722 11,143
12/27/2004 8,790 11,076
12/28/2004 8,684 11,212
12/29/2004 8,666 11,222
12/30/2004 8,650 11,249
12/31/2004 8,666 11,229
1/1/2005 8,666 11,229
1/2/2005 8,666 11,229
1/3/2005 8,810 11,041
1/4/2005 8,948 10,869
1/5/2005 9,050 10,752
1/6/2005 9,010 10,803
1/7/2005 9,054 10,747
1/8/2005 9,054 10,747
1/9/2005 9,054 10,747
1/10/2005 9,002 10,809
1/11/2005 9,058 10,744
1/12/2005 9,038 10,771
1/13/2005 9,052 10,751
1/14/2005 8,980 10,845
1/15/2005 8,980 10,845
1/16/2005 8,980 10,845
1/17/2005 8,980 10,845
1/18/2005 8,896 10,944
1/19/2005 8,980 10,846
1/20/2005 9,024 10,793
1/21/2005 9,070 10,733
1/22/2005 9,070 10,733
1/23/2005 9,070 10,733
1/24/2005 9,126 10,668
1/25/2005 9,108 10,690
1/26/2005 9,014 10,799
1/27/2005 8,988 10,835
1/28/2005 9,032 10,784
1/29/2005 9,032 10,784
1/30/2005 9,032 10,784
1/31/2005 8,900 10,942
2/1/2005 8,832 11,025
2/2/2005 8,786 11,082
2/3/2005 8,804 11,060
2/4/2005 8,684 11,212
2/5/2005 8,684 11,212
2/6/2005 8,684 11,212
2/7/2005 8,702 11,189
2/8/2005 8,676 11,225
2/9/2005 8,788 11,078
2/10/2005 8,758 11,117
2/11/2005 8,668 11,232
2/12/2005 8,668 11,232
2/13/2005 8,668 11,232
2/14/2005 8,668 11,234
2/15/2005 8,650 11,258
2/16/2005 8,612 11,309
2/17/2005 8,676 11,225
2/18/2005 8,688 11,213
2/19/2005 8,688 11,213
2/20/2005 8,688 11,213
2/21/2005 8,688 11,213
2/22/2005 8,828 11,031
2/23/2005 8,776 11,094
2/24/2005 8,668 11,233
2/25/2005 8,560 11,368
2/26/2005 8,560 11,368
2/27/2005 8,560 11,368
2/28/2005 8,608 11,309
3/1/2005 8,534 11,405
3/2/2005 8,542 11,399
3/3/2005 8,546 11,393
3/4/2005 8,454 11,518
3/5/2005 8,454 11,518
3/6/2005 8,454 11,518
3/7/2005 8,412 11,575
3/8/2005 8,476 11,486
3/9/2005 8,570 11,362
3/10/2005 8,586 11,345
3/11/2005 8,586 11,343
3/12/2005 8,586 11,343
3/13/2005 8,586 11,343
3/14/2005 8,522 11,428
3/15/2005 8,564 11,377
3/16/2005 8,640 11,278
3/17/2005 8,624 11,302
3/18/2005 8,664 11,257
3/19/2005 8,664 11,257
3/20/2005 8,664 11,257
3/21/2005 8,674 11,237
3/22/2005 8,720 11,184
3/23/2005 8,782 11,102
3/24/2005 8,768 11,121
3/25/2005 8,768 11,121
3/26/2005 8,768 11,121
3/27/2005 8,768 11,121
3/28/2005 8,762 11,127
3/29/2005 8,860 11,003
3/30/2005 8,756 11,140
3/31/2005 8,724 11,183
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
INVERSE MID-CAP FUND S&P MIDCAP
DATE H-CLASS 400 INDEX
--------- -------------------- -------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 10,114 9,882
2/24/2004 10,100 9,898
2/25/2004 10,028 9,961
2/26/2004 9,954 10,046
2/27/2004 9,912 10,085
2/28/2004 9,912 10,085
2/29/2004 9,912 10,085
3/1/2004 9,752 10,248
3/2/2004 9,796 10,212
3/3/2004 9,798 10,207
3/4/2004 9,742 10,264
3/5/2004 9,672 10,329
3/6/2004 9,672 10,329
3/7/2004 9,672 10,329
3/8/2004 9,772 10,230
3/9/2004 9,852 10,152
3/10/2004 10,032 9,976
3/11/2004 10,160 9,868
3/12/2004 9,984 10,025
3/13/2004 9,984 10,025
3/14/2004 9,984 10,025
3/15/2004 10,148 9,856
3/16/2004 10,142 9,869
3/17/2004 9,994 10,001
3/18/2004 10,028 9,964
3/19/2004 10,060 9,891
3/20/2004 10,060 9,891
3/21/2004 10,060 9,891
3/22/2004 10,234 9,724
3/23/2004 10,210 9,746
3/24/2004 10,264 9,695
3/25/2004 10,074 9,871
3/26/2004 10,058 9,884
3/27/2004 10,058 9,884
3/28/2004 10,058 9,884
3/29/2004 9,912 10,021
3/30/2004 9,842 10,085
3/31/2004 9,802 10,128
4/1/2004 9,712 10,213
4/2/2004 9,638 10,266
4/3/2004 9,638 10,266
4/4/2004 9,638 10,266
4/5/2004 9,602 10,350
4/6/2004 9,642 10,298
4/7/2004 9,636 10,301
4/8/2004 9,686 10,246
4/9/2004 9,686 10,246
4/10/2004 9,686 10,246
4/11/2004 9,686 10,246
4/12/2004 9,660 10,272
4/13/2004 9,844 10,091
4/14/2004 9,884 10,047
4/15/2004 9,904 10,029
4/16/2004 9,840 10,083
4/17/2004 9,840 10,083
4/18/2004 9,840 10,083
4/19/2004 9,804 10,121
4/20/2004 9,938 9,979
4/21/2004 9,846 10,071
4/22/2004 9,668 10,241
4/23/2004 9,704 10,204
4/24/2004 9,704 10,204
4/25/2004 9,704 10,204
4/26/2004 9,734 10,162
4/27/2004 9,716 10,180
4/28/2004 9,864 10,021
4/29/2004 10,016 9,872
4/30/2004 10,078 9,796
5/1/2004 10,078 9,796
5/2/2004 10,078 9,796
5/3/2004 9,960 9,887
5/4/2004 9,942 9,910
5/5/2004 9,884 9,959
5/6/2004 10,014 9,842
5/7/2004 10,226 9,631
5/8/2004 10,226 9,631
5/9/2004 10,226 9,631
5/10/2004 10,408 9,469
5/11/2004 10,276 9,593
5/12/2004 10,290 9,567
5/13/2004 10,282 9,579
5/14/2004 10,326 9,550
5/15/2004 10,326 9,550
5/16/2004 10,326 9,550
5/17/2004 10,436 9,438
5/18/2004 10,344 9,524
5/19/2004 10,364 9,499
5/20/2004 10,366 9,502
5/21/2004 10,306 9,550
5/22/2004 10,306 9,550
5/23/2004 10,306 9,550
5/24/2004 10,198 9,649
5/25/2004 9,998 9,835
5/26/2004 9,942 9,895
5/27/2004 9,894 9,949
5/28/2004 9,846 9,999
5/29/2004 9,846 9,999
5/30/2004 9,846 9,999
5/31/2004 9,846 9,999
6/1/2004 9,808 10,031
6/2/2004 9,814 10,030
6/3/2004 9,950 9,890
6/4/2004 9,882 9,960
6/5/2004 9,882 9,960
6/6/2004 9,882 9,960
6/7/2004 9,720 10,129
6/8/2004 9,734 10,112
6/9/2004 9,858 9,988
6/10/2004 9,828 10,014
6/11/2004 9,828 10,014
6/12/2004 9,828 10,014
6/13/2004 9,828 10,014
6/14/2004 9,956 9,872
6/15/2004 9,828 9,996
6/16/2004 9,814 10,014
6/17/2004 9,814 10,007
6/18/2004 9,826 10,008
6/19/2004 9,826 10,008
6/20/2004 9,826 10,008
6/21/2004 9,844 9,982
6/22/2004 9,786 10,038
6/23/2004 9,698 10,127
6/24/2004 9,716 10,112
6/25/2004 9,666 10,158
6/26/2004 9,666 10,158
6/27/2004 9,666 10,158
6/28/2004 9,720 10,105
6/29/2004 9,690 10,135
6/30/2004 9,608 10,227
7/1/2004 9,730 10,099
7/2/2004 9,740 10,078
7/3/2004 9,740 10,078
7/4/2004 9,740 10,078
7/5/2004 9,740 10,078
7/6/2004 9,878 9,939
7/7/2004 9,856 9,968
7/8/2004 9,978 9,847
7/9/2004 9,922 9,895
7/10/2004 9,922 9,895
7/11/2004 9,922 9,895
7/12/2004 9,956 9,870
7/13/2004 9,954 9,880
7/14/2004 9,986 9,847
7/15/2004 9,932 9,898
7/16/2004 9,980 9,829
7/17/2004 9,980 9,829
7/18/2004 9,980 9,829
7/19/2004 9,978 9,839
7/20/2004 9,858 9,955
7/21/2004 10,056 9,752
7/22/2004 10,076 9,733
7/23/2004 10,206 9,620
7/24/2004 10,206 9,620
7/25/2004 10,206 9,620
7/26/2004 10,292 9,536
7/27/2004 10,150 9,665
7/28/2004 10,202 9,616
7/29/2004 10,068 9,742
7/30/2004 10,074 9,749
7/31/2004 10,074 9,749
8/1/2004 10,074 9,749
8/2/2004 10,048 9,765
8/3/2004 10,168 9,659
8/4/2004 10,200 9,627
8/5/2004 10,384 9,446
8/6/2004 10,560 9,292
8/7/2004 10,560 9,292
8/8/2004 10,560 9,292
8/9/2004 10,546 9,307
8/10/2004 10,370 9,458
8/11/2004 10,438 9,399
8/12/2004 10,584 9,269
8/13/2004 10,588 9,262
8/14/2004 10,588 9,262
8/15/2004 10,588 9,262
8/16/2004 10,416 9,415
8/17/2004 10,368 9,458
8/18/2004 10,216 9,597
8/19/2004 10,286 9,533
8/20/2004 10,152 9,659
8/21/2004 10,152 9,659
8/22/2004 10,152 9,659
8/23/2004 10,208 9,605
8/24/2004 10,194 9,621
8/25/2004 10,094 9,710
8/26/2004 10,096 9,714
8/27/2004 10,044 9,762
8/28/2004 10,044 9,762
8/29/2004 10,044 9,762
8/30/2004 10,162 9,650
8/31/2004 10,080 9,724
9/1/2004 10,002 9,805
9/2/2004 9,914 9,892
9/3/2004 9,964 9,846
9/4/2004 9,964 9,846
9/5/2004 9,964 9,846
9/6/2004 9,964 9,846
9/7/2004 9,890 9,920
9/8/2004 9,984 9,827
9/9/2004 9,912 9,897
9/10/2004 9,874 9,937
9/11/2004 9,874 9,937
9/12/2004 9,874 9,937
9/13/2004 9,812 9,999
9/14/2004 9,836 9,976
9/15/2004 9,890 9,922
9/16/2004 9,822 9,991
9/17/2004 9,826 9,990
9/18/2004 9,826 9,990
9/19/2004 9,826 9,990
9/20/2004 9,870 9,945
9/21/2004 9,788 10,028
9/22/2004 9,912 9,906
9/23/2004 9,938 9,876
9/24/2004 9,890 9,930
9/25/2004 9,890 9,930
9/26/2004 9,890 9,930
9/27/2004 9,974 9,833
9/28/2004 9,908 9,902
9/29/2004 9,866 9,941
9/30/2004 9,800 10,012
10/1/2004 9,654 10,158
10/2/2004 9,654 10,158
10/3/2004 9,654 10,158
10/4/2004 9,624 10,189
10/5/2004 9,650 10,164
10/6/2004 9,588 10,229
10/7/2004 9,710 10,101
10/8/2004 9,780 10,031
10/9/2004 9,780 10,031
10/10/2004 9,780 10,031
10/11/2004 9,772 10,033
10/12/2004 9,806 10,002
10/13/2004 9,886 9,918
10/14/2004 9,954 9,844
10/15/2004 9,916 9,882
10/16/2004 9,916 9,882
10/17/2004 9,916 9,882
10/18/2004 9,870 9,931
10/19/2004 9,940 9,859
10/20/2004 9,894 9,903
10/21/2004 9,800 9,998
10/22/2004 9,890 9,908
10/23/2004 9,890 9,908
10/24/2004 9,890 9,908
10/25/2004 9,860 9,937
10/26/2004 9,776 10,006
10/27/2004 9,636 10,161
10/28/2004 9,650 10,150
10/29/2004 9,634 10,172
10/30/2004 9,634 10,172
10/31/2004 9,634 10,172
11/1/2004 9,632 10,173
11/2/2004 9,644 10,161
11/3/2004 9,508 10,298
11/4/2004 9,372 10,447
11/5/2004 9,346 10,475
11/6/2004 9,346 10,475
11/7/2004 9,346 10,475
11/8/2004 9,376 10,438
11/9/2004 9,348 10,475
11/10/2004 9,326 10,501
11/11/2004 9,236 10,602
11/12/2004 9,132 10,722
11/13/2004 9,132 10,722
11/14/2004 9,132 10,722
11/15/2004 9,138 10,713
11/16/2004 9,194 10,649
11/17/2004 9,118 10,737
11/18/2004 9,128 10,730
11/19/2004 9,232 10,605
11/20/2004 9,232 10,605
11/21/2004 9,232 10,605
11/22/2004 9,156 10,685
11/23/2004 9,120 10,729
11/24/2004 9,038 10,822
11/25/2004 9,038 10,822
11/26/2004 9,038 10,830
11/27/2004 9,038 10,830
11/28/2004 9,038 10,830
11/29/2004 9,062 10,807
11/30/2004 9,084 10,778
12/1/2004 8,958 10,921
12/2/2004 8,996 10,877
12/3/2004 8,980 10,907
12/4/2004 8,980 10,907
12/5/2004 8,980 10,907
12/6/2004 9,004 10,875
12/7/2004 9,118 10,723
12/8/2004 9,062 10,789
12/9/2004 9,032 10,836
12/10/2004 9,022 10,850
12/11/2004 9,022 10,850
12/12/2004 9,022 10,850
12/13/2004 8,960 10,927
12/14/2004 8,874 11,029
12/15/2004 8,818 11,099
12/16/2004 8,874 11,031
12/17/2004 8,880 11,027
12/18/2004 8,880 11,027
12/19/2004 8,880 11,027
12/20/2004 8,918 10,977
12/21/2004 8,820 11,093
12/22/2004 8,788 11,130
12/23/2004 8,780 11,143
12/24/2004 8,780 11,143
12/25/2004 8,780 11,143
12/26/2004 8,780 11,143
12/27/2004 8,848 11,076
12/28/2004 8,742 11,212
12/29/2004 8,724 11,222
12/30/2004 8,710 11,249
12/31/2004 8,728 11,229
1/1/2005 8,728 11,229
1/2/2005 8,728 11,229
1/3/2005 8,872 11,041
1/4/2005 9,010 10,869
1/5/2005 9,114 10,752
1/6/2005 9,074 10,803
1/7/2005 9,118 10,747
1/8/2005 9,118 10,747
1/9/2005 9,118 10,747
1/10/2005 9,066 10,809
1/11/2005 9,122 10,744
1/12/2005 9,102 10,771
1/13/2005 9,116 10,751
1/14/2005 9,044 10,845
1/15/2005 9,044 10,845
1/16/2005 9,044 10,845
1/17/2005 9,044 10,845
1/18/2005 8,960 10,944
1/19/2005 9,044 10,846
1/20/2005 9,090 10,793
1/21/2005 9,136 10,733
1/22/2005 9,136 10,733
1/23/2005 9,136 10,733
1/24/2005 9,192 10,668
1/25/2005 9,174 10,690
1/26/2005 9,080 10,799
1/27/2005 9,054 10,835
1/28/2005 9,100 10,784
1/29/2005 9,100 10,784
1/30/2005 9,100 10,784
1/31/2005 8,966 10,942
2/1/2005 8,898 11,025
2/2/2005 8,852 11,082
2/3/2005 8,870 11,060
2/4/2005 8,752 11,212
2/5/2005 8,752 11,212
2/6/2005 8,752 11,212
2/7/2005 8,768 11,189
2/8/2005 8,742 11,225
2/9/2005 8,858 11,078
2/10/2005 8,828 11,117
2/11/2005 8,738 11,232
2/12/2005 8,738 11,232
2/13/2005 8,738 11,232
2/14/2005 8,738 11,234
2/15/2005 8,720 11,258
2/16/2005 8,682 11,309
2/17/2005 8,746 11,225
2/18/2005 8,760 11,213
2/19/2005 8,760 11,213
2/20/2005 8,760 11,213
2/21/2005 8,760 11,213
2/22/2005 8,900 11,031
2/23/2005 8,848 11,094
2/24/2005 8,738 11,233
2/25/2005 8,632 11,368
2/26/2005 8,632 11,368
2/27/2005 8,632 11,368
2/28/2005 8,682 11,309
3/1/2005 8,608 11,405
3/2/2005 8,614 11,399
3/3/2005 8,620 11,393
3/4/2005 8,528 11,518
3/5/2005 8,528 11,518
3/6/2005 8,528 11,518
3/7/2005 8,484 11,575
3/8/2005 8,550 11,486
3/9/2005 8,642 11,362
3/10/2005 8,660 11,345
3/11/2005 8,660 11,343
3/12/2005 8,660 11,343
3/13/2005 8,660 11,343
3/14/2005 8,596 11,428
3/15/2005 8,638 11,377
3/16/2005 8,714 11,278
3/17/2005 8,698 11,302
3/18/2005 8,740 11,257
3/19/2005 8,740 11,257
3/20/2005 8,740 11,257
3/21/2005 8,750 11,237
3/22/2005 8,796 11,184
3/23/2005 8,860 11,102
3/24/2005 8,846 11,121
3/25/2005 8,846 11,121
3/26/2005 8,846 11,121
3/27/2005 8,846 11,121
3/28/2005 8,838 11,127
3/29/2005 8,940 11,003
3/30/2005 8,834 11,140
3/31/2005 8,802 11,183
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(03/31/04) (02/20/04) (02/20/04)
- --------------------------------------------------------------------------------------------------------------------
ONE SINCE ONE SINCE ONE SINCE
YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------------------------------------------
INVERSE MID-CAP FUND -10.20% -10.20% -10.94% -11.58% -10.20% -10.86%
S&P MIDCAP 400 INDEX 10.41% 10.41% 10.41% 10.60% 10.41% 10.60%
- --------------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P MIDCAP 400 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE
GRAPHS ARE BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY; PERFORMANCE FOR
A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
INVERSE MID-CAP FUND S&P MIDCAP 400 INDEX
-------------------- --------------------
Other 5.2%
Consumer Discretionary 19.4%
Financials 18.7%
Information Technology 14.4%
Industrials 12.8%
Health Care 10.6%
Utilities 6.9%
Energy 6.7%
Materials 5.3%
Futures Contracts -31.4%
Equity Index Swap Agreements -70.4%
"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 derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 15
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
MEKROS FUND
OBJECTIVE: To provide investment results that correlate to the performance of a
specific benchmark for small-cap securities. The Fund's current benchmark is the
Russell 2000 Index. The investment objective of the Mekros Fund is
non-fundamental and may be changed without shareholder approval.
Inception: November 1, 2000
The small-cap Russell 2000 Index, which returned 5.41% over the past 12 months,
underperformed the broad-market S&P 500 Index and the S&P MidCap 400 Index
during the period, due in part to a very difficult first quarter of 2005.
Rydex Mekros Fund H-Class returned 5.52% for the period. Had the Fund perfectly
mimicked its benchmark of 150% of the daily price movement of the Russell 2000
Index, it would have returned 5.22%. The apparent discrepancy between the
leveraged and unleveraged indices is the result of compounding, which is
described briefly on page 4 of this report.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
MEKROS FUND RUSSELL 2000
DATE C-CLASS INDEX
--------- ----------- ------------
1/23/2001 10,000 10,000
1/31/2001 10,165 10,128
2/28/2001 9,090 9,463
3/31/2001 8,233 9,001
4/30/2001 9,077 9,705
5/31/2001 9,259 9,943
6/30/2001 9,749 10,287
7/31/2001 8,925 9,730
8/31/2001 8,472 9,415
9/30/2001 6,722 8,148
10/31/2001 7,282 8,625
11/30/2001 8,126 9,293
12/31/2001 8,863 9,866
1/31/2002 8,649 9,764
2/28/2002 8,241 9,496
3/31/2002 9,255 10,259
4/30/2002 9,436 10,353
5/31/2002 8,699 9,893
6/30/2002 8,027 9,402
7/31/2002 6,203 7,982
8/31/2002 6,120 7,962
9/30/2002 5,420 7,390
10/31/2002 5,605 7,627
11/30/2002 6,343 8,308
12/31/2002 5,822 7,845
1/31/2003 5,508 7,628
2/28/2003 5,194 7,398
3/31/2003 5,264 7,493
4/30/2003 6,032 8,203
5/31/2003 7,027 9,084
6/30/2003 7,159 9,256
7/31/2003 7,787 9,827
8/31/2003 8,266 10,277
9/30/2003 8,014 10,088
10/31/2003 9,067 10,935
11/30/2003 9,500 11,323
12/31/2003 9,736 11,552
1/31/2004 10,384 12,054
2/29/2004 10,487 12,162
3/31/2004 10,582 12,276
4/30/2004 9,698 11,650
5/31/2004 9,934 11,835
6/30/2004 10,607 12,334
7/31/2004 9,529 11,503
8/31/2004 9,397 11,444
9/30/2004 10,037 11,981
10/31/2004 10,272 12,217
11/30/2004 11,579 13,277
12/31/2004 12,081 13,670
1/31/2005 11,238 13,100
2/28/2005 11,562 13,321
3/31/2005 11,084 12,940
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
MEKROS FUND RUSSELL 2000
DATE H-CLASS INDEX
--------- ----------- ------------
11/1/2000 10,000 10,000
11/30/2000 8,388 9,017
12/31/2000 9,324 9,792
1/31/2001 9,876 10,301
2/28/2001 8,832 9,626
3/31/2001 7,996 9,155
4/30/2001 8,816 9,871
5/31/2001 9,000 10,113
6/30/2001 9,484 10,463
7/31/2001 8,688 9,896
8/31/2001 8,252 9,577
9/30/2001 6,552 8,288
10/31/2001 7,096 8,773
11/30/2001 7,924 9,452
12/31/2001 8,648 10,035
1/31/2002 8,440 9,931
2/28/2002 8,048 9,659
3/31/2002 9,044 10,435
4/30/2002 9,224 10,530
5/31/2002 8,512 10,063
6/30/2002 7,860 9,563
7/31/2002 6,080 8,119
8/31/2002 6,004 8,098
9/30/2002 5,320 7,517
10/31/2002 5,512 7,758
11/30/2002 6,244 8,450
12/31/2002 5,734 7,980
1/31/2003 5,425 7,759
2/28/2003 5,120 7,524
3/31/2003 5,189 7,621
4/30/2003 5,950 8,344
5/31/2003 6,937 9,239
6/30/2003 7,069 9,414
7/31/2003 7,695 9,995
8/31/2003 8,176 10,453
9/30/2003 7,927 10,260
10/31/2003 8,978 11,122
11/30/2003 9,411 11,516
12/31/2003 9,651 11,750
1/31/2004 10,301 12,261
2/29/2004 10,409 12,371
3/31/2004 10,513 12,486
4/30/2004 9,643 11,849
5/31/2004 9,876 12,038
6/30/2004 10,554 12,545
7/31/2004 9,491 11,700
8/31/2004 9,367 11,640
9/30/2004 10,008 12,186
10/31/2004 10,253 12,426
11/30/2004 11,566 13,504
12/31/2004 12,074 13,904
1/31/2005 11,239 13,324
2/28/2005 11,570 13,549
3/31/2005 11,098 13,162
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(03/31/04) (01/23/01) (11/01/00)
- --------------------------------------------------------------------------------
ONE SINCE ONE SINCE ONE SINCE
YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------
MEKROS FUND 5.63% 5.63% 4.75% 2.49% 5.52% 2.39%
RUSSELL 2000 INDEX 5.41% 5.41% 5.41% 6.35% 5.41% 6.43%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE RUSSELL 2000 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE
GRAPHS ARE BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY; PERFORMANCE FOR
A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
MEKROS FUND RUSSELL 2000 INDEX
----------- ------------------
Other 7.10% 13.8%
Financials 19.5% 21.8%
Information Technology 15.9% 15.0%
Industrials 14.9%
Consumer Discretionary 14.1% 19.0%
Health Care 11.8% 14.4%
Energy 6.5%
Materials 5.9% 8.4%
PRODUCER DURABLES 7.6%
Futures Contracts 28.8%
Equity Index Swap Agreements 25.5%
"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)
- -------------------------------------------------------
CMS Energy Corp. 0.5%
Vintage Petroleum, Inc. 0.5%
Allegheny Technologies, Inc. 0.5%
Cytec Industries, Inc. 0.5%
Toro Co. 0.4%
Whiting Petroleum Corp. 0.4%
Thomas & Betts Corp. 0.4%
Frontier Oil Corp. 0.4%
Steris Corp. 0.4%
Forest Oil Corp. 0.4%
- -------------------------------------------------------
Top Ten Total 4.4%
- -------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
16 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
INVERSE SMALL-CAP FUND
OBJECTIVE: To provide investment results that will match the performance of a
specific benchmark. The Fund's current benchmark is the inverse of the
performance of the Russell 2000 Index. The investment objective of the Inverse
Small-Cap Fund is non-fundamental and may be changed without shareholder
approval.
Inception: February 20, 2004
Small-caps performed worse than their large- and mid-cap counterparts but still
managed to produce gains. The small-cap Russell 2000 Index rose 5.41% for the
year ended March 31, 2005. As a result, Rydex Inverse Small-Cap Fund, which
seeks to provide investment results that inversely correspond to the daily price
movement of the Russell 2000 Index, had a return of -5.55% for its H-Class, in
line with expectations.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
INVERSE SMALL-CAP FUND RUSSELL 2000
DATE C-CLASS INDEX
--------- ---------------------- ------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 10,172 9,833
2/24/2004 10,156 9,862
2/25/2004 10,024 9,986
2/26/2004 9,948 10,070
2/27/2004 9,924 10,099
2/28/2004 9,924 10,099
2/29/2004 9,924 10,099
3/1/2004 9,750 10,258
3/2/2004 9,814 10,194
3/3/2004 9,814 10,200
3/4/2004 9,686 10,322
3/5/2004 9,660 10,342
3/6/2004 9,660 10,342
3/7/2004 9,660 10,342
3/8/2004 9,772 10,221
3/9/2004 9,880 10,108
3/10/2004 10,082 9,920
3/11/2004 10,196 9,814
3/12/2004 9,952 10,058
3/13/2004 9,952 10,058
3/14/2004 9,952 10,058
3/15/2004 10,238 9,784
3/16/2004 10,222 9,779
3/17/2004 10,034 9,985
3/18/2004 10,100 9,916
3/19/2004 10,120 9,850
3/20/2004 10,120 9,850
3/21/2004 10,120 9,850
3/22/2004 10,316 9,648
3/23/2004 10,288 9,681
3/24/2004 10,344 9,625
3/25/2004 10,074 9,865
3/26/2004 10,064 9,889
3/27/2004 10,064 9,889
3/28/2004 10,064 9,889
3/29/2004 9,878 10,073
3/30/2004 9,772 10,178
3/31/2004 9,754 10,193
4/1/2004 9,670 10,281
4/2/2004 9,510 10,422
4/3/2004 9,510 10,422
4/4/2004 9,510 10,422
4/5/2004 9,542 10,473
4/6/2004 9,650 10,351
4/7/2004 9,594 10,392
4/8/2004 9,662 10,327
4/9/2004 9,662 10,327
4/10/2004 9,662 10,327
4/11/2004 9,662 10,327
4/12/2004 9,640 10,358
4/13/2004 9,878 10,119
4/14/2004 9,932 10,054
4/15/2004 9,976 10,024
4/16/2004 9,910 10,078
4/17/2004 9,910 10,078
4/18/2004 9,910 10,078
4/19/2004 9,826 10,139
4/20/2004 10,056 9,947
4/21/2004 9,896 10,075
4/22/2004 9,732 10,249
4/23/2004 9,768 10,205
4/24/2004 9,768 10,205
4/25/2004 9,768 10,205
4/26/2004 9,760 10,183
4/27/2004 9,768 10,206
4/28/2004 9,976 9,971
4/29/2004 10,148 9,802
4/30/2004 10,304 9,674
5/1/2004 10,304 9,674
5/2/2004 10,304 9,674
5/3/2004 10,190 9,772
5/4/2004 10,110 9,844
5/5/2004 10,092 9,852
5/6/2004 10,230 9,733
5/7/2004 10,514 9,482
5/8/2004 10,514 9,482
5/9/2004 10,514 9,482
5/10/2004 10,722 9,298
5/11/2004 10,490 9,484
5/12/2004 10,480 9,491
5/13/2004 10,550 9,460
5/14/2004 10,626 9,401
5/15/2004 10,626 9,401
5/16/2004 10,626 9,401
5/17/2004 10,764 9,256
5/18/2004 10,618 9,381
5/19/2004 10,678 9,351
5/20/2004 10,666 9,349
5/21/2004 10,556 9,437
5/22/2004 10,556 9,437
5/23/2004 10,556 9,437
5/24/2004 10,440 9,539
5/25/2004 10,190 9,776
5/26/2004 10,138 9,818
5/27/2004 10,128 9,833
5/28/2004 10,126 9,828
5/29/2004 10,126 9,828
5/30/2004 10,126 9,828
5/31/2004 10,126 9,828
6/1/2004 10,040 9,901
6/2/2004 10,034 9,920
6/3/2004 10,224 9,728
6/4/2004 10,128 9,820
6/5/2004 10,128 9,820
6/6/2004 10,128 9,820
6/7/2004 9,926 10,013
6/8/2004 9,942 9,996
6/9/2004 10,104 9,835
6/10/2004 10,092 9,845
6/11/2004 10,092 9,845
6/12/2004 10,092 9,845
6/13/2004 10,092 9,845
6/14/2004 10,294 9,649
6/15/2004 10,094 9,827
6/16/2004 10,064 9,864
6/17/2004 10,068 9,856
6/18/2004 10,052 9,873
6/19/2004 10,052 9,873
6/20/2004 10,052 9,873
6/21/2004 10,082 9,842
6/22/2004 10,018 9,897
6/23/2004 9,866 10,040
6/24/2004 9,896 10,021
6/25/2004 9,740 10,171
6/26/2004 9,740 10,171
6/27/2004 9,740 10,171
6/28/2004 9,800 10,112
6/29/2004 9,738 10,177
6/30/2004 9,684 10,242
7/1/2004 9,828 10,085
7/2/2004 9,832 10,090
7/3/2004 9,832 10,090
7/4/2004 9,832 10,090
7/5/2004 9,832 10,090
7/6/2004 9,996 9,912
7/7/2004 10,006 9,906
7/8/2004 10,208 9,711
7/9/2004 10,150 9,763
7/10/2004 10,150 9,763
7/11/2004 10,150 9,763
7/12/2004 10,186 9,737
7/13/2004 10,176 9,745
7/14/2004 10,230 9,695
7/15/2004 10,192 9,737
7/16/2004 10,322 9,621
7/17/2004 10,322 9,621
7/18/2004 10,322 9,621
7/19/2004 10,310 9,608
7/20/2004 10,136 9,772
7/21/2004 10,430 9,502
7/22/2004 10,466 9,467
7/23/2004 10,614 9,341
7/24/2004 10,614 9,341
7/25/2004 10,614 9,341
7/26/2004 10,726 9,241
7/27/2004 10,494 9,434
7/28/2004 10,552 9,376
7/29/2004 10,390 9,527
7/30/2004 10,376 9,552
7/31/2004 10,376 9,552
8/1/2004 10,376 9,552
8/2/2004 10,356 9,563
8/3/2004 10,514 9,420
8/4/2004 10,532 9,404
8/5/2004 10,740 9,226
8/6/2004 10,990 9,006
8/7/2004 10,990 9,006
8/8/2004 10,990 9,006
8/9/2004 11,020 8,985
8/10/2004 10,770 9,183
8/11/2004 10,838 9,129
8/12/2004 11,028 8,964
8/13/2004 11,018 8,970
8/14/2004 11,018 8,970
8/15/2004 11,018 8,970
8/16/2004 10,796 9,155
8/17/2004 10,756 9,188
8/18/2004 10,510 9,390
8/19/2004 10,596 9,318
8/20/2004 10,396 9,500
8/21/2004 10,396 9,500
8/22/2004 10,396 9,500
8/23/2004 10,466 9,423
8/24/2004 10,444 9,450
8/25/2004 10,344 9,539
8/26/2004 10,404 9,489
8/27/2004 10,312 9,566
8/28/2004 10,312 9,566
8/29/2004 10,312 9,566
8/30/2004 10,442 9,444
8/31/2004 10,374 9,503
9/1/2004 10,290 9,582
9/2/2004 10,152 9,709
9/3/2004 10,222 9,648
9/4/2004 10,222 9,648
9/5/2004 10,222 9,648
9/6/2004 10,222 9,648
9/7/2004 10,094 9,764
9/8/2004 10,184 9,676
9/9/2004 10,026 9,822
9/10/2004 9,960 9,886
9/11/2004 9,960 9,886
9/12/2004 9,960 9,886
9/13/2004 9,906 9,944
9/14/2004 9,936 9,907
9/15/2004 9,988 9,865
9/16/2004 9,880 9,970
9/17/2004 9,904 9,946
9/18/2004 9,904 9,946
9/19/2004 9,904 9,946
9/20/2004 9,936 9,904
9/21/2004 9,832 10,011
9/22/2004 10,022 9,821
9/23/2004 10,018 9,820
9/24/2004 10,014 9,823
9/25/2004 10,014 9,823
9/26/2004 10,014 9,823
9/27/2004 10,150 9,690
9/28/2004 10,016 9,822
9/29/2004 9,922 9,916
9/30/2004 9,894 9,949
10/1/2004 9,670 10,160
10/2/2004 9,670 10,160
10/3/2004 9,670 10,160
10/4/2004 9,610 10,230
10/5/2004 9,638 10,200
10/6/2004 9,546 10,294
10/7/2004 9,712 10,120
10/8/2004 9,828 9,999
10/9/2004 9,828 9,999
10/10/2004 9,828 9,999
10/11/2004 9,794 10,033
10/12/2004 9,810 10,018
10/13/2004 9,936 9,892
10/14/2004 10,014 9,813
10/15/2004 9,930 9,892
10/16/2004 9,930 9,892
10/17/2004 9,930 9,892
10/18/2004 9,884 9,937
10/19/2004 9,984 9,845
10/20/2004 9,926 9,905
10/21/2004 9,808 10,018
10/22/2004 9,964 9,864
10/23/2004 9,964 9,864
10/24/2004 9,964 9,864
10/25/2004 9,892 9,932
10/26/2004 9,788 10,035
10/27/2004 9,624 10,203
10/28/2004 9,650 10,177
10/29/2004 9,682 10,145
10/30/2004 9,682 10,145
10/31/2004 9,682 10,145
11/1/2004 9,628 10,201
11/2/2004 9,656 10,174
11/3/2004 9,490 10,346
11/4/2004 9,378 10,466
11/5/2004 9,340 10,503
11/6/2004 9,340 10,503
11/7/2004 9,340 10,503
11/8/2004 9,378 10,466
11/9/2004 9,304 10,546
11/10/2004 9,258 10,599
11/11/2004 9,158 10,716
11/12/2004 9,072 10,815
11/13/2004 9,072 10,815
11/14/2004 9,072 10,815
11/15/2004 9,046 10,848
11/16/2004 9,130 10,744
11/17/2004 9,056 10,833
11/18/2004 9,072 10,817
11/19/2004 9,196 10,667
11/20/2004 9,196 10,667
11/21/2004 9,196 10,667
11/22/2004 9,072 10,808
11/23/2004 9,030 10,861
11/24/2004 8,948 10,948
11/25/2004 8,948 10,948
11/26/2004 8,932 10,978
11/27/2004 8,932 10,978
11/28/2004 8,932 10,978
11/29/2004 8,884 11,037
11/30/2004 8,894 11,025
12/1/2004 8,758 11,198
12/2/2004 8,776 11,178
12/3/2004 8,782 11,173
12/4/2004 8,782 11,173
12/5/2004 8,782 11,173
12/6/2004 8,826 11,117
12/7/2004 9,012 10,882
12/8/2004 8,930 10,981
12/9/2004 8,958 10,947
12/10/2004 8,916 11,001
12/11/2004 8,916 11,001
12/12/2004 8,916 11,001
12/13/2004 8,830 11,103
12/14/2004 8,754 11,200
12/15/2004 8,688 11,289
12/16/2004 8,772 11,178
12/17/2004 8,782 11,176
12/18/2004 8,782 11,176
12/19/2004 8,782 11,176
12/20/2004 8,832 11,106
12/21/2004 8,716 11,250
12/22/2004 8,690 11,290
12/23/2004 8,682 11,305
12/24/2004 8,682 11,305
12/25/2004 8,682 11,305
12/26/2004 8,682 11,305
12/27/2004 8,750 11,218
12/28/2004 8,612 11,396
12/29/2004 8,624 11,381
12/30/2004 8,628 11,377
12/31/2004 8,650 11,351
1/1/2005 8,650 11,351
1/2/2005 8,650 11,351
1/3/2005 8,796 11,158
1/4/2005 8,960 10,950
1/5/2005 9,118 10,758
1/6/2005 9,082 10,799
1/7/2005 9,178 10,684
1/8/2005 9,178 10,684
1/9/2005 9,178 10,684
1/10/2005 9,112 10,763
1/11/2005 9,200 10,655
1/12/2005 9,176 10,686
1/13/2005 9,222 10,632
1/14/2005 9,116 10,760
1/15/2005 9,116 10,760
1/16/2005 9,116 10,760
1/17/2005 9,116 10,760
1/18/2005 9,004 10,889
1/19/2005 9,116 10,769
1/20/2005 9,194 10,672
1/21/2005 9,214 10,650
1/22/2005 9,214 10,650
1/23/2005 9,214 10,650
1/24/2005 9,312 10,536
1/25/2005 9,280 10,570
1/26/2005 9,130 10,746
1/27/2005 9,122 10,753
1/28/2005 9,180 10,685
1/29/2005 9,180 10,685
1/30/2005 9,180 10,685
1/31/2005 9,016 10,878
2/1/2005 8,958 10,949
2/2/2005 8,904 11,017
2/3/2005 8,940 10,972
2/4/2005 8,822 11,113
2/5/2005 8,822 11,113
2/6/2005 8,822 11,113
2/7/2005 8,834 11,099
2/8/2005 8,806 11,136
2/9/2005 8,986 10,910
2/10/2005 8,968 10,930
2/11/2005 8,858 11,069
2/12/2005 8,858 11,069
2/13/2005 8,858 11,069
2/14/2005 8,854 11,074
2/15/2005 8,856 11,073
2/16/2005 8,802 11,142
2/17/2005 8,910 11,008
2/18/2005 8,928 10,990
2/19/2005 8,928 10,990
2/20/2005 8,928 10,990
2/21/2005 8,928 10,990
2/22/2005 9,098 10,778
2/23/2005 9,064 10,824
2/24/2005 8,962 10,947
2/25/2005 8,818 11,122
2/26/2005 8,818 11,122
2/27/2005 8,818 11,122
2/28/2005 8,872 11,062
3/1/2005 8,806 11,140
3/2/2005 8,822 11,119
3/3/2005 8,810 11,136
3/4/2005 8,718 11,253
3/5/2005 8,718 11,253
3/6/2005 8,718 11,253
3/7/2005 8,734 11,234
3/8/2005 8,816 11,132
3/9/2005 8,908 11,012
3/10/2005 8,966 10,940
3/11/2005 8,968 10,941
3/12/2005 8,968 10,941
3/13/2005 8,968 10,941
3/14/2005 8,920 11,001
3/15/2005 8,970 10,941
3/16/2005 9,022 10,874
3/17/2005 8,992 10,918
3/18/2005 9,042 10,868
3/19/2005 9,042 10,868
3/20/2005 9,042 10,868
3/21/2005 9,050 10,851
3/22/2005 9,096 10,800
3/23/2005 9,186 10,686
3/24/2005 9,142 10,742
3/25/2005 9,142 10,742
3/26/2005 9,142 10,742
3/27/2005 9,142 10,742
3/28/2005 9,144 10,740
3/29/2005 9,296 10,561
3/30/2005 9,142 10,741
3/31/2005 9,142 10,745
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
INVERSE SMALL-CAP FUND RUSSELL 2000
DATE H-CLASS INDEX
--------- ---------------------- ------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 10,172 9,833
2/24/2004 10,158 9,862
2/25/2004 10,024 9,986
2/26/2004 9,950 10,070
2/27/2004 9,926 10,099
2/28/2004 9,926 10,099
2/29/2004 9,926 10,099
3/1/2004 9,752 10,258
3/2/2004 9,818 10,194
3/3/2004 9,818 10,200
3/4/2004 9,690 10,322
3/5/2004 9,664 10,342
3/6/2004 9,664 10,342
3/7/2004 9,664 10,342
3/8/2004 9,776 10,221
3/9/2004 9,884 10,108
3/10/2004 10,088 9,920
3/11/2004 10,202 9,814
3/12/2004 9,958 10,058
3/13/2004 9,958 10,058
3/14/2004 9,958 10,058
3/15/2004 10,246 9,784
3/16/2004 10,230 9,779
3/17/2004 10,042 9,985
3/18/2004 10,108 9,916
3/19/2004 10,128 9,850
3/20/2004 10,128 9,850
3/21/2004 10,128 9,850
3/22/2004 10,322 9,648
3/23/2004 10,296 9,681
3/24/2004 10,350 9,625
3/25/2004 10,080 9,865
3/26/2004 10,070 9,889
3/27/2004 10,070 9,889
3/28/2004 10,070 9,889
3/29/2004 9,886 10,073
3/30/2004 9,778 10,178
3/31/2004 9,760 10,193
4/1/2004 9,676 10,281
4/2/2004 9,518 10,422
4/3/2004 9,518 10,422
4/4/2004 9,518 10,422
4/5/2004 9,550 10,473
4/6/2004 9,658 10,351
4/7/2004 9,602 10,392
4/8/2004 9,672 10,327
4/9/2004 9,672 10,327
4/10/2004 9,672 10,327
4/11/2004 9,672 10,327
4/12/2004 9,650 10,358
4/13/2004 9,888 10,119
4/14/2004 9,942 10,054
4/15/2004 9,986 10,024
4/16/2004 9,920 10,078
4/17/2004 9,920 10,078
4/18/2004 9,920 10,078
4/19/2004 9,838 10,139
4/20/2004 10,066 9,947
4/21/2004 9,906 10,075
4/22/2004 9,742 10,249
4/23/2004 9,780 10,205
4/24/2004 9,780 10,205
4/25/2004 9,780 10,205
4/26/2004 9,772 10,183
4/27/2004 9,780 10,206
4/28/2004 9,988 9,971
4/29/2004 10,160 9,802
4/30/2004 10,318 9,674
5/1/2004 10,318 9,674
5/2/2004 10,318 9,674
5/3/2004 10,204 9,772
5/4/2004 10,124 9,844
5/5/2004 10,104 9,852
5/6/2004 10,244 9,733
5/7/2004 10,528 9,482
5/8/2004 10,528 9,482
5/9/2004 10,528 9,482
5/10/2004 10,736 9,298
5/11/2004 10,504 9,484
5/12/2004 10,494 9,491
5/13/2004 10,566 9,460
5/14/2004 10,642 9,401
5/15/2004 10,642 9,401
5/16/2004 10,642 9,401
5/17/2004 10,780 9,256
5/18/2004 10,634 9,381
5/19/2004 10,694 9,351
5/20/2004 10,682 9,349
5/21/2004 10,574 9,437
5/22/2004 10,574 9,437
5/23/2004 10,574 9,437
5/24/2004 10,456 9,539
5/25/2004 10,208 9,776
5/26/2004 10,154 9,818
5/27/2004 10,144 9,833
5/28/2004 10,144 9,828
5/29/2004 10,144 9,828
5/30/2004 10,144 9,828
5/31/2004 10,144 9,828
6/1/2004 10,058 9,901
6/2/2004 10,052 9,920
6/3/2004 10,242 9,728
6/4/2004 10,146 9,820
6/5/2004 10,146 9,820
6/6/2004 10,146 9,820
6/7/2004 9,944 10,013
6/8/2004 9,960 9,996
6/9/2004 10,122 9,835
6/10/2004 10,110 9,845
6/11/2004 10,110 9,845
6/12/2004 10,110 9,845
6/13/2004 10,110 9,845
6/14/2004 10,316 9,649
6/15/2004 10,114 9,827
6/16/2004 10,084 9,864
6/17/2004 10,088 9,856
6/18/2004 10,074 9,873
6/19/2004 10,074 9,873
6/20/2004 10,074 9,873
6/21/2004 10,104 9,842
6/22/2004 10,040 9,897
6/23/2004 9,888 10,040
6/24/2004 9,918 10,021
6/25/2004 9,762 10,171
6/26/2004 9,762 10,171
6/27/2004 9,762 10,171
6/28/2004 9,824 10,112
6/29/2004 9,760 10,177
6/30/2004 9,706 10,242
7/1/2004 9,850 10,085
7/2/2004 9,856 10,090
7/3/2004 9,856 10,090
7/4/2004 9,856 10,090
7/5/2004 9,856 10,090
7/6/2004 10,020 9,912
7/7/2004 10,030 9,906
7/8/2004 10,232 9,711
7/9/2004 10,176 9,763
7/10/2004 10,176 9,763
7/11/2004 10,176 9,763
7/12/2004 10,212 9,737
7/13/2004 10,202 9,745
7/14/2004 10,258 9,695
7/15/2004 10,220 9,737
7/16/2004 10,350 9,621
7/17/2004 10,350 9,621
7/18/2004 10,350 9,621
7/19/2004 10,338 9,608
7/20/2004 10,164 9,772
7/21/2004 10,458 9,502
7/22/2004 10,496 9,467
7/23/2004 10,644 9,341
7/24/2004 10,644 9,341
7/25/2004 10,644 9,341
7/26/2004 10,756 9,241
7/27/2004 10,524 9,434
7/28/2004 10,582 9,376
7/29/2004 10,420 9,527
7/30/2004 10,406 9,552
7/31/2004 10,406 9,552
8/1/2004 10,406 9,552
8/2/2004 10,388 9,563
8/3/2004 10,546 9,420
8/4/2004 10,564 9,404
8/5/2004 10,772 9,226
8/6/2004 11,024 9,006
8/7/2004 11,024 9,006
8/8/2004 11,024 9,006
8/9/2004 11,054 8,985
8/10/2004 10,804 9,183
8/11/2004 10,872 9,129
8/12/2004 11,062 8,964
8/13/2004 11,054 8,970
8/14/2004 11,054 8,970
8/15/2004 11,054 8,970
8/16/2004 10,832 9,155
8/17/2004 10,790 9,188
8/18/2004 10,546 9,390
8/19/2004 10,630 9,318
8/20/2004 10,430 9,500
8/21/2004 10,430 9,500
8/22/2004 10,430 9,500
8/23/2004 10,502 9,423
8/24/2004 10,478 9,450
8/25/2004 10,378 9,539
8/26/2004 10,438 9,489
8/27/2004 10,348 9,566
8/28/2004 10,348 9,566
8/29/2004 10,348 9,566
8/30/2004 10,478 9,444
8/31/2004 10,410 9,503
9/1/2004 10,326 9,582
9/2/2004 10,186 9,709
9/3/2004 10,258 9,648
9/4/2004 10,258 9,648
9/5/2004 10,258 9,648
9/6/2004 10,258 9,648
9/7/2004 10,130 9,764
9/8/2004 10,222 9,676
9/9/2004 10,062 9,822
9/10/2004 9,998 9,886
9/11/2004 9,998 9,886
9/12/2004 9,998 9,886
9/13/2004 9,944 9,944
9/14/2004 9,974 9,907
9/15/2004 10,026 9,865
9/16/2004 9,918 9,970
9/17/2004 9,942 9,946
9/18/2004 9,942 9,946
9/19/2004 9,942 9,946
9/20/2004 9,974 9,904
9/21/2004 9,870 10,011
9/22/2004 10,060 9,821
9/23/2004 10,056 9,820
9/24/2004 10,054 9,823
9/25/2004 10,054 9,823
9/26/2004 10,054 9,823
9/27/2004 10,190 9,690
9/28/2004 10,056 9,822
9/29/2004 9,960 9,916
9/30/2004 9,934 9,949
10/1/2004 9,710 10,160
10/2/2004 9,710 10,160
10/3/2004 9,710 10,160
10/4/2004 9,648 10,230
10/5/2004 9,678 10,200
10/6/2004 9,586 10,294
10/7/2004 9,752 10,120
10/8/2004 9,868 9,999
10/9/2004 9,868 9,999
10/10/2004 9,868 9,999
10/11/2004 9,836 10,033
10/12/2004 9,852 10,018
10/13/2004 9,978 9,892
10/14/2004 10,056 9,813
10/15/2004 9,972 9,892
10/16/2004 9,972 9,892
10/17/2004 9,972 9,892
10/18/2004 9,928 9,937
10/19/2004 10,028 9,845
10/20/2004 9,968 9,905
10/21/2004 9,852 10,018
10/22/2004 10,008 9,864
10/23/2004 10,008 9,864
10/24/2004 10,008 9,864
10/25/2004 9,938 9,932
10/26/2004 9,832 10,035
10/27/2004 9,668 10,203
10/28/2004 9,694 10,177
10/29/2004 9,728 10,145
10/30/2004 9,728 10,145
10/31/2004 9,728 10,145
11/1/2004 9,672 10,201
11/2/2004 9,702 10,174
11/3/2004 9,534 10,346
11/4/2004 9,424 10,466
11/5/2004 9,386 10,503
11/6/2004 9,386 10,503
11/7/2004 9,386 10,503
11/8/2004 9,424 10,466
11/9/2004 9,350 10,546
11/10/2004 9,304 10,599
11/11/2004 9,204 10,716
11/12/2004 9,118 10,815
11/13/2004 9,118 10,815
11/14/2004 9,118 10,815
11/15/2004 9,092 10,848
11/16/2004 9,176 10,744
11/17/2004 9,104 10,833
11/18/2004 9,116 10,817
11/19/2004 9,242 10,667
11/20/2004 9,242 10,667
11/21/2004 9,242 10,667
11/22/2004 9,118 10,808
11/23/2004 9,078 10,861
11/24/2004 8,994 10,948
11/25/2004 8,994 10,948
11/26/2004 8,978 10,978
11/27/2004 8,978 10,978
11/28/2004 8,978 10,978
11/29/2004 8,932 11,037
11/30/2004 8,940 11,025
12/1/2004 8,804 11,198
12/2/2004 8,822 11,178
12/3/2004 8,828 11,173
12/4/2004 8,828 11,173
12/5/2004 8,828 11,173
12/6/2004 8,872 11,117
12/7/2004 9,060 10,882
12/8/2004 8,976 10,981
12/9/2004 9,006 10,947
12/10/2004 8,966 11,001
12/11/2004 8,966 11,001
12/12/2004 8,966 11,001
12/13/2004 8,878 11,103
12/14/2004 8,804 11,200
12/15/2004 8,738 11,289
12/16/2004 8,822 11,178
12/17/2004 8,832 11,176
12/18/2004 8,832 11,176
12/19/2004 8,832 11,176
12/20/2004 8,882 11,106
12/21/2004 8,768 11,250
12/22/2004 8,740 11,290
12/23/2004 8,732 11,305
12/24/2004 8,732 11,305
12/25/2004 8,732 11,305
12/26/2004 8,732 11,305
12/27/2004 8,802 11,218
12/28/2004 8,662 11,396
12/29/2004 8,674 11,381
12/30/2004 8,680 11,377
12/31/2004 8,702 11,351
1/1/2005 8,702 11,351
1/2/2005 8,702 11,351
1/3/2005 8,848 11,158
1/4/2005 9,012 10,950
1/5/2005 9,172 10,758
1/6/2005 9,136 10,799
1/7/2005 9,232 10,684
1/8/2005 9,232 10,684
1/9/2005 9,232 10,684
1/10/2005 9,166 10,763
1/11/2005 9,256 10,655
1/12/2005 9,230 10,686
1/13/2005 9,278 10,632
1/14/2005 9,172 10,760
1/15/2005 9,172 10,760
1/16/2005 9,172 10,760
1/17/2005 9,172 10,760
1/18/2005 9,058 10,889
1/19/2005 9,172 10,769
1/20/2005 9,252 10,672
1/21/2005 9,272 10,650
1/22/2005 9,272 10,650
1/23/2005 9,272 10,650
1/24/2005 9,370 10,536
1/25/2005 9,340 10,570
1/26/2005 9,188 10,746
1/27/2005 9,180 10,753
1/28/2005 9,240 10,685
1/29/2005 9,240 10,685
1/30/2005 9,240 10,685
1/31/2005 9,076 10,878
2/1/2005 9,018 10,949
2/2/2005 8,962 11,017
2/3/2005 9,000 10,972
2/4/2005 8,882 11,113
2/5/2005 8,882 11,113
2/6/2005 8,882 11,113
2/7/2005 8,894 11,099
2/8/2005 8,864 11,136
2/9/2005 9,048 10,910
2/10/2005 9,032 10,930
2/11/2005 8,920 11,069
2/12/2005 8,920 11,069
2/13/2005 8,920 11,069
2/14/2005 8,918 11,074
2/15/2005 8,920 11,073
2/16/2005 8,864 11,142
2/17/2005 8,974 11,008
2/18/2005 8,994 10,990
2/19/2005 8,994 10,990
2/20/2005 8,994 10,990
2/21/2005 8,994 10,990
2/22/2005 9,164 10,778
2/23/2005 9,130 10,824
2/24/2005 9,026 10,947
2/25/2005 8,884 11,122
2/26/2005 8,884 11,122
2/27/2005 8,884 11,122
2/28/2005 8,938 11,062
3/1/2005 8,870 11,140
3/2/2005 8,888 11,119
3/3/2005 8,876 11,136
3/4/2005 8,786 11,253
3/5/2005 8,786 11,253
3/6/2005 8,786 11,253
3/7/2005 8,800 11,234
3/8/2005 8,884 11,132
3/9/2005 8,976 11,012
3/10/2005 9,034 10,940
3/11/2005 9,038 10,941
3/12/2005 9,038 10,941
3/13/2005 9,038 10,941
3/14/2005 8,990 11,001
3/15/2005 9,040 10,941
3/16/2005 9,094 10,874
3/17/2005 9,062 10,918
3/18/2005 9,114 10,868
3/19/2005 9,114 10,868
3/20/2005 9,114 10,868
3/21/2005 9,122 10,851
3/22/2005 9,170 10,800
3/23/2005 9,258 10,686
3/24/2005 9,216 10,742
3/25/2005 9,216 10,742
3/26/2005 9,216 10,742
3/27/2005 9,216 10,742
3/28/2005 9,218 10,740
3/29/2005 9,370 10,561
3/30/2005 9,216 10,741
3/31/2005 9,218 10,745
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- -------------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(03/31/04) (02/20/04) (02/20/04)
- -------------------------------------------------------------------------------------
ONE SINCE ONE SINCE ONE SINCE
YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- -------------------------------------------------------------------------------------
INVERSE SMALL-CAP FUND -5.55% -5.55% -6.27% -7.77% -5.55% -7.08%
RUSSELL 2000 INDEX 5.41% 5.41% 5.41% 6.69% 5.41% 6.69%
- -------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE RUSSELL 2000 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE
GRAPHS ARE BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY; PERFORMANCE FOR
A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
INVERSE SMALL-CAP FUND RUSSELL 2000 INDEX
---------------------- ------------------
Other 13.8%
Consumer Discretionary 19.0%
Health Care 14.4%
Technology 15.0%
MATERIALS & PROCESSING 8.4%
FINANCIAL SERVICES 21.8%
PRODUCER DURABLES 7.6%
Futures Contracts -20.3%
Equity Index Swap Agreements -80.4%
"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 derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 17
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND
OBJECTIVE: To provide investment results that correspond to a benchmark for U.S.
Government securities. The Fund's current benchmark is 120% of the price
movement of the Long Treasury Bond.
Inception: January 3, 1994
Although inflation was well-contained, underlying growth in productivity
prompted the Federal Reserve to raise the fed funds rate seven times during the
one-year period ending March 31, 2005. The Fed target rate increased to 2.75% in
March 2005, while the Long Bond recorded a yield of 4.76%--only one basis point
lower than one year before.
While the price barely moved, the Long Bond posted a total return of 0.20% for
the year versus Rydex U.S. Government Bond Fund Investor Class 4.04%. Had the
Fund perfectly mimicked its benchmark of 120% of the daily performance of the
Long Bond, it would have returned 4.39%. The apparent discrepancy between the
leveraged and unleveraged indices is the result of compounding, which is
described briefly on page 4 of this report.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
U.S. GOVERNMENT U.S. TREASURY LEHMAN LONG TREASURY
DATE BOND FUND C-CLASS LONG BOND BOND INDEX
- ----------- ------------------ ------------- --------------------
5/2/2001 10,000 10,000 10,000
5/31/2001 9,945 9,938 9,926
6/30/2001 9,986 9,931 10,011
7/31/2001 10,412 10,269 10,384
8/31/2001 10,712 10,505 10,606
9/30/2001 10,644 10,434 10,685
10/31/2001 11,589 11,300 11,210
11/30/2001 10,805 10,662 10,677
12/31/2001 10,445 10,344 10,476
1/31/2002 10,582 10,414 10,611
2/28/2002 10,620 10,397 10,735
3/31/2002 9,984 9,856 10,301
4/30/2002 10,430 10,163 10,692
5/31/2002 10,429 10,128 10,726
6/30/2002 10,666 10,292 10,918
7/31/2002 11,093 10,607 11,255
8/31/2002 11,876 11,211 11,746
9/30/2002 12,502 11,656 12,236
10/31/2002 11,863 11,116 11,885
11/30/2002 11,713 11,014 11,753
12/31/2002 12,345 11,444 12,235
1/31/2003 12,218 11,335 12,193
2/28/2003 12,671 11,637 12,562
3/31/2003 12,372 11,382 12,404
4/30/2003 12,526 11,468 12,530
5/31/2003 13,540 12,185 13,235
6/30/2003 13,125 11,844 13,033
7/31/2003 11,316 10,478 11,867
8/31/2003 11,654 10,738 12,057
9/30/2003 12,365 11,292 12,684
10/31/2003 11,823 10,876 12,331
11/30/2003 11,872 10,871 12,391
12/31/2003 12,017 10,947 12,538
1/31/2004 12,311 11,138 12,753
2/29/2004 12,638 11,335 13,008
3/31/2004 12,818 11,437 13,205
4/30/2004 11,759 10,628 12,464
5/31/2004 11,684 10,542 12,403
6/30/2004 11,832 10,613 12,517
7/31/2004 12,086 10,766 12,728
8/31/2004 12,711 11,187 13,201
9/30/2004 12,821 11,243 13,312
10/31/2004 13,088 11,408 13,508
11/30/2004 12,620 11,053 13,207
12/31/2004 13,055 11,356 13,504
1/31/2005 13,617 11,749 13,845
2/28/2005 13,301 11,524 13,666
3/31/2005 13,215 11,460 13,575
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
U.S. GOVERNMENT BOND U.S. TREASURY LEHMAN LONG TREASURY
DATE FUND INVESTOR CLASS LONG BOND BOND INDEX
- ----------- -------------------- ------------- --------------------
1/3/1994 10,000 10,000 10,000
3/31/1994 8,957 9,175 9,388
6/30/1994 8,382 8,608 9,129
9/30/1994 8,189 8,284 9,073
12/31/1994 8,204 8,228 9,235
3/31/1995 8,755 8,620 9,825
6/30/1995 9,972 9,521 10,893
9/30/1995 10,192 9,588 11,158
12/31/1995 11,169 10,326 12,070
3/31/1996 9,992 9,308 11,258
6/30/1996 9,840 9,028 11,247
9/30/1996 9,800 8,963 11,417
12/31/1996 10,398 9,210 11,964
3/31/1997 9,810 8,622 11,580
6/30/1997 10,503 8,956 12,224
9/30/1997 11,214 9,372 12,929
12/31/1997 12,094 9,929 13,769
3/31/1998 12,228 9,913 13,977
6/30/1998 12,953 10,355 14,629
9/30/1998 14,418 11,304 15,783
12/31/1998 14,016 11,034 15,631
3/31/1999 12,757 10,055 14,961
6/30/1999 12,143 9,546 14,591
9/30/1999 11,937 9,329 14,571
12/31/1999 11,354 8,811 14,265
3/31/2000 12,470 9,448 15,414
6/30/2000 12,477 9,365 15,566
9/30/2000 12,696 9,389 15,998
12/31/2000 13,768 9,964 17,156
3/31/2001 13,690 9,839 17,391
6/30/2001 13,190 9,411 17,085
9/30/2001 14,107 9,888 18,235
12/31/2001 13,878 9,803 17,878
3/31/2002 13,285 9,340 17,580
6/30/2002 14,212 9,753 18,633
9/30/2002 16,687 11,046 20,882
12/31/2002 16,519 10,845 20,879
3/31/2003 16,595 10,786 21,169
6/30/2003 17,650 11,224 22,242
9/30/2003 16,669 10,702 21,647
12/31/2003 16,242 10,374 21,398
3/31/2004 17,369 10,839 22,535
6/30/2004 16,054 10,058 21,360
9/30/2004 17,448 10,655 22,718
12/31/2004 17,792 10,762 23,046
3/31/2005 18,071 10,861 23,167
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- -------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(01/03/94) (08/01/03) (03/31/04) (05/02/01)
- -------------------------------------------------------------------------------------------------------------------------
ONE FIVE TEN SINCE ONE SINCE ONE SINCE ONE SINCE
YEAR YEAR YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- -------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND 4.04% 7.70% 7.52% 5.41% 3.75% 9.93% 3.86% 3.86% 3.10% 7.39%
PRICE MOVEMENT OF LONG
TREASURY BOND 0.20% 2.83% 2.34% 0.74% 0.20% 4.99% 0.20% 0.20% 0.20% 3.55%
LEHMAN LONG TREASURY
BOND INDEX 2.80% 8.49% 8.96% 7.76% 2.80% 8.24% 2.80% 2.80% 2.80% 8.13%
- -------------------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE LEHMAN LONG TREASURY BOND
INDEX IS AN UNMANAGED BOND INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR
OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. THE PRICE MOVEMENT OF
THE LONG TREASURY BOND REPRESENTS A CUMULATIVE PERCENTAGE CHANGE IN ITS CLOSING
PRICE. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED
DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE BASED ON INVESTOR CLASS SHARES AND
C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR CLASS SHARES AND A-CLASS SHARES
WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
U.S. GOVERNMENT BOND FUND
-------------------------
U.S. Treasury Obligations 86.5%
Futures Contracts 36.8%
"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.
18 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
JUNO FUND
OBJECTIVE: To provide total returns that will inversely correlate to the price
movements of a benchmark for U.S. Treasury debt instruments or futures contracts
on a specified debt instrument. The Fund's current benchmark is the inverse of
the daily price movement of the Long Treasury Bond.
Inception: March 3, 1995
Rydex Juno Fund seeks to return the opposite of the Long Treasury Bond price on
a daily basis. The Long Bond returned 0.20%, including coupon payments, for the
period, compared to the Juno Fund Investor Class -4.20% return. Had the Fund
perfectly mimicked its benchmark of inverse daily returns, it would have lost
4.77%. The benchmarks seems to have declined less than expected because of the
effects of compounding, which are described briefly on page 4 of this report.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
U.S. TREASURY LEHMAN LONG TREASURY
DATE JUNO FUND C CLASS LONG BOND BOND INDEX
- ----------- ------------------ ------------- --------------------
3/28/2001 10,000 10,000 10,000
3/31/2001 9,977 10,023 10,020
4/30/2001 10,433 9,537 9,747
5/31/2001 10,444 9,595 9,759
6/30/2001 10,351 9,587 9,843
7/31/2001 9,918 9,914 10,210
8/31/2001 9,684 10,142 10,428
9/30/2001 9,649 10,073 10,506
10/31/2001 9,111 10,909 11,022
11/30/2001 9,719 10,294 10,498
12/31/2001 9,977 9,987 10,300
1/31/2002 9,813 10,054 10,433
2/28/2002 9,661 10,037 10,555
3/31/2002 10,199 9,515 10,128
4/30/2002 9,708 9,811 10,513
5/31/2002 9,696 9,778 10,546
6/30/2002 9,474 9,936 10,735
7/31/2002 9,135 10,240 11,066
8/31/2002 8,573 10,823 11,549
9/30/2002 8,211 11,253 12,031
10/31/2002 8,573 10,732 11,685
11/30/2002 8,591 10,633 11,556
12/31/2002 8,239 11,048 12,029
1/31/2003 8,263 10,944 11,989
2/28/2003 8,013 11,235 12,352
3/31/2003 8,146 10,988 12,196
4/30/2003 8,044 11,071 12,320
5/31/2003 7,529 11,764 13,013
6/30/2003 7,705 11,434 12,814
7/31/2003 8,641 10,116 11,668
8/31/2003 8,376 10,367 11,854
9/30/2003 7,908 10,902 12,471
10/31/2003 8,157 10,500 12,124
11/30/2003 8,111 10,496 12,183
12/31/2003 7,998 10,569 12,328
1/31/2004 7,810 10,753 12,539
2/29/2004 7,619 10,944 12,789
3/31/2004 7,506 11,042 12,983
4/30/2004 8,040 10,260 12,255
5/31/2004 8,068 10,177 12,195
6/30/2004 7,955 10,246 12,306
7/31/2004 7,791 10,394 12,515
8/31/2004 7,447 10,801 12,979
9/30/2004 7,377 10,854 13,089
10/31/2004 7,241 11,014 13,281
11/30/2004 7,455 10,671 12,986
12/31/2004 7,225 10,964 13,278
1/31/2005 6,972 11,343 13,613
2/28/2005 7,096 11,126 13,437
3/31/2005 7,124 11,064 13,347
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
JUNO FUND INVESTOR U.S. TREASURY LEHMAN LONG TREASURY
DATE CLASS LONG BOND BOND INDEX
- ----------- ------------------ ------------- --------------------
3/3/1995 10,000 10,000 10,000
3/31/1995 9,850 10,124 10,182
6/30/1995 9,080 11,182 11,288
9/30/1995 9,020 11,261 11,563
12/31/1995 8,550 12,127 12,508
3/31/1996 9,300 10,932 11,667
6/30/1996 9,470 10,603 11,655
9/30/1996 9,500 10,527 11,832
12/31/1996 9,234 10,816 12,399
3/31/1997 9,736 10,126 12,001
6/30/1997 9,415 10,519 12,668
9/30/1997 9,083 11,007 13,398
12/31/1997 8,720 11,661 14,269
3/31/1998 8,771 11,643 14,484
6/30/1998 8,558 12,161 15,160
9/30/1998 8,071 13,276 16,356
12/31/1998 8,321 12,959 16,198
3/31/1999 8,839 11,810 15,505
6/30/1999 9,256 11,212 15,121
9/30/1999 9,459 10,957 15,100
12/31/1999 10,015 10,348 14,783
3/31/2000 9,190 11,096 15,974
6/30/2000 9,312 10,999 16,131
9/30/2000 9,210 11,026 16,579
12/31/2000 8,638 11,702 17,779
3/31/2001 8,710 11,555 18,022
6/30/2001 9,057 11,053 17,705
9/30/2001 8,465 11,613 18,897
12/31/2001 8,761 11,513 18,527
3/31/2002 8,986 10,970 18,218
6/30/2002 8,352 11,455 19,310
9/30/2002 7,260 12,973 21,640
12/31/2002 7,295 12,737 21,637
3/31/2003 7,231 12,668 21,938
6/30/2003 6,859 13,182 23,049
9/30/2003 7,057 12,568 22,433
12/31/2003 7,156 12,184 22,175
3/31/2004 6,733 12,730 23,354
6/30/2004 7,152 11,812 22,136
9/30/2004 6,652 12,514 23,543
12/31/2004 6,532 12,640 23,883
3/31/2005 6,451 12,755 24,008
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- -------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(03/03/95) (08/01/03) (03/31/04) (03/28/01)
- -------------------------------------------------------------------------------------------------------------------------------
ONE FIVE TEN SINCE ONE SINCE ONE SINCE ONE SINCE
YEAR YEAR YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- -------------------------------------------------------------------------------------------------------------------------------
JUNO FUND -4.20% -6.83% -4.14% -4.26% -4.67% -10.04% -4.41% -4.41% -5.15% -8.11%
PRICE MOVEMENT OF
LONG TREASURY BOND 0.20% 2.83% 2.34% 2.44% 0.20% 4.99% 0.20% 0.20% 0.20% 2.56%
LEHMAN LONG
TREASURY BOND INDEX 2.80% 8.49% 8.96% 9.08% 2.80% 8.24% 2.80% 2.80% 2.80% 7.47%
- -------------------------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE LEHMAN LONG TREASURY BOND
INDEX IS AN UNMANAGED BOND INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR
OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURN. THE PRICE MOVEMENT OF
THE LONG TREASURY BOND REPRESENTS A CUMULATIVE PERCENTAGE CHANGE IN ITS CLOSING
PRICE. RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED
DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE BASED ON INVESTOR CLASS SHARES AND
C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR CLASS SHARES AND A-CLASS SHARES
WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
JUNO FUND
---------
U.S. Treasury Obligations Short Sales -74.3%
Futures Contracts Short Sales -28.3%
"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. THE RYDEX SERIES FUNDS ANNUAL REPORT | 19
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND
OBJECTIVE: To provide investment results that correlate to the performance of a
specific benchmark. The Fund's current benchmark is the Dow Jones STOXX 50
Index. The investment objective of the Large-Cap Europe Fund is non-fundamental
and may be changed without shareholder approval.
Inception: May 8, 2000
European equities outperformed both the Japanese and U.S. markets during the
period ended March 31, 2005. Though the Dow Jones STOXX 50 Index finished the
year up only 7.62%, the euro strengthened considerable versus the dollar. Thanks
in part to this currency appreciation, Rydex Large-Cap Europe Fund H-Class
produced an impressive 17.49% for the year. The primary drivers of Dow Jones
STOXX 50 Index were a strong rally in the utilities (with firms like Suez SA and
EON AG) and energy (with firms like Shell, ENI SPA, and BP) sectors. Meanwhile,
industrials (for example, Siemens and Philips Electronics) and communications
(Nokia and Ericsson) were negative for the year.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP EUROPE FUND DOW JONES
DATE C-CLASS STOXX 50 INDEX
---------- --------------------- --------------
5/10/2001 10000 10000
5/31/2001 9523 9930
6/30/2001 8921 9500
7/31/2001 8869 9207
8/31/2001 8491 8546
9/30/2001 7590 7852
10/31/2001 7758 8152
11/30/2001 8046 8406
12/31/2001 8277 8726
1/31/2002 7737 8440
2/28/2002 7611 8385
3/31/2002 7973 8746
4/30/2002 7837 8325
5/31/2002 7721 7998
6/30/2002 7355 7298
7/31/2002 6359 6531
8/31/2002 6265 6494
9/30/2002 5202 5552
10/31/2002 5815 6147
11/30/2002 6160 6395
12/31/2002 5836 5786
1/31/2003 5532 5381
2/28/2003 5217 5225
3/31/2003 5102 5090
4/30/2003 5972 5648
5/31/2003 6401 5665
6/30/2003 6464 5873
7/31/2003 6433 6073
8/31/2003 6433 6115
9/30/2003 6590 5889
10/31/2003 7051 6267
11/30/2003 7412 6350
12/31/2003 8250 6581
1/31/2004 8239 6673
2/29/2004 8432 6818
3/31/2004 8025 6638
4/30/2004 7811 6774
5/31/2004 7992 6711
6/30/2004 8036 6769
7/31/2004 7751 6679
8/31/2004 7833 6634
9/30/2004 8206 6760
10/31/2004 8547 6821
11/30/2004 9129 6955
12/31/2004 9545 7052
1/31/2005 9212 7167
2/28/2005 9709 7377
3/31/2005 9353 7339
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP EUROPE FUND DOW JONES
DATE H-CLASS STOXX 50 INDEX
---------- --------------------- --------------
5/8/2000 10000 10000
5/31/2000 10236 9825
6/30/2000 10216 9623
7/31/2000 9868 9716
8/31/2000 9800 10023
9/30/2000 9008 9550
10/31/2000 9164 9901
11/30/2000 8468 9235
12/31/2000 9020 9122
1/31/2001 8932 9129
2/28/2001 7740 8233
3/31/2001 7088 8051
4/30/2001 7712 8615
5/31/2001 7276 8579
6/30/2001 6820 8208
7/31/2001 6784 7954
8/31/2001 6500 7383
9/30/2001 5808 6783
10/31/2001 5940 7043
11/30/2001 6164 7263
12/31/2001 6344 7539
1/31/2002 5936 7292
2/28/2002 5840 7244
3/31/2002 6120 7556
4/30/2002 6020 7193
5/31/2002 5940 6910
6/30/2002 5656 6305
7/31/2002 4896 5643
8/31/2002 4828 5610
9/30/2002 4008 4797
10/31/2002 4488 5311
11/30/2002 4756 5525
12/31/2002 4508 4999
1/31/2003 4284 4648
2/28/2003 4040 4514
3/31/2003 3952 4397
4/30/2003 4628 4879
5/31/2003 4968 4895
6/30/2003 5020 5074
7/31/2003 5004 5247
8/31/2003 5008 5283
9/30/2003 5132 5088
10/31/2003 5496 5414
11/30/2003 5776 5486
12/31/2003 6436 5686
1/31/2004 6432 5765
2/29/2004 6587 5891
3/31/2004 6273 5735
4/30/2004 6114 5852
5/31/2004 6260 5798
6/30/2004 6289 5848
7/31/2004 6072 5770
8/31/2004 6143 5732
9/30/2004 6444 5840
10/31/2004 6712 5893
11/30/2004 7173 6009
12/31/2004 7508 6092
1/31/2005 7250 6191
2/28/2005 7645 6373
3/31/2005 7370 6340
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ----------------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(03/31/04) (05/10/01) (05/08/00)
- ----------------------------------------------------------------------------------------
ONE SINCE ONE SINCE ONE SINCE
YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- ----------------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND 17.56% 17.56% 16.55% -1.70% 17.49% -6.04%
DOW JONES STOXX 50 INDEX 7.62% 7.62% 7.62% -9.83% 7.62% -10.88%
- ----------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE DOW JONES STOXX 50 INDEX IS
AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE
GRAPHS ARE BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY; PERFORMANCE FOR
A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP EUROPE FUND DOW JONES STOXX 50 INDEX
--------------------- ------------------------
Other 10.2%
Financial 36.4%
Consumer, Non-cyclical 20.4%
Energy 17.8%
Communications 15.2%
Equity Index Swap Agreements 125.0%
"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 derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
20 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP JAPAN FUND
OBJECTIVE: To provide investment results that correlate to the performance of a
specific benchmark. The Fund's current benchmark is the Topix 100 Index. The
investment objective of the Large-Cap Japan Fund is non-fundamental and may be
changed without shareholder approval.
Inception: May 8, 2000
The Japanese market, weighed down by a stagnant economy and a depreciating yen,
underperformed the S&P 500 Index during the year. The primary drivers of Topix
100 Index this year were large declines in industrial stocks (for example,
Hitachi, Sanyo Electric and Sanyo) and communication stocks (such as NTT Docomo
and Yahoo! Japan). But Japan had some winners as well, namely Eisai
(pharmaceuticals) and Nippon Oil, which were both up more than 25% for the year.
For the year ended March 31, 2005, the Topix 100 Index lost 3.68%. After
factoring in the effects of daily compounding, a fund that perfectly matched the
benchmark of 125% of the daily performance of the Topix 100 Index, would have
lost 7.53%. With the added burden of a weakening yen, Rydex Large-Cap Japan Fund
H-Class lost 11.25% for the year. The effects of compounding on the fund's
benchmark are described briefly on page 4 of this report.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP JAPAN FUND
DATE C-CLASS TOPIX 100 INDEX
---------- -------------------- ---------------
3/1/2002 10000 10000
3/31/2002 10620 10684
4/30/2002 11053 10614
5/31/2002 11743 10880
6/30/2002 10819 9874
7/31/2002 9906 9207
8/31/2002 9731 8993
9/30/2002 8924 8780
10/31/2002 8281 8257
11/30/2002 8643 8634
12/31/2002 8386 8081
1/31/2003 7953 7821
2/28/2003 7988 7670
3/31/2003 7392 7327
4/30/2003 7259 7321
5/31/2003 7766 7708
6/30/2003 8460 8310
7/31/2003 9045 8724
8/31/2003 10062 9324
9/30/2003 10538 9368
10/31/2003 11041 9526
11/30/2003 10710 9265
12/31/2003 11617 9655
1/31/2004 11664 9689
2/29/2004 11695 9980
3/31/2004 13432 10712
4/30/2004 12143 10757
5/31/2004 11872 10340
6/30/2004 12584 10642
7/31/2004 11405 10270
8/31/2004 11605 10177
9/30/2004 11082 9925
10/31/2004 11412 9823
11/30/2004 11909 9935
12/31/2004 12856 10418
1/31/2005 12132 10172
2/28/2005 12409 10445
3/31/2005 11826 10439
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP JAPAN FUND
DATE H-CLASS TOPIX 100 INDEX
---------- -------------------- ---------------
5/8/2000 10000 10000
5/31/2000 8492 8715
6/30/2000 8960 8970
7/31/2000 7804 8239
8/31/2000 8432 8568
9/30/2000 7800 8301
10/31/2000 7300 7801
11/30/2000 6716 7614
12/31/2000 5876 7095
1/31/2001 5884 7276
2/28/2001 5436 6840
3/31/2001 5216 7034
4/30/2001 5816 7437
5/31/2001 5488 7088
6/30/2001 5076 6955
7/31/2001 4488 6274
8/31/2001 4248 5738
9/30/2001 3860 5351
10/31/2001 3852 5504
11/30/2001 3840 5561
12/31/2001 3436 5482
1/31/2002 3060 5114
2/28/2002 3276 5309
3/31/2002 3636 5781
4/30/2002 3788 5743
5/31/2002 4028 5887
6/30/2002 3712 5343
7/31/2002 3404 4982
8/31/2002 3344 4866
9/30/2002 3060 4751
10/31/2002 2844 4468
11/30/2002 2972 4672
12/31/2002 2880 4372
1/31/2003 2732 4232
2/28/2003 2744 4150
3/31/2003 2540 3965
4/30/2003 2496 3962
5/31/2003 2672 4171
6/30/2003 2911 4496
7/31/2003 3113 4721
8/31/2003 3467 5045
9/30/2003 3635 5069
10/31/2003 3809 5154
11/30/2003 3697 5013
12/31/2003 4014 5224
1/31/2004 4033 5243
2/29/2004 4047 5400
3/31/2004 4650 5796
4/30/2004 4206 5821
5/31/2004 4116 5595
6/30/2004 4368 5758
7/31/2004 3961 5557
8/31/2004 4033 5507
9/30/2004 3853 5370
10/31/2004 3971 5315
11/30/2004 4145 5376
12/31/2004 4478 5637
1/31/2005 4230 5504
2/28/2005 4327 5652
3/31/2005 4127 5648
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- -------------------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(03/31/04) (03/01/02) (05/08/00)
- -------------------------------------------------------------------------------------------
ONE SINCE ONE SINCE ONE SINCE
YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- -------------------------------------------------------------------------------------------
LARGE-CAP JAPAN FUND -11.31% -11.31% -11.96% 5.59% -11.25% -16.54%
TOPIX 100 INDEX -3.68% -3.68% -3.68% 0.25% -3.68% -11.83%
- -------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE TOPIX 100 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE
GRAPHS ARE BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY; PERFORMANCE FOR
A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP JAPAN FUND TOPIX 100 INDEX
-------------------- ---------------
Other 4.8%
Consumer, Cyclical 26.9%
Financial 21.9%
Industrial 14.6%
Communications 12.1%
Consumer, Non-cyclical 8.0%
Technology 6.1%
Utilities 5.7%
Futures Contracts 1.8%
Equity Index Swap Agreements 123.4%
"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 derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 21
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for small-cap value securities. The Fund's current benchmark is the
S&P SmallCap 600/Barra Value Index. The investment objective of the Small-Cap
Value Fund is non-fundamental and may be changed without shareholder approval.
Inception: February 20, 2004
Small-caps outperformed other market capitalizations during the period, though
small-cap growth outperformed small-cap value. Within this style, the energy,
basic materials and industrials sectors led the way. Telecommunications
services, information technology and financials were the laggards, each
producing losses. For the one-year period ended March 31, 2005, Rydex Small-Cap
Value Fund H-Class was up 10.73%, compared to a gain of 11.44% for the S&P
SmallCap 600/Barra Value Index.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
SMALL-CAP VALUE FUND S&P SMALLCAP 600/
DATE C-CLASS BARRA VALUE INDEX
---------- -------------------- -----------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 9,872 9,877
2/24/2004 9,916 9,921
2/25/2004 10,020 10,027
2/26/2004 10,080 10,090
2/27/2004 10,120 10,135
2/28/2004 10,120 10,135
2/29/2004 10,120 10,135
3/1/2004 10,284 10,301
3/2/2004 10,228 10,249
3/3/2004 10,248 10,268
3/4/2004 10,364 10,377
3/5/2004 10,356 10,373
3/6/2004 10,356 10,373
3/7/2004 10,356 10,373
3/8/2004 10,292 10,307
3/9/2004 10,204 10,227
3/10/2004 10,028 10,053
3/11/2004 9,920 9,940
3/12/2004 10,144 10,174
3/13/2004 10,144 10,174
3/14/2004 10,144 10,174
3/15/2004 9,916 9,948
3/16/2004 9,880 9,912
3/17/2004 10,076 10,104
3/18/2004 10,008 10,039
3/19/2004 9,960 9,996
3/20/2004 9,960 9,996
3/21/2004 9,960 9,996
3/22/2004 9,792 9,832
3/23/2004 9,808 9,852
3/24/2004 9,756 9,797
3/25/2004 9,908 9,956
3/26/2004 9,944 9,996
3/27/2004 9,944 9,996
3/28/2004 9,944 9,996
3/29/2004 10,112 10,173
3/30/2004 10,216 10,282
3/31/2004 10,236 10,303
4/1/2004 10,300 10,368
4/2/2004 10,392 10,464
4/3/2004 10,392 10,464
4/4/2004 10,392 10,464
4/5/2004 10,416 10,492
4/6/2004 10,356 10,430
4/7/2004 10,384 10,459
4/8/2004 10,300 10,374
4/9/2004 10,300 10,374
4/10/2004 10,300 10,374
4/11/2004 10,300 10,374
4/12/2004 10,348 10,428
4/13/2004 10,112 10,189
4/14/2004 10,048 10,125
4/15/2004 10,048 10,130
4/16/2004 10,152 10,239
4/17/2004 10,152 10,239
4/18/2004 10,152 10,239
4/19/2004 10,156 10,244
4/20/2004 10,012 10,096
4/21/2004 10,132 10,221
4/22/2004 10,312 10,406
4/23/2004 10,260 10,354
4/24/2004 10,260 10,354
4/25/2004 10,260 10,354
4/26/2004 10,212 10,305
4/27/2004 10,244 10,340
4/28/2004 10,048 10,138
4/29/2004 9,912 9,994
4/30/2004 9,832 9,915
5/1/2004 9,832 9,915
5/2/2004 9,832 9,915
5/3/2004 9,880 9,966
5/4/2004 9,952 10,041
5/5/2004 9,944 10,032
5/6/2004 9,844 9,932
5/7/2004 9,596 9,676
5/8/2004 9,596 9,676
5/9/2004 9,596 9,676
5/10/2004 9,428 9,502
5/11/2004 9,580 9,658
5/12/2004 9,608 9,693
5/13/2004 9,548 9,632
5/14/2004 9,520 9,607
5/15/2004 9,520 9,607
5/16/2004 9,520 9,607
5/17/2004 9,380 9,462
5/18/2004 9,516 9,599
5/19/2004 9,488 9,572
5/20/2004 9,536 9,619
5/21/2004 9,596 9,683
5/22/2004 9,596 9,683
5/23/2004 9,596 9,683
5/24/2004 9,712 9,800
5/25/2004 9,940 10,033
5/26/2004 9,944 10,029
5/27/2004 9,944 10,029
5/28/2004 9,940 10,028
5/29/2004 9,940 10,028
5/30/2004 9,940 10,028
5/31/2004 9,940 10,028
6/1/2004 9,992 10,083
6/2/2004 10,008 10,099
6/3/2004 9,848 9,934
6/4/2004 9,908 9,996
6/5/2004 9,908 9,996
6/6/2004 9,908 9,996
6/7/2004 10,112 10,206
6/8/2004 10,116 10,212
6/9/2004 9,988 10,081
6/10/2004 10,012 10,105
6/11/2004 10,012 10,105
6/12/2004 10,012 10,105
6/13/2004 10,012 10,105
6/14/2004 9,840 9,932
6/15/2004 10,008 10,100
6/16/2004 10,052 10,145
6/17/2004 10,088 10,185
6/18/2004 10,120 10,220
6/19/2004 10,120 10,220
6/20/2004 10,120 10,220
6/21/2004 10,092 10,193
6/22/2004 10,132 10,231
6/23/2004 10,252 10,355
6/24/2004 10,220 10,320
6/25/2004 10,316 10,426
6/26/2004 10,316 10,426
6/27/2004 10,316 10,426
6/28/2004 10,296 10,402
6/29/2004 10,396 10,504
6/30/2004 10,460 10,568
7/1/2004 10,340 10,445
7/2/2004 10,364 10,472
7/3/2004 10,364 10,472
7/4/2004 10,364 10,472
7/5/2004 10,364 10,472
7/6/2004 10,228 10,319
7/7/2004 10,236 10,327
7/8/2004 10,068 10,158
7/9/2004 10,104 10,198
7/10/2004 10,104 10,198
7/11/2004 10,104 10,198
7/12/2004 10,092 10,187
7/13/2004 10,128 10,224
7/14/2004 10,076 10,171
7/15/2004 10,116 10,214
7/16/2004 10,052 10,153
7/17/2004 10,052 10,153
7/18/2004 10,052 10,153
7/19/2004 10,040 10,140
7/20/2004 10,184 10,282
7/21/2004 9,952 10,048
7/22/2004 9,860 9,955
7/23/2004 9,792 9,885
7/24/2004 9,792 9,885
7/25/2004 9,792 9,885
7/26/2004 9,720 9,814
7/27/2004 9,880 9,978
7/28/2004 9,824 9,916
7/29/2004 9,956 10,049
7/30/2004 9,960 10,055
7/31/2004 9,960 10,055
8/1/2004 9,960 10,055
8/2/2004 10,000 10,098
8/3/2004 9,876 9,970
8/4/2004 9,888 9,978
8/5/2004 9,720 9,807
8/6/2004 9,508 9,594
8/7/2004 9,508 9,594
8/8/2004 9,508 9,594
8/9/2004 9,512 9,595
8/10/2004 9,700 9,776
8/11/2004 9,684 9,759
8/12/2004 9,492 9,563
8/13/2004 9,504 9,575
8/14/2004 9,504 9,575
8/15/2004 9,504 9,575
8/16/2004 9,712 9,790
8/17/2004 9,732 9,811
8/18/2004 9,888 9,968
8/19/2004 9,832 9,913
8/20/2004 10,012 10,095
8/21/2004 10,012 10,095
8/22/2004 10,012 10,095
8/23/2004 9,908 9,991
8/24/2004 9,968 10,051
8/25/2004 10,008 10,092
8/26/2004 9,988 10,074
8/27/2004 10,060 10,146
8/28/2004 10,060 10,146
8/29/2004 10,060 10,146
8/30/2004 9,940 10,021
8/31/2004 9,992 10,076
9/1/2004 10,064 10,150
9/2/2004 10,212 10,299
9/3/2004 10,144 10,235
9/4/2004 10,144 10,235
9/5/2004 10,144 10,235
9/6/2004 10,144 10,235
9/7/2004 10,276 10,367
9/8/2004 10,184 10,272
9/9/2004 10,308 10,402
9/10/2004 10,348 10,447
9/11/2004 10,348 10,447
9/12/2004 10,348 10,447
9/13/2004 10,396 10,492
9/14/2004 10,336 10,433
9/15/2004 10,292 10,390
9/16/2004 10,404 10,505
9/17/2004 10,408 10,511
9/18/2004 10,408 10,511
9/19/2004 10,408 10,511
9/20/2004 10,352 10,454
9/21/2004 10,480 10,583
9/22/2004 10,296 10,398
9/23/2004 10,300 10,401
9/24/2004 10,296 10,399
9/25/2004 10,296 10,399
9/26/2004 10,296 10,399
9/27/2004 10,200 10,302
9/28/2004 10,308 10,411
9/29/2004 10,416 10,523
9/30/2004 10,452 10,561
10/1/2004 10,676 10,792
10/2/2004 10,676 10,792
10/3/2004 10,676 10,792
10/4/2004 10,736 10,855
10/5/2004 10,704 10,822
10/6/2004 10,808 10,929
10/7/2004 10,608 10,726
10/8/2004 10,504 10,626
10/9/2004 10,504 10,626
10/10/2004 10,504 10,626
10/11/2004 10,500 10,620
10/12/2004 10,520 10,640
10/13/2004 10,368 10,486
10/14/2004 10,240 10,357
10/15/2004 10,320 10,442
10/16/2004 10,320 10,442
10/17/2004 10,320 10,442
10/18/2004 10,328 10,449
10/19/2004 10,236 10,356
10/20/2004 10,252 10,375
10/21/2004 10,376 10,502
10/22/2004 10,196 10,326
10/23/2004 10,196 10,326
10/24/2004 10,196 10,326
10/25/2004 10,264 10,396
10/26/2004 10,432 10,569
10/27/2004 10,588 10,725
10/28/2004 10,536 10,673
10/29/2004 10,508 10,642
10/30/2004 10,508 10,642
10/31/2004 10,508 10,642
11/1/2004 10,576 10,715
11/2/2004 10,544 10,682
11/3/2004 10,716 10,857
11/4/2004 10,840 10,985
11/5/2004 10,864 11,011
11/6/2004 10,864 11,011
11/7/2004 10,864 11,011
11/8/2004 10,820 10,967
11/9/2004 10,900 11,048
11/10/2004 10,940 11,087
11/11/2004 11,060 11,207
11/12/2004 11,152 11,306
11/13/2004 11,152 11,306
11/14/2004 11,152 11,306
11/15/2004 11,180 11,333
11/16/2004 11,080 11,233
11/17/2004 11,184 11,341
11/18/2004 11,176 11,332
11/19/2004 11,056 11,213
11/20/2004 11,056 11,213
11/21/2004 11,056 11,213
11/22/2004 11,212 11,370
11/23/2004 11,260 11,422
11/24/2004 11,364 11,525
11/25/2004 11,364 11,525
11/26/2004 11,388 11,553
11/27/2004 11,388 11,553
11/28/2004 11,388 11,553
11/29/2004 11,460 11,627
11/30/2004 11,432 11,598
12/1/2004 11,604 11,774
12/2/2004 11,532 11,703
12/3/2004 11,520 11,691
12/4/2004 11,520 11,691
12/5/2004 11,520 11,691
12/6/2004 11,464 11,635
12/7/2004 11,224 11,391
12/8/2004 11,308 11,474
12/9/2004 11,300 11,467
12/10/2004 11,336 11,506
12/11/2004 11,336 11,506
12/12/2004 11,336 11,506
12/13/2004 11,417 11,588
12/14/2004 11,477 11,650
12/15/2004 11,581 11,758
12/16/2004 11,485 11,657
12/17/2004 11,489 11,665
12/18/2004 11,489 11,665
12/19/2004 11,489 11,665
12/20/2004 11,393 11,569
12/21/2004 11,541 11,717
12/22/2004 11,585 11,764
12/23/2004 11,573 11,754
12/24/2004 11,573 11,754
12/25/2004 11,573 11,754
12/26/2004 11,573 11,754
12/27/2004 11,457 11,636
12/28/2004 11,642 11,823
12/29/2004 11,630 11,810
12/30/2004 11,618 11,799
12/31/2004 11,614 11,797
1/1/2005 11,614 11,797
1/2/2005 11,614 11,797
1/3/2005 11,397 11,576
1/4/2005 11,204 11,381
1/5/2005 11,003 11,179
1/6/2005 11,035 11,209
1/7/2005 10,906 11,083
1/8/2005 10,906 11,083
1/9/2005 10,906 11,083
1/10/2005 10,999 11,173
1/11/2005 10,882 11,058
1/12/2005 10,918 11,094
1/13/2005 10,850 11,025
1/14/2005 11,031 11,211
1/15/2005 11,031 11,211
1/16/2005 11,031 11,211
1/17/2005 11,031 11,211
1/18/2005 11,143 11,326
1/19/2005 11,039 11,222
1/20/2005 10,947 11,129
1/21/2005 10,918 11,101
1/22/2005 10,918 11,101
1/23/2005 10,918 11,101
1/24/2005 10,826 11,007
1/25/2005 10,846 11,031
1/26/2005 11,031 11,220
1/27/2005 11,047 11,230
1/28/2005 10,967 11,153
1/29/2005 10,967 11,153
1/30/2005 10,967 11,153
1/31/2005 11,184 11,375
2/1/2005 11,272 11,469
2/2/2005 11,344 11,542
2/3/2005 11,316 11,512
2/4/2005 11,453 11,656
2/5/2005 11,453 11,656
2/6/2005 11,453 11,656
2/7/2005 11,465 11,671
2/8/2005 11,493 11,699
2/9/2005 11,300 11,499
2/10/2005 11,324 11,528
2/11/2005 11,417 11,623
2/12/2005 11,417 11,623
2/13/2005 11,417 11,623
2/14/2005 11,421 11,628
2/15/2005 11,417 11,622
2/16/2005 11,497 11,705
2/17/2005 11,368 11,573
2/18/2005 11,377 11,585
2/19/2005 11,377 11,585
2/20/2005 11,377 11,585
2/21/2005 11,377 11,585
2/22/2005 11,160 11,366
2/23/2005 11,220 11,424
2/24/2005 11,348 11,558
2/25/2005 11,545 11,755
2/26/2005 11,545 11,755
2/27/2005 11,545 11,755
2/28/2005 11,501 11,713
3/1/2005 11,606 11,820
3/2/2005 11,561 11,775
3/3/2005 11,602 11,817
3/4/2005 11,746 11,970
3/5/2005 11,746 11,970
3/6/2005 11,746 11,970
3/7/2005 11,730 11,953
3/8/2005 11,642 11,863
3/9/2005 11,509 11,726
3/10/2005 11,429 11,642
3/11/2005 11,441 11,657
3/12/2005 11,441 11,657
3/13/2005 11,441 11,657
3/14/2005 11,489 11,708
3/15/2005 11,453 11,668
3/16/2005 11,393 11,610
3/17/2005 11,433 11,653
3/18/2005 11,397 11,618
3/19/2005 11,397 11,618
3/20/2005 11,397 11,618
3/21/2005 11,377 11,598
3/22/2005 11,320 11,537
3/23/2005 11,200 11,418
3/24/2005 11,252 11,472
3/25/2005 11,252 11,472
3/26/2005 11,252 11,472
3/27/2005 11,252 11,472
3/28/2005 11,248 11,472
3/29/2005 11,067 11,285
3/30/2005 11,260 11,482
3/31/2005 11,256 11,482
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
SMALL-CAP VALUE FUND S&P SMALLCAP 600/
DATE H-CLASS BARRA VALUE INDEX
---------- -------------------- -----------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 9,872 9,877
2/24/2004 9,916 9,921
2/25/2004 10,020 10,027
2/26/2004 10,080 10,090
2/27/2004 10,120 10,135
2/28/2004 10,120 10,135
2/29/2004 10,120 10,135
3/1/2004 10,284 10,301
3/2/2004 10,232 10,249
3/3/2004 10,252 10,268
3/4/2004 10,368 10,377
3/5/2004 10,360 10,373
3/6/2004 10,360 10,373
3/7/2004 10,360 10,373
3/8/2004 10,296 10,307
3/9/2004 10,208 10,227
3/10/2004 10,036 10,053
3/11/2004 9,928 9,940
3/12/2004 10,152 10,174
3/13/2004 10,152 10,174
3/14/2004 10,152 10,174
3/15/2004 9,924 9,948
3/16/2004 9,888 9,912
3/17/2004 10,084 10,104
3/18/2004 10,016 10,039
3/19/2004 9,968 9,996
3/20/2004 9,968 9,996
3/21/2004 9,968 9,996
3/22/2004 9,800 9,832
3/23/2004 9,816 9,852
3/24/2004 9,764 9,797
3/25/2004 9,920 9,956
3/26/2004 9,956 9,996
3/27/2004 9,956 9,996
3/28/2004 9,956 9,996
3/29/2004 10,124 10,173
3/30/2004 10,228 10,282
3/31/2004 10,248 10,303
4/1/2004 10,312 10,368
4/2/2004 10,404 10,464
4/3/2004 10,404 10,464
4/4/2004 10,404 10,464
4/5/2004 10,432 10,492
4/6/2004 10,368 10,430
4/7/2004 10,400 10,459
4/8/2004 10,312 10,374
4/9/2004 10,312 10,374
4/10/2004 10,312 10,374
4/11/2004 10,312 10,374
4/12/2004 10,364 10,428
4/13/2004 10,128 10,189
4/14/2004 10,064 10,125
4/15/2004 10,064 10,130
4/16/2004 10,168 10,239
4/17/2004 10,168 10,239
4/18/2004 10,168 10,239
4/19/2004 10,172 10,244
4/20/2004 10,028 10,096
4/21/2004 10,148 10,221
4/22/2004 10,332 10,406
4/23/2004 10,280 10,354
4/24/2004 10,280 10,354
4/25/2004 10,280 10,354
4/26/2004 10,228 10,305
4/27/2004 10,264 10,340
4/28/2004 10,068 10,138
4/29/2004 9,928 9,994
4/30/2004 9,848 9,915
5/1/2004 9,848 9,915
5/2/2004 9,848 9,915
5/3/2004 9,900 9,966
5/4/2004 9,972 10,041
5/5/2004 9,964 10,032
5/6/2004 9,864 9,932
5/7/2004 9,612 9,676
5/8/2004 9,612 9,676
5/9/2004 9,612 9,676
5/10/2004 9,444 9,502
5/11/2004 9,600 9,658
5/12/2004 9,628 9,693
5/13/2004 9,568 9,632
5/14/2004 9,544 9,607
5/15/2004 9,544 9,607
5/16/2004 9,544 9,607
5/17/2004 9,400 9,462
5/18/2004 9,540 9,599
5/19/2004 9,512 9,572
5/20/2004 9,560 9,619
5/21/2004 9,620 9,683
5/22/2004 9,620 9,683
5/23/2004 9,620 9,683
5/24/2004 9,736 9,800
5/25/2004 9,968 10,033
5/26/2004 9,972 10,029
5/27/2004 9,972 10,029
5/28/2004 9,968 10,028
5/29/2004 9,968 10,028
5/30/2004 9,968 10,028
5/31/2004 9,968 10,028
6/1/2004 10,024 10,083
6/2/2004 10,036 10,099
6/3/2004 9,876 9,934
6/4/2004 9,936 9,996
6/5/2004 9,936 9,996
6/6/2004 9,936 9,996
6/7/2004 10,144 10,206
6/8/2004 10,148 10,212
6/9/2004 10,020 10,081
6/10/2004 10,040 10,105
6/11/2004 10,040 10,105
6/12/2004 10,040 10,105
6/13/2004 10,040 10,105
6/14/2004 9,872 9,932
6/15/2004 10,040 10,100
6/16/2004 10,084 10,145
6/17/2004 10,124 10,185
6/18/2004 10,156 10,220
6/19/2004 10,156 10,220
6/20/2004 10,156 10,220
6/21/2004 10,128 10,193
6/22/2004 10,168 10,231
6/23/2004 10,288 10,355
6/24/2004 10,252 10,320
6/25/2004 10,352 10,426
6/26/2004 10,352 10,426
6/27/2004 10,352 10,426
6/28/2004 10,332 10,402
6/29/2004 10,432 10,504
6/30/2004 10,496 10,568
7/1/2004 10,376 10,445
7/2/2004 10,404 10,472
7/3/2004 10,404 10,472
7/4/2004 10,404 10,472
7/5/2004 10,404 10,472
7/6/2004 10,264 10,319
7/7/2004 10,272 10,327
7/8/2004 10,104 10,158
7/9/2004 10,144 10,198
7/10/2004 10,144 10,198
7/11/2004 10,144 10,198
7/12/2004 10,132 10,187
7/13/2004 10,168 10,224
7/14/2004 10,116 10,171
7/15/2004 10,156 10,214
7/16/2004 10,092 10,153
7/17/2004 10,092 10,153
7/18/2004 10,092 10,153
7/19/2004 10,080 10,140
7/20/2004 10,220 10,282
7/21/2004 9,988 10,048
7/22/2004 9,900 9,955
7/23/2004 9,828 9,885
7/24/2004 9,828 9,885
7/25/2004 9,828 9,885
7/26/2004 9,760 9,814
7/27/2004 9,920 9,978
7/28/2004 9,864 9,916
7/29/2004 10,000 10,049
7/30/2004 10,004 10,055
7/31/2004 10,004 10,055
8/1/2004 10,004 10,055
8/2/2004 10,044 10,098
8/3/2004 9,920 9,970
8/4/2004 9,928 9,978
8/5/2004 9,760 9,807
8/6/2004 9,552 9,594
8/7/2004 9,552 9,594
8/8/2004 9,552 9,594
8/9/2004 9,552 9,595
8/10/2004 9,744 9,776
8/11/2004 9,728 9,759
8/12/2004 9,532 9,563
8/13/2004 9,544 9,575
8/14/2004 9,544 9,575
8/15/2004 9,544 9,575
8/16/2004 9,756 9,790
8/17/2004 9,776 9,811
8/18/2004 9,932 9,968
8/19/2004 9,880 9,913
8/20/2004 10,056 10,095
8/21/2004 10,056 10,095
8/22/2004 10,056 10,095
8/23/2004 9,956 9,991
8/24/2004 10,012 10,051
8/25/2004 10,052 10,092
8/26/2004 10,036 10,074
8/27/2004 10,108 10,146
8/28/2004 10,108 10,146
8/29/2004 10,108 10,146
8/30/2004 9,984 10,021
8/31/2004 10,040 10,076
9/1/2004 10,112 10,150
9/2/2004 10,260 10,299
9/3/2004 10,196 10,235
9/4/2004 10,196 10,235
9/5/2004 10,196 10,235
9/6/2004 10,196 10,235
9/7/2004 10,324 10,367
9/8/2004 10,232 10,272
9/9/2004 10,360 10,402
9/10/2004 10,400 10,447
9/11/2004 10,400 10,447
9/12/2004 10,400 10,447
9/13/2004 10,448 10,492
9/14/2004 10,388 10,433
9/15/2004 10,344 10,390
9/16/2004 10,456 10,505
9/17/2004 10,460 10,511
9/18/2004 10,460 10,511
9/19/2004 10,460 10,511
9/20/2004 10,404 10,454
9/21/2004 10,536 10,583
9/22/2004 10,352 10,398
9/23/2004 10,352 10,401
9/24/2004 10,348 10,399
9/25/2004 10,348 10,399
9/26/2004 10,348 10,399
9/27/2004 10,252 10,302
9/28/2004 10,360 10,411
9/29/2004 10,472 10,523
9/30/2004 10,508 10,561
10/1/2004 10,732 10,792
10/2/2004 10,732 10,792
10/3/2004 10,732 10,792
10/4/2004 10,796 10,855
10/5/2004 10,760 10,822
10/6/2004 10,868 10,929
10/7/2004 10,664 10,726
10/8/2004 10,564 10,626
10/9/2004 10,564 10,626
10/10/2004 10,564 10,626
10/11/2004 10,560 10,620
10/12/2004 10,576 10,640
10/13/2004 10,428 10,486
10/14/2004 10,296 10,357
10/15/2004 10,380 10,442
10/16/2004 10,380 10,442
10/17/2004 10,380 10,442
10/18/2004 10,388 10,449
10/19/2004 10,292 10,356
10/20/2004 10,312 10,375
10/21/2004 10,436 10,502
10/22/2004 10,256 10,326
10/23/2004 10,256 10,326
10/24/2004 10,256 10,326
10/25/2004 10,324 10,396
10/26/2004 10,488 10,569
10/27/2004 10,644 10,725
10/28/2004 10,596 10,673
10/29/2004 10,564 10,642
10/30/2004 10,564 10,642
10/31/2004 10,564 10,642
11/1/2004 10,636 10,715
11/2/2004 10,604 10,682
11/3/2004 10,776 10,857
11/4/2004 10,904 10,985
11/5/2004 10,928 11,011
11/6/2004 10,928 11,011
11/7/2004 10,928 11,011
11/8/2004 10,884 10,967
11/9/2004 10,964 11,048
11/10/2004 11,004 11,087
11/11/2004 11,124 11,207
11/12/2004 11,220 11,306
11/13/2004 11,220 11,306
11/14/2004 11,220 11,306
11/15/2004 11,244 11,333
11/16/2004 11,144 11,233
11/17/2004 11,252 11,341
11/18/2004 11,244 11,332
11/19/2004 11,124 11,213
11/20/2004 11,124 11,213
11/21/2004 11,124 11,213
11/22/2004 11,276 11,370
11/23/2004 11,328 11,422
11/24/2004 11,432 11,525
11/25/2004 11,432 11,525
11/26/2004 11,456 11,553
11/27/2004 11,456 11,553
11/28/2004 11,456 11,553
11/29/2004 11,528 11,627
11/30/2004 11,500 11,598
12/1/2004 11,676 11,774
12/2/2004 11,600 11,703
12/3/2004 11,588 11,691
12/4/2004 11,588 11,691
12/5/2004 11,588 11,691
12/6/2004 11,532 11,635
12/7/2004 11,292 11,391
12/8/2004 11,372 11,474
12/9/2004 11,364 11,467
12/10/2004 11,404 11,506
12/11/2004 11,404 11,506
12/12/2004 11,404 11,506
12/13/2004 11,485 11,588
12/14/2004 11,545 11,650
12/15/2004 11,653 11,758
12/16/2004 11,553 11,657
12/17/2004 11,557 11,665
12/18/2004 11,557 11,665
12/19/2004 11,557 11,665
12/20/2004 11,465 11,569
12/21/2004 11,609 11,717
12/22/2004 11,653 11,764
12/23/2004 11,645 11,754
12/24/2004 11,645 11,754
12/25/2004 11,645 11,754
12/26/2004 11,645 11,754
12/27/2004 11,529 11,636
12/28/2004 11,710 11,823
12/29/2004 11,702 11,810
12/30/2004 11,690 11,799
12/31/2004 11,686 11,797
1/1/2005 11,686 11,797
1/2/2005 11,686 11,797
1/3/2005 11,469 11,576
1/4/2005 11,272 11,381
1/5/2005 11,075 11,179
1/6/2005 11,103 11,209
1/7/2005 10,978 11,083
1/8/2005 10,978 11,083
1/9/2005 10,978 11,083
1/10/2005 11,067 11,173
1/11/2005 10,954 11,058
1/12/2005 10,990 11,094
1/13/2005 10,922 11,025
1/14/2005 11,103 11,211
1/15/2005 11,103 11,211
1/16/2005 11,103 11,211
1/17/2005 11,103 11,211
1/18/2005 11,219 11,326
1/19/2005 11,111 11,222
1/20/2005 11,019 11,129
1/21/2005 10,990 11,101
1/22/2005 10,990 11,101
1/23/2005 10,990 11,101
1/24/2005 10,898 11,007
1/25/2005 10,922 11,031
1/26/2005 11,107 11,220
1/27/2005 11,123 11,230
1/28/2005 11,047 11,153
1/29/2005 11,047 11,153
1/30/2005 11,047 11,153
1/31/2005 11,260 11,375
2/1/2005 11,352 11,469
2/2/2005 11,424 11,542
2/3/2005 11,396 11,512
2/4/2005 11,537 11,656
2/5/2005 11,537 11,656
2/6/2005 11,537 11,656
2/7/2005 11,549 11,671
2/8/2005 11,577 11,699
2/9/2005 11,380 11,499
2/10/2005 11,408 11,528
2/11/2005 11,501 11,623
2/12/2005 11,501 11,623
2/13/2005 11,501 11,623
2/14/2005 11,505 11,628
2/15/2005 11,501 11,622
2/16/2005 11,581 11,705
2/17/2005 11,453 11,573
2/18/2005 11,461 11,585
2/19/2005 11,461 11,585
2/20/2005 11,461 11,585
2/21/2005 11,461 11,585
2/22/2005 11,248 11,366
2/23/2005 11,304 11,424
2/24/2005 11,436 11,558
2/25/2005 11,633 11,755
2/26/2005 11,633 11,755
2/27/2005 11,633 11,755
2/28/2005 11,589 11,713
3/1/2005 11,694 11,820
3/2/2005 11,649 11,775
3/3/2005 11,690 11,817
3/4/2005 11,838 11,970
3/5/2005 11,838 11,970
3/6/2005 11,838 11,970
3/7/2005 11,822 11,953
3/8/2005 11,734 11,863
3/9/2005 11,597 11,726
3/10/2005 11,517 11,642
3/11/2005 11,529 11,657
3/12/2005 11,529 11,657
3/13/2005 11,529 11,657
3/14/2005 11,581 11,708
3/15/2005 11,541 11,668
3/16/2005 11,481 11,610
3/17/2005 11,525 11,653
3/18/2005 11,489 11,618
3/19/2005 11,489 11,618
3/20/2005 11,489 11,618
3/21/2005 11,469 11,598
3/22/2005 11,408 11,537
3/23/2005 11,292 11,418
3/24/2005 11,344 11,472
3/25/2005 11,344 11,472
3/26/2005 11,344 11,472
3/27/2005 11,344 11,472
3/28/2005 11,340 11,472
3/29/2005 11,159 11,285
3/30/2005 11,348 11,482
3/31/2005 11,348 11,482
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ----------------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(09/01/04) (02/20/04) (02/20/04)
- ----------------------------------------------------------------------------------------
SINCE ONE SINCE ONE SINCE
INCEPTION YEAR INCEPTION YEAR INCEPTION
- ----------------------------------------------------------------------------------------
SMALL-CAP VALUE FUND 12.14% 9.96% 11.25% 10.73% 12.07%
S&P SMALLCAP 600/BARRA VALUE INDEX 13.13% 11.44% 13.26% 11.44% 13.26%
- ----------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P SMALLCAP 600/BARRA VALUE
INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES
OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPHS ARE BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY;
PERFORMANCE FOR A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
SMALL-CAP VALUE FUND S&P SMALLCAP 600/BARRA VALUE INDEX
-------------------- ----------------------------------
Other 8.1% 27.1%
Industrials 20.1% 21.4%
Financials 19.9% 22.1%
Consumer Discretionary 14.6% 11.0%
Information Technology 13.6% 6.8%
Health Care 8.0% 5.3%
Materials 7.9%
Utilities 7.5% 6.3%
"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. 1.2%
Southern Union Co. 1.0%
Timken Co. 1.0%
Standard-Pacific Corp. 0.9%
UGI Corp. 0.9%
Accredo Health, Inc. 0.9%
South Financial Group, Inc. 0.9%
Atmos Energy Corp. 0.8%
Commercial Metals Co. 0.8%
Hughes Supply, Inc. 0.8%
- -------------------------------------------------------
Top Ten Total 9.2%
- -------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
22 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
OBJECTIVE: To provide investment results that match the performance of the
benchmark for mid-cap value securities. The Fund's current benchmark is the S&P
MidCap 400/Barra Value Index. The investment objective of the Mid-Cap Value Fund
is non-fundamental and may be changed without shareholder approval.
Inception: February 20, 2004
For the year ended March 31, 2005, mid-cap stocks outperformed their large-cap
counterparts during the period, and mid-cap value stocks bested mid-cap growth.
Within the mid-cap value space, energy, basic materials and industrials were the
best performers, while health care and financials were the worst.
In its first full year of operation, the Fund experienced very high shareholder
turnover compared to its average asset size. This caused the fund to trail its
benchmark more than would normally be expected. As the Fund grows in size,
however, these effects should be mitigated. Rydex Mid-Cap Value Fund H-Class was
up 9.83% compared to the S&P MidCap 400/Barra Value Index, which returned
10.20%.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
MID-CAP VALUE FUND S&P MIDCAP 400/
DATE C-CLASS BARRA VALUE INDEX
---------- ------------------ -----------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 9,896 9,901
2/24/2004 9,908 9,916
2/25/2004 9,980 9,986
2/26/2004 10,060 10,075
2/27/2004 10,076 10,096
2/28/2004 10,076 10,096
2/29/2004 10,076 10,096
3/1/2004 10,204 10,224
3/2/2004 10,180 10,205
3/3/2004 10,184 10,207
3/4/2004 10,228 10,254
3/5/2004 10,288 10,316
3/6/2004 10,288 10,316
3/7/2004 10,288 10,316
3/8/2004 10,204 10,227
3/9/2004 10,116 10,146
3/10/2004 9,952 9,976
3/11/2004 9,840 9,864
3/12/2004 9,984 10,015
3/13/2004 9,984 10,015
3/14/2004 9,984 10,015
3/15/2004 9,820 9,847
3/16/2004 9,832 9,862
3/17/2004 9,980 10,009
3/18/2004 9,956 9,986
3/19/2004 9,892 9,922
3/20/2004 9,892 9,922
3/21/2004 9,892 9,922
3/22/2004 9,720 9,752
3/23/2004 9,728 9,764
3/24/2004 9,640 9,675
3/25/2004 9,800 9,840
3/26/2004 9,812 9,854
3/27/2004 9,812 9,854
3/28/2004 9,812 9,854
3/29/2004 9,932 9,988
3/30/2004 10,004 10,058
3/31/2004 10,044 10,102
4/1/2004 10,128 10,188
4/2/2004 10,144 10,206
4/3/2004 10,144 10,206
4/4/2004 10,144 10,206
4/5/2004 10,184 10,246
4/6/2004 10,124 10,188
4/7/2004 10,116 10,181
4/8/2004 10,064 10,135
4/9/2004 10,064 10,135
4/10/2004 10,064 10,135
4/11/2004 10,064 10,135
4/12/2004 10,072 10,143
4/13/2004 9,892 9,960
4/14/2004 9,820 9,888
4/15/2004 9,836 9,907
4/16/2004 9,924 9,997
4/17/2004 9,924 9,997
4/18/2004 9,924 9,997
4/19/2004 9,932 10,010
4/20/2004 9,788 9,862
4/21/2004 9,872 9,950
4/22/2004 10,048 10,128
4/23/2004 9,988 10,071
4/24/2004 9,988 10,071
4/25/2004 9,988 10,071
4/26/2004 9,964 10,045
4/27/2004 10,000 10,080
4/28/2004 9,860 9,937
4/29/2004 9,696 9,774
4/30/2004 9,620 9,702
5/1/2004 9,620 9,702
5/2/2004 9,620 9,702
5/3/2004 9,700 9,782
5/4/2004 9,728 9,810
5/5/2004 9,748 9,829
5/6/2004 9,656 9,733
5/7/2004 9,444 9,519
5/8/2004 9,444 9,519
5/9/2004 9,444 9,519
5/10/2004 9,284 9,357
5/11/2004 9,388 9,458
5/12/2004 9,376 9,441
5/13/2004 9,392 9,459
5/14/2004 9,392 9,458
5/15/2004 9,392 9,458
5/16/2004 9,392 9,458
5/17/2004 9,284 9,351
5/18/2004 9,344 9,414
5/19/2004 9,316 9,385
5/20/2004 9,340 9,409
5/21/2004 9,372 9,443
5/22/2004 9,372 9,443
5/23/2004 9,372 9,443
5/24/2004 9,476 9,552
5/25/2004 9,652 9,730
5/26/2004 9,716 9,794
5/27/2004 9,764 9,842
5/28/2004 9,804 9,887
5/29/2004 9,804 9,887
5/30/2004 9,804 9,887
5/31/2004 9,804 9,887
6/1/2004 9,824 9,907
6/2/2004 9,844 9,926
6/3/2004 9,720 9,799
6/4/2004 9,788 9,869
6/5/2004 9,788 9,869
6/6/2004 9,788 9,869
6/7/2004 9,940 10,026
6/8/2004 9,920 10,000
6/9/2004 9,804 9,883
6/10/2004 9,836 9,913
6/11/2004 9,836 9,913
6/12/2004 9,836 9,913
6/13/2004 9,836 9,913
6/14/2004 9,712 9,782
6/15/2004 9,828 9,901
6/16/2004 9,844 9,919
6/17/2004 9,864 9,939
6/18/2004 9,872 9,947
6/19/2004 9,872 9,947
6/20/2004 9,872 9,947
6/21/2004 9,856 9,932
6/22/2004 9,904 9,983
6/23/2004 10,004 10,082
6/24/2004 9,984 10,064
6/25/2004 10,020 10,103
6/26/2004 10,020 10,103
6/27/2004 10,020 10,103
6/28/2004 9,964 10,046
6/29/2004 9,992 10,068
6/30/2004 10,100 10,181
7/1/2004 9,968 10,045
7/2/2004 9,956 10,038
7/3/2004 9,956 10,038
7/4/2004 9,956 10,038
7/5/2004 9,956 10,038
7/6/2004 9,832 9,905
7/7/2004 9,848 9,917
7/8/2004 9,740 9,806
7/9/2004 9,784 9,855
7/10/2004 9,784 9,855
7/11/2004 9,784 9,855
7/12/2004 9,776 9,848
7/13/2004 9,796 9,869
7/14/2004 9,784 9,856
7/15/2004 9,828 9,899
7/16/2004 9,780 9,849
7/17/2004 9,780 9,849
7/18/2004 9,780 9,849
7/19/2004 9,796 9,863
7/20/2004 9,892 9,960
7/21/2004 9,712 9,765
7/22/2004 9,680 9,730
7/23/2004 9,580 9,630
7/24/2004 9,580 9,630
7/25/2004 9,580 9,630
7/26/2004 9,512 9,564
7/27/2004 9,608 9,663
7/28/2004 9,576 9,626
7/29/2004 9,688 9,741
7/30/2004 9,676 9,730
7/31/2004 9,676 9,730
8/1/2004 9,676 9,730
8/2/2004 9,728 9,780
8/3/2004 9,640 9,686
8/4/2004 9,620 9,665
8/5/2004 9,448 9,490
8/6/2004 9,316 9,359
8/7/2004 9,316 9,359
8/8/2004 9,316 9,359
8/9/2004 9,332 9,376
8/10/2004 9,476 9,521
8/11/2004 9,416 9,460
8/12/2004 9,288 9,329
8/13/2004 9,280 9,323
8/14/2004 9,280 9,323
8/15/2004 9,280 9,323
8/16/2004 9,436 9,480
8/17/2004 9,472 9,517
8/18/2004 9,600 9,647
8/19/2004 9,540 9,585
8/20/2004 9,652 9,696
8/21/2004 9,652 9,696
8/22/2004 9,652 9,696
8/23/2004 9,608 9,651
8/24/2004 9,624 9,672
8/25/2004 9,712 9,758
8/26/2004 9,716 9,763
8/27/2004 9,756 9,805
8/28/2004 9,756 9,805
8/29/2004 9,756 9,805
8/30/2004 9,640 9,688
8/31/2004 9,732 9,780
9/1/2004 9,808 9,855
9/2/2004 9,880 9,926
9/3/2004 9,844 9,894
9/4/2004 9,844 9,894
9/5/2004 9,844 9,894
9/6/2004 9,844 9,894
9/7/2004 9,928 9,978
9/8/2004 9,800 9,848
9/9/2004 9,880 9,929
9/10/2004 9,892 9,945
9/11/2004 9,892 9,945
9/12/2004 9,892 9,945
9/13/2004 9,936 9,991
9/14/2004 9,904 9,958
9/15/2004 9,856 9,908
9/16/2004 9,940 10,000
9/17/2004 9,956 10,017
9/18/2004 9,956 10,017
9/19/2004 9,956 10,017
9/20/2004 9,908 9,968
9/21/2004 9,992 10,057
9/22/2004 9,892 9,952
9/23/2004 9,856 9,918
9/24/2004 9,896 9,963
9/25/2004 9,896 9,963
9/26/2004 9,896 9,963
9/27/2004 9,828 9,894
9/28/2004 9,888 9,955
9/29/2004 9,904 9,971
9/30/2004 9,992 10,062
10/1/2004 10,136 10,209
10/2/2004 10,136 10,209
10/3/2004 10,136 10,209
10/4/2004 10,128 10,204
10/5/2004 10,112 10,187
10/6/2004 10,184 10,264
10/7/2004 10,048 10,127
10/8/2004 9,988 10,067
10/9/2004 9,988 10,067
10/10/2004 9,988 10,067
10/11/2004 9,980 10,059
10/12/2004 9,964 10,043
10/13/2004 9,852 9,929
10/14/2004 9,792 9,870
10/15/2004 9,832 9,911
10/16/2004 9,832 9,911
10/17/2004 9,832 9,911
10/18/2004 9,840 9,922
10/19/2004 9,760 9,841
10/20/2004 9,780 9,862
10/21/2004 9,864 9,950
10/22/2004 9,800 9,885
10/23/2004 9,800 9,885
10/24/2004 9,800 9,885
10/25/2004 9,844 9,933
10/26/2004 9,940 10,031
10/27/2004 10,044 10,139
10/28/2004 10,020 10,116
10/29/2004 10,036 10,134
10/30/2004 10,036 10,134
10/31/2004 10,036 10,134
11/1/2004 10,064 10,160
11/2/2004 10,048 10,144
11/3/2004 10,196 10,296
11/4/2004 10,352 10,451
11/5/2004 10,352 10,457
11/6/2004 10,352 10,457
11/7/2004 10,352 10,457
11/8/2004 10,320 10,422
11/9/2004 10,360 10,462
11/10/2004 10,384 10,487
11/11/2004 10,480 10,586
11/12/2004 10,608 10,717
11/13/2004 10,608 10,717
11/14/2004 10,608 10,717
11/15/2004 10,592 10,701
11/16/2004 10,540 10,646
11/17/2004 10,624 10,731
11/18/2004 10,628 10,735
11/19/2004 10,520 10,628
11/20/2004 10,520 10,628
11/21/2004 10,520 10,628
11/22/2004 10,618 10,730
11/23/2004 10,655 10,767
11/24/2004 10,751 10,863
11/25/2004 10,751 10,863
11/26/2004 10,763 10,877
11/27/2004 10,763 10,877
11/28/2004 10,763 10,877
11/29/2004 10,735 10,851
11/30/2004 10,719 10,837
12/1/2004 10,831 10,949
12/2/2004 10,767 10,885
12/3/2004 10,803 10,924
12/4/2004 10,803 10,924
12/5/2004 10,803 10,924
12/6/2004 10,751 10,874
12/7/2004 10,614 10,734
12/8/2004 10,663 10,778
12/9/2004 10,715 10,834
12/10/2004 10,751 10,870
12/11/2004 10,751 10,870
12/12/2004 10,751 10,870
12/13/2004 10,831 10,951
12/14/2004 10,920 11,045
12/15/2004 11,020 11,147
12/16/2004 10,952 11,078
12/17/2004 10,944 11,070
12/18/2004 10,944 11,070
12/19/2004 10,944 11,070
12/20/2004 10,875 11,002
12/21/2004 10,988 11,116
12/22/2004 11,020 11,151
12/23/2004 11,024 11,157
12/24/2004 11,024 11,157
12/25/2004 11,024 11,157
12/26/2004 11,024 11,157
12/27/2004 10,964 11,095
12/28/2004 11,080 11,215
12/29/2004 11,096 11,228
12/30/2004 11,140 11,271
12/31/2004 11,116 11,250
1/1/2005 11,116 11,250
1/2/2005 11,116 11,250
1/3/2005 10,940 11,070
1/4/2005 10,771 10,898
1/5/2005 10,643 10,769
1/6/2005 10,683 10,809
1/7/2005 10,614 10,745
1/8/2005 10,614 10,745
1/9/2005 10,614 10,745
1/10/2005 10,667 10,798
1/11/2005 10,598 10,732
1/12/2005 10,626 10,757
1/13/2005 10,626 10,761
1/14/2005 10,723 10,860
1/15/2005 10,723 10,860
1/16/2005 10,723 10,860
1/17/2005 10,723 10,860
1/18/2005 10,819 10,961
1/19/2005 10,727 10,867
1/20/2005 10,659 10,799
1/21/2005 10,602 10,746
1/22/2005 10,602 10,746
1/23/2005 10,602 10,746
1/24/2005 10,550 10,691
1/25/2005 10,558 10,698
1/26/2005 10,659 10,801
1/27/2005 10,671 10,814
1/28/2005 10,638 10,783
1/29/2005 10,638 10,783
1/30/2005 10,638 10,783
1/31/2005 10,783 10,929
2/1/2005 10,859 11,009
2/2/2005 10,916 11,063
2/3/2005 10,879 11,028
2/4/2005 11,036 11,190
2/5/2005 11,036 11,190
2/6/2005 11,036 11,190
2/7/2005 11,012 11,165
2/8/2005 11,068 11,223
2/9/2005 10,928 11,081
2/10/2005 10,956 11,109
2/11/2005 11,048 11,201
2/12/2005 11,048 11,201
2/13/2005 11,048 11,201
2/14/2005 11,060 11,215
2/15/2005 11,072 11,229
2/16/2005 11,128 11,285
2/17/2005 11,044 11,199
2/18/2005 11,020 11,179
2/19/2005 11,020 11,179
2/20/2005 11,020 11,179
2/21/2005 11,020 11,179
2/22/2005 10,831 10,987
2/23/2005 10,879 11,038
2/24/2005 11,016 11,175
2/25/2005 11,165 11,330
2/26/2005 11,165 11,330
2/27/2005 11,165 11,330
2/28/2005 11,092 11,254
3/1/2005 11,205 11,370
3/2/2005 11,177 11,344
3/3/2005 11,177 11,345
3/4/2005 11,321 11,494
3/5/2005 11,321 11,494
3/6/2005 11,321 11,494
3/7/2005 11,385 11,558
3/8/2005 11,277 11,446
3/9/2005 11,140 11,308
3/10/2005 11,145 11,311
3/11/2005 11,124 11,291
3/12/2005 11,124 11,291
3/13/2005 11,124 11,291
3/14/2005 11,233 11,402
3/15/2005 11,169 11,335
3/16/2005 11,084 11,250
3/17/2005 11,096 11,266
3/18/2005 11,040 11,212
3/19/2005 11,040 11,212
3/20/2005 11,040 11,212
3/21/2005 11,020 11,193
3/22/2005 10,960 11,128
3/23/2005 10,867 11,036
3/24/2005 10,892 11,061
3/25/2005 10,892 11,061
3/26/2005 10,892 11,061
3/27/2005 10,892 11,061
3/28/2005 10,904 11,076
3/29/2005 10,787 10,954
3/30/2005 10,908 11,078
3/31/2005 10,960 11,132
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
MID-CAP VALUE FUND S&P MIDCAP 400/
DATE H-CLASS BARRA VALUE INDEX
---------- ------------------ -----------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 9,896 9,901
2/24/2004 9,908 9,916
2/25/2004 9,980 9,986
2/26/2004 10,060 10,075
2/27/2004 10,076 10,096
2/28/2004 10,076 10,096
2/29/2004 10,076 10,096
3/1/2004 10,204 10,224
3/2/2004 10,184 10,205
3/3/2004 10,184 10,207
3/4/2004 10,232 10,254
3/5/2004 10,292 10,316
3/6/2004 10,292 10,316
3/7/2004 10,292 10,316
3/8/2004 10,204 10,227
3/9/2004 10,120 10,146
3/10/2004 9,956 9,976
3/11/2004 9,844 9,864
3/12/2004 9,992 10,015
3/13/2004 9,992 10,015
3/14/2004 9,992 10,015
3/15/2004 9,824 9,847
3/16/2004 9,840 9,862
3/17/2004 9,984 10,009
3/18/2004 9,960 9,986
3/19/2004 9,896 9,922
3/20/2004 9,896 9,922
3/21/2004 9,896 9,922
3/22/2004 9,724 9,752
3/23/2004 9,736 9,764
3/24/2004 9,648 9,675
3/25/2004 9,808 9,840
3/26/2004 9,820 9,854
3/27/2004 9,820 9,854
3/28/2004 9,820 9,854
3/29/2004 9,940 9,988
3/30/2004 10,012 10,058
3/31/2004 10,052 10,102
4/1/2004 10,136 10,188
4/2/2004 10,156 10,206
4/3/2004 10,156 10,206
4/4/2004 10,156 10,206
4/5/2004 10,192 10,246
4/6/2004 10,132 10,188
4/7/2004 10,124 10,181
4/8/2004 10,076 10,135
4/9/2004 10,076 10,135
4/10/2004 10,076 10,135
4/11/2004 10,076 10,135
4/12/2004 10,084 10,143
4/13/2004 9,904 9,960
4/14/2004 9,832 9,888
4/15/2004 9,848 9,907
4/16/2004 9,936 9,997
4/17/2004 9,936 9,997
4/18/2004 9,936 9,997
4/19/2004 9,944 10,010
4/20/2004 9,800 9,862
4/21/2004 9,884 9,950
4/22/2004 10,060 10,128
4/23/2004 10,000 10,071
4/24/2004 10,000 10,071
4/25/2004 10,000 10,071
4/26/2004 9,976 10,045
4/27/2004 10,012 10,080
4/28/2004 9,872 9,937
4/29/2004 9,708 9,774
4/30/2004 9,636 9,702
5/1/2004 9,636 9,702
5/2/2004 9,636 9,702
5/3/2004 9,712 9,782
5/4/2004 9,740 9,810
5/5/2004 9,760 9,829
5/6/2004 9,668 9,733
5/7/2004 9,456 9,519
5/8/2004 9,456 9,519
5/9/2004 9,456 9,519
5/10/2004 9,296 9,357
5/11/2004 9,404 9,458
5/12/2004 9,388 9,441
5/13/2004 9,408 9,459
5/14/2004 9,404 9,458
5/15/2004 9,404 9,458
5/16/2004 9,404 9,458
5/17/2004 9,300 9,351
5/18/2004 9,356 9,414
5/19/2004 9,328 9,385
5/20/2004 9,352 9,409
5/21/2004 9,384 9,443
5/22/2004 9,384 9,443
5/23/2004 9,384 9,443
5/24/2004 9,492 9,552
5/25/2004 9,668 9,730
5/26/2004 9,732 9,794
5/27/2004 9,780 9,842
5/28/2004 9,824 9,887
5/29/2004 9,824 9,887
5/30/2004 9,824 9,887
5/31/2004 9,824 9,887
6/1/2004 9,840 9,907
6/2/2004 9,860 9,926
6/3/2004 9,736 9,799
6/4/2004 9,808 9,869
6/5/2004 9,808 9,869
6/6/2004 9,808 9,869
6/7/2004 9,960 10,026
6/8/2004 9,940 10,000
6/9/2004 9,824 9,883
6/10/2004 9,856 9,913
6/11/2004 9,856 9,913
6/12/2004 9,856 9,913
6/13/2004 9,856 9,913
6/14/2004 9,732 9,782
6/15/2004 9,848 9,901
6/16/2004 9,868 9,919
6/17/2004 9,888 9,939
6/18/2004 9,892 9,947
6/19/2004 9,892 9,947
6/20/2004 9,892 9,947
6/21/2004 9,876 9,932
6/22/2004 9,928 9,983
6/23/2004 10,024 10,082
6/24/2004 10,008 10,064
6/25/2004 10,044 10,103
6/26/2004 10,044 10,103
6/27/2004 10,044 10,103
6/28/2004 9,992 10,046
6/29/2004 10,016 10,068
6/30/2004 10,124 10,181
7/1/2004 9,992 10,045
7/2/2004 9,984 10,038
7/3/2004 9,984 10,038
7/4/2004 9,984 10,038
7/5/2004 9,984 10,038
7/6/2004 9,852 9,905
7/7/2004 9,864 9,917
7/8/2004 9,756 9,806
7/9/2004 9,804 9,855
7/10/2004 9,804 9,855
7/11/2004 9,804 9,855
7/12/2004 9,796 9,848
7/13/2004 9,816 9,869
7/14/2004 9,804 9,856
7/15/2004 9,848 9,899
7/16/2004 9,800 9,849
7/17/2004 9,800 9,849
7/18/2004 9,800 9,849
7/19/2004 9,812 9,863
7/20/2004 9,908 9,960
7/21/2004 9,732 9,765
7/22/2004 9,692 9,730
7/23/2004 9,596 9,630
7/24/2004 9,596 9,630
7/25/2004 9,596 9,630
7/26/2004 9,528 9,564
7/27/2004 9,628 9,663
7/28/2004 9,592 9,626
7/29/2004 9,704 9,741
7/30/2004 9,696 9,730
7/31/2004 9,696 9,730
8/1/2004 9,696 9,730
8/2/2004 9,744 9,780
8/3/2004 9,656 9,686
8/4/2004 9,640 9,665
8/5/2004 9,468 9,490
8/6/2004 9,336 9,359
8/7/2004 9,336 9,359
8/8/2004 9,336 9,359
8/9/2004 9,352 9,376
8/10/2004 9,496 9,521
8/11/2004 9,436 9,460
8/12/2004 9,308 9,329
8/13/2004 9,300 9,323
8/14/2004 9,300 9,323
8/15/2004 9,300 9,323
8/16/2004 9,456 9,480
8/17/2004 9,492 9,517
8/18/2004 9,624 9,647
8/19/2004 9,564 9,585
8/20/2004 9,672 9,696
8/21/2004 9,672 9,696
8/22/2004 9,672 9,696
8/23/2004 9,628 9,651
8/24/2004 9,648 9,672
8/25/2004 9,736 9,758
8/26/2004 9,740 9,763
8/27/2004 9,780 9,805
8/28/2004 9,780 9,805
8/29/2004 9,780 9,805
8/30/2004 9,664 9,688
8/31/2004 9,756 9,780
9/1/2004 9,832 9,855
9/2/2004 9,904 9,926
9/3/2004 9,868 9,894
9/4/2004 9,868 9,894
9/5/2004 9,868 9,894
9/6/2004 9,868 9,894
9/7/2004 9,952 9,978
9/8/2004 9,828 9,848
9/9/2004 9,904 9,929
9/10/2004 9,920 9,945
9/11/2004 9,920 9,945
9/12/2004 9,920 9,945
9/13/2004 9,964 9,991
9/14/2004 9,932 9,958
9/15/2004 9,880 9,908
9/16/2004 9,968 10,000
9/17/2004 9,984 10,017
9/18/2004 9,984 10,017
9/19/2004 9,984 10,017
9/20/2004 9,936 9,968
9/21/2004 10,024 10,057
9/22/2004 9,920 9,952
9/23/2004 9,884 9,918
9/24/2004 9,928 9,963
9/25/2004 9,928 9,963
9/26/2004 9,928 9,963
9/27/2004 9,860 9,894
9/28/2004 9,920 9,955
9/29/2004 9,936 9,971
9/30/2004 10,028 10,062
10/1/2004 10,168 10,209
10/2/2004 10,168 10,209
10/3/2004 10,168 10,209
10/4/2004 10,164 10,204
10/5/2004 10,144 10,187
10/6/2004 10,224 10,264
10/7/2004 10,088 10,127
10/8/2004 10,024 10,067
10/9/2004 10,024 10,067
10/10/2004 10,024 10,067
10/11/2004 10,016 10,059
10/12/2004 10,000 10,043
10/13/2004 9,888 9,929
10/14/2004 9,828 9,870
10/15/2004 9,868 9,911
10/16/2004 9,868 9,911
10/17/2004 9,868 9,911
10/18/2004 9,880 9,922
10/19/2004 9,796 9,841
10/20/2004 9,816 9,862
10/21/2004 9,904 9,950
10/22/2004 9,836 9,885
10/23/2004 9,836 9,885
10/24/2004 9,836 9,885
10/25/2004 9,884 9,933
10/26/2004 9,980 10,031
10/27/2004 10,084 10,139
10/28/2004 10,064 10,116
10/29/2004 10,080 10,134
10/30/2004 10,080 10,134
10/31/2004 10,080 10,134
11/1/2004 10,104 10,160
11/2/2004 10,088 10,144
11/3/2004 10,240 10,296
11/4/2004 10,392 10,451
11/5/2004 10,396 10,457
11/6/2004 10,396 10,457
11/7/2004 10,396 10,457
11/8/2004 10,364 10,422
11/9/2004 10,404 10,462
11/10/2004 10,432 10,487
11/11/2004 10,528 10,586
11/12/2004 10,656 10,717
11/13/2004 10,656 10,717
11/14/2004 10,656 10,717
11/15/2004 10,640 10,701
11/16/2004 10,588 10,646
11/17/2004 10,672 10,731
11/18/2004 10,676 10,735
11/19/2004 10,568 10,628
11/20/2004 10,568 10,628
11/21/2004 10,568 10,628
11/22/2004 10,666 10,730
11/23/2004 10,707 10,767
11/24/2004 10,799 10,863
11/25/2004 10,799 10,863
11/26/2004 10,815 10,877
11/27/2004 10,815 10,877
11/28/2004 10,815 10,877
11/29/2004 10,787 10,851
11/30/2004 10,775 10,837
12/1/2004 10,883 10,949
12/2/2004 10,819 10,885
12/3/2004 10,859 10,924
12/4/2004 10,859 10,924
12/5/2004 10,859 10,924
12/6/2004 10,807 10,874
12/7/2004 10,666 10,734
12/8/2004 10,715 10,778
12/9/2004 10,771 10,834
12/10/2004 10,803 10,870
12/11/2004 10,803 10,870
12/12/2004 10,803 10,870
12/13/2004 10,887 10,951
12/14/2004 10,976 11,045
12/15/2004 11,080 11,147
12/16/2004 11,008 11,078
12/17/2004 11,000 11,070
12/18/2004 11,000 11,070
12/19/2004 11,000 11,070
12/20/2004 10,931 11,002
12/21/2004 11,044 11,116
12/22/2004 11,080 11,151
12/23/2004 11,084 11,157
12/24/2004 11,084 11,157
12/25/2004 11,084 11,157
12/26/2004 11,084 11,157
12/27/2004 11,024 11,095
12/28/2004 11,140 11,215
12/29/2004 11,156 11,228
12/30/2004 11,201 11,271
12/31/2004 11,176 11,250
1/1/2005 11,176 11,250
1/2/2005 11,176 11,250
1/3/2005 11,000 11,070
1/4/2005 10,831 10,898
1/5/2005 10,703 10,769
1/6/2005 10,743 10,809
1/7/2005 10,678 10,745
1/8/2005 10,678 10,745
1/9/2005 10,678 10,745
1/10/2005 10,727 10,798
1/11/2005 10,662 10,732
1/12/2005 10,686 10,757
1/13/2005 10,691 10,761
1/14/2005 10,787 10,860
1/15/2005 10,787 10,860
1/16/2005 10,787 10,860
1/17/2005 10,787 10,860
1/18/2005 10,883 10,961
1/19/2005 10,791 10,867
1/20/2005 10,723 10,799
1/21/2005 10,666 10,746
1/22/2005 10,666 10,746
1/23/2005 10,666 10,746
1/24/2005 10,614 10,691
1/25/2005 10,618 10,698
1/26/2005 10,719 10,801
1/27/2005 10,735 10,814
1/28/2005 10,703 10,783
1/29/2005 10,703 10,783
1/30/2005 10,703 10,783
1/31/2005 10,847 10,929
2/1/2005 10,923 11,009
2/2/2005 10,980 11,063
2/3/2005 10,944 11,028
2/4/2005 11,104 11,190
2/5/2005 11,104 11,190
2/6/2005 11,104 11,190
2/7/2005 11,080 11,165
2/8/2005 11,136 11,223
2/9/2005 10,996 11,081
2/10/2005 11,024 11,109
2/11/2005 11,116 11,201
2/12/2005 11,116 11,201
2/13/2005 11,116 11,201
2/14/2005 11,128 11,215
2/15/2005 11,140 11,229
2/16/2005 11,197 11,285
2/17/2005 11,112 11,199
2/18/2005 11,092 11,179
2/19/2005 11,092 11,179
2/20/2005 11,092 11,179
2/21/2005 11,092 11,179
2/22/2005 10,899 10,987
2/23/2005 10,952 11,038
2/24/2005 11,088 11,175
2/25/2005 11,241 11,330
2/26/2005 11,241 11,330
2/27/2005 11,241 11,330
2/28/2005 11,164 11,254
3/1/2005 11,277 11,370
3/2/2005 11,253 11,344
3/3/2005 11,253 11,345
3/4/2005 11,397 11,494
3/5/2005 11,397 11,494
3/6/2005 11,397 11,494
3/7/2005 11,462 11,558
3/8/2005 11,353 11,446
3/9/2005 11,217 11,308
3/10/2005 11,221 11,311
3/11/2005 11,201 11,291
3/12/2005 11,201 11,291
3/13/2005 11,201 11,291
3/14/2005 11,309 11,402
3/15/2005 11,245 11,335
3/16/2005 11,160 11,250
3/17/2005 11,172 11,266
3/18/2005 11,120 11,212
3/19/2005 11,120 11,212
3/20/2005 11,120 11,212
3/21/2005 11,100 11,193
3/22/2005 11,036 11,128
3/23/2005 10,944 11,036
3/24/2005 10,968 11,061
3/25/2005 10,968 11,061
3/26/2005 10,968 11,061
3/27/2005 10,968 11,061
3/28/2005 10,984 11,076
3/29/2005 10,863 10,954
3/30/2005 10,988 11,078
3/31/2005 11,040 11,132
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ----------------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(09/01/04) (02/20/04) (02/20/04)
- ----------------------------------------------------------------------------------------
SINCE ONE SINCE ONE SINCE
INCEPTION YEAR INCEPTION YEAR INCEPTION
- ----------------------------------------------------------------------------------------
MID-CAP VALUE FUND 12.29% 9.12% 8.61% 9.83% 9.33%
S&P MIDCAP 400/BARRA VALUE INDEX 12.96% 10.20% 10.15% 10.20% 10.15%
- ----------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P MIDCAP 400/BARRA VALUE
INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES
OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPHS ARE BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY;
PERFORMANCE FOR A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
MID-CAP VALUE FUND S&P MIDCAP 400/BARRA VALUE INDEX
------------------ --------------------------------
Other 0.9% 0.8%
Financials 22.1% 24.7%
Consumer Discretionary 16.9% 16.7%
Information Technology 12.5% 13.0%
Utilities 11.2% 11.2%
Industrials 9.3% 8.7%
Energy 8.3% 7.0%
Materials 6.4% 6.5%
Health Care 6.1% 5.7%
Consumer Staples 5.7% 5.7%
"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. 1.7%
Lennar Corp. -- Class A 1.7%
Weatherford International Ltd. 1.5%
Pioneer Natural Resources Co. 1.2%
Caesars Entertainment, Inc. 1.2%
Toll Brothers, Inc. 1.1%
Tyson Foods, Inc. -- Class A 1.1%
Fidelity National Financial, Inc. 1.1%
Constellation Brands, Inc. -- Class A 1.1%
ENSCO International, Inc. 1.1%
- -------------------------------------------------------
Top Ten Total 12.8%
- -------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 23
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for large-cap value securities. The Fund's current benchmark is the
S&P 500/Barra Value Index. The investment objective of the Large-Cap Value Fund
is non-fundamental and may be changed without shareholder approval.
Inception: February 20, 2004
For the one-year period ending March 31, 2005, large-cap stocks lagged mid- and
small-cap issues. Among large-cap value, as with most other styles, utilities,
energy and materials were by far the best performers. Information technology and
financials were the worst, each suffering modest losses. Rydex Large-Cap Value
Fund H-Class returned 6.99%, in line with the S&P 500/Barra Value Index's return
of 6.98%.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP VALUE FUND S&P 500/BARRA
DATE C-CLASS VALUE INDEX
---------- -------------------- -------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 9,976 9,981
2/24/2004 9,952 9,957
2/25/2004 10,008 10,016
2/26/2004 10,040 10,046
2/27/2004 10,052 10,062
2/28/2004 10,052 10,062
2/29/2004 10,052 10,062
3/1/2004 10,140 10,156
3/2/2004 10,104 10,121
3/3/2004 10,132 10,146
3/4/2004 10,160 10,174
3/5/2004 10,192 10,212
3/6/2004 10,192 10,212
3/7/2004 10,192 10,212
3/8/2004 10,132 10,148
3/9/2004 10,060 10,080
3/10/2004 9,896 9,912
3/11/2004 9,752 9,765
3/12/2004 9,884 9,905
3/13/2004 9,884 9,905
3/14/2004 9,884 9,905
3/15/2004 9,744 9,763
3/16/2004 9,804 9,825
3/17/2004 9,944 9,965
3/18/2004 9,948 9,971
3/19/2004 9,844 9,871
3/20/2004 9,844 9,871
3/21/2004 9,844 9,871
3/22/2004 9,704 9,733
3/23/2004 9,688 9,715
3/24/2004 9,628 9,658
3/25/2004 9,760 9,791
3/26/2004 9,768 9,800
3/27/2004 9,768 9,800
3/28/2004 9,768 9,800
3/29/2004 9,884 9,917
3/30/2004 9,940 9,975
3/31/2004 9,940 9,979
4/1/2004 9,996 10,035
4/2/2004 10,036 10,077
4/3/2004 10,036 10,077
4/4/2004 10,036 10,077
4/5/2004 10,112 10,153
4/6/2004 10,108 10,144
4/7/2004 10,036 10,074
4/8/2004 10,028 10,066
4/9/2004 10,028 10,066
4/10/2004 10,028 10,066
4/11/2004 10,028 10,066
4/12/2004 10,080 10,119
4/13/2004 9,912 9,950
4/14/2004 9,864 9,904
4/15/2004 9,844 9,888
4/16/2004 9,912 9,957
4/17/2004 9,912 9,957
4/18/2004 9,912 9,957
4/19/2004 9,900 9,946
4/20/2004 9,756 9,803
4/21/2004 9,808 9,857
4/22/2004 9,964 10,016
4/23/2004 9,936 9,988
4/24/2004 9,936 9,988
4/25/2004 9,936 9,988
4/26/2004 9,904 9,958
4/27/2004 9,936 9,991
4/28/2004 9,800 9,851
4/29/2004 9,716 9,764
4/30/2004 9,668 9,716
5/1/2004 9,668 9,716
5/2/2004 9,668 9,716
5/3/2004 9,752 9,801
5/4/2004 9,776 9,827
5/5/2004 9,796 9,843
5/6/2004 9,704 9,749
5/7/2004 9,512 9,559
5/8/2004 9,512 9,559
5/9/2004 9,512 9,559
5/10/2004 9,372 9,414
5/11/2004 9,452 9,496
5/12/2004 9,508 9,549
5/13/2004 9,508 9,551
5/14/2004 9,524 9,571
5/15/2004 9,524 9,571
5/16/2004 9,524 9,571
5/17/2004 9,408 9,451
5/18/2004 9,476 9,523
5/19/2004 9,468 9,512
5/20/2004 9,476 9,520
5/21/2004 9,516 9,564
5/22/2004 9,516 9,564
5/23/2004 9,516 9,564
5/24/2004 9,560 9,611
5/25/2004 9,712 9,768
5/26/2004 9,724 9,776
5/27/2004 9,752 9,806
5/28/2004 9,752 9,809
5/29/2004 9,752 9,809
5/30/2004 9,752 9,809
5/31/2004 9,752 9,809
6/1/2004 9,756 9,812
6/2/2004 9,800 9,851
6/3/2004 9,720 9,771
6/4/2004 9,768 9,822
6/5/2004 9,768 9,822
6/6/2004 9,768 9,822
6/7/2004 9,924 9,979
6/8/2004 9,924 9,978
6/9/2004 9,832 9,885
6/10/2004 9,888 9,943
6/11/2004 9,888 9,943
6/12/2004 9,888 9,943
6/13/2004 9,888 9,943
6/14/2004 9,772 9,826
6/15/2004 9,828 9,882
6/16/2004 9,856 9,908
6/17/2004 9,860 9,914
6/18/2004 9,892 9,948
6/19/2004 9,892 9,948
6/20/2004 9,892 9,948
6/21/2004 9,852 9,907
6/22/2004 9,880 9,940
6/23/2004 9,964 10,025
6/24/2004 9,944 10,007
6/25/2004 9,908 9,976
6/26/2004 9,908 9,976
6/27/2004 9,908 9,976
6/28/2004 9,888 9,949
6/29/2004 9,900 9,959
6/30/2004 9,948 10,008
7/1/2004 9,860 9,918
7/2/2004 9,844 9,904
7/3/2004 9,844 9,904
7/4/2004 9,844 9,904
7/5/2004 9,844 9,904
7/6/2004 9,764 9,825
7/7/2004 9,788 9,845
7/8/2004 9,708 9,761
7/9/2004 9,732 9,788
7/10/2004 9,732 9,788
7/11/2004 9,732 9,788
7/12/2004 9,760 9,814
7/13/2004 9,760 9,818
7/14/2004 9,744 9,798
7/15/2004 9,700 9,757
7/16/2004 9,676 9,733
7/17/2004 9,676 9,733
7/18/2004 9,676 9,733
7/19/2004 9,688 9,745
7/20/2004 9,748 9,805
7/21/2004 9,624 9,682
7/22/2004 9,640 9,696
7/23/2004 9,592 9,650
7/24/2004 9,592 9,650
7/25/2004 9,592 9,650
7/26/2004 9,580 9,638
7/27/2004 9,672 9,730
7/28/2004 9,684 9,743
7/29/2004 9,744 9,799
7/30/2004 9,744 9,800
7/31/2004 9,744 9,800
8/1/2004 9,744 9,800
8/2/2004 9,784 9,841
8/3/2004 9,752 9,808
8/4/2004 9,724 9,779
8/5/2004 9,580 9,634
8/6/2004 9,444 9,495
8/7/2004 9,444 9,495
8/8/2004 9,444 9,495
8/9/2004 9,460 9,511
8/10/2004 9,576 9,627
8/11/2004 9,552 9,601
8/12/2004 9,436 9,480
8/13/2004 9,436 9,485
8/14/2004 9,436 9,485
8/15/2004 9,436 9,485
8/16/2004 9,584 9,635
8/17/2004 9,600 9,651
8/18/2004 9,712 9,762
8/19/2004 9,684 9,735
8/20/2004 9,764 9,815
8/21/2004 9,764 9,815
8/22/2004 9,764 9,815
8/23/2004 9,728 9,778
8/24/2004 9,732 9,784
8/25/2004 9,808 9,859
8/26/2004 9,816 9,870
8/27/2004 9,836 9,890
8/28/2004 9,836 9,890
8/29/2004 9,836 9,890
8/30/2004 9,772 9,825
8/31/2004 9,836 9,887
9/1/2004 9,840 9,889
9/2/2004 9,944 9,996
9/3/2004 9,920 9,975
9/4/2004 9,920 9,975
9/5/2004 9,920 9,975
9/6/2004 9,920 9,975
9/7/2004 10,000 10,054
9/8/2004 9,940 9,992
9/9/2004 9,956 10,012
9/10/2004 9,992 10,049
9/11/2004 9,992 10,049
9/12/2004 9,992 10,049
9/13/2004 10,004 10,064
9/14/2004 10,020 10,079
9/15/2004 9,956 10,016
9/16/2004 10,020 10,078
9/17/2004 10,056 10,117
9/18/2004 10,056 10,117
9/19/2004 10,056 10,117
9/20/2004 10,000 10,062
9/21/2004 10,092 10,153
9/22/2004 9,968 10,028
9/23/2004 9,908 9,967
9/24/2004 9,948 10,011
9/25/2004 9,948 10,011
9/26/2004 9,948 10,011
9/27/2004 9,892 9,953
9/28/2004 9,948 10,009
9/29/2004 9,964 10,025
9/30/2004 9,996 10,060
10/1/2004 10,140 10,209
10/2/2004 10,140 10,209
10/3/2004 10,140 10,209
10/4/2004 10,176 10,243
10/5/2004 10,168 10,234
10/6/2004 10,252 10,314
10/7/2004 10,180 10,242
10/8/2004 10,132 10,194
10/9/2004 10,132 10,194
10/10/2004 10,132 10,194
10/11/2004 10,140 10,203
10/12/2004 10,116 10,181
10/13/2004 10,020 10,082
10/14/2004 9,908 9,968
10/15/2004 9,952 10,017
10/16/2004 9,952 10,017
10/17/2004 9,952 10,017
10/18/2004 9,972 10,039
10/19/2004 9,852 9,916
10/20/2004 9,844 9,908
10/21/2004 9,860 9,926
10/22/2004 9,792 9,860
10/23/2004 9,792 9,860
10/24/2004 9,792 9,860
10/25/2004 9,808 9,876
10/26/2004 9,972 10,045
10/27/2004 10,056 10,128
10/28/2004 10,084 10,149
10/29/2004 10,124 10,193
10/30/2004 10,124 10,193
10/31/2004 10,124 10,193
11/1/2004 10,140 10,211
11/2/2004 10,132 10,202
11/3/2004 10,240 10,307
11/4/2004 10,420 10,493
11/5/2004 10,444 10,519
11/6/2004 10,444 10,519
11/7/2004 10,444 10,519
11/8/2004 10,424 10,495
11/9/2004 10,416 10,484
11/10/2004 10,428 10,495
11/11/2004 10,516 10,586
11/12/2004 10,620 10,691
11/13/2004 10,620 10,691
11/14/2004 10,620 10,691
11/15/2004 10,592 10,662
11/16/2004 10,516 10,587
11/17/2004 10,576 10,644
11/18/2004 10,584 10,654
11/19/2004 10,484 10,555
11/20/2004 10,484 10,555
11/21/2004 10,484 10,555
11/22/2004 10,568 10,643
11/23/2004 10,596 10,672
11/24/2004 10,644 10,721
11/25/2004 10,644 10,721
11/26/2004 10,664 10,739
11/27/2004 10,664 10,739
11/28/2004 10,664 10,739
11/29/2004 10,624 10,699
11/30/2004 10,592 10,668
12/1/2004 10,728 10,801
12/2/2004 10,676 10,747
12/3/2004 10,672 10,748
12/4/2004 10,672 10,748
12/5/2004 10,672 10,748
12/6/2004 10,680 10,757
12/7/2004 10,560 10,635
12/8/2004 10,596 10,671
12/9/2004 10,652 10,727
12/10/2004 10,644 10,722
12/11/2004 10,644 10,722
12/12/2004 10,644 10,722
12/13/2004 10,752 10,829
12/14/2004 10,784 10,863
12/15/2004 10,816 10,895
12/16/2004 10,776 10,854
12/17/2004 10,724 10,804
12/18/2004 10,724 10,804
12/19/2004 10,724 10,804
12/20/2004 10,716 10,795
12/21/2004 10,824 10,906
12/22/2004 10,872 10,956
12/23/2004 10,872 10,956
12/24/2004 10,872 10,956
12/25/2004 10,872 10,956
12/26/2004 10,872 10,956
12/27/2004 10,836 10,920
12/28/2004 10,912 11,000
12/29/2004 10,920 11,006
12/30/2004 10,920 11,007
12/31/2004 10,912 10,998
1/1/2005 10,912 10,998
1/2/2005 10,912 10,998
1/3/2005 10,808 10,894
1/4/2005 10,684 10,766
1/5/2005 10,648 10,732
1/6/2005 10,696 10,776
1/7/2005 10,660 10,743
1/8/2005 10,660 10,743
1/9/2005 10,660 10,743
1/10/2005 10,684 10,768
1/11/2005 10,616 10,697
1/12/2005 10,644 10,724
1/13/2005 10,567 10,650
1/14/2005 10,620 10,705
1/15/2005 10,620 10,705
1/16/2005 10,620 10,705
1/17/2005 10,620 10,705
1/18/2005 10,740 10,826
1/19/2005 10,632 10,717
1/20/2005 10,555 10,640
1/21/2005 10,491 10,576
1/22/2005 10,491 10,576
1/23/2005 10,491 10,576
1/24/2005 10,471 10,556
1/25/2005 10,483 10,572
1/26/2005 10,547 10,637
1/27/2005 10,547 10,634
1/28/2005 10,519 10,606
1/29/2005 10,519 10,606
1/30/2005 10,519 10,606
1/31/2005 10,628 10,716
2/1/2005 10,696 10,788
2/2/2005 10,720 10,808
2/3/2005 10,696 10,781
2/4/2005 10,820 10,910
2/5/2005 10,820 10,910
2/6/2005 10,820 10,910
2/7/2005 10,816 10,906
2/8/2005 10,820 10,908
2/9/2005 10,748 10,834
2/10/2005 10,796 10,882
2/11/2005 10,872 10,962
2/12/2005 10,872 10,962
2/13/2005 10,872 10,962
2/14/2005 10,868 10,957
2/15/2005 10,896 10,988
2/16/2005 10,892 10,982
2/17/2005 10,800 10,889
2/18/2005 10,788 10,881
2/19/2005 10,788 10,881
2/20/2005 10,788 10,881
2/21/2005 10,788 10,881
2/22/2005 10,636 10,727
2/23/2005 10,704 10,795
2/24/2005 10,768 10,862
2/25/2005 10,880 10,975
2/26/2005 10,880 10,975
2/27/2005 10,880 10,975
2/28/2005 10,792 10,886
3/1/2005 10,864 10,959
3/2/2005 10,856 10,946
3/3/2005 10,856 10,950
3/4/2005 10,976 11,070
3/5/2005 10,976 11,070
3/6/2005 10,976 11,070
3/7/2005 11,008 11,106
3/8/2005 10,956 11,052
3/9/2005 10,832 10,926
3/10/2005 10,844 10,940
3/11/2005 10,772 10,865
3/12/2005 10,772 10,865
3/13/2005 10,772 10,865
3/14/2005 10,852 10,947
3/15/2005 10,768 10,865
3/16/2005 10,684 10,781
3/17/2005 10,700 10,799
3/18/2005 10,684 10,782
3/19/2005 10,684 10,782
3/20/2005 10,684 10,782
3/21/2005 10,616 10,717
3/22/2005 10,479 10,579
3/23/2005 10,475 10,575
3/24/2005 10,467 10,569
3/25/2005 10,467 10,569
3/26/2005 10,467 10,569
3/27/2005 10,467 10,569
3/28/2005 10,487 10,590
3/29/2005 10,415 10,513
3/30/2005 10,555 10,656
3/31/2005 10,571 10,675
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP VALUE FUND S&P 500/
DATE H-CLASS BARRA VALUE INDEX
---------- -------------------- -----------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 9,976 9,981
2/24/2004 9,952 9,957
2/25/2004 10,008 10,016
2/26/2004 10,040 10,046
2/27/2004 10,052 10,062
2/28/2004 10,052 10,062
2/29/2004 10,052 10,062
3/1/2004 10,140 10,156
3/2/2004 10,108 10,121
3/3/2004 10,132 10,146
3/4/2004 10,160 10,174
3/5/2004 10,196 10,212
3/6/2004 10,196 10,212
3/7/2004 10,196 10,212
3/8/2004 10,136 10,148
3/9/2004 10,064 10,080
3/10/2004 9,900 9,912
3/11/2004 9,756 9,765
3/12/2004 9,888 9,905
3/13/2004 9,888 9,905
3/14/2004 9,888 9,905
3/15/2004 9,748 9,763
3/16/2004 9,808 9,825
3/17/2004 9,948 9,965
3/18/2004 9,952 9,971
3/19/2004 9,848 9,871
3/20/2004 9,848 9,871
3/21/2004 9,848 9,871
3/22/2004 9,712 9,733
3/23/2004 9,688 9,715
3/24/2004 9,632 9,658
3/25/2004 9,764 9,791
3/26/2004 9,772 9,800
3/27/2004 9,772 9,800
3/28/2004 9,772 9,800
3/29/2004 9,888 9,917
3/30/2004 9,944 9,975
3/31/2004 9,948 9,979
4/1/2004 10,000 10,035
4/2/2004 10,040 10,077
4/3/2004 10,040 10,077
4/4/2004 10,040 10,077
4/5/2004 10,116 10,153
4/6/2004 10,112 10,144
4/7/2004 10,044 10,074
4/8/2004 10,032 10,066
4/9/2004 10,032 10,066
4/10/2004 10,032 10,066
4/11/2004 10,032 10,066
4/12/2004 10,084 10,119
4/13/2004 9,916 9,950
4/14/2004 9,868 9,904
4/15/2004 9,852 9,888
4/16/2004 9,916 9,957
4/17/2004 9,916 9,957
4/18/2004 9,916 9,957
4/19/2004 9,904 9,946
4/20/2004 9,760 9,803
4/21/2004 9,816 9,857
4/22/2004 9,972 10,016
4/23/2004 9,944 9,988
4/24/2004 9,944 9,988
4/25/2004 9,944 9,988
4/26/2004 9,912 9,958
4/27/2004 9,944 9,991
4/28/2004 9,808 9,851
4/29/2004 9,728 9,764
4/30/2004 9,676 9,716
5/1/2004 9,676 9,716
5/2/2004 9,676 9,716
5/3/2004 9,764 9,801
5/4/2004 9,788 9,827
5/5/2004 9,804 9,843
5/6/2004 9,716 9,749
5/7/2004 9,524 9,559
5/8/2004 9,524 9,559
5/9/2004 9,524 9,559
5/10/2004 9,384 9,414
5/11/2004 9,460 9,496
5/12/2004 9,516 9,549
5/13/2004 9,516 9,551
5/14/2004 9,536 9,571
5/15/2004 9,536 9,571
5/16/2004 9,536 9,571
5/17/2004 9,416 9,451
5/18/2004 9,488 9,523
5/19/2004 9,480 9,512
5/20/2004 9,488 9,520
5/21/2004 9,528 9,564
5/22/2004 9,528 9,564
5/23/2004 9,528 9,564
5/24/2004 9,572 9,611
5/25/2004 9,728 9,768
5/26/2004 9,736 9,776
5/27/2004 9,768 9,806
5/28/2004 9,768 9,809
5/29/2004 9,768 9,809
5/30/2004 9,768 9,809
5/31/2004 9,768 9,809
6/1/2004 9,772 9,812
6/2/2004 9,812 9,851
6/3/2004 9,732 9,771
6/4/2004 9,784 9,822
6/5/2004 9,784 9,822
6/6/2004 9,784 9,822
6/7/2004 9,940 9,979
6/8/2004 9,940 9,978
6/9/2004 9,848 9,885
6/10/2004 9,904 9,943
6/11/2004 9,904 9,943
6/12/2004 9,904 9,943
6/13/2004 9,904 9,943
6/14/2004 9,788 9,826
6/15/2004 9,844 9,882
6/16/2004 9,872 9,908
6/17/2004 9,876 9,914
6/18/2004 9,908 9,948
6/19/2004 9,908 9,948
6/20/2004 9,908 9,948
6/21/2004 9,868 9,907
6/22/2004 9,900 9,940
6/23/2004 9,984 10,025
6/24/2004 9,964 10,007
6/25/2004 9,928 9,976
6/26/2004 9,928 9,976
6/27/2004 9,928 9,976
6/28/2004 9,908 9,949
6/29/2004 9,920 9,959
6/30/2004 9,968 10,008
7/1/2004 9,880 9,918
7/2/2004 9,864 9,904
7/3/2004 9,864 9,904
7/4/2004 9,864 9,904
7/5/2004 9,864 9,904
7/6/2004 9,788 9,825
7/7/2004 9,812 9,845
7/8/2004 9,728 9,761
7/9/2004 9,756 9,788
7/10/2004 9,756 9,788
7/11/2004 9,756 9,788
7/12/2004 9,780 9,814
7/13/2004 9,784 9,818
7/14/2004 9,764 9,798
7/15/2004 9,724 9,757
7/16/2004 9,700 9,733
7/17/2004 9,700 9,733
7/18/2004 9,700 9,733
7/19/2004 9,712 9,745
7/20/2004 9,772 9,805
7/21/2004 9,648 9,682
7/22/2004 9,664 9,696
7/23/2004 9,616 9,650
7/24/2004 9,616 9,650
7/25/2004 9,616 9,650
7/26/2004 9,604 9,638
7/27/2004 9,696 9,730
7/28/2004 9,712 9,743
7/29/2004 9,768 9,799
7/30/2004 9,768 9,800
7/31/2004 9,768 9,800
8/1/2004 9,768 9,800
8/2/2004 9,812 9,841
8/3/2004 9,776 9,808
8/4/2004 9,752 9,779
8/5/2004 9,608 9,634
8/6/2004 9,472 9,495
8/7/2004 9,472 9,495
8/8/2004 9,472 9,495
8/9/2004 9,488 9,511
8/10/2004 9,600 9,627
8/11/2004 9,580 9,601
8/12/2004 9,460 9,480
8/13/2004 9,464 9,485
8/14/2004 9,464 9,485
8/15/2004 9,464 9,485
8/16/2004 9,612 9,635
8/17/2004 9,628 9,651
8/18/2004 9,740 9,762
8/19/2004 9,716 9,735
8/20/2004 9,792 9,815
8/21/2004 9,792 9,815
8/22/2004 9,792 9,815
8/23/2004 9,756 9,778
8/24/2004 9,760 9,784
8/25/2004 9,836 9,859
8/26/2004 9,844 9,870
8/27/2004 9,868 9,890
8/28/2004 9,868 9,890
8/29/2004 9,868 9,890
8/30/2004 9,804 9,825
8/31/2004 9,864 9,887
9/1/2004 9,872 9,889
9/2/2004 9,972 9,996
9/3/2004 9,952 9,975
9/4/2004 9,952 9,975
9/5/2004 9,952 9,975
9/6/2004 9,952 9,975
9/7/2004 10,028 10,054
9/8/2004 9,968 9,992
9/9/2004 9,988 10,012
9/10/2004 10,024 10,049
9/11/2004 10,024 10,049
9/12/2004 10,024 10,049
9/13/2004 10,036 10,064
9/14/2004 10,052 10,079
9/15/2004 9,988 10,016
9/16/2004 10,052 10,078
9/17/2004 10,088 10,117
9/18/2004 10,088 10,117
9/19/2004 10,088 10,117
9/20/2004 10,036 10,062
9/21/2004 10,124 10,153
9/22/2004 10,000 10,028
9/23/2004 9,936 9,967
9/24/2004 9,980 10,011
9/25/2004 9,980 10,011
9/26/2004 9,980 10,011
9/27/2004 9,924 9,953
9/28/2004 9,980 10,009
9/29/2004 9,996 10,025
9/30/2004 10,032 10,060
10/1/2004 10,176 10,209
10/2/2004 10,176 10,209
10/3/2004 10,176 10,209
10/4/2004 10,212 10,243
10/5/2004 10,200 10,234
10/6/2004 10,284 10,314
10/7/2004 10,216 10,242
10/8/2004 10,164 10,194
10/9/2004 10,164 10,194
10/10/2004 10,164 10,194
10/11/2004 10,176 10,203
10/12/2004 10,152 10,181
10/13/2004 10,056 10,082
10/14/2004 9,940 9,968
10/15/2004 9,988 10,017
10/16/2004 9,988 10,017
10/17/2004 9,988 10,017
10/18/2004 10,008 10,039
10/19/2004 9,888 9,916
10/20/2004 9,880 9,908
10/21/2004 9,896 9,926
10/22/2004 9,828 9,860
10/23/2004 9,828 9,860
10/24/2004 9,828 9,860
10/25/2004 9,844 9,876
10/26/2004 10,012 10,045
10/27/2004 10,096 10,128
10/28/2004 10,120 10,149
10/29/2004 10,164 10,193
10/30/2004 10,164 10,193
10/31/2004 10,164 10,193
11/1/2004 10,180 10,211
11/2/2004 10,172 10,202
11/3/2004 10,276 10,307
11/4/2004 10,464 10,493
11/5/2004 10,488 10,519
11/6/2004 10,488 10,519
11/7/2004 10,488 10,519
11/8/2004 10,464 10,495
11/9/2004 10,456 10,484
11/10/2004 10,468 10,495
11/11/2004 10,556 10,586
11/12/2004 10,660 10,691
11/13/2004 10,660 10,691
11/14/2004 10,660 10,691
11/15/2004 10,632 10,662
11/16/2004 10,560 10,587
11/17/2004 10,616 10,644
11/18/2004 10,628 10,654
11/19/2004 10,528 10,555
11/20/2004 10,528 10,555
11/21/2004 10,528 10,555
11/22/2004 10,612 10,643
11/23/2004 10,640 10,672
11/24/2004 10,688 10,721
11/25/2004 10,688 10,721
11/26/2004 10,708 10,739
11/27/2004 10,708 10,739
11/28/2004 10,708 10,739
11/29/2004 10,668 10,699
11/30/2004 10,636 10,668
12/1/2004 10,776 10,801
12/2/2004 10,724 10,747
12/3/2004 10,720 10,748
12/4/2004 10,720 10,748
12/5/2004 10,720 10,748
12/6/2004 10,728 10,757
12/7/2004 10,608 10,635
12/8/2004 10,644 10,671
12/9/2004 10,700 10,727
12/10/2004 10,696 10,722
12/11/2004 10,696 10,722
12/12/2004 10,696 10,722
12/13/2004 10,804 10,829
12/14/2004 10,836 10,863
12/15/2004 10,868 10,895
12/16/2004 10,828 10,854
12/17/2004 10,776 10,804
12/18/2004 10,776 10,804
12/19/2004 10,776 10,804
12/20/2004 10,768 10,795
12/21/2004 10,876 10,906
12/22/2004 10,924 10,956
12/23/2004 10,924 10,956
12/24/2004 10,924 10,956
12/25/2004 10,924 10,956
12/26/2004 10,924 10,956
12/27/2004 10,888 10,920
12/28/2004 10,968 11,000
12/29/2004 10,976 11,006
12/30/2004 10,976 11,007
12/31/2004 10,964 10,998
1/1/2005 10,964 10,998
1/2/2005 10,964 10,998
1/3/2005 10,864 10,894
1/4/2005 10,736 10,766
1/5/2005 10,704 10,732
1/6/2005 10,752 10,776
1/7/2005 10,716 10,743
1/8/2005 10,716 10,743
1/9/2005 10,716 10,743
1/10/2005 10,740 10,768
1/11/2005 10,672 10,697
1/12/2005 10,700 10,724
1/13/2005 10,623 10,650
1/14/2005 10,680 10,705
1/15/2005 10,680 10,705
1/16/2005 10,680 10,705
1/17/2005 10,680 10,705
1/18/2005 10,800 10,826
1/19/2005 10,692 10,717
1/20/2005 10,615 10,640
1/21/2005 10,547 10,576
1/22/2005 10,547 10,576
1/23/2005 10,547 10,576
1/24/2005 10,527 10,556
1/25/2005 10,543 10,572
1/26/2005 10,607 10,637
1/27/2005 10,607 10,634
1/28/2005 10,579 10,606
1/29/2005 10,579 10,606
1/30/2005 10,579 10,606
1/31/2005 10,688 10,716
2/1/2005 10,756 10,788
2/2/2005 10,780 10,808
2/3/2005 10,760 10,781
2/4/2005 10,884 10,910
2/5/2005 10,884 10,910
2/6/2005 10,884 10,910
2/7/2005 10,880 10,906
2/8/2005 10,884 10,908
2/9/2005 10,812 10,834
2/10/2005 10,860 10,882
2/11/2005 10,936 10,962
2/12/2005 10,936 10,962
2/13/2005 10,936 10,962
2/14/2005 10,932 10,957
2/15/2005 10,964 10,988
2/16/2005 10,960 10,982
2/17/2005 10,864 10,889
2/18/2005 10,852 10,881
2/19/2005 10,852 10,881
2/20/2005 10,852 10,881
2/21/2005 10,852 10,881
2/22/2005 10,700 10,727
2/23/2005 10,768 10,795
2/24/2005 10,836 10,862
2/25/2005 10,948 10,975
2/26/2005 10,948 10,975
2/27/2005 10,948 10,975
2/28/2005 10,860 10,886
3/1/2005 10,932 10,959
3/2/2005 10,924 10,946
3/3/2005 10,924 10,950
3/4/2005 11,044 11,070
3/5/2005 11,044 11,070
3/6/2005 11,044 11,070
3/7/2005 11,080 11,106
3/8/2005 11,028 11,052
3/9/2005 10,900 10,926
3/10/2005 10,916 10,940
3/11/2005 10,840 10,865
3/12/2005 10,840 10,865
3/13/2005 10,840 10,865
3/14/2005 10,920 10,947
3/15/2005 10,840 10,865
3/16/2005 10,752 10,781
3/17/2005 10,772 10,799
3/18/2005 10,752 10,782
3/19/2005 10,752 10,782
3/20/2005 10,752 10,782
3/21/2005 10,688 10,717
3/22/2005 10,551 10,579
3/23/2005 10,547 10,575
3/24/2005 10,539 10,569
3/25/2005 10,539 10,569
3/26/2005 10,539 10,569
3/27/2005 10,539 10,569
3/28/2005 10,559 10,590
3/29/2005 10,487 10,513
3/30/2005 10,627 10,656
3/31/2005 10,644 10,675
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ---------------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(09/01/04) (02/20/04) (02/20/04)
- ---------------------------------------------------------------------------------------
SINCE ONE SINCE ONE SINCE
INCEPTION YEAR INCEPTION YEAR INCEPTION
- ---------------------------------------------------------------------------------------
LARGE-CAP VALUE FUND 7.82% 6.35% 5.14% 6.99% 5.78%
S&P 500/BARRA GROWTH INDEX 7.95% 6.98% 6.07% 6.98% 6.07%
- ---------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500/BARRA VALUE INDEX IS
AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE
GRAPHS ARE BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY; PERFORMANCE FOR
A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP VALUE FUND S&P 500/BARRA VALUE INDEX
-------------------- -------------------------
Other 6.8% 6.8%
Financials 36.8% 39.2%
Consumer Discretionary 13.2% 13.4%
Energy 8.4% 7.9%
Health Care 8.1% 7.6%
Industrials 7.8% 7.3%
Information Technology 7.5% 6.7%
Utilities 5.6% 5.8%
Telecommunication Services 5.5% 5.4%
"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)
- -------------------------------------------------------
Citigroup, Inc. 4.2%
Pfizer, Inc. 3.6%
Bank of America Corp. 3.2%
American International Group, Inc. 2.6%
ChevronTexaco Corp. 2.2%
J.P. Morgan Chase & Co. 2.2%
Verizon Communications, Inc. 1.9%
Wells Fargo & Co. 1.8%
Wachovia Corp. 1.5%
Time Warner, Inc. 1.4%
- -------------------------------------------------------
Top Ten Total 24.6%
- -------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
24 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for small-cap growth securities. The Fund's current benchmark is the
S&P SmallCap 600/Barra Growth Index. The investment objective of the Small-Cap
Growth Fund is non-fundamental and may be changed without shareholder approval.
Inception: February 20, 2004
Small-caps were the best performing of the three market capitalizations during
the year ended March 31, 2005, and small-cap growth beat small-cap value. Among
small-cap growth stocks, energy, basic materials and industrials were the best
performers. Consumer staples and information technology were a drag on
performance, with each of those sectors losing ground for the year.
In its first full year of operation, the Fund experienced very high shareholder
turnover compared to its average asset size. This caused the Fund to trail its
benchmark more than would normally be expected. As the Fund grows in size,
however, these effects should be mitigated. For the year, Rydex Small-Cap Growth
Fund H-Class gained 11.38% compared to 12.77% for the S&P SmallCap 600/Barra
Growth Index.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
SMALL-CAP GROWTH FUND S&P SMALLCAP 600/BARRA
DATE C-CLASS GROWTH INDEX
---------- --------------------- ----------------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 9,856 9,860
2/24/2004 9,884 9,889
2/25/2004 10,004 10,012
2/26/2004 10,104 10,111
2/27/2004 10,096 10,107
2/28/2004 10,096 10,107
2/29/2004 10,096 10,107
3/1/2004 10,276 10,292
3/2/2004 10,220 10,236
3/3/2004 10,224 10,242
3/4/2004 10,300 10,320
3/5/2004 10,340 10,361
3/6/2004 10,340 10,361
3/7/2004 10,340 10,361
3/8/2004 10,216 10,241
3/9/2004 10,096 10,119
3/10/2004 9,948 9,968
3/11/2004 9,844 9,863
3/12/2004 10,040 10,060
3/13/2004 10,040 10,060
3/14/2004 10,040 10,060
3/15/2004 9,816 9,832
3/16/2004 9,820 9,837
3/17/2004 10,004 10,026
3/18/2004 9,880 9,913
3/19/2004 9,828 9,860
3/20/2004 9,828 9,860
3/21/2004 9,828 9,860
3/22/2004 9,640 9,670
3/23/2004 9,688 9,721
3/24/2004 9,636 9,670
3/25/2004 9,884 9,920
3/26/2004 9,880 9,924
3/27/2004 9,880 9,924
3/28/2004 9,880 9,924
3/29/2004 10,024 10,070
3/30/2004 10,132 10,181
3/31/2004 10,132 10,183
4/1/2004 10,204 10,255
4/2/2004 10,356 10,413
4/3/2004 10,356 10,413
4/4/2004 10,356 10,413
4/5/2004 10,436 10,500
4/6/2004 10,332 10,403
4/7/2004 10,376 10,450
4/8/2004 10,296 10,373
4/9/2004 10,296 10,373
4/10/2004 10,296 10,373
4/11/2004 10,296 10,373
4/12/2004 10,384 10,462
4/13/2004 10,164 10,243
4/14/2004 10,084 10,159
4/15/2004 10,036 10,108
4/16/2004 10,064 10,141
4/17/2004 10,064 10,141
4/18/2004 10,064 10,141
4/19/2004 10,140 10,220
4/20/2004 9,992 10,072
4/21/2004 10,112 10,193
4/22/2004 10,308 10,393
4/23/2004 10,268 10,353
4/24/2004 10,268 10,353
4/25/2004 10,268 10,353
4/26/2004 10,192 10,275
4/27/2004 10,200 10,284
4/28/2004 10,016 10,094
4/29/2004 9,864 9,940
4/30/2004 9,808 9,884
5/1/2004 9,808 9,884
5/2/2004 9,808 9,884
5/3/2004 9,900 9,976
5/4/2004 9,952 10,032
5/5/2004 10,000 10,081
5/6/2004 9,872 9,951
5/7/2004 9,648 9,724
5/8/2004 9,648 9,724
5/9/2004 9,648 9,724
5/10/2004 9,452 9,528
5/11/2004 9,648 9,723
5/12/2004 9,648 9,722
5/13/2004 9,616 9,690
5/14/2004 9,556 9,633
5/15/2004 9,556 9,633
5/16/2004 9,556 9,633
5/17/2004 9,416 9,490
5/18/2004 9,520 9,598
5/19/2004 9,508 9,587
5/20/2004 9,508 9,584
5/21/2004 9,596 9,678
5/22/2004 9,596 9,678
5/23/2004 9,596 9,678
5/24/2004 9,692 9,776
5/25/2004 9,944 10,033
5/26/2004 9,996 10,084
5/27/2004 9,992 10,078
5/28/2004 9,976 10,062
5/29/2004 9,976 10,062
5/30/2004 9,976 10,062
5/31/2004 9,976 10,062
6/1/2004 10,048 10,136
6/2/2004 10,084 10,172
6/3/2004 9,904 9,991
6/4/2004 10,004 10,092
6/5/2004 10,004 10,092
6/6/2004 10,004 10,092
6/7/2004 10,188 10,282
6/8/2004 10,204 10,299
6/9/2004 10,084 10,176
6/10/2004 10,068 10,163
6/11/2004 10,068 10,163
6/12/2004 10,068 10,163
6/13/2004 10,068 10,163
6/14/2004 9,928 10,017
6/15/2004 10,104 10,196
6/16/2004 10,184 10,278
6/17/2004 10,168 10,259
6/18/2004 10,164 10,258
6/19/2004 10,164 10,258
6/20/2004 10,164 10,258
6/21/2004 10,144 10,241
6/22/2004 10,212 10,309
6/23/2004 10,336 10,434
6/24/2004 10,324 10,423
6/25/2004 10,424 10,526
6/26/2004 10,424 10,526
6/27/2004 10,424 10,526
6/28/2004 10,356 10,456
6/29/2004 10,436 10,538
6/30/2004 10,516 10,619
7/1/2004 10,372 10,476
7/2/2004 10,332 10,436
7/3/2004 10,332 10,436
7/4/2004 10,332 10,436
7/5/2004 10,332 10,436
7/6/2004 10,176 10,282
7/7/2004 10,144 10,248
7/8/2004 9,988 10,090
7/9/2004 10,020 10,122
7/10/2004 10,020 10,122
7/11/2004 10,020 10,122
7/12/2004 9,960 10,066
7/13/2004 9,976 10,081
7/14/2004 9,916 10,022
7/15/2004 9,968 10,072
7/16/2004 9,892 10,000
7/17/2004 9,892 10,000
7/18/2004 9,892 10,000
7/19/2004 9,864 9,971
7/20/2004 9,996 10,107
7/21/2004 9,744 9,849
7/22/2004 9,712 9,818
7/23/2004 9,588 9,687
7/24/2004 9,588 9,687
7/25/2004 9,588 9,687
7/26/2004 9,484 9,580
7/27/2004 9,672 9,773
7/28/2004 9,628 9,730
7/29/2004 9,792 9,896
7/30/2004 9,848 9,955
7/31/2004 9,848 9,955
8/1/2004 9,848 9,955
8/2/2004 9,840 9,949
8/3/2004 9,708 9,812
8/4/2004 9,672 9,775
8/5/2004 9,484 9,583
8/6/2004 9,216 9,310
8/7/2004 9,216 9,310
8/8/2004 9,216 9,310
8/9/2004 9,228 9,325
8/10/2004 9,388 9,486
8/11/2004 9,368 9,466
8/12/2004 9,176 9,269
8/13/2004 9,176 9,270
8/14/2004 9,176 9,270
8/15/2004 9,176 9,270
8/16/2004 9,356 9,455
8/17/2004 9,392 9,493
8/18/2004 9,584 9,683
8/19/2004 9,556 9,657
8/20/2004 9,700 9,803
8/21/2004 9,700 9,803
8/22/2004 9,700 9,803
8/23/2004 9,648 9,752
8/24/2004 9,628 9,732
8/25/2004 9,696 9,799
8/26/2004 9,664 9,766
8/27/2004 9,736 9,843
8/28/2004 9,736 9,843
8/29/2004 9,736 9,843
8/30/2004 9,600 9,703
8/31/2004 9,636 9,739
9/1/2004 9,748 9,853
9/2/2004 9,880 9,988
9/3/2004 9,844 9,953
9/4/2004 9,844 9,953
9/5/2004 9,844 9,953
9/6/2004 9,844 9,953
9/7/2004 9,956 10,067
9/8/2004 9,864 9,974
9/9/2004 9,988 10,103
9/10/2004 10,072 10,187
9/11/2004 10,072 10,187
9/12/2004 10,072 10,187
9/13/2004 10,148 10,266
9/14/2004 10,136 10,257
9/15/2004 10,080 10,199
9/16/2004 10,160 10,283
9/17/2004 10,140 10,263
9/18/2004 10,140 10,263
9/19/2004 10,140 10,263
9/20/2004 10,120 10,247
9/21/2004 10,248 10,377
9/22/2004 10,032 10,156
9/23/2004 10,036 10,160
9/24/2004 10,056 10,185
9/25/2004 10,056 10,185
9/26/2004 10,056 10,185
9/27/2004 9,900 10,024
9/28/2004 10,032 10,160
9/29/2004 10,160 10,291
9/30/2004 10,152 10,282
10/1/2004 10,336 10,475
10/2/2004 10,336 10,475
10/3/2004 10,336 10,475
10/4/2004 10,404 10,544
10/5/2004 10,368 10,506
10/6/2004 10,444 10,586
10/7/2004 10,308 10,447
10/8/2004 10,140 10,279
10/9/2004 10,140 10,279
10/10/2004 10,140 10,279
10/11/2004 10,176 10,316
10/12/2004 10,156 10,294
10/13/2004 10,056 10,194
10/14/2004 10,004 10,144
10/15/2004 10,072 10,215
10/16/2004 10,072 10,215
10/17/2004 10,072 10,215
10/18/2004 10,100 10,245
10/19/2004 10,052 10,199
10/20/2004 10,132 10,278
10/21/2004 10,260 10,412
10/22/2004 10,136 10,287
10/23/2004 10,136 10,287
10/24/2004 10,136 10,287
10/25/2004 10,188 10,342
10/26/2004 10,284 10,442
10/27/2004 10,452 10,613
10/28/2004 10,404 10,562
10/29/2004 10,416 10,579
10/30/2004 10,416 10,579
10/31/2004 10,416 10,579
11/1/2004 10,456 10,620
11/2/2004 10,428 10,591
11/3/2004 10,620 10,788
11/4/2004 10,768 10,936
11/5/2004 10,852 11,028
11/6/2004 10,852 11,028
11/7/2004 10,852 11,028
11/8/2004 10,800 10,976
11/9/2004 10,852 11,027
11/10/2004 10,888 11,064
11/11/2004 10,984 11,163
11/12/2004 11,080 11,263
11/13/2004 11,080 11,263
11/14/2004 11,080 11,263
11/15/2004 11,092 11,274
11/16/2004 10,968 11,151
11/17/2004 11,072 11,258
11/18/2004 11,056 11,239
11/19/2004 10,880 11,065
11/20/2004 10,880 11,065
11/21/2004 10,880 11,065
11/22/2004 11,040 11,229
11/23/2004 11,100 11,288
11/24/2004 11,172 11,364
11/25/2004 11,172 11,364
11/26/2004 11,184 11,381
11/27/2004 11,184 11,381
11/28/2004 11,184 11,381
11/29/2004 11,228 11,425
11/30/2004 11,220 11,418
12/1/2004 11,344 11,544
12/2/2004 11,316 11,517
12/3/2004 11,300 11,500
12/4/2004 11,300 11,500
12/5/2004 11,300 11,500
12/6/2004 11,232 11,433
12/7/2004 10,988 11,182
12/8/2004 11,068 11,266
12/9/2004 11,040 11,242
12/10/2004 11,072 11,276
12/11/2004 11,072 11,276
12/12/2004 11,072 11,276
12/13/2004 11,177 11,382
12/14/2004 11,274 11,485
12/15/2004 11,339 11,548
12/16/2004 11,270 11,481
12/17/2004 11,266 11,478
12/18/2004 11,266 11,478
12/19/2004 11,266 11,478
12/20/2004 11,218 11,430
12/21/2004 11,359 11,576
12/22/2004 11,411 11,630
12/23/2004 11,428 11,650
12/24/2004 11,428 11,650
12/25/2004 11,428 11,650
12/26/2004 11,428 11,650
12/27/2004 11,298 11,520
12/28/2004 11,508 11,735
12/29/2004 11,504 11,728
12/30/2004 11,496 11,719
12/31/2004 11,480 11,705
1/1/2005 11,480 11,705
1/2/2005 11,480 11,705
1/3/2005 11,274 11,495
1/4/2005 11,072 11,290
1/5/2005 10,911 11,126
1/6/2005 10,959 11,174
1/7/2005 10,866 11,076
1/8/2005 10,866 11,076
1/9/2005 10,866 11,076
1/10/2005 10,988 11,201
1/11/2005 10,915 11,133
1/12/2005 10,939 11,154
1/13/2005 10,951 11,165
1/14/2005 11,040 11,261
1/15/2005 11,040 11,261
1/16/2005 11,040 11,261
1/17/2005 11,040 11,261
1/18/2005 11,193 11,417
1/19/2005 11,088 11,315
1/20/2005 11,024 11,245
1/21/2005 11,008 11,232
1/22/2005 11,008 11,232
1/23/2005 11,008 11,232
1/24/2005 10,907 11,133
1/25/2005 10,951 11,176
1/26/2005 11,149 11,378
1/27/2005 11,173 11,404
1/28/2005 11,109 11,341
1/29/2005 11,109 11,341
1/30/2005 11,109 11,341
1/31/2005 11,339 11,577
2/1/2005 11,432 11,676
2/2/2005 11,516 11,761
2/3/2005 11,500 11,747
2/4/2005 11,654 11,903
2/5/2005 11,654 11,903
2/6/2005 11,654 11,903
2/7/2005 11,625 11,877
2/8/2005 11,682 11,938
2/9/2005 11,432 11,680
2/10/2005 11,484 11,735
2/11/2005 11,601 11,858
2/12/2005 11,601 11,858
2/13/2005 11,601 11,858
2/14/2005 11,589 11,845
2/15/2005 11,625 11,879
2/16/2005 11,682 11,941
2/17/2005 11,565 11,821
2/18/2005 11,549 11,807
2/19/2005 11,549 11,807
2/20/2005 11,549 11,807
2/21/2005 11,549 11,807
2/22/2005 11,310 11,561
2/23/2005 11,367 11,621
2/24/2005 11,504 11,763
2/25/2005 11,674 11,940
2/26/2005 11,674 11,940
2/27/2005 11,674 11,940
2/28/2005 11,617 11,881
3/1/2005 11,666 11,932
3/2/2005 11,694 11,960
3/3/2005 11,686 11,952
3/4/2005 11,811 12,084
3/5/2005 11,811 12,084
3/6/2005 11,811 12,084
3/7/2005 11,815 12,091
3/8/2005 11,702 11,973
3/9/2005 11,557 11,828
3/10/2005 11,444 11,708
3/11/2005 11,472 11,741
3/12/2005 11,472 11,741
3/13/2005 11,472 11,741
3/14/2005 11,516 11,788
3/15/2005 11,468 11,736
3/16/2005 11,399 11,669
3/17/2005 11,436 11,705
3/18/2005 11,411 11,683
3/19/2005 11,411 11,683
3/20/2005 11,411 11,683
3/21/2005 11,379 11,649
3/22/2005 11,339 11,608
3/23/2005 11,177 11,441
3/24/2005 11,222 11,491
3/25/2005 11,222 11,491
3/26/2005 11,222 11,491
3/27/2005 11,222 11,491
3/28/2005 11,234 11,501
3/29/2005 11,048 11,311
3/30/2005 11,222 11,491
3/31/2005 11,214 11,484
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
SMALL-CAP GROWTH FUND S&P SMALLCAP 600/BARRA
DATE H-CLASS GROWTH INDEX
--------- --------------------- ----------------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 9,856 9,860
2/24/2004 9,884 9,889
2/25/2004 10,004 10,012
2/26/2004 10,104 10,111
2/27/2004 10,096 10,107
2/28/2004 10,096 10,107
2/29/2004 10,096 10,107
3/1/2004 10,276 10,292
3/2/2004 10,220 10,236
3/3/2004 10,224 10,242
3/4/2004 10,300 10,320
3/5/2004 10,340 10,361
3/6/2004 10,340 10,361
3/7/2004 10,340 10,361
3/8/2004 10,216 10,241
3/9/2004 10,096 10,119
3/10/2004 9,948 9,968
3/11/2004 9,844 9,863
3/12/2004 10,040 10,060
3/13/2004 10,040 10,060
3/14/2004 10,040 10,060
3/15/2004 9,816 9,832
3/16/2004 9,820 9,837
3/17/2004 10,004 10,026
3/18/2004 9,880 9,913
3/19/2004 9,828 9,860
3/20/2004 9,828 9,860
3/21/2004 9,828 9,860
3/22/2004 9,640 9,670
3/23/2004 9,692 9,721
3/24/2004 9,640 9,670
3/25/2004 9,888 9,920
3/26/2004 9,884 9,924
3/27/2004 9,884 9,924
3/28/2004 9,884 9,924
3/29/2004 10,028 10,070
3/30/2004 10,136 10,181
3/31/2004 10,136 10,183
4/1/2004 10,208 10,255
4/2/2004 10,360 10,413
4/3/2004 10,360 10,413
4/4/2004 10,360 10,413
4/5/2004 10,440 10,500
4/6/2004 10,336 10,403
4/7/2004 10,380 10,450
4/8/2004 10,300 10,373
4/9/2004 10,300 10,373
4/10/2004 10,300 10,373
4/11/2004 10,300 10,373
4/12/2004 10,388 10,462
4/13/2004 10,168 10,243
4/14/2004 10,088 10,159
4/15/2004 10,036 10,108
4/16/2004 10,068 10,141
4/17/2004 10,068 10,141
4/18/2004 10,068 10,141
4/19/2004 10,144 10,220
4/20/2004 9,996 10,072
4/21/2004 10,116 10,193
4/22/2004 10,316 10,393
4/23/2004 10,276 10,353
4/24/2004 10,276 10,353
4/25/2004 10,276 10,353
4/26/2004 10,200 10,275
4/27/2004 10,208 10,284
4/28/2004 10,024 10,094
4/29/2004 9,872 9,940
4/30/2004 9,816 9,884
5/1/2004 9,816 9,884
5/2/2004 9,816 9,884
5/3/2004 9,908 9,976
5/4/2004 9,960 10,032
5/5/2004 10,008 10,081
5/6/2004 9,880 9,951
5/7/2004 9,660 9,724
5/8/2004 9,660 9,724
5/9/2004 9,660 9,724
5/10/2004 9,464 9,528
5/11/2004 9,660 9,723
5/12/2004 9,656 9,722
5/13/2004 9,624 9,690
5/14/2004 9,568 9,633
5/15/2004 9,568 9,633
5/16/2004 9,568 9,633
5/17/2004 9,428 9,490
5/18/2004 9,532 9,598
5/19/2004 9,520 9,587
5/20/2004 9,516 9,584
5/21/2004 9,608 9,678
5/22/2004 9,608 9,678
5/23/2004 9,608 9,678
5/24/2004 9,704 9,776
5/25/2004 9,960 10,033
5/26/2004 10,008 10,084
5/27/2004 10,008 10,078
5/28/2004 9,988 10,062
5/29/2004 9,988 10,062
5/30/2004 9,988 10,062
5/31/2004 9,988 10,062
6/1/2004 10,060 10,136
6/2/2004 10,096 10,172
6/3/2004 9,916 9,991
6/4/2004 10,016 10,092
6/5/2004 10,016 10,092
6/6/2004 10,016 10,092
6/7/2004 10,204 10,282
6/8/2004 10,220 10,299
6/9/2004 10,096 10,176
6/10/2004 10,084 10,163
6/11/2004 10,084 10,163
6/12/2004 10,084 10,163
6/13/2004 10,084 10,163
6/14/2004 9,944 10,017
6/15/2004 10,120 10,196
6/16/2004 10,200 10,278
6/17/2004 10,184 10,259
6/18/2004 10,180 10,258
6/19/2004 10,180 10,258
6/20/2004 10,180 10,258
6/21/2004 10,160 10,241
6/22/2004 10,228 10,309
6/23/2004 10,352 10,434
6/24/2004 10,340 10,423
6/25/2004 10,440 10,526
6/26/2004 10,440 10,526
6/27/2004 10,440 10,526
6/28/2004 10,376 10,456
6/29/2004 10,456 10,538
6/30/2004 10,536 10,619
7/1/2004 10,392 10,476
7/2/2004 10,352 10,436
7/3/2004 10,352 10,436
7/4/2004 10,352 10,436
7/5/2004 10,352 10,436
7/6/2004 10,196 10,282
7/7/2004 10,164 10,248
7/8/2004 10,008 10,090
7/9/2004 10,040 10,122
7/10/2004 10,040 10,122
7/11/2004 10,040 10,122
7/12/2004 9,980 10,066
7/13/2004 9,996 10,081
7/14/2004 9,936 10,022
7/15/2004 9,988 10,072
7/16/2004 9,916 10,000
7/17/2004 9,916 10,000
7/18/2004 9,916 10,000
7/19/2004 9,888 9,971
7/20/2004 10,020 10,107
7/21/2004 9,768 9,849
7/22/2004 9,736 9,818
7/23/2004 9,608 9,687
7/24/2004 9,608 9,687
7/25/2004 9,608 9,687
7/26/2004 9,508 9,580
7/27/2004 9,696 9,773
7/28/2004 9,652 9,730
7/29/2004 9,816 9,896
7/30/2004 9,872 9,955
7/31/2004 9,872 9,955
8/1/2004 9,872 9,955
8/2/2004 9,868 9,949
8/3/2004 9,732 9,812
8/4/2004 9,696 9,775
8/5/2004 9,504 9,583
8/6/2004 9,236 9,310
8/7/2004 9,236 9,310
8/8/2004 9,236 9,310
8/9/2004 9,252 9,325
8/10/2004 9,412 9,486
8/11/2004 9,388 9,466
8/12/2004 9,196 9,269
8/13/2004 9,196 9,270
8/14/2004 9,196 9,270
8/15/2004 9,196 9,270
8/16/2004 9,384 9,455
8/17/2004 9,420 9,493
8/18/2004 9,608 9,683
8/19/2004 9,584 9,657
8/20/2004 9,724 9,803
8/21/2004 9,724 9,803
8/22/2004 9,724 9,803
8/23/2004 9,676 9,752
8/24/2004 9,652 9,732
8/25/2004 9,720 9,799
8/26/2004 9,688 9,766
8/27/2004 9,760 9,843
8/28/2004 9,760 9,843
8/29/2004 9,760 9,843
8/30/2004 9,624 9,703
8/31/2004 9,660 9,739
9/1/2004 9,772 9,853
9/2/2004 9,904 9,988
9/3/2004 9,868 9,953
9/4/2004 9,868 9,953
9/5/2004 9,868 9,953
9/6/2004 9,868 9,953
9/7/2004 9,980 10,067
9/8/2004 9,888 9,974
9/9/2004 10,016 10,103
9/10/2004 10,096 10,187
9/11/2004 10,096 10,187
9/12/2004 10,096 10,187
9/13/2004 10,176 10,266
9/14/2004 10,164 10,257
9/15/2004 10,108 10,199
9/16/2004 10,188 10,283
9/17/2004 10,168 10,263
9/18/2004 10,168 10,263
9/19/2004 10,168 10,263
9/20/2004 10,152 10,247
9/21/2004 10,276 10,377
9/22/2004 10,060 10,156
9/23/2004 10,064 10,160
9/24/2004 10,088 10,185
9/25/2004 10,088 10,185
9/26/2004 10,088 10,185
9/27/2004 9,928 10,024
9/28/2004 10,064 10,160
9/29/2004 10,192 10,291
9/30/2004 10,184 10,282
10/1/2004 10,368 10,475
10/2/2004 10,368 10,475
10/3/2004 10,368 10,475
10/4/2004 10,436 10,544
10/5/2004 10,400 10,506
10/6/2004 10,480 10,586
10/7/2004 10,340 10,447
10/8/2004 10,176 10,279
10/9/2004 10,176 10,279
10/10/2004 10,176 10,279
10/11/2004 10,212 10,316
10/12/2004 10,188 10,294
10/13/2004 10,092 10,194
10/14/2004 10,040 10,144
10/15/2004 10,108 10,215
10/16/2004 10,108 10,215
10/17/2004 10,108 10,215
10/18/2004 10,136 10,245
10/19/2004 10,092 10,199
10/20/2004 10,168 10,278
10/21/2004 10,296 10,412
10/22/2004 10,172 10,287
10/23/2004 10,172 10,287
10/24/2004 10,172 10,287
10/25/2004 10,228 10,342
10/26/2004 10,324 10,442
10/27/2004 10,492 10,613
10/28/2004 10,444 10,562
10/29/2004 10,460 10,579
10/30/2004 10,460 10,579
10/31/2004 10,460 10,579
11/1/2004 10,500 10,620
11/2/2004 10,472 10,591
11/3/2004 10,664 10,788
11/4/2004 10,808 10,936
11/5/2004 10,896 11,028
11/6/2004 10,896 11,028
11/7/2004 10,896 11,028
11/8/2004 10,844 10,976
11/9/2004 10,896 11,027
11/10/2004 10,932 11,064
11/11/2004 11,028 11,163
11/12/2004 11,124 11,263
11/13/2004 11,124 11,263
11/14/2004 11,124 11,263
11/15/2004 11,136 11,274
11/16/2004 11,016 11,151
11/17/2004 11,120 11,258
11/18/2004 11,100 11,239
11/19/2004 10,928 11,065
11/20/2004 10,928 11,065
11/21/2004 10,928 11,065
11/22/2004 11,088 11,229
11/23/2004 11,144 11,288
11/24/2004 11,220 11,364
11/25/2004 11,220 11,364
11/26/2004 11,232 11,381
11/27/2004 11,232 11,381
11/28/2004 11,232 11,381
11/29/2004 11,276 11,425
11/30/2004 11,268 11,418
12/1/2004 11,396 11,544
12/2/2004 11,368 11,517
12/3/2004 11,352 11,500
12/4/2004 11,352 11,500
12/5/2004 11,352 11,500
12/6/2004 11,284 11,433
12/7/2004 11,036 11,182
12/8/2004 11,120 11,266
12/9/2004 11,096 11,242
12/10/2004 11,128 11,276
12/11/2004 11,128 11,276
12/12/2004 11,128 11,276
12/13/2004 11,229 11,382
12/14/2004 11,330 11,485
12/15/2004 11,395 11,548
12/16/2004 11,326 11,481
12/17/2004 11,322 11,478
12/18/2004 11,322 11,478
12/19/2004 11,322 11,478
12/20/2004 11,274 11,430
12/21/2004 11,419 11,576
12/22/2004 11,467 11,630
12/23/2004 11,488 11,650
12/24/2004 11,488 11,650
12/25/2004 11,488 11,650
12/26/2004 11,488 11,650
12/27/2004 11,358 11,520
12/28/2004 11,568 11,735
12/29/2004 11,564 11,728
12/30/2004 11,556 11,719
12/31/2004 11,540 11,705
1/1/2005 11,540 11,705
1/2/2005 11,540 11,705
1/3/2005 11,334 11,495
1/4/2005 11,132 11,290
1/5/2005 10,971 11,126
1/6/2005 11,019 11,174
1/7/2005 10,922 11,076
1/8/2005 10,922 11,076
1/9/2005 10,922 11,076
1/10/2005 11,048 11,201
1/11/2005 10,975 11,133
1/12/2005 10,999 11,154
1/13/2005 11,007 11,165
1/14/2005 11,100 11,261
1/15/2005 11,100 11,261
1/16/2005 11,100 11,261
1/17/2005 11,100 11,261
1/18/2005 11,253 11,417
1/19/2005 11,153 11,315
1/20/2005 11,084 11,245
1/21/2005 11,068 11,232
1/22/2005 11,068 11,232
1/23/2005 11,068 11,232
1/24/2005 10,971 11,133
1/25/2005 11,011 11,176
1/26/2005 11,209 11,378
1/27/2005 11,233 11,404
1/28/2005 11,173 11,341
1/29/2005 11,173 11,341
1/30/2005 11,173 11,341
1/31/2005 11,403 11,577
2/1/2005 11,500 11,676
2/2/2005 11,580 11,761
2/3/2005 11,568 11,747
2/4/2005 11,722 11,903
2/5/2005 11,722 11,903
2/6/2005 11,722 11,903
2/7/2005 11,693 11,877
2/8/2005 11,754 11,938
2/9/2005 11,500 11,680
2/10/2005 11,552 11,735
2/11/2005 11,673 11,858
2/12/2005 11,673 11,858
2/13/2005 11,673 11,858
2/14/2005 11,657 11,845
2/15/2005 11,693 11,879
2/16/2005 11,754 11,941
2/17/2005 11,637 11,821
2/18/2005 11,621 11,807
2/19/2005 11,621 11,807
2/20/2005 11,621 11,807
2/21/2005 11,621 11,807
2/22/2005 11,379 11,561
2/23/2005 11,439 11,621
2/24/2005 11,576 11,763
2/25/2005 11,750 11,940
2/26/2005 11,750 11,940
2/27/2005 11,750 11,940
2/28/2005 11,689 11,881
3/1/2005 11,742 11,932
3/2/2005 11,766 11,960
3/3/2005 11,758 11,952
3/4/2005 11,887 12,084
3/5/2005 11,887 12,084
3/6/2005 11,887 12,084
3/7/2005 11,891 12,091
3/8/2005 11,778 11,973
3/9/2005 11,633 11,828
3/10/2005 11,516 11,708
3/11/2005 11,548 11,741
3/12/2005 11,548 11,741
3/13/2005 11,548 11,741
3/14/2005 11,593 11,788
3/15/2005 11,544 11,736
3/16/2005 11,475 11,669
3/17/2005 11,512 11,705
3/18/2005 11,488 11,683
3/19/2005 11,488 11,683
3/20/2005 11,488 11,683
3/21/2005 11,455 11,649
3/22/2005 11,415 11,608
3/23/2005 11,253 11,441
3/24/2005 11,298 11,491
3/25/2005 11,298 11,491
3/26/2005 11,298 11,491
3/27/2005 11,298 11,491
3/28/2005 11,310 11,501
3/29/2005 11,124 11,311
3/30/2005 11,298 11,491
3/31/2005 11,290 11,484
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ---------------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(09/01/04) (02/20/04) (02/20/04)
- ---------------------------------------------------------------------------------------
SINCE ONE SINCE ONE SINCE
INCEPTION YEAR INCEPTION YEAR INCEPTION
- ---------------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND 15.49% 10.68% 10.87% 11.38% 11.55%
S&P SMALLCAP 600/BARRA GROWTH INDEX 16.55% 12.77% 13.28% 12.77% 13.28%
- ---------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P SMALLCAP 600/BARRA GROWTH
INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES
OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPHS ARE BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY;
PERFORMANCE FOR A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
SMALL-CAP GROWTH FUND S&P SMALLCAP 600/BARRA GROWTH INDEX
--------------------- -----------------------------------
Other 5.3% 5.2%
Consumer Discretionary 21.8% 20.1%
Health Care 18.0% 17.5%
Industrials 16.2% 17.4%
Information Technology 16.1% 16.2%
Energy 8.8% 9.9%
Financials 8.1% 7.7%
Materials 5.2% 6.0%
"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)
- -------------------------------------------------------
NVR, Inc. 2.0%
Cooper Cos., Inc. 1.2%
Massey Energy Co. 1.2%
Polaris Industries, Inc. 1.1%
Oshkosh Truck Corp. 1.1%
Patina Oil & Gas Corp. 1.1%
Roper Industries, Inc. 1.0%
Pharmaceutical Product Development, Inc. 1.0%
New Century Financial Corp. 1.0%
Florida Rock Industries, Inc. 1.0%
- -------------------------------------------------------
Top Ten Total 11.7%
- -------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 25
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for mid-cap growth securities. The Fund's current benchmark is the S&P
MidCap 400/Barra Growth Index. The investment objective of the Mid-Cap Growth
Fund is non-fundamental and may be changed without shareholder approval.
Inception: February 20, 2004
For the year ended March 31, 2005, mid-cap value stocks tended to outperform the
broader market by a small margin. Among the group, energy, utilities and basic
materials companies were the best performers, all producing healthy gains.
Information technology and financials were the worst performers, both posting
modest losses for the year.
For the entire period, Rydex Mid-Cap Growth Fund H-Class returned 6.75% while
its benchmark, the S&P MidCap 400/Barra Growth Index, rose 8.12%. In its first
full year of operation, the Fund experienced very high shareholder turnover
compared to its average asset size. This caused the Fund to trail its benchmark
more than would normally be expected. As the Fund grows in size, however, these
effects should be mitigated.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
MID-CAP GROWTH FUND S&P MIDCAP 400/BARRA
DATE C-CLASS GROWTH INDEX
---------- ------------------- ---------------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 9,860 9,861
2/24/2004 9,876 9,879
2/25/2004 9,924 9,931
2/26/2004 9,996 10,010
2/27/2004 10,044 10,067
2/28/2004 10,044 10,067
2/29/2004 10,044 10,067
3/1/2004 10,236 10,264
3/2/2004 10,176 10,210
3/3/2004 10,160 10,198
3/4/2004 10,224 10,264
3/5/2004 10,284 10,329
3/6/2004 10,284 10,329
3/7/2004 10,284 10,329
3/8/2004 10,168 10,219
3/9/2004 10,092 10,142
3/10/2004 9,908 9,959
3/11/2004 9,808 9,854
3/12/2004 9,968 10,017
3/13/2004 9,968 10,017
3/14/2004 9,968 10,017
3/15/2004 9,796 9,847
3/16/2004 9,808 9,857
3/17/2004 9,920 9,974
3/18/2004 9,868 9,923
3/19/2004 9,788 9,840
3/20/2004 9,788 9,840
3/21/2004 9,788 9,840
3/22/2004 9,624 9,677
3/23/2004 9,656 9,709
3/24/2004 9,640 9,696
3/25/2004 9,824 9,882
3/26/2004 9,832 9,895
3/27/2004 9,832 9,895
3/28/2004 9,832 9,895
3/29/2004 9,964 10,033
3/30/2004 10,008 10,088
3/31/2004 10,060 10,130
4/1/2004 10,140 10,213
4/2/2004 10,224 10,301
4/3/2004 10,224 10,301
4/4/2004 10,224 10,301
4/5/2004 10,332 10,429
4/6/2004 10,280 10,381
4/7/2004 10,288 10,393
4/8/2004 10,220 10,331
4/9/2004 10,220 10,331
4/10/2004 10,220 10,331
4/11/2004 10,220 10,331
4/12/2004 10,264 10,375
4/13/2004 10,088 10,196
4/14/2004 10,072 10,179
4/15/2004 10,016 10,123
4/16/2004 10,028 10,138
4/17/2004 10,028 10,138
4/18/2004 10,028 10,138
4/19/2004 10,092 10,202
4/20/2004 9,956 10,066
4/21/2004 10,052 10,161
4/22/2004 10,208 10,323
4/23/2004 10,192 10,307
4/24/2004 10,192 10,307
4/25/2004 10,192 10,307
4/26/2004 10,132 10,247
4/27/2004 10,132 10,249
4/28/2004 9,956 10,071
4/29/2004 9,820 9,933
4/30/2004 9,740 9,852
5/1/2004 9,740 9,852
5/2/2004 9,740 9,852
5/3/2004 9,840 9,953
5/4/2004 9,856 9,971
5/5/2004 9,932 10,048
5/6/2004 9,796 9,907
5/7/2004 9,588 9,700
5/8/2004 9,588 9,700
5/9/2004 9,588 9,700
5/10/2004 9,428 9,537
5/11/2004 9,576 9,683
5/12/2004 9,540 9,645
5/13/2004 9,544 9,650
5/14/2004 9,484 9,592
5/15/2004 9,484 9,592
5/16/2004 9,484 9,592
5/17/2004 9,368 9,475
5/18/2004 9,476 9,584
5/19/2004 9,456 9,561
5/20/2004 9,436 9,544
5/21/2004 9,496 9,604
5/22/2004 9,496 9,604
5/23/2004 9,496 9,604
5/24/2004 9,580 9,693
5/25/2004 9,768 9,886
5/26/2004 9,820 9,937
5/27/2004 9,876 9,995
5/28/2004 9,928 10,049
5/29/2004 9,928 10,049
5/30/2004 9,928 10,049
5/31/2004 9,928 10,049
6/1/2004 9,972 10,093
6/2/2004 9,948 10,071
6/3/2004 9,800 9,917
6/4/2004 9,864 9,986
6/5/2004 9,864 9,986
6/6/2004 9,864 9,986
6/7/2004 10,040 10,167
6/8/2004 10,024 10,154
6/9/2004 9,900 10,025
6/10/2004 9,916 10,045
6/11/2004 9,916 10,045
6/12/2004 9,916 10,045
6/13/2004 9,916 10,045
6/14/2004 9,768 9,890
6/15/2004 9,888 10,018
6/16/2004 9,904 10,036
6/17/2004 9,872 10,002
6/18/2004 9,860 9,995
6/19/2004 9,860 9,995
6/20/2004 9,860 9,995
6/21/2004 9,824 9,957
6/22/2004 9,880 10,017
6/23/2004 9,960 10,096
6/24/2004 9,944 10,083
6/25/2004 9,996 10,137
6/26/2004 9,996 10,137
6/27/2004 9,996 10,137
6/28/2004 9,948 10,087
6/29/2004 9,980 10,122
6/30/2004 10,044 10,189
7/1/2004 9,928 10,071
7/2/2004 9,888 10,036
7/3/2004 9,888 10,036
7/4/2004 9,888 10,036
7/5/2004 9,888 10,036
7/6/2004 9,792 9,893
7/7/2004 9,832 9,936
7/8/2004 9,704 9,805
7/9/2004 9,748 9,852
7/10/2004 9,748 9,852
7/11/2004 9,748 9,852
7/12/2004 9,704 9,808
7/13/2004 9,704 9,807
7/14/2004 9,652 9,754
7/15/2004 9,708 9,812
7/16/2004 9,620 9,724
7/17/2004 9,620 9,724
7/18/2004 9,620 9,724
7/19/2004 9,624 9,729
7/20/2004 9,756 9,863
7/21/2004 9,552 9,653
7/22/2004 9,544 9,650
7/23/2004 9,420 9,524
7/24/2004 9,420 9,524
7/25/2004 9,420 9,524
7/26/2004 9,324 9,423
7/27/2004 9,476 9,580
7/28/2004 9,416 9,516
7/29/2004 9,548 9,650
7/30/2004 9,572 9,677
7/31/2004 9,572 9,677
8/1/2004 9,572 9,677
8/2/2004 9,552 9,656
8/3/2004 9,436 9,539
8/4/2004 9,392 9,492
8/5/2004 9,208 9,306
8/6/2004 9,036 9,128
8/7/2004 9,036 9,128
8/8/2004 9,036 9,128
8/9/2004 9,048 9,142
8/10/2004 9,200 9,296
8/11/2004 9,140 9,238
8/12/2004 9,012 9,105
8/13/2004 9,004 9,098
8/14/2004 9,004 9,098
8/15/2004 9,004 9,098
8/16/2004 9,148 9,244
8/17/2004 9,192 9,292
8/18/2004 9,336 9,438
8/19/2004 9,272 9,372
8/20/2004 9,404 9,511
8/21/2004 9,404 9,511
8/22/2004 9,404 9,511
8/23/2004 9,344 9,448
8/24/2004 9,352 9,458
8/25/2004 9,440 9,549
8/26/2004 9,440 9,550
8/27/2004 9,492 9,602
8/28/2004 9,492 9,602
8/29/2004 9,492 9,602
8/30/2004 9,384 9,494
8/31/2004 9,440 9,550
9/1/2004 9,524 9,634
9/2/2004 9,624 9,737
9/3/2004 9,552 9,677
9/4/2004 9,552 9,677
9/5/2004 9,552 9,677
9/6/2004 9,552 9,677
9/7/2004 9,612 9,738
9/8/2004 9,556 9,680
9/9/2004 9,608 9,738
9/10/2004 9,672 9,802
9/11/2004 9,672 9,802
9/12/2004 9,672 9,802
9/13/2004 9,748 9,879
9/14/2004 9,732 9,864
9/15/2004 9,676 9,808
9/16/2004 9,720 9,852
9/17/2004 9,696 9,832
9/18/2004 9,696 9,832
9/19/2004 9,696 9,832
9/20/2004 9,656 9,792
9/21/2004 9,728 9,866
9/22/2004 9,596 9,730
9/23/2004 9,568 9,702
9/24/2004 9,636 9,765
9/25/2004 9,636 9,765
9/26/2004 9,636 9,765
9/27/2004 9,516 9,640
9/28/2004 9,588 9,714
9/29/2004 9,644 9,775
9/30/2004 9,692 9,823
10/1/2004 9,824 9,964
10/2/2004 9,824 9,964
10/3/2004 9,824 9,964
10/4/2004 9,892 10,032
10/5/2004 9,856 9,998
10/6/2004 9,904 10,047
10/7/2004 9,792 9,931
10/8/2004 9,712 9,851
10/9/2004 9,712 9,851
10/10/2004 9,712 9,851
10/11/2004 9,724 9,864
10/12/2004 9,676 9,817
10/13/2004 9,624 9,763
10/14/2004 9,536 9,674
10/15/2004 9,568 9,709
10/16/2004 9,568 9,709
10/17/2004 9,568 9,709
10/18/2004 9,652 9,795
10/19/2004 9,588 9,733
10/20/2004 9,652 9,799
10/21/2004 9,752 9,901
10/22/2004 9,636 9,786
10/23/2004 9,636 9,786
10/24/2004 9,636 9,786
10/25/2004 9,644 9,795
10/26/2004 9,676 9,832
10/27/2004 9,872 10,030
10/28/2004 9,872 10,030
10/29/2004 9,896 10,056
10/30/2004 9,896 10,056
10/31/2004 9,896 10,056
11/1/2004 9,872 10,031
11/2/2004 9,860 10,022
11/3/2004 9,976 10,141
11/4/2004 10,108 10,277
11/5/2004 10,156 10,328
11/6/2004 10,156 10,328
11/7/2004 10,156 10,328
11/8/2004 10,116 10,287
11/9/2004 10,148 10,318
11/10/2004 10,172 10,342
11/11/2004 10,268 10,444
11/12/2004 10,372 10,547
11/13/2004 10,372 10,547
11/14/2004 10,372 10,547
11/15/2004 10,368 10,545
11/16/2004 10,296 10,471
11/17/2004 10,380 10,558
11/18/2004 10,360 10,540
11/19/2004 10,220 10,398
11/20/2004 10,220 10,398
11/21/2004 10,220 10,398
11/22/2004 10,275 10,455
11/23/2004 10,323 10,502
11/24/2004 10,403 10,589
11/25/2004 10,403 10,589
11/26/2004 10,403 10,591
11/27/2004 10,403 10,591
11/28/2004 10,403 10,591
11/29/2004 10,383 10,570
11/30/2004 10,339 10,525
12/1/2004 10,503 10,694
12/2/2004 10,475 10,671
12/3/2004 10,491 10,691
12/4/2004 10,491 10,691
12/5/2004 10,491 10,691
12/6/2004 10,479 10,678
12/7/2004 10,319 10,516
12/8/2004 10,399 10,598
12/9/2004 10,435 10,636
12/10/2004 10,423 10,626
12/11/2004 10,423 10,626
12/12/2004 10,423 10,626
12/13/2004 10,487 10,696
12/14/2004 10,595 10,805
12/15/2004 10,627 10,839
12/16/2004 10,563 10,773
12/17/2004 10,563 10,774
12/18/2004 10,563 10,774
12/19/2004 10,563 10,774
12/20/2004 10,531 10,742
12/21/2004 10,639 10,857
12/22/2004 10,675 10,893
12/23/2004 10,691 10,912
12/24/2004 10,691 10,912
12/25/2004 10,691 10,912
12/26/2004 10,691 10,912
12/27/2004 10,623 10,842
12/28/2004 10,767 10,990
12/29/2004 10,771 10,994
12/30/2004 10,779 11,003
12/31/2004 10,759 10,984
1/1/2005 10,759 10,984
1/2/2005 10,759 10,984
1/3/2005 10,571 10,790
1/4/2005 10,407 10,623
1/5/2005 10,303 10,519
1/6/2005 10,359 10,577
1/7/2005 10,315 10,531
1/8/2005 10,315 10,531
1/9/2005 10,315 10,531
1/10/2005 10,379 10,599
1/11/2005 10,315 10,536
1/12/2005 10,339 10,563
1/13/2005 10,295 10,519
1/14/2005 10,379 10,605
1/15/2005 10,379 10,605
1/16/2005 10,379 10,605
1/17/2005 10,379 10,605
1/18/2005 10,471 10,702
1/19/2005 10,371 10,600
1/20/2005 10,335 10,562
1/21/2005 10,267 10,497
1/22/2005 10,267 10,497
1/23/2005 10,267 10,497
1/24/2005 10,195 10,424
1/25/2005 10,231 10,460
1/26/2005 10,339 10,572
1/27/2005 10,391 10,626
1/28/2005 10,319 10,558
1/29/2005 10,319 10,558
1/30/2005 10,319 10,558
1/31/2005 10,479 10,723
2/1/2005 10,559 10,805
2/2/2005 10,611 10,861
2/3/2005 10,603 10,851
2/4/2005 10,735 10,990
2/5/2005 10,735 10,990
2/6/2005 10,735 10,990
2/7/2005 10,715 10,969
2/8/2005 10,723 10,980
2/9/2005 10,579 10,829
2/10/2005 10,623 10,877
2/11/2005 10,751 11,010
2/12/2005 10,751 11,010
2/13/2005 10,751 11,010
2/14/2005 10,739 11,000
2/15/2005 10,771 11,033
2/16/2005 10,815 11,074
2/17/2005 10,735 10,994
2/18/2005 10,727 10,989
2/19/2005 10,727 10,989
2/20/2005 10,727 10,989
2/21/2005 10,727 10,989
2/22/2005 10,563 10,820
2/23/2005 10,635 10,892
2/24/2005 10,767 11,027
2/25/2005 10,871 11,138
2/26/2005 10,871 11,138
2/27/2005 10,871 11,138
2/28/2005 10,831 11,097
3/1/2005 10,903 11,171
3/2/2005 10,915 11,184
3/3/2005 10,899 11,169
3/4/2005 10,995 11,268
3/5/2005 10,995 11,268
3/6/2005 10,995 11,268
3/7/2005 11,039 11,316
3/8/2005 10,971 11,248
3/9/2005 10,867 11,140
3/10/2005 10,831 11,102
3/11/2005 10,843 11,116
3/12/2005 10,843 11,116
3/13/2005 10,843 11,116
3/14/2005 10,899 11,173
3/15/2005 10,863 11,137
3/16/2005 10,755 11,027
3/17/2005 10,787 11,057
3/18/2005 10,751 11,022
3/19/2005 10,751 11,022
3/20/2005 10,751 11,022
3/21/2005 10,731 11,003
3/22/2005 10,687 10,959
3/23/2005 10,619 10,890
3/24/2005 10,627 10,902
3/25/2005 10,627 10,902
3/26/2005 10,627 10,902
3/27/2005 10,627 10,902
3/28/2005 10,627 10,901
3/29/2005 10,503 10,776
3/30/2005 10,639 10,920
3/31/2005 10,667 10,952
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
MID-CAP GROWTH FUND S&P MIDCAP 400/BARRA
DATE H-CLASS GROWTH INDEX
---------- ------------------- ---------------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 9,856 9,861
2/24/2004 9,876 9,879
2/25/2004 9,924 9,931
2/26/2004 9,996 10,010
2/27/2004 10,044 10,067
2/28/2004 10,044 10,067
2/29/2004 10,044 10,067
3/1/2004 10,240 10,264
3/2/2004 10,180 10,210
3/3/2004 10,164 10,198
3/4/2004 10,228 10,264
3/5/2004 10,292 10,329
3/6/2004 10,292 10,329
3/7/2004 10,292 10,329
3/8/2004 10,176 10,219
3/9/2004 10,096 10,142
3/10/2004 9,916 9,959
3/11/2004 9,816 9,854
3/12/2004 9,976 10,017
3/13/2004 9,976 10,017
3/14/2004 9,976 10,017
3/15/2004 9,808 9,847
3/16/2004 9,816 9,857
3/17/2004 9,932 9,974
3/18/2004 9,880 9,923
3/19/2004 9,796 9,840
3/20/2004 9,796 9,840
3/21/2004 9,796 9,840
3/22/2004 9,636 9,677
3/23/2004 9,664 9,709
3/24/2004 9,652 9,696
3/25/2004 9,832 9,882
3/26/2004 9,840 9,895
3/27/2004 9,840 9,895
3/28/2004 9,840 9,895
3/29/2004 9,976 10,033
3/30/2004 10,020 10,088
3/31/2004 10,068 10,130
4/1/2004 10,152 10,213
4/2/2004 10,232 10,301
4/3/2004 10,232 10,301
4/4/2004 10,232 10,301
4/5/2004 10,344 10,429
4/6/2004 10,292 10,381
4/7/2004 10,300 10,393
4/8/2004 10,236 10,331
4/9/2004 10,236 10,331
4/10/2004 10,236 10,331
4/11/2004 10,236 10,331
4/12/2004 10,276 10,375
4/13/2004 10,100 10,196
4/14/2004 10,084 10,179
4/15/2004 10,028 10,123
4/16/2004 10,044 10,138
4/17/2004 10,044 10,138
4/18/2004 10,044 10,138
4/19/2004 10,104 10,202
4/20/2004 9,972 10,066
4/21/2004 10,064 10,161
4/22/2004 10,224 10,323
4/23/2004 10,204 10,307
4/24/2004 10,204 10,307
4/25/2004 10,204 10,307
4/26/2004 10,148 10,247
4/27/2004 10,148 10,249
4/28/2004 9,972 10,071
4/29/2004 9,836 9,933
4/30/2004 9,756 9,852
5/1/2004 9,756 9,852
5/2/2004 9,756 9,852
5/3/2004 9,856 9,953
5/4/2004 9,872 9,971
5/5/2004 9,948 10,048
5/6/2004 9,812 9,907
5/7/2004 9,608 9,700
5/8/2004 9,608 9,700
5/9/2004 9,608 9,700
5/10/2004 9,448 9,537
5/11/2004 9,596 9,683
5/12/2004 9,560 9,645
5/13/2004 9,564 9,650
5/14/2004 9,504 9,592
5/15/2004 9,504 9,592
5/16/2004 9,504 9,592
5/17/2004 9,392 9,475
5/18/2004 9,496 9,584
5/19/2004 9,476 9,561
5/20/2004 9,456 9,544
5/21/2004 9,516 9,604
5/22/2004 9,516 9,604
5/23/2004 9,516 9,604
5/24/2004 9,604 9,693
5/25/2004 9,792 9,886
5/26/2004 9,840 9,937
5/27/2004 9,900 9,995
5/28/2004 9,952 10,049
5/29/2004 9,952 10,049
5/30/2004 9,952 10,049
5/31/2004 9,952 10,049
6/1/2004 9,996 10,093
6/2/2004 9,972 10,071
6/3/2004 9,824 9,917
6/4/2004 9,888 9,986
6/5/2004 9,888 9,986
6/6/2004 9,888 9,986
6/7/2004 10,068 10,167
6/8/2004 10,052 10,154
6/9/2004 9,928 10,025
6/10/2004 9,944 10,045
6/11/2004 9,944 10,045
6/12/2004 9,944 10,045
6/13/2004 9,944 10,045
6/14/2004 9,792 9,890
6/15/2004 9,916 10,018
6/16/2004 9,932 10,036
6/17/2004 9,900 10,002
6/18/2004 9,892 9,995
6/19/2004 9,892 9,995
6/20/2004 9,892 9,995
6/21/2004 9,852 9,957
6/22/2004 9,912 10,017
6/23/2004 9,988 10,096
6/24/2004 9,976 10,083
6/25/2004 10,024 10,137
6/26/2004 10,024 10,137
6/27/2004 10,024 10,137
6/28/2004 9,976 10,087
6/29/2004 10,012 10,122
6/30/2004 10,076 10,189
7/1/2004 9,956 10,071
7/2/2004 9,920 10,036
7/3/2004 9,920 10,036
7/4/2004 9,920 10,036
7/5/2004 9,920 10,036
7/6/2004 9,820 9,893
7/7/2004 9,864 9,936
7/8/2004 9,736 9,805
7/9/2004 9,780 9,852
7/10/2004 9,780 9,852
7/11/2004 9,780 9,852
7/12/2004 9,736 9,808
7/13/2004 9,736 9,807
7/14/2004 9,684 9,754
7/15/2004 9,740 9,812
7/16/2004 9,652 9,724
7/17/2004 9,652 9,724
7/18/2004 9,652 9,724
7/19/2004 9,656 9,729
7/20/2004 9,792 9,863
7/21/2004 9,584 9,653
7/22/2004 9,580 9,650
7/23/2004 9,456 9,524
7/24/2004 9,456 9,524
7/25/2004 9,456 9,524
7/26/2004 9,360 9,423
7/27/2004 9,516 9,580
7/28/2004 9,456 9,516
7/29/2004 9,584 9,650
7/30/2004 9,612 9,677
7/31/2004 9,612 9,677
8/1/2004 9,612 9,677
8/2/2004 9,592 9,656
8/3/2004 9,476 9,539
8/4/2004 9,428 9,492
8/5/2004 9,244 9,306
8/6/2004 9,072 9,128
8/7/2004 9,072 9,128
8/8/2004 9,072 9,128
8/9/2004 9,084 9,142
8/10/2004 9,236 9,296
8/11/2004 9,180 9,238
8/12/2004 9,048 9,105
8/13/2004 9,040 9,098
8/14/2004 9,040 9,098
8/15/2004 9,040 9,098
8/16/2004 9,184 9,244
8/17/2004 9,232 9,292
8/18/2004 9,376 9,438
8/19/2004 9,308 9,372
8/20/2004 9,444 9,511
8/21/2004 9,444 9,511
8/22/2004 9,444 9,511
8/23/2004 9,384 9,448
8/24/2004 9,392 9,458
8/25/2004 9,480 9,549
8/26/2004 9,484 9,550
8/27/2004 9,532 9,602
8/28/2004 9,532 9,602
8/29/2004 9,532 9,602
8/30/2004 9,428 9,494
8/31/2004 9,480 9,550
9/1/2004 9,564 9,634
9/2/2004 9,668 9,737
9/3/2004 9,596 9,677
9/4/2004 9,596 9,677
9/5/2004 9,596 9,677
9/6/2004 9,596 9,677
9/7/2004 9,656 9,738
9/8/2004 9,596 9,680
9/9/2004 9,652 9,738
9/10/2004 9,716 9,802
9/11/2004 9,716 9,802
9/12/2004 9,716 9,802
9/13/2004 9,792 9,879
9/14/2004 9,776 9,864
9/15/2004 9,720 9,808
9/16/2004 9,764 9,852
9/17/2004 9,744 9,832
9/18/2004 9,744 9,832
9/19/2004 9,744 9,832
9/20/2004 9,704 9,792
9/21/2004 9,776 9,866
9/22/2004 9,640 9,730
9/23/2004 9,612 9,702
9/24/2004 9,680 9,765
9/25/2004 9,680 9,765
9/26/2004 9,680 9,765
9/27/2004 9,552 9,640
9/28/2004 9,628 9,714
9/29/2004 9,684 9,775
9/30/2004 9,732 9,823
10/1/2004 9,868 9,964
10/2/2004 9,868 9,964
10/3/2004 9,868 9,964
10/4/2004 9,932 10,032
10/5/2004 9,900 9,998
10/6/2004 9,948 10,047
10/7/2004 9,832 9,931
10/8/2004 9,752 9,851
10/9/2004 9,752 9,851
10/10/2004 9,752 9,851
10/11/2004 9,764 9,864
10/12/2004 9,720 9,817
10/13/2004 9,664 9,763
10/14/2004 9,576 9,674
10/15/2004 9,608 9,709
10/16/2004 9,608 9,709
10/17/2004 9,608 9,709
10/18/2004 9,696 9,795
10/19/2004 9,632 9,733
10/20/2004 9,696 9,799
10/21/2004 9,796 9,901
10/22/2004 9,680 9,786
10/23/2004 9,680 9,786
10/24/2004 9,680 9,786
10/25/2004 9,688 9,795
10/26/2004 9,724 9,832
10/27/2004 9,916 10,030
10/28/2004 9,916 10,030
10/29/2004 9,944 10,056
10/30/2004 9,944 10,056
10/31/2004 9,944 10,056
11/1/2004 9,916 10,031
11/2/2004 9,908 10,022
11/3/2004 10,024 10,141
11/4/2004 10,156 10,277
11/5/2004 10,208 10,328
11/6/2004 10,208 10,328
11/7/2004 10,208 10,328
11/8/2004 10,168 10,287
11/9/2004 10,200 10,318
11/10/2004 10,224 10,342
11/11/2004 10,324 10,444
11/12/2004 10,424 10,547
11/13/2004 10,424 10,547
11/14/2004 10,424 10,547
11/15/2004 10,420 10,545
11/16/2004 10,348 10,471
11/17/2004 10,432 10,558
11/18/2004 10,416 10,540
11/19/2004 10,276 10,398
11/20/2004 10,276 10,398
11/21/2004 10,276 10,398
11/22/2004 10,331 10,455
11/23/2004 10,379 10,502
11/24/2004 10,459 10,589
11/25/2004 10,459 10,589
11/26/2004 10,463 10,591
11/27/2004 10,463 10,591
11/28/2004 10,463 10,591
11/29/2004 10,443 10,570
11/30/2004 10,395 10,525
12/1/2004 10,563 10,694
12/2/2004 10,535 10,671
12/3/2004 10,551 10,691
12/4/2004 10,551 10,691
12/5/2004 10,551 10,691
12/6/2004 10,539 10,678
12/7/2004 10,379 10,516
12/8/2004 10,459 10,598
12/9/2004 10,495 10,636
12/10/2004 10,483 10,626
12/11/2004 10,483 10,626
12/12/2004 10,483 10,626
12/13/2004 10,551 10,696
12/14/2004 10,655 10,805
12/15/2004 10,687 10,839
12/16/2004 10,623 10,773
12/17/2004 10,623 10,774
12/18/2004 10,623 10,774
12/19/2004 10,623 10,774
12/20/2004 10,591 10,742
12/21/2004 10,703 10,857
12/22/2004 10,739 10,893
12/23/2004 10,755 10,912
12/24/2004 10,755 10,912
12/25/2004 10,755 10,912
12/26/2004 10,755 10,912
12/27/2004 10,687 10,842
12/28/2004 10,831 10,990
12/29/2004 10,835 10,994
12/30/2004 10,843 11,003
12/31/2004 10,823 10,984
1/1/2005 10,823 10,984
1/2/2005 10,823 10,984
1/3/2005 10,635 10,790
1/4/2005 10,471 10,623
1/5/2005 10,367 10,519
1/6/2005 10,423 10,577
1/7/2005 10,379 10,531
1/8/2005 10,379 10,531
1/9/2005 10,379 10,531
1/10/2005 10,443 10,599
1/11/2005 10,379 10,536
1/12/2005 10,403 10,563
1/13/2005 10,359 10,519
1/14/2005 10,443 10,605
1/15/2005 10,443 10,605
1/16/2005 10,443 10,605
1/17/2005 10,443 10,605
1/18/2005 10,539 10,702
1/19/2005 10,439 10,600
1/20/2005 10,403 10,562
1/21/2005 10,335 10,497
1/22/2005 10,335 10,497
1/23/2005 10,335 10,497
1/24/2005 10,259 10,424
1/25/2005 10,295 10,460
1/26/2005 10,403 10,572
1/27/2005 10,459 10,626
1/28/2005 10,391 10,558
1/29/2005 10,391 10,558
1/30/2005 10,391 10,558
1/31/2005 10,551 10,723
2/1/2005 10,631 10,805
2/2/2005 10,683 10,861
2/3/2005 10,671 10,851
2/4/2005 10,807 10,990
2/5/2005 10,807 10,990
2/6/2005 10,807 10,990
2/7/2005 10,787 10,969
2/8/2005 10,795 10,980
2/9/2005 10,651 10,829
2/10/2005 10,695 10,877
2/11/2005 10,823 11,010
2/12/2005 10,823 11,010
2/13/2005 10,823 11,010
2/14/2005 10,815 11,000
2/15/2005 10,847 11,033
2/16/2005 10,887 11,074
2/17/2005 10,811 10,994
2/18/2005 10,803 10,989
2/19/2005 10,803 10,989
2/20/2005 10,803 10,989
2/21/2005 10,803 10,989
2/22/2005 10,639 10,820
2/23/2005 10,707 10,892
2/24/2005 10,843 11,027
2/25/2005 10,947 11,138
2/26/2005 10,947 11,138
2/27/2005 10,947 11,138
2/28/2005 10,907 11,097
3/1/2005 10,979 11,171
3/2/2005 10,991 11,184
3/3/2005 10,979 11,169
3/4/2005 11,071 11,268
3/5/2005 11,071 11,268
3/6/2005 11,071 11,268
3/7/2005 11,119 11,316
3/8/2005 11,051 11,248
3/9/2005 10,947 11,140
3/10/2005 10,911 11,102
3/11/2005 10,923 11,116
3/12/2005 10,923 11,116
3/13/2005 10,923 11,116
3/14/2005 10,979 11,173
3/15/2005 10,943 11,137
3/16/2005 10,835 11,027
3/17/2005 10,867 11,057
3/18/2005 10,831 11,022
3/19/2005 10,831 11,022
3/20/2005 10,831 11,022
3/21/2005 10,811 11,003
3/22/2005 10,767 10,959
3/23/2005 10,699 10,890
3/24/2005 10,707 10,902
3/25/2005 10,707 10,902
3/26/2005 10,707 10,902
3/27/2005 10,707 10,902
3/28/2005 10,707 10,901
3/29/2005 10,583 10,776
3/30/2005 10,723 10,920
3/31/2005 10,751 10,952
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ---------------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(09/01/04) (02/20/04) (02/20/04)
- ---------------------------------------------------------------------------------------
SINCE ONE SINCE ONE SINCE
INCEPTION YEAR INCEPTION YEAR INCEPTION
- ---------------------------------------------------------------------------------------
MID-CAP GROWTH FUND 12.33% 6.04% 5.99% 6.75% 6.75%
S&P MIDCAP 400/BARRA GROWTH INDEX 13.68% 8.12% 8.54% 8.12% 8.54%
- ---------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P MIDCAP 400/BARRA GROWTH
INDEX IS AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES
OR OTHER OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE
HISTORICAL AND INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL
GAINS. THE GRAPHS ARE BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY;
PERFORMANCE FOR A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
MID-CAP GROWTH FUND S&P MIDCAP 400/BARRA GROWTH INDEX
------------------- ---------------------------------
Other 11.0% 10.3%
Consumer Discretionary 21.8% 22.2%
Health Care 17.0% 16.9%
Industrials 16.4% 15.8%
Information Technology 15.2% 15.6%
Financials 12.1% 12.7%
Energy 6.4% 6.4%
"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)
- -------------------------------------------------------
Murphy Oil Corp. 1.7%
Legg Mason, Inc. 1.6%
Washington Post Co. -- Class B 1.6%
Coventry Health Care, Inc. 1.4%
Patterson Cos., Inc. 1.3%
Lyondell Chemical Co. 1.3%
Smith International, Inc. 1.2%
Whole Foods Market, Inc. 1.2%
Cognizant Technology Solutions Corp. --
Class A 1.2%
Sepracor, Inc. 1.1%
- -------------------------------------------------------
Top Ten Total 13.6%
- -------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
26 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for large-cap growth securities. The Fund's current benchmark is the
S&P 500/Barra Growth Index. The investment objective of the Large-Cap Growth
Fund is non-fundamental and may be changed without shareholder approval.
Inception: February 20, 2004
Large-caps were the worst performers of the three market capitalizations for the
year ending March 31, 2005. In addition, large-cap growth trailed large-cap
value. Within the large-cap growth universe, energy, utilities and health care
were the best performers. Information technology and health care were the only
sectors producing losses, and tended to hurt the Fund's performance.
Interestingly, large-cap growth was the only one of six style boxes to trail the
return of the broader S&P 500 Index.
For the year-long period, Rydex Large-Cap Growth Fund H-Class returned 1.30%
compared to a total return of 2.66% for the S&P 500/Barra Growth Index. In its
first full year of operation, the Fund experienced very high shareholder
turnover compared to its average asset size. This caused the Fund to trail its
benchmark more than would normally be expected. As the Fund grows in size,
however, these effects should be mitigated.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP S&P
GROWTH FUND 500/BARRA
DATE C-CLASS GROWTH INDEX
---------- ------------ --------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 9,960 9,965
2/24/2004 9,952 9,956
2/25/2004 9,972 9,976
2/26/2004 9,968 9,967
2/27/2004 9,948 9,951
2/28/2004 9,948 9,951
2/29/2004 9,948 9,951
3/1/2004 10,040 10,050
3/2/2004 9,956 9,965
3/3/2004 9,968 9,974
3/4/2004 10,004 10,013
3/5/2004 10,000 10,010
3/6/2004 10,000 10,010
3/7/2004 10,000 10,010
3/8/2004 9,896 9,905
3/9/2004 9,848 9,857
3/10/2004 9,728 9,733
3/11/2004 9,572 9,581
3/12/2004 9,672 9,682
3/13/2004 9,672 9,682
3/14/2004 9,672 9,682
3/15/2004 9,532 9,543
3/16/2004 9,576 9,590
3/17/2004 9,664 9,678
3/18/2004 9,632 9,646
3/19/2004 9,512 9,527
3/20/2004 9,512 9,527
3/21/2004 9,512 9,527
3/22/2004 9,400 9,413
3/23/2004 9,392 9,406
3/24/2004 9,400 9,418
3/25/2004 9,580 9,598
3/26/2004 9,544 9,568
3/27/2004 9,544 9,568
3/28/2004 9,544 9,568
3/29/2004 9,676 9,703
3/30/2004 9,688 9,724
3/31/2004 9,672 9,706
4/1/2004 9,720 9,755
4/2/2004 9,840 9,882
4/3/2004 9,840 9,882
4/4/2004 9,840 9,882
4/5/2004 9,912 9,959
4/6/2004 9,880 9,925
4/7/2004 9,816 9,862
4/8/2004 9,800 9,849
4/9/2004 9,800 9,849
4/10/2004 9,800 9,849
4/11/2004 9,800 9,849
4/12/2004 9,848 9,899
4/13/2004 9,744 9,793
4/14/2004 9,768 9,818
4/15/2004 9,792 9,846
4/16/2004 9,820 9,877
4/17/2004 9,820 9,877
4/18/2004 9,820 9,877
4/19/2004 9,848 9,910
4/20/2004 9,684 9,744
4/21/2004 9,732 9,794
4/22/2004 9,848 9,911
4/23/2004 9,884 9,951
4/24/2004 9,884 9,951
4/25/2004 9,884 9,951
4/26/2004 9,824 9,892
4/27/2004 9,832 9,904
4/28/2004 9,700 9,770
4/29/2004 9,640 9,708
4/30/2004 9,572 9,641
5/1/2004 9,572 9,641
5/2/2004 9,572 9,641
5/3/2004 9,664 9,734
5/4/2004 9,672 9,744
5/5/2004 9,688 9,763
5/6/2004 9,652 9,725
5/7/2004 9,576 9,649
5/8/2004 9,576 9,649
5/9/2004 9,576 9,649
5/10/2004 9,520 9,593
5/11/2004 9,580 9,656
5/12/2004 9,560 9,634
5/13/2004 9,544 9,617
5/14/2004 9,512 9,584
5/15/2004 9,512 9,584
5/16/2004 9,512 9,584
5/17/2004 9,428 9,501
5/18/2004 9,484 9,559
5/19/2004 9,448 9,520
5/20/2004 9,448 9,521
5/21/2004 9,480 9,553
5/22/2004 9,480 9,553
5/23/2004 9,480 9,553
5/24/2004 9,464 9,538
5/25/2004 9,612 9,689
5/26/2004 9,636 9,714
5/27/2004 9,716 9,796
5/28/2004 9,700 9,782
5/29/2004 9,700 9,782
5/30/2004 9,700 9,782
5/31/2004 9,700 9,782
6/1/2004 9,704 9,788
6/2/2004 9,732 9,815
6/3/2004 9,668 9,750
6/4/2004 9,716 9,801
6/5/2004 9,716 9,801
6/6/2004 9,716 9,801
6/7/2004 9,868 9,957
6/8/2004 9,900 9,990
6/9/2004 9,808 9,892
6/10/2004 9,836 9,924
6/11/2004 9,836 9,924
6/12/2004 9,836 9,924
6/13/2004 9,836 9,924
6/14/2004 9,760 9,846
6/15/2004 9,824 9,908
6/16/2004 9,824 9,908
6/17/2004 9,792 9,876
6/18/2004 9,804 9,893
6/19/2004 9,804 9,893
6/20/2004 9,804 9,893
6/21/2004 9,764 9,852
6/22/2004 9,800 9,891
6/23/2004 9,880 9,974
6/24/2004 9,844 9,933
6/25/2004 9,768 9,856
6/26/2004 9,768 9,856
6/27/2004 9,768 9,856
6/28/2004 9,776 9,864
6/29/2004 9,812 9,904
6/30/2004 9,844 9,935
7/1/2004 9,732 9,817
7/2/2004 9,680 9,769
7/3/2004 9,680 9,769
7/4/2004 9,680 9,769
7/5/2004 9,680 9,769
7/6/2004 9,600 9,688
7/7/2004 9,616 9,705
7/8/2004 9,540 9,627
7/9/2004 9,576 9,666
7/10/2004 9,576 9,666
7/11/2004 9,576 9,666
7/12/2004 9,572 9,666
7/13/2004 9,584 9,676
7/14/2004 9,540 9,632
7/15/2004 9,496 9,589
7/16/2004 9,428 9,521
7/17/2004 9,428 9,521
7/18/2004 9,428 9,521
7/19/2004 9,408 9,500
7/20/2004 9,484 9,576
7/21/2004 9,352 9,441
7/22/2004 9,388 9,478
7/23/2004 9,244 9,339
7/24/2004 9,244 9,339
7/25/2004 9,244 9,339
7/26/2004 9,220 9,314
7/27/2004 9,312 9,409
7/28/2004 9,312 9,407
7/29/2004 9,344 9,439
7/30/2004 9,364 9,460
7/31/2004 9,364 9,460
8/1/2004 9,364 9,460
8/2/2004 9,404 9,504
8/3/2004 9,316 9,417
8/4/2004 9,328 9,427
8/5/2004 9,164 9,258
8/6/2004 9,012 9,105
8/7/2004 9,012 9,105
8/8/2004 9,012 9,105
8/9/2004 9,016 9,111
8/10/2004 9,140 9,237
8/11/2004 9,112 9,206
8/12/2004 9,016 9,107
8/13/2004 9,036 9,130
8/14/2004 9,036 9,130
8/15/2004 9,036 9,130
8/16/2004 9,140 9,234
8/17/2004 9,164 9,260
8/18/2004 9,288 9,384
8/19/2004 9,248 9,342
8/20/2004 9,288 9,387
8/21/2004 9,288 9,387
8/22/2004 9,288 9,387
8/23/2004 9,280 9,377
8/24/2004 9,284 9,380
8/25/2004 9,360 9,458
8/26/2004 9,352 9,449
8/27/2004 9,376 9,476
8/28/2004 9,376 9,476
8/29/2004 9,376 9,476
8/30/2004 9,292 9,390
8/31/2004 9,312 9,418
9/1/2004 9,340 9,445
9/2/2004 9,448 9,554
9/3/2004 9,384 9,493
9/4/2004 9,384 9,493
9/5/2004 9,384 9,493
9/6/2004 9,384 9,493
9/7/2004 9,432 9,549
9/8/2004 9,408 9,523
9/9/2004 9,420 9,539
9/10/2004 9,476 9,599
9/11/2004 9,476 9,599
9/12/2004 9,476 9,599
9/13/2004 9,496 9,618
9/14/2004 9,520 9,646
9/15/2004 9,444 9,570
9/16/2004 9,440 9,563
9/17/2004 9,484 9,613
9/18/2004 9,484 9,613
9/19/2004 9,484 9,613
9/20/2004 9,428 9,556
9/21/2004 9,460 9,590
9/22/2004 9,312 9,440
9/23/2004 9,284 9,410
9/24/2004 9,264 9,396
9/25/2004 9,264 9,396
9/26/2004 9,264 9,396
9/27/2004 9,204 9,339
9/28/2004 9,260 9,398
9/29/2004 9,328 9,465
9/30/2004 9,288 9,426
10/1/2004 9,432 9,572
10/2/2004 9,432 9,572
10/3/2004 9,432 9,572
10/4/2004 9,460 9,602
10/5/2004 9,456 9,600
10/6/2004 9,504 9,652
10/7/2004 9,376 9,525
10/8/2004 9,276 9,424
10/9/2004 9,276 9,424
10/10/2004 9,276 9,424
10/11/2004 9,304 9,455
10/12/2004 9,280 9,432
10/13/2004 9,240 9,387
10/14/2004 9,172 9,320
10/15/2004 9,208 9,358
10/16/2004 9,208 9,358
10/17/2004 9,208 9,358
10/18/2004 9,284 9,437
10/19/2004 9,216 9,370
10/20/2004 9,232 9,387
10/21/2004 9,264 9,417
10/22/2004 9,144 9,296
10/23/2004 9,144 9,296
10/24/2004 9,144 9,296
10/25/2004 9,108 9,263
10/26/2004 9,220 9,380
10/27/2004 9,384 9,546
10/28/2004 9,396 9,561
10/29/2004 9,400 9,566
10/30/2004 9,400 9,566
10/31/2004 9,400 9,566
11/1/2004 9,384 9,553
11/2/2004 9,396 9,562
11/3/2004 9,508 9,679
11/4/2004 9,640 9,816
11/5/2004 9,688 9,869
11/6/2004 9,688 9,869
11/7/2004 9,688 9,869
11/8/2004 9,688 9,870
11/9/2004 9,688 9,867
11/10/2004 9,660 9,835
11/11/2004 9,752 9,930
11/12/2004 9,832 10,012
11/13/2004 9,832 10,012
11/14/2004 9,832 10,012
11/15/2004 9,852 10,034
11/16/2004 9,784 9,963
11/17/2004 9,840 10,019
11/18/2004 9,856 10,037
11/19/2004 9,724 9,905
11/20/2004 9,724 9,905
11/21/2004 9,724 9,905
11/22/2004 9,758 9,938
11/23/2004 9,722 9,904
11/24/2004 9,758 9,939
11/25/2004 9,758 9,939
11/26/2004 9,754 9,937
11/27/2004 9,754 9,937
11/28/2004 9,754 9,937
11/29/2004 9,722 9,906
11/30/2004 9,674 9,854
12/1/2004 9,842 10,028
12/2/2004 9,874 10,063
12/3/2004 9,886 10,076
12/4/2004 9,886 10,076
12/5/2004 9,886 10,076
12/6/2004 9,862 10,052
12/7/2004 9,754 9,944
12/8/2004 9,818 10,008
12/9/2004 9,870 10,064
12/10/2004 9,854 10,047
12/11/2004 9,854 10,047
12/12/2004 9,854 10,047
12/13/2004 9,930 10,127
12/14/2004 9,978 10,175
12/15/2004 9,986 10,184
12/16/2004 9,982 10,181
12/17/2004 9,874 10,074
12/18/2004 9,874 10,074
12/19/2004 9,874 10,074
12/20/2004 9,890 10,089
12/21/2004 9,966 10,169
12/22/2004 9,994 10,191
12/23/2004 10,002 10,200
12/24/2004 10,002 10,200
12/25/2004 10,002 10,200
12/26/2004 10,002 10,200
12/27/2004 9,946 10,146
12/28/2004 10,014 10,217
12/29/2004 10,006 10,210
12/30/2004 10,006 10,211
12/31/2004 9,986 10,192
1/1/2005 9,986 10,192
1/2/2005 9,986 10,192
1/3/2005 9,918 10,122
1/4/2005 9,806 10,006
1/5/2005 9,766 9,964
1/6/2005 9,794 9,994
1/7/2005 9,794 9,996
1/8/2005 9,794 9,996
1/9/2005 9,794 9,996
1/10/2005 9,834 10,040
1/11/2005 9,778 9,985
1/12/2005 9,830 10,039
1/13/2005 9,730 9,935
1/14/2005 9,794 10,003
1/15/2005 9,794 10,003
1/16/2005 9,794 10,003
1/17/2005 9,794 10,003
1/18/2005 9,870 10,083
1/19/2005 9,782 9,994
1/20/2005 9,702 9,909
1/21/2005 9,630 9,842
1/22/2005 9,630 9,842
1/23/2005 9,630 9,842
1/24/2005 9,582 9,791
1/25/2005 9,642 9,855
1/26/2005 9,678 9,890
1/27/2005 9,686 9,901
1/28/2005 9,654 9,873
1/29/2005 9,654 9,873
1/30/2005 9,654 9,873
1/31/2005 9,718 9,938
2/1/2005 9,786 10,008
2/2/2005 9,826 10,053
2/3/2005 9,798 10,022
2/4/2005 9,894 10,124
2/5/2005 9,894 10,124
2/6/2005 9,894 10,124
2/7/2005 9,874 10,105
2/8/2005 9,886 10,113
2/9/2005 9,782 10,008
2/10/2005 9,822 10,049
2/11/2005 9,886 10,113
2/12/2005 9,886 10,113
2/13/2005 9,886 10,113
2/14/2005 9,902 10,132
2/15/2005 9,938 10,171
2/16/2005 9,950 10,180
2/17/2005 9,874 10,105
2/18/2005 9,894 10,126
2/19/2005 9,894 10,126
2/20/2005 9,894 10,126
2/21/2005 9,894 10,126
2/22/2005 9,750 9,976
2/23/2005 9,798 10,024
2/24/2005 9,894 10,120
2/25/2005 9,974 10,204
2/26/2005 9,974 10,204
2/27/2005 9,974 10,204
2/28/2005 9,926 10,156
3/1/2005 9,970 10,203
3/2/2005 9,978 10,209
3/3/2005 9,978 10,212
3/4/2005 10,058 10,297
3/5/2005 10,058 10,297
3/6/2005 10,058 10,297
3/7/2005 10,074 10,317
3/8/2005 10,030 10,268
3/9/2005 9,938 10,176
3/10/2005 9,962 10,201
3/11/2005 9,882 10,116
3/12/2005 9,882 10,116
3/13/2005 9,882 10,116
3/14/2005 9,918 10,154
3/15/2005 9,842 10,077
3/16/2005 9,762 9,992
3/17/2005 9,778 10,011
3/18/2005 9,782 10,017
3/19/2005 9,782 10,017
3/20/2005 9,782 10,017
3/21/2005 9,742 9,979
3/22/2005 9,670 9,905
3/23/2005 9,686 9,923
3/24/2005 9,670 9,909
3/25/2005 9,670 9,909
3/26/2005 9,670 9,909
3/27/2005 9,670 9,909
3/28/2005 9,698 9,938
3/29/2005 9,622 9,860
3/30/2005 9,754 9,997
3/31/2005 9,722 9,965
[THE FOLLOWING TABLE WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP S&P
GROWTH FUND 500/BARRA
DATE H-CLASS GROWTH INDEX
---------- ------------- ----------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 9,960 9,965
2/24/2004 9,952 9,956
2/25/2004 9,972 9,976
2/26/2004 9,968 9,967
2/27/2004 9,948 9,951
2/28/2004 9,948 9,951
2/29/2004 9,948 9,951
3/1/2004 10,040 10,050
3/2/2004 9,956 9,965
3/3/2004 9,968 9,974
3/4/2004 10,004 10,013
3/5/2004 10,000 10,010
3/6/2004 10,000 10,010
3/7/2004 10,000 10,010
3/8/2004 9,892 9,905
3/9/2004 9,844 9,857
3/10/2004 9,724 9,733
3/11/2004 9,572 9,581
3/12/2004 9,672 9,682
3/13/2004 9,672 9,682
3/14/2004 9,672 9,682
3/15/2004 9,532 9,543
3/16/2004 9,580 9,590
3/17/2004 9,668 9,678
3/18/2004 9,636 9,646
3/19/2004 9,516 9,527
3/20/2004 9,516 9,527
3/21/2004 9,516 9,527
3/22/2004 9,400 9,413
3/23/2004 9,392 9,406
3/24/2004 9,400 9,418
3/25/2004 9,580 9,598
3/26/2004 9,544 9,568
3/27/2004 9,544 9,568
3/28/2004 9,544 9,568
3/29/2004 9,676 9,703
3/30/2004 9,688 9,724
3/31/2004 9,672 9,706
4/1/2004 9,720 9,755
4/2/2004 9,840 9,882
4/3/2004 9,840 9,882
4/4/2004 9,840 9,882
4/5/2004 9,912 9,959
4/6/2004 9,880 9,925
4/7/2004 9,816 9,862
4/8/2004 9,800 9,849
4/9/2004 9,800 9,849
4/10/2004 9,800 9,849
4/11/2004 9,800 9,849
4/12/2004 9,848 9,899
4/13/2004 9,748 9,793
4/14/2004 9,768 9,818
4/15/2004 9,792 9,846
4/16/2004 9,824 9,877
4/17/2004 9,824 9,877
4/18/2004 9,824 9,877
4/19/2004 9,852 9,910
4/20/2004 9,688 9,744
4/21/2004 9,736 9,794
4/22/2004 9,852 9,911
4/23/2004 9,892 9,951
4/24/2004 9,892 9,951
4/25/2004 9,892 9,951
4/26/2004 9,832 9,892
4/27/2004 9,844 9,904
4/28/2004 9,712 9,770
4/29/2004 9,652 9,708
4/30/2004 9,584 9,641
5/1/2004 9,584 9,641
5/2/2004 9,584 9,641
5/3/2004 9,676 9,734
5/4/2004 9,684 9,744
5/5/2004 9,704 9,763
5/6/2004 9,664 9,725
5/7/2004 9,592 9,649
5/8/2004 9,592 9,649
5/9/2004 9,592 9,649
5/10/2004 9,536 9,593
5/11/2004 9,596 9,656
5/12/2004 9,576 9,634
5/13/2004 9,560 9,617
5/14/2004 9,528 9,584
5/15/2004 9,528 9,584
5/16/2004 9,528 9,584
5/17/2004 9,444 9,501
5/18/2004 9,500 9,559
5/19/2004 9,464 9,520
5/20/2004 9,464 9,521
5/21/2004 9,496 9,553
5/22/2004 9,496 9,553
5/23/2004 9,496 9,553
5/24/2004 9,480 9,538
5/25/2004 9,628 9,689
5/26/2004 9,652 9,714
5/27/2004 9,732 9,796
5/28/2004 9,716 9,782
5/29/2004 9,716 9,782
5/30/2004 9,716 9,782
5/31/2004 9,716 9,782
6/1/2004 9,724 9,788
6/2/2004 9,752 9,815
6/3/2004 9,688 9,750
6/4/2004 9,736 9,801
6/5/2004 9,736 9,801
6/6/2004 9,736 9,801
6/7/2004 9,888 9,957
6/8/2004 9,920 9,990
6/9/2004 9,828 9,892
6/10/2004 9,856 9,924
6/11/2004 9,856 9,924
6/12/2004 9,856 9,924
6/13/2004 9,856 9,924
6/14/2004 9,784 9,846
6/15/2004 9,844 9,908
6/16/2004 9,844 9,908
6/17/2004 9,812 9,876
6/18/2004 9,824 9,893
6/19/2004 9,824 9,893
6/20/2004 9,824 9,893
6/21/2004 9,784 9,852
6/22/2004 9,824 9,891
6/23/2004 9,904 9,974
6/24/2004 9,868 9,933
6/25/2004 9,792 9,856
6/26/2004 9,792 9,856
6/27/2004 9,792 9,856
6/28/2004 9,796 9,864
6/29/2004 9,836 9,904
6/30/2004 9,868 9,935
7/1/2004 9,756 9,817
7/2/2004 9,704 9,769
7/3/2004 9,704 9,769
7/4/2004 9,704 9,769
7/5/2004 9,704 9,769
7/6/2004 9,624 9,688
7/7/2004 9,640 9,705
7/8/2004 9,564 9,627
7/9/2004 9,600 9,666
7/10/2004 9,600 9,666
7/11/2004 9,600 9,666
7/12/2004 9,600 9,666
7/13/2004 9,612 9,676
7/14/2004 9,568 9,632
7/15/2004 9,524 9,589
7/16/2004 9,456 9,521
7/17/2004 9,456 9,521
7/18/2004 9,456 9,521
7/19/2004 9,436 9,500
7/20/2004 9,512 9,576
7/21/2004 9,380 9,441
7/22/2004 9,416 9,478
7/23/2004 9,272 9,339
7/24/2004 9,272 9,339
7/25/2004 9,272 9,339
7/26/2004 9,248 9,314
7/27/2004 9,340 9,409
7/28/2004 9,340 9,407
7/29/2004 9,372 9,439
7/30/2004 9,392 9,460
7/31/2004 9,392 9,460
8/1/2004 9,392 9,460
8/2/2004 9,436 9,504
8/3/2004 9,348 9,417
8/4/2004 9,360 9,427
8/5/2004 9,192 9,258
8/6/2004 9,040 9,105
8/7/2004 9,040 9,105
8/8/2004 9,040 9,105
8/9/2004 9,048 9,111
8/10/2004 9,172 9,237
8/11/2004 9,144 9,206
8/12/2004 9,048 9,107
8/13/2004 9,068 9,130
8/14/2004 9,068 9,130
8/15/2004 9,068 9,130
8/16/2004 9,172 9,234
8/17/2004 9,200 9,260
8/18/2004 9,320 9,384
8/19/2004 9,280 9,342
8/20/2004 9,324 9,387
8/21/2004 9,324 9,387
8/22/2004 9,324 9,387
8/23/2004 9,312 9,377
8/24/2004 9,316 9,380
8/25/2004 9,392 9,458
8/26/2004 9,380 9,449
8/27/2004 9,408 9,476
8/28/2004 9,408 9,476
8/29/2004 9,408 9,476
8/30/2004 9,324 9,390
8/31/2004 9,348 9,418
9/1/2004 9,376 9,445
9/2/2004 9,484 9,554
9/3/2004 9,420 9,493
9/4/2004 9,420 9,493
9/5/2004 9,420 9,493
9/6/2004 9,420 9,493
9/7/2004 9,464 9,549
9/8/2004 9,440 9,523
9/9/2004 9,452 9,539
9/10/2004 9,512 9,599
9/11/2004 9,512 9,599
9/12/2004 9,512 9,599
9/13/2004 9,532 9,618
9/14/2004 9,556 9,646
9/15/2004 9,480 9,570
9/16/2004 9,472 9,563
9/17/2004 9,520 9,613
9/18/2004 9,520 9,613
9/19/2004 9,520 9,613
9/20/2004 9,464 9,556
9/21/2004 9,496 9,590
9/22/2004 9,348 9,440
9/23/2004 9,320 9,410
9/24/2004 9,296 9,396
9/25/2004 9,296 9,396
9/26/2004 9,296 9,396
9/27/2004 9,244 9,339
9/28/2004 9,300 9,398
9/29/2004 9,364 9,465
9/30/2004 9,324 9,426
10/1/2004 9,468 9,572
10/2/2004 9,468 9,572
10/3/2004 9,468 9,572
10/4/2004 9,496 9,602
10/5/2004 9,492 9,600
10/6/2004 9,544 9,652
10/7/2004 9,416 9,525
10/8/2004 9,316 9,424
10/9/2004 9,316 9,424
10/10/2004 9,316 9,424
10/11/2004 9,344 9,455
10/12/2004 9,320 9,432
10/13/2004 9,276 9,387
10/14/2004 9,212 9,320
10/15/2004 9,248 9,358
10/16/2004 9,248 9,358
10/17/2004 9,248 9,358
10/18/2004 9,324 9,437
10/19/2004 9,256 9,370
10/20/2004 9,272 9,387
10/21/2004 9,304 9,417
10/22/2004 9,184 9,296
10/23/2004 9,184 9,296
10/24/2004 9,184 9,296
10/25/2004 9,148 9,263
10/26/2004 9,264 9,380
10/27/2004 9,428 9,546
10/28/2004 9,440 9,561
10/29/2004 9,444 9,566
10/30/2004 9,444 9,566
10/31/2004 9,444 9,566
11/1/2004 9,428 9,553
11/2/2004 9,440 9,562
11/3/2004 9,552 9,679
11/4/2004 9,684 9,816
11/5/2004 9,736 9,869
11/6/2004 9,736 9,869
11/7/2004 9,736 9,869
11/8/2004 9,736 9,870
11/9/2004 9,736 9,867
11/10/2004 9,704 9,835
11/11/2004 9,796 9,930
11/12/2004 9,880 10,012
11/13/2004 9,880 10,012
11/14/2004 9,880 10,012
11/15/2004 9,900 10,034
11/16/2004 9,832 9,963
11/17/2004 9,888 10,019
11/18/2004 9,904 10,037
11/19/2004 9,776 9,905
11/20/2004 9,776 9,905
11/21/2004 9,776 9,905
11/22/2004 9,806 9,938
11/23/2004 9,774 9,904
11/24/2004 9,806 9,939
11/25/2004 9,806 9,939
11/26/2004 9,802 9,937
11/27/2004 9,802 9,937
11/28/2004 9,802 9,937
11/29/2004 9,774 9,906
11/30/2004 9,722 9,854
12/1/2004 9,894 10,028
12/2/2004 9,926 10,063
12/3/2004 9,934 10,076
12/4/2004 9,934 10,076
12/5/2004 9,934 10,076
12/6/2004 9,910 10,052
12/7/2004 9,802 9,944
12/8/2004 9,866 10,008
12/9/2004 9,922 10,064
12/10/2004 9,906 10,047
12/11/2004 9,906 10,047
12/12/2004 9,906 10,047
12/13/2004 9,982 10,127
12/14/2004 10,030 10,175
12/15/2004 10,038 10,184
12/16/2004 10,034 10,181
12/17/2004 9,926 10,074
12/18/2004 9,926 10,074
12/19/2004 9,926 10,074
12/20/2004 9,942 10,089
12/21/2004 10,022 10,169
12/22/2004 10,050 10,191
12/23/2004 10,058 10,200
12/24/2004 10,058 10,200
12/25/2004 10,058 10,200
12/26/2004 10,058 10,200
12/27/2004 10,002 10,146
12/28/2004 10,070 10,217
12/29/2004 10,062 10,210
12/30/2004 10,066 10,211
12/31/2004 10,046 10,192
1/1/2005 10,046 10,192
1/2/2005 10,046 10,192
1/3/2005 9,978 10,122
1/4/2005 9,862 10,006
1/5/2005 9,822 9,964
1/6/2005 9,850 9,994
1/7/2005 9,850 9,996
1/8/2005 9,850 9,996
1/9/2005 9,850 9,996
1/10/2005 9,894 10,040
1/11/2005 9,838 9,985
1/12/2005 9,890 10,039
1/13/2005 9,790 9,935
1/14/2005 9,854 10,003
1/15/2005 9,854 10,003
1/16/2005 9,854 10,003
1/17/2005 9,854 10,003
1/18/2005 9,930 10,083
1/19/2005 9,842 9,994
1/20/2005 9,762 9,909
1/21/2005 9,690 9,842
1/22/2005 9,690 9,842
1/23/2005 9,690 9,842
1/24/2005 9,638 9,791
1/25/2005 9,702 9,855
1/26/2005 9,734 9,890
1/27/2005 9,742 9,901
1/28/2005 9,718 9,873
1/29/2005 9,718 9,873
1/30/2005 9,718 9,873
1/31/2005 9,782 9,938
2/1/2005 9,850 10,008
2/2/2005 9,890 10,053
2/3/2005 9,862 10,022
2/4/2005 9,958 10,124
2/5/2005 9,958 10,124
2/6/2005 9,958 10,124
2/7/2005 9,938 10,105
2/8/2005 9,950 10,113
2/9/2005 9,850 10,008
2/10/2005 9,886 10,049
2/11/2005 9,950 10,113
2/12/2005 9,950 10,113
2/13/2005 9,950 10,113
2/14/2005 9,970 10,132
2/15/2005 10,006 10,171
2/16/2005 10,018 10,180
2/17/2005 9,942 10,105
2/18/2005 9,962 10,126
2/19/2005 9,962 10,126
2/20/2005 9,962 10,126
2/21/2005 9,962 10,126
2/22/2005 9,814 9,976
2/23/2005 9,866 10,024
2/24/2005 9,966 10,120
2/25/2005 10,042 10,204
2/26/2005 10,042 10,204
2/27/2005 10,042 10,204
2/28/2005 9,998 10,156
3/1/2005 10,042 10,203
3/2/2005 10,050 10,209
3/3/2005 10,050 10,212
3/4/2005 10,130 10,297
3/5/2005 10,130 10,297
3/6/2005 10,130 10,297
3/7/2005 10,150 10,317
3/8/2005 10,102 10,268
3/9/2005 10,014 10,176
3/10/2005 10,038 10,201
3/11/2005 9,958 10,116
3/12/2005 9,958 10,116
3/13/2005 9,958 10,116
3/14/2005 9,994 10,154
3/15/2005 9,918 10,077
3/16/2005 9,834 9,992
3/17/2005 9,854 10,011
3/18/2005 9,854 10,017
3/19/2005 9,854 10,017
3/20/2005 9,854 10,017
3/21/2005 9,818 9,979
3/22/2005 9,746 9,905
3/23/2005 9,762 9,923
3/24/2005 9,746 9,909
3/25/2005 9,746 9,909
3/26/2005 9,746 9,909
3/27/2005 9,746 9,909
3/28/2005 9,774 9,938
3/29/2005 9,698 9,860
3/30/2005 9,830 9,997
3/31/2005 9,798 9,965
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ---------------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(09/01/04) (02/20/04) (02/20/04)
- ---------------------------------------------------------------------------------------
SINCE ONE SINCE ONE SINCE
INCEPTION YEAR INCEPTION YEAR INCEPTION
- ---------------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND 4.45% 0.51% -2.51% 1.30% -1.83%
S&P 500/BARRA GROWTH INDEX 5.51% 2.66% -0.32% 2.66% -0.32%
- ---------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500/BARRA GROWTH INDEX IS
AN UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE
GRAPHS ARE BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY; PERFORMANCE FOR
A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
LARGE-CAP GROWTH FUND S&P 500/BARRA GROWTH INDEX
--------------------- --------------------------
Other 6.3% 6.2%
Information Technology 23.2% 24.2%
Health Care 16.6% 18.5%
Consumer Staples 16.1% 17.6%
Industrials 15.5% 15.8%
Consumer Discretionary 13.2% 10.4%
Energy 8.7% 7.3%
"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)
- -------------------------------------------------------
Exxon Mobil Corp. 7.0%
General Electric Co. 6.8%
Microsoft Corp. 4.9%
Wal-Mart Stores, Inc. 3.8%
Johnson & Johnson 3.6%
Intel Corp. 2.7%
International Business
Machines Corp. 2.7%
Altria Group, Inc. 2.4%
Procter & Gamble Co. 2.4%
Cisco Systems, Inc. 2.2%
- -------------------------------------------------------
Top Ten Total 38.5%
- -------------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 27
PERFORMANCE REPORTS AND FUND PROFILES (CONCLUDED)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
OBJECTIVE: To provide security of principal, high current income and liquidity.
Inception: December 1, 1993
Although inflation was well contained, underlying growth in productivity
prompted the Federal Reserve to raise the fed funds rate seven times during the
one-year period ending March 31, 2005. The fed target rate increased to 2.75% in
March 2005 from 1.00% beginning June 30, 2004. Money market rates rose with each
fed rate increase, providing more attractive money market yields. Rydex U. S.
Government Money Market Fund Investor Class returned 0.82% during the reporting
period.
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ---------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(12/01/93) (04/01/98) (03/31/04) (10/19/00)
- ---------------------------------------------------------------------------------------------------------------------------
ONE FIVE TEN SINCE ONE FIVE SINCE ONE SINCE ONE SINCE
YEAR YEAR YEAR INCEPTION YEAR YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- ---------------------------------------------------------------------------------------------------------------------------
U.S. Government
Money Market Fund 0.82% 1.88% 3.24% 3.22% 0.43% 1.49% 2.19% 0.59% 0.59% 0.19% 0.80%
- ---------------------------------------------------------------------------------------------------------------------------
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
U.S. GOVERNMENT MONEY MARKET FUND
---------------------------------
Federal Home Loan Bank - FADN 20.1%
Freddie Mac - FADN 35.0%
Farmer Mac - FADN 14.8%
Federal Farm Credit Bank - FADN 13.4%
Repurchase Agreements 15.0%
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
The Fund invests principally in U.S. Government securities
28 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
MASTER-FEEDER ARRANGEMENT
- --------------------------------------------------------------------------------
Nova Fund, Ursa Fund, Arktos Fund and Juno Fund are operating under a
`master-feeder arrangement'. Under a master-feeder arrangement, a Feeder Fund
("feeder") invests substantially all of its assets in the Master Portfolio
("master"), a separate open-ended investment company that has the same
investment objectives as the feeder, e.g., the Nova Fund would act as a feeder,
holding shares of the Nova Master Portfolio as its only investment. The Master
Portfolio, in turn, invests in securities and derivatives to meet its investment
objective.
The Feeder Fund is the sole shareholder of the Master Portfolio and is the only
part of the master-feeder relationship in which shareholders can invest. As a
shareholder of a Feeder Fund, you have indirect ownership of the investments of
the corresponding Master Portfolio. Therefore, the Schedules of Investments of
the masters are provided here to illustrate securities in which the masters
invest and, indirectly, what the feeders hold. Please see Notes to Financial
Statements for more information about the master-feeder arrangement.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 29
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 91.5%
FINANCIALS 17.8%
BANKS 5.7%
Bank of America Corp. 122,520 $ 5,403,132
Wachovia Corp.+ 60,080 3,058,673
BB&T Corp.+ 41,470 1,620,647
National City Corp. 47,280 1,583,880
Wells Fargo & Co. 23,320 1,394,536
M&T Bank Corp. 13,310 1,358,419
Comerica, Inc.+ 23,490 1,293,829
Regions Financial Corp. 24,350 788,940
U.S. Bancorp 10,090 290,794
---------------
TOTAL BANKS 16,792,850
---------------
INSURANCE 4.3%
American International Group, Inc. 46,750 2,590,418
Allstate Corp.+ 37,270 2,014,816
MetLife, Inc. 45,420 1,775,922
AFLAC, Inc. 41,420 1,543,309
Chubb Corp.+ 18,590 1,473,629
Loews Corp. 19,590 1,440,649
XL Capital Ltd. 18,040 1,305,555
Cincinnati Financial Corp. 9,780 426,506
---------------
TOTAL INSURANCE 12,570,804
---------------
DIVERSIFIED FINANCIALS 3.1%
Citigroup, Inc. 104,370 4,690,388
J.P. Morgan Chase & Co. 57,300 1,982,580
Principal Financial Group, Inc. 35,960 1,384,100
CIT Group, Inc. 32,150 1,221,700
---------------
TOTAL DIVERSIFIED FINANCIALS 9,278,768
---------------
CONSUMER FINANCE 2.2%
American Express Co.+ 33,240 1,707,539
SLM Corp. 33,080 1,648,707
Capital One Financial Corp.+ 20,350 1,521,569
Providian Financial Corp.*+ 70,470 1,209,265
MBNA Corp. 11,570 284,044
---------------
TOTAL CONSUMER FINANCE 6,371,124
---------------
THRIFTS & MORTGAGE FINANCE 1.3%
Fannie Mae+ 25,210 1,372,685
Countrywide Financial Corp.+ 38,770 1,258,474
MGIC Investment Corp. 18,390 1,134,111
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 3,765,270
---------------
CAPITAL MARKETS 1.2%
Franklin Resources, Inc.+ 21,430 1,471,169
Bear Stearns Cos., Inc. 13,670 1,365,633
Morgan Stanley 7,310 418,498
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 4,350 $ 246,210
Goldman Sachs Group, Inc.+ 1,772 194,902
---------------
TOTAL CAPITAL MARKETS 3,696,412
---------------
REAL ESTATE 0.0%
Apartment Investment & Management
Co. -- Class A+ 2,970 110,484
---------------
TOTAL REAL ESTATE 110,484
---------------
TOTAL FINANCIALS 52,585,712
---------------
INFORMATION TECHNOLOGY 14.3%
SOFTWARE 3.1%
Microsoft Corp. 222,270 5,372,266
BMC Software, Inc.* 73,250 1,098,750
Symantec Corp.*+ 50,040 1,067,353
Oracle Corp.* 44,930 560,727
Compuware Corp.* 65,120 468,864
Veritas Software Corp.*+ 12,910 299,770
Computer Associates International,
Inc.+ 6,450 174,795
---------------
TOTAL SOFTWARE 9,042,525
---------------
COMPUTERS & PERIPHERALS 3.0%
International Business Machines
Corp. 28,990 2,649,106
Hewlett-Packard Co. 110,280 2,419,543
EMC Corp./MA* 139,550 1,719,256
Dell, Inc.* 34,300 1,317,806
Apple Computer, Inc.* 15,170 632,134
NCR Corp.*+ 7,250 244,615
---------------
TOTAL COMPUTERS & PERIPHERALS 8,982,460
---------------
IT CONSULTING & SERVICES 2.5%
Electronic Data Systems Corp.+ 65,010 1,343,757
Fiserv, Inc.*+ 33,400 1,329,320
Computer Sciences Corp.*+ 28,580 1,310,393
Affiliated Computer Services,
Inc. -- Class A*+ 24,160 1,286,279
Sabre Holdings Corp.+ 54,730 1,197,492
SunGard Data Systems, Inc.*+ 26,710 921,495
---------------
TOTAL IT CONSULTING & SERVICES 7,388,736
---------------
SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 2.4%
Intel Corp. 126,200 2,931,626
Micron Technology, Inc.*+ 111,650 1,154,461
Freescale Semiconductor,
Inc. -- Class B* 66,610 1,149,022
Broadcom Corp. -- Class A*+ 34,640 1,036,429
Applied Materials, Inc.* 45,300 736,125
National Semiconductor Corp. 4,920 101,401
30 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Texas Instruments, Inc. 1,330 $ 33,902
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 7,142,966
---------------
COMMUNICATIONS EQUIPMENT 2.4%
Motorola, Inc.+ 130,410 1,952,238
Cisco Systems, Inc.* 100,480 1,797,587
Tellabs, Inc.* 166,140 1,212,822
Comverse Technology, Inc.*+ 33,890 854,706
Scientific-Atlanta, Inc. 28,510 804,552
Qualcomm, Inc. 9,660 354,039
---------------
TOTAL COMMUNICATIONS EQUIPMENT 6,975,944
---------------
OFFICE ELECTRONICS 0.5%
Xerox Corp.*+ 93,560 1,417,434
---------------
TOTAL OFFICE ELECTRONICS 1,417,434
---------------
ELECTRONIC EQUIPMENT &
INSTRUMENTS 0.4%
Molex, Inc. 47,720 1,257,899
---------------
TOTAL ELECTRONIC
EQUIPMENT & INSTRUMENTS 1,257,899
---------------
TOTAL INFORMATION TECHNOLOGY 42,207,964
---------------
HEALTH CARE 11.8%
PHARMACEUTICALS 6.1%
Johnson & Johnson, Inc.+ 88,490 5,942,989
Pfizer, Inc. 225,740 5,930,190
Merck & Co., Inc. 76,370 2,472,097
Abbott Laboratories 48,020 2,238,692
Eli Lilly & Co. 8,080 420,968
Forest Laboratories, Inc.*+ 9,880 365,066
Watson Pharmaceuticals, Inc.*+ 8,310 255,366
Wyeth 5,530 233,255
Bristol-Myers Squibb Co.+ 3,710 94,457
---------------
TOTAL PHARMACEUTICALS 17,953,080
---------------
HEALTH CARE PROVIDERS & SERVICES 3.2%
HCA, Inc.+ 32,950 1,765,131
Aetna, Inc.+ 21,850 1,637,657
CIGNA Corp. 15,300 1,366,290
Laboratory Corporation of America
Holdings* 25,440 1,226,208
Caremark Rx, Inc.* 27,870 1,108,669
Medco Health Solutions, Inc.*+ 20,650 1,023,621
Cardinal Health, Inc.+ 10,750 599,850
UnitedHealth Group, Inc.+ 3,900 371,982
WellPoint, Inc.* 2,540 318,389
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 9,417,797
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
BIOTECHNOLOGY 1.3%
Amgen, Inc.* 36,770 $ 2,140,382
Biogen Idec, Inc.*+ 35,150 1,213,026
Applera Corp. - Applied Biosystems
Group+ 17,630 348,016
Gilead Sciences, Inc.* 6,030 215,874
---------------
TOTAL BIOTECHNOLOGY 3,917,298
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.2%
Thermo Electron Corp.* 44,470 1,124,646
PerkinElmer, Inc. 53,170 1,096,897
Bausch & Lomb, Inc.+ 11,380 834,154
Medtronic, Inc.+ 8,850 450,908
Becton, Dickinson & Co. 540 31,547
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 3,538,152
---------------
TOTAL HEALTH CARE 34,826,327
---------------
CONSUMER DISCRETIONARY 10.7%
MEDIA 3.6%
Time Warner, Inc.*+ 174,360 3,060,018
Comcast Corp. -- Class A*+ 87,890 2,968,924
Walt Disney Co.+ 88,470 2,541,743
Viacom, Inc. -- Class B 48,590 1,692,390
McGraw-Hill Cos., Inc.+ 4,510 393,497
---------------
TOTAL MEDIA 10,656,572
---------------
SPECIALTY RETAIL 2.0%
Best Buy Co., Inc.+ 28,400 1,533,884
Circuit City Stores, Inc. 75,770 1,216,109
Home Depot, Inc.+ 26,100 998,064
Limited Brands, Inc.+ 40,770 990,711
Sherwin-Williams Co. 22,440 987,136
AutoNation, Inc.*+ 8,360 158,338
Toys `R' Us, Inc.* 3,340 86,038
---------------
TOTAL SPECIALTY RETAIL 5,970,280
---------------
HOTELS RESTAURANTS & LEISURE 1.4%
McDonald's Corp. 54,250 1,689,345
Marriott International, Inc. --
Class A 15,370 1,027,638
Starwood Hotels & Resorts Worldwide,
Inc. 13,130 788,194
Darden Restaurants, Inc.+ 14,660 449,769
Hilton Hotels Corp.+ 9,780 218,583
Carnival Corp. 900 46,629
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 4,220,158
---------------
MULTILINE RETAIL 1.0%
Federated Department Stores, Inc.+ 22,070 1,404,535
Dillard's, Inc. -- Class A+ 49,100 1,320,790
Sears Holdings Corp.*+ 2,310 307,623
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 31
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Target Corp. 610 $ 30,512
---------------
TOTAL MULTILINE RETAIL 3,063,460
---------------
TEXTILES & APPAREL 0.7%
Nike, Inc. -- Class B+ 19,050 1,587,055
VF Corp. 7,370 435,862
---------------
TOTAL TEXTILES & APPAREL 2,022,917
---------------
AUTO COMPONENTS 0.5%
Cooper Tire & Rubber Co.+ 59,260 1,088,014
Johnson Controls, Inc. 8,870 494,591
---------------
TOTAL AUTO COMPONENTS 1,582,605
---------------
INTERNET & CATALOG RETAIL 0.5%
eBay, Inc.* 36,380 1,355,519
---------------
TOTAL INTERNET & CATALOG RETAIL 1,355,519
---------------
DISTRIBUTORS 0.4%
Genuine Parts Co. 26,170 1,138,133
---------------
TOTAL DISTRIBUTORS 1,138,133
---------------
LEISURE EQUIPMENT & PRODUCTS 0.4%
Eastman Kodak Co.+ 31,010 1,009,376
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 1,009,376
---------------
AUTOMOBILES 0.1%
Harley-Davidson, Inc. 5,640 325,766
General Motors Corp.+ 540 15,871
---------------
TOTAL AUTOMOBILES 341,637
---------------
HOUSEHOLD DURABLES 0.1%
Stanley Works 4,050 183,343
Black & Decker Corp. 1,740 137,443
---------------
TOTAL HOUSEHOLD DURABLES 320,786
---------------
TOTAL CONSUMER DISCRETIONARY 31,681,443
---------------
INDUSTRIALS 10.7%
INDUSTRIAL CONGLOMERATES 4.1%
General Electric Co. 227,650 8,209,059
Tyco International Ltd. 81,360 2,749,968
Textron, Inc. 8,660 646,209
3M Co.+ 5,980 512,426
---------------
TOTAL INDUSTRIAL CONGLOMERATES 12,117,662
---------------
MACHINERY 1.8%
Dover Corp. 33,370 1,261,052
Caterpillar, Inc.+ 11,060 1,011,326
Parker Hannifin Corp.+ 13,880 845,570
Paccar, Inc. 9,230 668,160
Ingersoll-Rand Co. -- Class A 6,710 534,451
Cummins, Inc.+ 6,910 486,118
Danaher Corp. 8,250 440,633
---------------
TOTAL MACHINERY 5,247,310
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AEROSPACE & DEFENSE 1.6%
Northrop Grumman Corp. 29,600 $ 1,597,808
Raytheon Co. 39,570 1,531,359
L-3 Communications Holdings, Inc. 12,920 917,578
Rockwell Collins, Inc. 6,310 300,293
United Technologies Corp. 1,400 142,324
Honeywell International, Inc. 2,280 84,839
Boeing Co.+ 570 33,322
---------------
TOTAL AEROSPACE & DEFENSE 4,607,523
---------------
ROAD & RAIL 1.0%
Burlington Northern Santa Fe Corp.+ 26,850 1,448,021
Norfolk Southern Corp. 37,960 1,406,418
---------------
TOTAL ROAD & RAIL 2,854,439
---------------
COMMERCIAL SERVICES & SUPPLIES 0.8%
Cendant Corp. 75,510 1,550,976
Robert Half International, Inc. 22,740 613,070
Monster Worldwide, Inc.*+ 12,040 337,722
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 2,501,768
---------------
AIR FREIGHT & COURIERS 0.6%
United Parcel Service, Inc. --
Class B+ 13,050 949,257
FedEx Corp. 8,900 836,155
---------------
TOTAL AIR FREIGHT & COURIERS 1,785,412
---------------
BUILDING PRODUCTS 0.5%
Masco Corp.+ 43,360 1,503,291
---------------
TOTAL BUILDING PRODUCTS 1,503,291
---------------
TRADING COMPANIES &
DISTRIBUTORS 0.2%
W.W. Grainger, Inc. 10,470 651,967
---------------
TOTAL TRADING COMPANIES &
DISTRIBUTORS 651,967
---------------
ELECTRICAL EQUIPMENT 0.1%
Rockwell Automation, Inc.+ 5,940 336,442
---------------
TOTAL ELECTRICAL EQUIPMENT 336,442
---------------
TOTAL INDUSTRIALS 31,605,814
---------------
CONSUMER STAPLES 9.8%
FOOD & DRUG RETAILING 2.9%
Wal-Mart Stores, Inc.+ 82,350 4,126,558
Costco Wholesale Corp.+ 35,990 1,590,038
Safeway, Inc.*+ 70,650 1,309,145
Albertson's, Inc.+ 54,390 1,123,154
Walgreen Co. 10,540 468,187
---------------
TOTAL FOOD & DRUG RETAILING 8,617,082
---------------
HOUSEHOLD PRODUCTS 1.8%
Procter & Gamble Co.+ 41,450 2,196,850
32 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Kimberly-Clark Corp. 28,680 $ 1,885,136
Clorox Co.+ 21,920 1,380,741
---------------
TOTAL HOUSEHOLD PRODUCTS 5,462,727
---------------
BEVERAGES 1.6%
PepsiCo, Inc. 61,640 3,268,769
Coca-Cola Co. 33,530 1,397,195
Brown-Forman Corp. -- Class B 1,740 95,265
---------------
TOTAL BEVERAGES 4,761,229
---------------
FOOD PRODUCTS 1.5%
Archer-Daniels-Midland Co. 61,300 1,506,754
General Mills, Inc. 30,000 1,474,500
Sara Lee Corp.+ 58,590 1,298,355
Hershey Foods Corp.+ 2,470 149,336
---------------
TOTAL FOOD PRODUCTS 4,428,945
---------------
TOBACCO 1.5%
Altria Group, Inc.+ 66,970 4,379,168
---------------
TOTAL TOBACCO 4,379,168
---------------
PERSONAL PRODUCTS 0.5%
Alberto-Culver Co. -- Class B 23,510 1,125,189
Gillette Co. 4,130 208,482
---------------
TOTAL PERSONAL PRODUCTS 1,333,671
---------------
TOTAL CONSUMER STAPLES 28,982,822
---------------
ENERGY 7.9%
OIL & GAS 7.9%
Exxon Mobil Corp. 156,630 9,335,148
ChevronTexaco Corp. 57,990 3,381,397
Devon Energy Corp.+ 35,590 1,699,422
Occidental Petroleum Corp.+ 23,780 1,692,423
Burlington Resources, Inc. 31,440 1,574,201
Amerada Hess Corp.+ 13,340 1,283,441
Sunoco, Inc. 12,230 1,266,050
Valero Energy Corp. 12,370 906,350
Anadarko Petroleum Corp. 10,980 835,578
ConocoPhillips 6,800 733,312
Apache Corp. 9,080 555,968
---------------
TOTAL OIL & GAS 23,263,290
---------------
TOTAL ENERGY 23,263,290
---------------
MATERIALS 2.9%
METALS & MINING 1.2%
Phelps Dodge Corp.+ 12,870 1,309,265
Nucor Corp.+ 21,950 1,263,442
United States Steel Corp.+ 17,280 878,688
Newmont Mining Corp.+ 4,030 170,267
---------------
TOTAL METALS & MINING 3,621,662
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CHEMICALS 1.1%
Monsanto Co. 22,930 $ 1,478,985
Air Products & Chemicals, Inc. 23,060 1,459,468
EI Du Pont de Nemours & Co. 3,580 183,439
Dow Chemical Co.+ 2,840 141,574
---------------
TOTAL CHEMICALS 3,263,466
---------------
PAPER & FOREST PRODUCTS 0.6%
Georgia-Pacific Corp. 27,080 961,069
Weyerhaeuser Co.+ 7,630 522,655
Louisiana-Pacific Corp. 12,690 319,027
---------------
TOTAL PAPER & FOREST PRODUCTS 1,802,751
---------------
TOTAL MATERIALS 8,687,879
---------------
UTILITIES 2.8%
ELECTRIC UTILITIES 2.3%
American Electric Power Co., Inc.+ 42,230 1,438,354
Exelon Corp.+ 29,500 1,353,755
PG&E Corp.+ 37,270 1,270,907
Entergy Corp. 15,430 1,090,284
PPL Corp.+ 18,960 1,023,650
Allegheny Energy, Inc.*+ 33,480 691,697
TXU Corp.+ 880 70,074
---------------
TOTAL ELECTRIC UTILITIES 6,938,721
---------------
MULTI-UTILITIES 0.5%
Duke Energy Corp.+ 25,070 702,211
Constellation Energy Group, Inc. 9,580 495,286
Sempra Energy+ 5,660 225,494
---------------
TOTAL MULTI-UTILITIES 1,422,991
---------------
TOTAL UTILITIES 8,361,712
---------------
TELECOMMUNICATION SERVICES 2.8%
DIVERSIFIED TELECOMMUNICATION
SERVICES 2.8%
Verizon Communications, Inc.+ 98,010 3,479,355
CenturyTel, Inc.+ 35,650 1,170,746
AT&T Corp. 55,470 1,040,062
SBC Communications, Inc.+ 36,350 861,132
Alltel Corp.+ 14,680 805,198
Sprint Corp.+ 34,360 781,690
BellSouth Corp.+ 2,390 62,833
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 8,201,016
---------------
TOTAL TELECOMMUNICATION SERVICES 8,201,016
---------------
TOTAL COMMON STOCKS
(Cost $237,487,341) 270,403,979
---------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 33
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 4.5%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $ 3,969,163 $ 3,969,163
2.60% due 04/01/05 2,976,873 2,976,873
2.57% due 04/01/05 2,976,873 2,976,873
2.55% due 04/01/05 3,326,534 3,326,534
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $13,249,443) 13,249,443
---------------
SECURITIES LENDING COLLATERAL 22.6%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 66,889,063 66,889,063
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $66,889,063) 66,889,063
---------------
TOTAL INVESTMENTS 118.6%
(Cost $317,625,847) $ 350,542,485
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (18.6)% $ (54,873,762)
===============
NET ASSETS - 100.0% $ 295,668,723
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
June 2005 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value
of Contracts $172,718,000) 2,920 $ (3,297,545)
===============
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
9.
34 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
URSA MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 47.7%
Federal Farm Credit Bank*
2.68% due 04/20/05 $ 25,000,000 $ 24,964,639
Federal Home Loan Bank*
2.56% due 04/22/05 50,000,000 49,925,333
2.50% due 04/27/05 50,000,000 49,909,722
2.59% due 04/29/05 25,000,000 24,949,639
Freddie Mac*
2.72% due 04/26/05 25,000,000 24,951,091
2.64% due 05/17/05 25,000,000 24,915,667
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $199,616,091) 199,616,091
---------------
REPURCHASE AGREEMENTS 50.7%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 56,225,176 56,225,176
2.60% due 04/01/05 42,168,882 42,168,882
2.57% due 04/01/05 42,168,882 42,168,882
2.55% due 04/01/05+ 71,409,471 71,409,471
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $211,972,411) 211,972,411
---------------
TOTAL INVESTMENTS 98.4%
(Cost $411,588,502) $ 411,588,502
===============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 1.6% $ 6,678,009
===============
NET ASSETS - 100.0% $ 418,266,511
- ------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
June 2005 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $181,886,250) 3,075 $ 4,410,088
===============
UNITS
-----
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
June 2005 S&P 500 Index Swap,
Maturing 06/14/05**
(Notional Market Value
$239,012,079) 202,451 $ 4,091,622
===============
* 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 EQUITY INDEX SWAP COLLATERAL
AT MARCH 31, 2005.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 35
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
OTC FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.5%
INFORMATION TECHNOLOGY 57.7%
SOFTWARE 17.3%
Microsoft Corp. 2,919,880 $ 70,573,500
Oracle Corp.* 1,400,690 17,480,611
Symantec Corp.*+ 493,200 10,519,956
Adobe Systems, Inc.+ 151,470 10,174,240
Electronic Arts, Inc.*+ 180,930 9,368,556
Veritas Software Corp.*+ 243,510 5,654,302
Autodesk, Inc. 161,900 4,818,144
Citrix Systems, Inc.*+ 148,670 3,541,319
Siebel Systems, Inc.* 386,530 3,529,019
Check Point Software Technologies
Ltd.* 129,620 2,817,939
Intuit, Inc.*+ 58,700 2,569,299
BEA Systems, Inc.* 207,320 1,652,340
Mercury Interactive Corp.*+ 33,310 1,578,228
Synopsys, Inc.*+ 46,940 849,614
---------------
TOTAL SOFTWARE 145,127,067
---------------
SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 13.8%
Intel Corp. 1,631,170 37,892,079
Broadcom Corp. -- Class A*+ 443,800 13,278,496
Maxim Integrated Products,
Inc.+ 236,390 9,661,259
Applied Materials, Inc.* 483,660 7,859,475
Xilinx, Inc.+ 265,550 7,762,026
KLA-Tencor Corp.*+ 165,350 7,607,754
Marvell Technology Group
Ltd.*+ 190,690 7,311,055
Lam Research Corp.*+ 247,440 7,141,118
Linear Technology Corp.+ 145,870 5,588,280
Novellus Systems, Inc.*+ 141,200 3,774,276
ATI Technologies, Inc.* 192,230 3,317,890
Microchip Technology, Inc. 83,510 2,172,095
Intersil Corp. -- Class A 50,410 873,101
Altera Corp.* 40,950 809,991
---------------
TOTAL SEMICONDUCTOR
& SEMICONDUCTOR EQUIPMENT 115,048,895
---------------
COMMUNICATIONS EQUIPMENT 13.0%
Qualcomm, Inc. 1,332,650 48,841,622
Cisco Systems, Inc.* 2,016,550 36,076,079
Research In Motion Ltd.*+ 145,250 11,100,005
Juniper Networks, Inc.*+ 352,150 7,768,429
Comverse Technology, Inc.*+ 105,380 2,657,684
Telefonaktiebolaget LM Ericsson --
SP ADR*+ 53,990 1,522,518
JDS Uniphase Corp.*+ 444,810 742,833
---------------
TOTAL COMMUNICATIONS EQUIPMENT 108,709,170
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS 8.1%
Apple Computer, Inc.* 747,050 $ 31,129,574
Dell, Inc.* 636,190 24,442,420
Network Appliance, Inc.*+ 243,990 6,748,763
Sun Microsystems, Inc.*+ 729,660 2,947,826
QLogic Corp.*+ 57,740 2,338,470
---------------
TOTAL COMPUTERS & PERIPHERALS 67,607,053
---------------
INTERNET SOFTWARE & SERVICES 2.7%
Yahoo!, Inc.*+ 527,650 17,887,335
VeriSign, Inc.*+ 167,820 4,816,434
---------------
TOTAL INTERNET SOFTWARE & SERVICES 22,703,769
---------------
IT CONSULTING & SERVICES 1.8%
Paychex, Inc.+ 184,840 6,066,449
Fiserv, Inc.*+ 145,140 5,776,572
Cognizant Technology Solutions
Corp.* 75,290 3,478,398
---------------
TOTAL IT CONSULTING & SERVICES 15,321,419
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.0%
Flextronics International Ltd.*+ 512,850 6,174,714
Sanmina-SCI Corp.* 286,220 1,494,068
Molex, Inc. 33,800 890,968
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 8,559,750
---------------
TOTAL INFORMATION TECHNOLOGY 483,077,123
---------------
CONSUMER DISCRETIONARY 19.0%
MEDIA 6.0%
Comcast Corp. -- Class A*+ 819,230 27,673,589
Liberty Media International, Inc. --
Class A*+ 116,890 5,112,769
Sirius Satellite Radio, Inc.*+ 801,320 4,503,418
EchoStar Communications
Corp.+ 138,810 4,060,193
NTL, Inc.*+ 53,970 3,436,270
Pixar*+ 27,450 2,677,748
Lamar Advertising Co.* 55,960 2,254,628
XM Satellite Radio Holdings,
Inc.*+ 25,730 810,495
---------------
TOTAL MEDIA 50,529,110
---------------
INTERNET & CATALOG RETAIL 4.9%
eBay, Inc.*+ 638,730 23,799,080
InterActiveCorp*+ 385,980 8,595,774
Amazon.com, Inc.*+ 246,910 8,461,606
---------------
TOTAL INTERNET & CATALOG RETAIL 40,856,460
---------------
HOTELS RESTAURANTS & LEISURE 2.9%
Starbucks Corp.* 373,360 19,287,778
Wynn Resorts Ltd.*+ 72,200 4,890,828
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 24,178,606
---------------
36 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
OTC FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
SPECIALTY RETAIL 2.8%
Bed Bath & Beyond, Inc.* 238,530 $ 8,715,886
Staples, Inc. 263,950 8,295,948
Petsmart, Inc.+ 128,910 3,706,163
Ross Stores, Inc.+ 79,450 2,315,173
---------------
TOTAL SPECIALTY RETAIL 23,033,170
---------------
MULTILINE RETAIL 2.0%
Sears Holdings Corp.*+ 108,730 14,479,574
Dollar Tree Stores, Inc.*+ 86,740 2,492,040
---------------
TOTAL MULTILINE RETAIL 16,971,614
---------------
HOUSEHOLD DURABLES 0.4%
Garmin Ltd.+ 67,240 3,114,557
---------------
TOTAL HOUSEHOLD DURABLES 3,114,557
---------------
TOTAL CONSUMER DISCRETIONARY 158,683,517
---------------
HEALTH CARE 12.1%
BIOTECHNOLOGY 8.3%
Amgen, Inc.* 342,240 19,921,791
Biogen Idec, Inc.*+ 347,410 11,989,119
Genzyme Corp.* 162,970 9,328,403
Gilead Sciences, Inc.* 218,360 7,817,288
Medimmune, Inc.*+ 279,630 6,657,990
Chiron Corp.*+ 163,670 5,738,270
Millennium Pharmaceuticals,
Inc.*+ 448,160 3,773,507
Invitrogen Corp.*+ 54,130 3,745,796
---------------
TOTAL BIOTECHNOLOGY 68,972,164
---------------
HEALTH CARE PROVIDERS & SERVICES 1.4%
Express Scripts, Inc.*+ 75,020 6,540,994
Patterson Cos., Inc.*+ 106,160 5,302,692
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 11,843,686
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.4%
DENTSPLY International, Inc. 115,250 6,270,752
Biomet, Inc. 152,580 5,538,654
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 11,809,406
---------------
PHARMACEUTICALS 1.0%
Teva Pharmaceutical Industries
Ltd. -- SP ADR+ 274,900 8,521,900
---------------
TOTAL PHARMACEUTICALS 8,521,900
---------------
TOTAL HEALTH CARE 101,147,156
---------------
INDUSTRIALS 4.7%
COMMERCIAL SERVICES & SUPPLIES 2.1%
Apollo Group, Inc. -- Class A*+ 132,480 9,811,469
Cintas Corp.+ 117,390 4,849,381
Career Education Corp.* 75,990 2,603,417
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 17,264,267
---------------
MACHINERY 1.1%
Paccar, Inc.+ 126,880 9,184,843
---------------
TOTAL MACHINERY 9,184,843
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AIR FREIGHT & COURIERS 0.8%
Expeditors International Washington,
Inc.+ 71,220 $ 3,813,831
C.H. Robinson Worldwide, Inc.+ 63,600 3,277,308
---------------
TOTAL AIR FREIGHT & COURIERS 7,091,139
---------------
TRADING COMPANIES & DISTRIBUTORS 0.4%
Fastenal Co.+ 55,990 3,096,807
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 3,096,807
---------------
ELECTRICAL EQUIPMENT 0.3%
American Power Conversion
Corp.+ 112,150 2,928,237
---------------
TOTAL ELECTRICAL EQUIPMENT 2,928,237
---------------
TOTAL INDUSTRIALS 39,565,293
---------------
TELECOMMUNICATION SERVICES 3.9%
WIRELESS TELECOMMUNICATION SERVICES 3.1%
Nextel Communications, Inc. --
Class A* 923,620 26,249,280
---------------
TOTAL WIRELESS
TELECOMMUNICATION SERVICES 26,249,280
---------------
DIVERSIFIED TELECOMMUNICATION
SERVICES 0.8%
MCI, Inc. 232,270 5,788,169
Level 3 Communications, Inc.*+ 436,770 899,746
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 6,687,915
---------------
TOTAL TELECOMMUNICATION SERVICES 32,937,195
---------------
CONSUMER STAPLES 1.4%
FOOD & DRUG RETAILING 1.4%
Costco Wholesale Corp.+ 138,160 6,103,909
Whole Foods Market, Inc.+ 56,730 5,793,835
---------------
TOTAL FOOD & DRUG RETAILING 11,897,744
---------------
TOTAL CONSUMER STAPLES 11,897,744
---------------
MATERIALS 0.7%
CHEMICALS 0.4%
Sigma-Aldrich Corp.+ 52,030 3,186,837
---------------
TOTAL CHEMICALS 3,186,837
---------------
CONTAINERS & PACKAGING 0.3%
Smurfit-Stone Container
Corp.*+ 168,650 2,609,016
---------------
TOTAL CONTAINERS & PACKAGING 2,609,016
---------------
TOTAL MATERIALS 5,795,853
---------------
TOTAL COMMON STOCKS
(Cost $501,094,181) 833,103,881
---------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 37
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
OTC FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 0.8%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $ 1,995,730 $ 1,995,730
2.60% due 04/01/05 1,496,797 1,496,797
2.57% due 04/01/05 1,496,797 1,496,797
2.55% due 04/01/05 1,672,611 1,672,611
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $6,661,935) 6,661,935
---------------
SECURITIES LENDING COLLATERAL 23.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 192,617,562 192,617,562
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $192,617,562) 192,617,562
---------------
TOTAL INVESTMENTS 123.3%
(Cost $700,373,678) $ 1,032,383,378
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (23.3)% $ (195,071,288)
===============
NET ASSETS - 100.0% $ 837,312,090
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
June 2005 Nasdaq 100 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $6,560,400) 220 $ 46,468
===============
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
9.
ADR--AMERICAN DEPOSITORY RECEIPT.
38 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
ARKTOS MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 97.4%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $ 63,788,025 $ 63,788,025
2.60% due 04/01/05 47,841,018 47,841,018
2.57% due 04/01/05 47,841,018 47,841,018
2.55% due 04/01/05+ 71,042,397 71,042,397
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $230,512,458) 230,512,458
---------------
TOTAL INVESTMENTS 97.4%
(Cost $230,512,458) $ 230,512,458
===============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 2.6% $ 6,235,776
===============
NET ASSETS - 100.0% $ 236,748,234
- ------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
June 2005 Nasdaq 100 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $63,188,580) 2,119 $ 888,993
===============
UNITS
-----
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
June 2005 Nasdaq 100 Index Swap,
Maturing 06/14/05*
(Notional Market Value
$173,644,079) 117,127 $ 2,518,587
===============
* PRICE RETURN BASED ON NASDAQ 100 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT MARCH 31, 2005.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 39
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 95.7%
CONSUMER DISCRETIONARY 18.6%
SPECIALTY RETAIL 7.2%
Williams-Sonoma, Inc.*+ 21,880 $ 804,090
American Eagle Outfitters, Inc. 26,600 786,030
Petsmart, Inc.+ 25,960 746,350
Regis Corp. 15,610 638,917
Pacific Sunwear of California, Inc.*+ 22,520 630,110
Aeropostale, Inc.*+ 18,900 618,975
Payless Shoesource, Inc.*+ 35,830 565,756
Michaels Stores, Inc.+ 13,470 488,961
CarMax, Inc.* 6,760 212,940
Abercrombie & Fitch Co. -- Class A+ 2,030 116,197
---------------
TOTAL SPECIALTY RETAIL 5,608,326
---------------
HOUSEHOLD DURABLES 4.5%
Lennar Corp. -- Class A+ 19,170 1,086,556
Toll Brothers, Inc.*+ 8,610 678,899
Mohawk Industries, Inc.*+ 6,710 565,653
Hovnanian Enterprises, Inc. --
Class A* 7,770 396,270
Harman International Industries, Inc. 4,240 375,070
Furniture Brands International, Inc. 9,410 205,232
D.R. Horton, Inc. 6,363 186,054
---------------
TOTAL HOUSEHOLD DURABLES 3,493,734
---------------
HOTELS RESTAURANTS & LEISURE 3.4%
International Speedway Corp. --
Class A 12,930 701,453
Mandalay Resort Group 9,230 650,623
Caesars Entertainment, Inc.*+ 29,027 574,444
CBRL Group, Inc.+ 9,260 382,438
Boyd Gaming Corp. 6,180 322,287
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 2,631,245
---------------
MEDIA 2.4%
Washington Post Co. -- Class B 1,070 956,580
Media General, Inc. 9,200 569,020
Emmis Communications Corp. --
Class A*+ 19,360 372,099
---------------
TOTAL MEDIA 1,897,699
---------------
AUTO COMPONENTS 1.0%
Bandag, Inc. 8,360 392,753
BorgWarner, Inc. 7,750 377,270
Modine Manufacturing Co. 1,920 56,313
---------------
TOTAL AUTO COMPONENTS 826,336
---------------
AUTOMOBILES 0.1%
Thor Industries, Inc. 3,430 102,591
---------------
Total Automobiles 102,591
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TEXTILES & APPAREL 0.0%
Timberland Co. -- Class A* 60 $ 4,256
---------------
TOTAL TEXTILES & APPAREL 4,256
---------------
TOTAL CONSUMER DISCRETIONARY 14,564,187
---------------
FINANCIALS 16.4%
BANKS 5.2%
Commerce Bancorp, Inc./NJ+ 26,980 876,041
Mercantile Bankshares Corp. 15,420 784,261
Colonial BancGroup, Inc. 33,040 677,981
Bank of Hawaii Corp. 12,090 547,193
Hibernia Corp. -- Class A 15,130 484,311
Silicon Valley Bancshares* 10,260 452,056
Cullen/Frost Bankers, Inc. 5,350 241,553
---------------
TOTAL BANKS 4,063,396
---------------
INSURANCE 4.3%
Arthur J. Gallagher & Co. 22,200 639,360
Allmerica Financial Corp.* 17,500 629,125
Stancorp Financial Group, Inc. 6,090 516,310
Horace Mann Educators Corp. 27,860 494,237
Brown & Brown, Inc. 8,860 408,357
AmerUs Group Co.+ 8,370 395,483
Fidelity National Financial, Inc. 5,010 165,029
W.R. Berkley Corp. 2,240 111,104
---------------
TOTAL INSURANCE 3,359,005
---------------
CAPITAL MARKETS 3.3%
Raymond James Financial, Inc. 18,490 560,247
Waddell & Reed Financial, Inc. --
Class A+ 27,570 544,232
LaBranche & Co., Inc.* 56,190 522,567
Investors Financial Services Corp.+ 8,120 397,149
SEI Investments Co. 6,760 244,441
Legg Mason, Inc.+ 2,670 208,634
A.G. Edwards, Inc.+ 3,030 135,744
---------------
TOTAL CAPITAL MARKETS 2,613,014
---------------
REAL ESTATE 2.5%
AMB Property Corp. 17,780 672,084
Weingarten Realty Investors+ 19,420 670,184
United Dominion Realty Trust, Inc. 29,080 606,900
---------------
TOTAL REAL ESTATE 1,949,168
---------------
THRIFTS & MORTGAGE FINANCE 0.9%
Independence Community
Bank Corp. 18,270 712,530
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 712,530
---------------
CONSUMER FINANCE 0.2%
MoneyGram International, Inc. 6,300 119,007
---------------
TOTAL CONSUMER FINANCE 119,007
---------------
TOTAL FINANCIALS 12,816,120
---------------
40 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INFORMATION TECHNOLOGY 12.8%
SOFTWARE 3.9%
Wind River Systems, Inc.*+ 38,250 $ 576,810
Advent Software, Inc.* 30,020 545,764
McAfee, Inc.*+ 24,120 544,147
Macromedia, Inc.*+ 8,560 286,760
Cadence Design Systems, Inc.* 14,410 215,429
Activision, Inc.* 14,220 210,456
Mentor Graphics Corp.* 14,000 191,800
Sybase, Inc.*+ 8,980 165,771
Transaction Systems Architects,
Inc. -- Class A* 6,730 155,799
Ascential Software Corp.* 6,920 128,228
Jack Henry & Associates, Inc. 3,210 57,748
---------------
TOTAL SOFTWARE 3,078,712
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.8%
Lam Research Corp.*+ 25,240 728,426
International Rectifier Corp.*+ 12,260 557,830
Microchip Technology, Inc. 12,830 333,708
Fairchild Semiconductor
International, Inc.*+ 12,560 192,545
Micrel, Inc.*+ 18,380 169,464
Lattice Semiconductor Corp.* 30,040 161,315
Credence Systems Corp.* 8,870 70,162
Cree, Inc.*+ 910 19,792
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 2,233,242
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.5%
National Instruments Corp.+ 22,710 614,306
Tech Data Corp.* 16,290 603,707
Avnet, Inc.* 30,248 557,168
Amphenol Corp. -- Class A+ 4,540 168,162
---------------
TOTAL ELECTRONIC
EQUIPMENT & INSTRUMENTS 1,943,343
---------------
COMMUNICATIONS EQUIPMENT 1.7%
3Com Corp.* 119,040 423,782
Avocent Corp.* 13,240 339,738
CommScope, Inc.* 14,960 223,802
Utstarcom, Inc.*+ 16,990 186,040
Harris Corp. 5,470 178,596
ADTRAN, Inc. 100 1,764
---------------
TOTAL COMMUNICATIONS EQUIPMENT 1,353,722
---------------
IT CONSULTING & SERVICES 1.6%
CheckFree Corp.*+ 15,070 614,253
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Cognizant Technology Solutions
Corp.*+ 12,180 $ 562,716
Alliance Data Systems Corp.* 1,390 56,156
Keane, Inc.* 1 13
---------------
TOTAL IT CONSULTING & SERVICES 1,233,138
---------------
OFFICE ELECTRONICS 0.3%
Zebra Technologies Corp. --
Class A* 4,750 225,578
---------------
TOTAL OFFICE ELECTRONICS 225,578
---------------
TOTAL INFORMATION TECHNOLOGY 10,067,735
---------------
INDUSTRIALS 11.9%
COMMERCIAL SERVICES & SUPPLIES 4.4%
Banta Corp. 13,060 558,968
Kelly Services, Inc. 19,090 549,601
Herman Miller, Inc. 18,070 544,269
Korn/Ferry International, Inc.* 27,370 520,851
ChoicePoint, Inc.*+ 10,220 409,924
Career Education Corp.*+ 10,320 353,563
Republic Services, Inc.+ 7,060 236,369
Laureate Education, Inc.* 4,490 192,127
ITT Educational Services, Inc.*+ 530 25,705
Stericycle, Inc.*+ 530 23,426
Adesa, Inc. 860 20,090
Corinthian Colleges, Inc.* 1,070 16,820
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 3,451,713
---------------
MACHINERY 2.7%
Kennametal, Inc. 12,620 599,324
Nordson Corp. 14,900 548,618
Harsco Corp. 8,670 516,819
AGCO Corp.* 21,800 397,850
Donaldson Co., Inc. 2,140 69,079
---------------
TOTAL MACHINERY 2,131,690
---------------
ROAD & RAIL 1.5%
CNF, Inc. 13,030 609,674
Swift Transportation Co., Inc.*+ 23,590 522,282
---------------
TOTAL ROAD & RAIL 1,131,956
---------------
AEROSPACE & DEFENSE 1.1%
Precision Castparts Corp. 11,140 857,891
---------------
TOTAL AEROSPACE & DEFENSE 857,891
---------------
AIR FREIGHT & COURIERS 0.8%
Expeditors International Washington,
Inc.+ 5,820 311,661
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 41
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
C.H. Robinson Worldwide, Inc. 5,150 $ 265,380
---------------
TOTAL AIR FREIGHT & COURIERS 577,041
---------------
ELECTRICAL EQUIPMENT 0.7%
Thomas & Betts Corp.* 17,710 572,033
---------------
TOTAL ELECTRICAL EQUIPMENT 572,033
---------------
CONSTRUCTION & ENGINEERING 0.7%
Granite Construction, Inc. 21,590 567,169
---------------
TOTAL CONSTRUCTION & ENGINEERING 567,169
---------------
TOTAL INDUSTRIALS 9,289,493
---------------
HEALTH CARE 11.6%
HEALTH CARE PROVIDERS & SERVICES 5.1%
Lincare Holdings, Inc.*+ 19,380 857,178
Community Health Systems, Inc.* 21,330 744,630
Patterson Cos., Inc.*+ 13,819 690,259
Universal Health Services, Inc. --
Class B+ 10,240 536,576
LifePoint Hospitals, Inc.*+ 11,230 492,323
Triad Hospitals, Inc.*+ 8,770 439,377
Henry Schein, Inc.* 5,300 189,952
Pacificare Health Systems, Inc.* 660 37,567
Westwood One, Inc.* 640 13,024
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 4,000,886
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 2.7%
Varian Medical Systems, Inc.*+ 19,510 668,803
Edwards Lifesciences Corp.*+ 15,340 662,995
Cytyc Corp.* 27,280 627,713
Inamed Corp.* 2,140 149,543
DENTSPLY International, Inc. 210 11,426
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,120,480
---------------
PHARMACEUTICALS 2.1%
IVAX Corp.*+ 48,800 964,776
Barr Pharmaceuticals, Inc.* 14,290 697,781
---------------
TOTAL PHARMACEUTICALS 1,662,557
---------------
BIOTECHNOLOGY 1.7%
Protein Design Labs, Inc.* 44,020 703,879
Invitrogen Corp.*+ 4,560 315,552
Charles River Laboratories
International, Inc.*+ 4,200 197,568
Millennium Pharmaceuticals, Inc.*+ 15,540 130,847
---------------
TOTAL BIOTECHNOLOGY 1,347,846
---------------
TOTAL HEALTH CARE 9,131,769
---------------
ENERGY 7.7%
ENERGY EQUIPMENT & SERVICES 3.9%
Weatherford International Ltd.*+ 17,810 1,031,911
Cooper Cameron Corp.*+ 12,510 715,697
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Grant Prideco, Inc.* 29,430 $ 711,029
Hanover Compressor Co.*+ 43,290 522,510
Helmerich & Payne, Inc.+ 1,150 45,644
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 3,026,791
---------------
OIL & GAS 3.8%
Newfield Exploration Co.* 9,330 692,846
Forest Oil Corp.*+ 16,520 669,060
Murphy Oil Corp. 6,290 621,012
Pogo Producing Co.+ 11,060 544,595
Overseas Shipholding Group, Inc. 7,140 449,177
---------------
TOTAL OIL & GAS 2,976,690
---------------
TOTAL ENERGY 6,003,481
---------------
UTILITIES 6.6%
MULTI-UTILITIES 3.4%
Oneok, Inc.+ 23,800 733,516
Energy East Corp.+ 25,710 674,116
Vectren Corp. 20,090 535,198
Aquila, Inc.* 127,210 487,214
MDU Resources Group, Inc. 7,650 211,293
---------------
TOTAL MULTI-UTILITIES 2,641,337
---------------
ELECTRIC UTILITIES 1.5%
NSTAR 12,610 684,723
OGE Energy Corp.+ 19,590 527,950
---------------
TOTAL ELECTRIC UTILITIES 1,212,673
---------------
GAS UTILITIES 0.9%
AGL Resources, Inc. 19,350 675,896
---------------
TOTAL GAS UTILITIES 675,896
---------------
WATER UTILITIES 0.8%
Aqua America, Inc. 26,420 643,327
---------------
TOTAL WATER UTILITIES 643,327
---------------
TOTAL UTILITIES 5,173,233
---------------
MATERIALS 5.0%
CHEMICALS 2.5%
Lubrizol Corp. 16,250 660,400
Lyondell Chemical Co.+ 21,960 613,123
Sensient Technologies Corp. 16,460 354,877
Cytec Industries, Inc. 4,380 237,615
Minerals Technologies, Inc. 820 53,940
---------------
TOTAL CHEMICALS 1,919,955
---------------
METALS & MINING 1.8%
Worthington Industries, Inc.+ 30,250 583,220
Steel Dynamics, Inc.+ 14,870 512,271
Peabody Energy Corp. 7,230 335,183
---------------
TOTAL METALS & MINING 1,430,674
---------------
42 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS 0.7%
Glatfelter 36,670 $ 540,883
---------------
TOTAL PAPER & FOREST PRODUCTS 540,883
---------------
TOTAL MATERIALS 3,891,512
---------------
CONSUMER STAPLES 4.6%
FOOD PRODUCTS 2.5%
J.M. Smucker Co. 14,040 706,212
Hormel Foods Corp. 20,420 635,266
Lancaster Colony Corp. 14,108 600,296
Tyson Foods, Inc. -- Class A 930 15,512
---------------
TOTAL FOOD PRODUCTS 1,957,286
---------------
FOOD & DRUG RETAILING 0.9%
Ruddick Corp. 24,230 560,924
BJ's Wholesale Club, Inc.* 3,550 110,263
---------------
TOTAL FOOD & DRUG RETAILING 671,187
---------------
TOBACCO 0.6%
Universal Corp./VA 10,900 498,893
---------------
TOTAL TOBACCO 498,893
---------------
HOUSEHOLD PRODUCTS 0.6%
Church & Dwight Co., Inc. 12,770 452,952
Energizer Holdings, Inc.* 110 6,578
---------------
TOTAL HOUSEHOLD PRODUCTS 459,530
---------------
TOTAL CONSUMER STAPLES 3,586,896
---------------
TELECOMMUNICATION SERVICES 0.5%
WIRELESS TELECOMMUNICATION
SERVICES 0.4%
Telephone & Data Systems, Inc.+ 3,960 323,136
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 323,136
---------------
DIVERSIFIED TELECOMMUNICATION
SERVICES 0.1%
Cincinnati Bell, Inc.* 17,080 72,590
---------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 72,590
---------------
TOTAL TELECOMMUNICATION SERVICES 395,726
---------------
TOTAL COMMON STOCKS
(Cost $71,399,542) 74,920,152
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 7.7%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $ 1,808,180 $ 1,808,180
2.60% due 04/01/05 1,356,135 1,356,135
2.57% due 04/01/05 1,356,135 1,356,135
2.55% due 04/01/05 1,515,425 1,515,425
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $6,035,875) 6,035,875
---------------
SECURITIES LENDING COLLATERAL 19.9%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 15,540,176 15,540,176
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $15,540,176) 15,540,176
---------------
TOTAL INVESTMENTS 123.3%
(Cost $92,975,593) $ 96,496,203
===============
LIABILITIES IN EXCESS
OF OTHER ASSETS - (23.3)% $ (18,260,629)
===============
NET ASSETS - 100.0% $ 78,235,574
- --------------------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
June 2005 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $16,179,800) 245 $ (23,752)
===============
UNITS
-----------
EQUITY INDEX SWAP AGREEMENT
May 2005 S&P MidCap 400 Index Swaps,
Maturing 05/24/05**
(Notional Market Value $ 25,931,086) 39,357 $ 112,867
===============
* NON-INCOME PRODUCING SECURITY.
** 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 MARCH 31, 2005 - SEE NOTE
9.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 43
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
INVERSE MID-CAP FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 95.1%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $ 8,870,025 $ 8,870,025
2.60% due 04/01/05 6,652,519 6,652,519
2.57% due 04/01/05 6,652,519 6,652,519
2.55% due 04/01/05 7,433,921 7,433,921
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $29,608,984) 29,608,984
---------------
TOTAL INVESTMENTS 95.1%
(Cost $29,608,984) $ 29,608,984
===============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 4.9% $ 1,535,217
===============
NET ASSETS - 100.0% $ 31,144,201
- --------------------------------------------------------------------------------
UNREALIZED
GAIN(LOSS)
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
June 2005 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value of Contracts
$9,773,920) 148 $ 121,074
===============
UNITS
-----------
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
May 2005 S&P MidCap 400 Index Swap,
Maturing 05/24/05*
(Notional Market Value
$21,911,737) 33,257 $ (41,863)
===============
* Price Return based on S&P MidCap 400 Index +/- financing at a variable
rate.
44 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 95.7%
FINANCIALS 20.1%
BANKS 7.0%
East-West Bancorp, Inc. 9,410 $ 347,417
Silicon Valley Bancshares*+ 7,850 345,871
BancorpSouth, Inc. 15,090 311,458
Pacific Capital Bancorp 10,290 306,436
Chittenden Corp. 11,550 301,108
Citizens Banking Corp./MI 10,000 293,600
Umpqua Holding Corp. 12,490 291,641
FNB Corp. 15,150 290,122
Hancock Holding Co. 8,820 286,650
Cathay General Bancorp 9,070 285,705
Central Pacific Financial Corp. Co. 8,490 285,688
Greater Bay Bancorp+ 11,464 279,836
Southwest Bancorp of Texas, Inc. 15,230 279,471
First Financial Bancorp 15,290 279,043
First Bancorp Puerto Rico+ 6,320 267,020
PrivateBancorp, Inc. 8,330 261,645
TrustCo Bank Corp./NY 22,410 257,491
Hanmi Financial Corp. 14,950 247,423
Community Bank System, Inc. 10,170 232,995
Oriental Financial Group 9,500 222,490
Irwin Financial Corp. 9,380 215,928
Nara Bancorp, Inc. 12,180 171,129
First Midwest Bancorp, Inc./IL 4,030 130,894
Prosperity Bancshares, Inc. 2,350 62,252
Signature Bank/New York NY* 1,560 41,356
---------------
TOTAL BANKS 6,294,669
---------------
REAL ESTATE 6.7%
Jones Lang LaSalle, Inc.* 7,900 368,535
Prentiss Properties Trust 10,040 342,966
First Industrial Realty Trust, Inc. 8,860 335,174
Brandywine Realty Trust 11,340 322,056
New Century Financial Corp. 6,710 314,162
Corporate Office Properties Trust
SBI/MD 10,670 282,542
LaSalle Hotel Properties 9,350 271,617
American Home Mortgage
Investment Corp. 9,370 268,357
Parkway Properties, Inc./MD 5,637 263,248
Glimcher Realty Trust 11,010 260,937
Sovran Self Storage, Inc. 6,550 259,577
Impac Mortgage Holdings, Inc. 13,510 259,122
Colonial Properties Trust 6,720 258,115
CRT Properties, Inc. 11,760 256,133
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Mid-America Apartment
Communities, Inc. 6,800 $ 248,200
Redwood Trust, Inc.+ 4,790 245,152
National Health Investors, Inc. 9,180 238,496
Cousins Properties, Inc. 8,990 232,571
MFA Mortgage Investments, Inc. 29,220 222,364
Anthracite Capital, Inc. 19,560 217,898
Bedford Property Investors, Inc. 8,030 175,295
Capstead Mortgage Corp.+ 19,370 165,614
Essex Property Trust, Inc.+ 1,260 86,864
Luminent Mortgage Capital, Inc. 3,840 42,163
Newcastle Investment Corp. 1,420 42,032
HomeBanc Corp./Atlanta GA 4,700 41,548
Anworth Mortgage Asset Corp. 4,260 40,683
Strategic Hotel Capital, Inc. 1,731 25,446
MortgageIT Holdings, Inc.+ 550 8,773
---------------
TOTAL REAL ESTATE 6,095,640
---------------
THRIFTS & MORTGAGE FINANCE 2.4%
MAF Bancorp, Inc. 7,230 300,334
Corus Bankshares, Inc. 6,000 286,140
Harbor Florida Bancshares, Inc. 8,230 280,643
BankAtlantic Bancorp, Inc. -- Class A 14,790 257,346
Commercial Capital Bancorp, Inc.+ 11,870 241,554
Flagstar Bancorp, Inc.+ 11,078 216,575
NetBank, Inc. 24,700 209,456
Dime Community Bancshares 8,230 125,096
Franklin Bank Corp./Houston TX* 7,150 123,338
Federal Agricultural Mortgage Corp. 6,420 112,286
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 2,152,768
---------------
INSURANCE 2.4%
ProAssurance Corp.* 7,900 312,050
RLI Corp. 7,230 299,684
Delphi Financial Group, Inc. --
Class A 6,390 274,770
Triad Guaranty, Inc.* 4,490 236,219
Universal American Financial Corp.* 13,610 235,453
Argonaut Group, Inc.* 10,624 225,441
Direct General Corp. 8,320 170,893
Selective Insurance Group, Inc. 2,610 120,660
Infinity Property & Casualty Corp. 3,170 99,094
Zenith National Insurance Corp. 1,270 65,862
American Equity Investment Life
Holding Co. 4,510 57,683
UICI 1,420 34,435
---------------
TOTAL INSURANCE 2,132,244
---------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 45
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CAPITAL MARKETS 0.9%
National Financial Partners Corp. 8,480 $ 337,504
MCG Capital Corp. 15,730 242,006
Piper Jaffray Cos., Inc.* 3,740 136,847
Affiliated Managers Group*+ 1,010 62,650
Gabelli Asset Management, Inc. --
Class A 1,170 52,240
Ladenburg Thalmann Financial
Services, Inc.* 2,466 1,677
---------------
TOTAL CAPITAL MARKETS 832,924
---------------
CONSUMER FINANCE 0.4%
World Acceptance Corp.* 5,040 128,621
Metris Companies, Inc.* 10,949 126,899
Collegiate Funding Services LLC* 4,790 74,628
---------------
TOTAL CONSUMER FINANCE 330,148
---------------
DIVERSIFIED FINANCIALS 0.3%
GATX Corp.+ 8,150 270,498
Encore Capital Group, Inc.* 1,220 17,751
---------------
TOTAL DIVERSIFIED FINANCIALS 288,249
---------------
TOTAL FINANCIALS 18,126,642
---------------
INFORMATION TECHNOLOGY 16.0%
SOFTWARE 3.5%
Kronos, Inc./MA* 6,890 352,148
Parametric Technology Corp.*+ 59,970 335,232
Transaction Systems Architects,
Inc. -- Class A* 14,360 332,434
Ansys, Inc.* 9,530 326,021
Progress Software Corp.* 12,220 320,409
Micros Systems, Inc.* 8,320 305,427
Macrovision Corp.*+ 12,770 291,028
Epicor Software Corp.* 19,450 254,795
Borland Software Corp.* 25,890 210,227
Magma Design Automation, Inc.* 11,710 138,998
Aspect Communications Corp.* 11,254 117,154
Quest Software, Inc.* 6,801 94,126
MicroStrategy, Inc. -- Class A*+ 1,000 54,270
Advent Software, Inc.* 2,610 47,450
---------------
TOTAL SOFTWARE 3,179,719
---------------
SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 3.0%
Tessera Technologies, Inc.*+ 8,143 352,022
Varian Semiconductor Equipment
Associates, Inc.*+ 8,820 335,248
ATMI, Inc.* 12,560 314,502
Cymer, Inc.* 9,740 260,740
ON Semiconductor Corp.*+ 59,700 235,815
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MKS Instruments, Inc.* 14,830 $ 235,500
Micrel, Inc.*+ 24,950 230,039
Kulicke & Soffa Industries, Inc.* 30,450 191,531
AMIS Holdings, Inc.* 16,260 183,575
Axcelis Technologies, Inc.*+ 14,420 105,266
Sigmatel, Inc.* 2,000 74,860
OmniVision Technologies, Inc.*+ 4,920 74,538
Brooks Automation, Inc.*+ 3,840 58,291
Skyworks Solutions, Inc.*+ 6,470 41,085
Pixelworks, Inc.* 190 1,549
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 2,694,561
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.4%
Coherent, Inc.* 9,840 332,199
Agilsys, Inc. 14,440 283,890
CTS Corp. 19,320 251,160
TTM Technologies, Inc.* 22,540 235,768
Littelfuse, Inc.* 7,760 222,324
Paxar Corp.* 8,960 191,206
BEI Technologies, Inc. 7,900 189,363
Anixter International, Inc.*+ 4,870 176,051
Trimble Navigation Ltd.* 4,100 138,621
Taser International, Inc.*+ 10,990 131,880
Aeroflex, Inc.* 2,940 27,430
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 2,179,892
---------------
INTERNET SOFTWARE & SERVICES 2.1%
Digitas, Inc.*+ 29,450 297,445
DoubleClick, Inc.*+ 38,230 294,371
EarthLink, Inc.* 30,220 271,980
Equinix, Inc.*+ 6,090 257,850
WebEx Communications, Inc.*+ 11,930 257,569
Sohu.com, Inc.* 12,690 223,090
Jupitermedia Corp.* 10,880 168,749
Travelzoo, Inc.* 2,010 99,937
FindWhat.com* 1,310 13,585
---------------
TOTAL INTERNET SOFTWARE & SERVICES 1,884,576
---------------
COMMUNICATIONS EQUIPMENT 1.7%
F5 Networks, Inc.*+ 7,400 373,626
Extreme Networks, Inc.* 43,310 255,096
CommScope, Inc.* 16,300 243,848
Sycamore Networks, Inc.* 53,600 190,816
Inter-Tel, Inc. 7,720 189,140
Arris Group, Inc.*+ 26,880 185,741
Black Box Corp. 3,360 125,697
---------------
TOTAL COMMUNICATIONS EQUIPMENT 1,563,964
---------------
46 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
IT CONSULTING & SERVICES 1.7%
BISYS Group, Inc.*+ 23,380 $ 366,598
CACI International, Inc. -- Class A* 5,630 310,945
Euronet Worldwide, Inc.* 10,510 300,061
CSG Systems International, Inc.* 16,220 264,224
iPayment Holdings, Inc.* 5,410 228,302
Sapient Corp.*+ 9,720 71,393
---------------
TOTAL IT CONSULTING & SERVICES 1,541,523
---------------
COMPUTERS & PERIPHERALS 1.6%
Intergraph Corp.* 10,760 309,996
Brocade Communications Systems,
Inc.*+ 50,410 298,427
Komag, Inc.*+ 11,430 255,460
Electronics for Imaging, Inc.*+ 13,120 234,061
PalmOne, Inc.*+ 6,870 174,361
McData Corp. -- Class A* 28,480 107,370
Gateway, Inc.*+ 21,950 88,458
---------------
TOTAL COMPUTERS & PERIPHERALS 1,468,133
---------------
TOTAL INFORMATION TECHNOLOGY 14,512,368
---------------
INDUSTRIALS 14.6%
COMMERCIAL SERVICES & SUPPLIES 3.4%
Teletech Holdings, Inc.*+ 26,480 342,122
Brady Corp. -- Class A 10,160 328,676
Mobile Mini, Inc.* 8,020 324,088
Heidrick & Struggles International,
Inc.* 7,970 293,057
Imagistics International, Inc.* 8,060 281,536
Kelly Services, Inc. 8,900 256,231
Bowne & Co., Inc. 16,750 251,920
Resources Connection, Inc.*+ 12,020 251,579
Sotheby's Holdings, Inc. -- Class A*+ 14,200 240,832
Korn/Ferry International, Inc.* 11,340 215,800
Jackson Hewitt Tax Service, Inc.+ 5,040 105,437
Rollins, Inc. 3,785 70,401
School Specialty, Inc.* 1,180 46,209
NCO Group, Inc.* 2,230 43,596
Tetra Tech, Inc.* 3,190 40,258
Waste Connections, Inc.* 310 10,772
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 3,102,514
---------------
MACHINERY 3.2%
Toro Co.+ 4,580 405,330
Kennametal, Inc. 7,470 354,750
Terex Corp.*+ 7,640 330,812
Watts Industries, Inc. -- Class A. 8,950 291,859
Wabtec Corp. 13,820 283,172
EnPro Industries, Inc.* 8,020 220,550
Mueller Industries, Inc. 7,810 219,852
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Barnes Group, Inc. 7,980 $ 216,817
Middleby Corp. 3,930 194,142
Gardner Denver, Inc.* 3,820 150,928
Tecumseh Products Co. -- Class A 3,250 128,733
Wabash National Corp.+ 4,280 104,432
---------------
TOTAL MACHINERY 2,901,377
---------------
ROAD & RAIL 1.6%
Kansas City Southern*+ 17,810 343,021
Swift Transportation Co., Inc.*+ 14,160 313,502
Dollar Thrifty Automotive Group,
Inc.* 9,520 312,066
Amerco, Inc.* 4,698 217,517
Old Dominion Freight Line, Inc.* 5,710 177,866
USF Corp. 2,260 109,068
---------------
TOTAL ROAD & RAIL 1,473,040
---------------
AEROSPACE & DEFENSE 1.5%
Aviall, Inc.* 11,760 329,280
Moog, Inc. -- Class A* 7,070 319,564
DRS Technologies, Inc.* 7,180 305,150
Cubic Corp. 10,330 195,650
Curtiss-Wright Corp. 1,510 86,070
Orbital Sciences Corp.* 7,719 74,720
EDO Corp. 2,100 63,105
Teledyne Technologies, Inc.* 250 7,825
---------------
TOTAL AEROSPACE & DEFENSE 1,381,364
---------------
ELECTRICAL EQUIPMENT 1.4%
Thomas & Betts Corp.* 12,060 389,538
Woodward Governor Co. 3,860 276,762
II-Vi, Inc.* 12,430 216,779
GrafTech International Ltd.*+ 23,360 132,919
Energy Conversion Devices, Inc.*+ 4,910 111,604
A.O. Smith Corp. 2,230 64,380
General Cable Corp.* 3,274 39,517
---------------
TOTAL ELECTRICAL EQUIPMENT 1,231,499
---------------
BUILDING PRODUCTS 0.9%
Jacuzzi Brands, Inc.* 32,157 313,852
York International Corp.+ 7,641 299,375
Trex Co., Inc.*+ 5,120 227,379
---------------
TOTAL BUILDING PRODUCTS 840,606
---------------
CONSTRUCTION & ENGINEERING 0.9%
Washington Group International,
Inc.*+ 6,920 311,331
Shaw Group, Inc.*+ 14,100 307,380
EMCOR Group, Inc.* 3,150 147,483
Mastec, Inc.* 150 1,231
---------------
TOTAL CONSTRUCTION & ENGINEERING 767,425
---------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 47
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AIRLINES 0.6%
Republic Airways Holdings, Inc.* 17,540 $ 219,250
Alaska Air Group, Inc.*+ 5,460 160,742
ExpressJet Holdings, Inc.*+ 7,650 87,287
Continental Airlines, Inc. --
Class B*+ 5,340 64,294
---------------
TOTAL AIRLINES 531,573
---------------
TRADING COMPANIES & DISTRIBUTORS 0.5%
Watsco, Inc. 4,530 190,713
Applied Industrial Technologies, Inc. 4,415 120,088
WESCO International, Inc.* 3,480 97,440
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 408,241
---------------
AIR FREIGHT & COURIERS 0.3%
Pacer International, Inc.* 7,460 178,219
EGL, Inc.*+ 3,250 74,100
---------------
TOTAL AIR FREIGHT & COURIERS 252,319
---------------
MARINE 0.2%
Kirby Corp.* 4,535 190,606
---------------
TOTAL MARINE 190,606
---------------
INDUSTRIAL CONGLOMERATES 0.1%
Tredegar Corp. 7,073 119,251
---------------
TOTAL INDUSTRIAL CONGLOMERATES 119,251
---------------
TOTAL INDUSTRIALS 13,199,815
---------------
CONSUMER DISCRETIONARY 14.3%
HOTELS RESTAURANTS & LEISURE 3.2%
La Quinta Corp.* 39,990 339,915
Ameristar Casinos, Inc. 5,800 317,144
Rare Hospitality International, Inc.* 9,840 303,859
Landry's Restaurants, Inc. 9,570 276,764
Sunterra Corp.* 17,660 266,313
Steak n Shake Co.* 12,690 245,552
Six Flags, Inc.* 49,770 205,052
Vail Resorts, Inc.* 7,760 195,940
P.F. Chang's China Bistro, Inc.* 3,030 181,194
Isle of Capri Casinos, Inc.* 4,790 127,127
Multimedia Games, Inc.* 16,320 126,643
Krispy Kreme Doughnuts, Inc.*+ 10,464 79,840
Bluegreen Corp.* 5,340 68,619
Red Robin Gourmet Burgers, Inc.* 980 49,892
Life Time Fitness, Inc.* 1,760 47,485
CKE Restaurants, Inc.*+ 2,430 38,516
Marcus Corp. 340 6,970
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 2,876,825
---------------
SPECIALTY RETAIL 3.1%
Cato Corp. -- Class A 9,410 303,472
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Charming Shoppes, Inc.* 33,440 $ 271,867
Pantry, Inc.* 8,480 262,626
Sonic Automotive, Inc. 11,380 258,440
United Auto Group, Inc. 9,210 256,314
Group 1 Automotive, Inc.* 8,750 230,125
West Marine, Inc.*+ 10,250 217,915
Movie Gallery, Inc.+ 6,950 199,326
Select Comfort Corp.* 6,970 142,467
Finish Line, Inc. -- Class A 6,050 140,058
Bebe Stores, Inc. 3,660 124,257
Cost Plus, Inc.* 3,780 101,606
Sports Authority, Inc.*+ 3,360 92,400
HOT Topic, Inc.*+ 3,780 82,593
Christopher & Banks Corp.+ 3,120 54,912
Guess ?, Inc.* 2,980 40,826
Payless Shoesource, Inc.*+ 2,480 39,159
---------------
TOTAL SPECIALTY RETAIL 2,818,363
---------------
MEDIA 2.5%
RH Donnelley Corp.*+ 5,950 345,635
Insight Communications Co., Inc.*+ 26,540 314,499
Entravision Communications Corp. --
Class A* 31,070 275,591
Cumulus Media, Inc. -- Class A* 18,740 267,045
Reader's Digest Association, Inc. 13,510 233,858
Mediacom Communications Corp.* 35,650 233,151
Lin TV Corp. -- Class A*+ 13,110 221,952
Emmis Communications Corp. --
Class A*+ 11,180 214,880
Sinclair Broadcast Group, Inc. --
Class A 9,820 78,855
Primedia, Inc.* 8,980 39,063
---------------
TOTAL MEDIA 2,224,529
---------------
HOUSEHOLD DURABLES 1.7%
Yankee Candle Co., Inc.* 10,800 342,360
WCI Communities, Inc.*+ 10,420 313,433
Ethan Allen Interiors, Inc.+ 8,280 264,960
Brookfield Homes Corp. 5,920 249,883
Interface, Inc. -- Class A* 17,130 116,827
Champion Enterprises, Inc.* 12,250 115,150
Blount International, Inc.* 3,110 52,808
Tempur-Pedic International, Inc.*+ 2,770 51,688
Beazer Homes USA, Inc.+ 880 43,877
Libbey, Inc. 4 84
---------------
TOTAL HOUSEHOLD DURABLES 1,551,070
---------------
TEXTILES & APPAREL 1.1%
K-Swiss, Inc. -- Class A 9,850 325,346
48 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Brown Shoe Co., Inc. 9,030 $ 309,458
Oxford Industries, Inc. 6,390 233,810
Warnaco Group, Inc.* 4,950 118,998
---------------
TOTAL TEXTILES & APPAREL 987,612
---------------
AUTO COMPONENTS 1.0%
Goodyear Tire & Rubber Co.*+ 27,600 368,460
Tenneco Automotive, Inc.* 16,510 205,715
Superior Industries International,
Inc.+ 6,050 159,780
Exide Technologies*+ 9,410 121,389
ArvinMeritor, Inc. 920 14,232
---------------
TOTAL AUTO COMPONENTS 869,576
---------------
LEISURE EQUIPMENT & PRODUCTS 0.6%
SCP Pool Corp. 11,090 353,327
K2, Inc.* 17,630 242,413
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 595,740
---------------
INTERNET & CATALOG RETAIL 0.5%
1-800-FLOWERS.com, Inc.* 27,290 206,586
Priceline.com, Inc.*+ 6,330 159,516
Coldwater Creek, Inc.* 3,211 59,339
---------------
TOTAL INTERNET & CATALOG RETAIL 425,441
---------------
MULTILINE RETAIL 0.3%
ShopKo Stores, Inc.* 13,100 291,082
---------------
TOTAL MULTILINE RETAIL 291,082
---------------
AUTOMOBILES 0.3%
Winnebago Industries, Inc.+ 7,470 236,052
Thor Industries, Inc. 1,540 46,061
---------------
TOTAL AUTOMOBILES 282,113
---------------
TOTAL CONSUMER DISCRETIONARY 12,922,351
---------------
HEALTH CARE 11.4%
HEALTH CARE EQUIPMENT & SUPPLIES 3.8%
Steris Corp.* 15,150 382,537
Intuitive Surgical, Inc.*+ 8,360 380,129
Haemonetics Corp./MA* 7,810 329,270
Conmed Corp.* 10,370 312,344
West Pharmaceutical Services, Inc. 11,430 273,177
Kyphon, Inc.*+ 10,670 268,564
Analogic Corp. 5,965 257,986
Laserscope* 7,760 246,302
Varian, Inc.* 5,350 202,712
Align Technology, Inc.* 25,298 157,860
SonoSite, Inc.*+ 5,920 153,802
Mentor Corp.+ 4,230 135,783
Biosite, Inc.*+ 2,080 108,222
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Thoratec Corp.* 7,429 $ 90,782
Intermagnetics General Corp.* 3,190 77,645
Wilson Greatbatch Technologies,
Inc.* 3,649 66,558
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 3,443,673
---------------
HEALTH CARE PROVIDERS & SERVICES 3.5%
Cerner Corp.*+ 6,530 342,890
Chemed Corp.+ 4,330 331,158
Magellan Health Services, Inc.* 8,770 298,618
IDX Systems Corp.* 8,070 280,271
NDCHealth Corp. 15,080 240,978
Eclipsys Corp.* 14,020 217,030
eResearch Technology, Inc.* 17,890 210,744
Per-Se Technologies, Inc.* 13,517 207,486
Apria Healthcare Group, Inc.* 6,180 198,378
American Healthways, Inc.*+ 5,490 181,280
Pediatrix Medical Group, Inc.* 2,040 139,924
AMN Healthcare Services, Inc.* 7,320 116,461
Hanger Orthopedic Group, Inc.* 19,470 115,847
Odyssey HealthCare, Inc.* 7,151 84,096
Advisory Board Co.* 1,600 69,920
Genesis HealthCare Corp.* 1,370 58,759
HealthExtras, Inc.* 2,768 46,087
WellCare Health Plans, Inc.*+ 1,380 42,035
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 3,181,962
---------------
BIOTECHNOLOGY 2.8%
Transkaryotic Therapies, Inc.* 11,260 281,106
Human Genome Sciences, Inc.* 29,260 269,777
Vertex Pharmaceuticals, Inc.* 26,720 250,099
Cubist Pharmaceuticals, Inc.* 23,170 246,065
Alexion Pharmaceuticals, Inc.*+ 11,180 242,215
Enzo Biochem, Inc.* 13,683 197,309
Exelixis, Inc.* 28,940 196,213
NPS Pharmaceuticals, Inc.* 15,400 194,348
Vicuron Pharmaceuticals, Inc.* 11,610 182,974
Medarex, Inc.* 20,980 149,587
United Therapeutics Corp.*+ 3,020 137,999
Abgenix, Inc.* 17,940 125,580
Serologicals Corp.*+ 2,940 71,854
---------------
TOTAL BIOTECHNOLOGY 2,545,126
---------------
PHARMACEUTICALS 1.3%
Kos Pharmaceuticals, Inc.* 6,770 282,174
Par Pharmaceutical Cos., Inc.*+ 8,230 275,211
Bone Care International, Inc.* 9,410 244,095
Alpharma, Inc. -- Class A 13,780 169,770
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 49
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
First Horizon Pharmaceutical Corp.* 6,040 $ 101,955
Connetics Corp.*+ 2,492 63,023
---------------
TOTAL PHARMACEUTICALS 1,136,228
---------------
TOTAL HEALTH CARE 10,306,989
---------------
ENERGY 6.5%
OIL & GAS 4.1%
Vintage Petroleum, Inc.+ 14,070 442,642
Whiting Petroleum Corp.* 9,664 394,098
Frontier Oil Corp. 10,630 385,444
Forest Oil Corp.*+ 9,440 382,320
Holly Corp. 9,760 363,755
Stone Energy Corp.* 6,710 325,905
Tesoro Corp.*+ 8,170 302,453
Spinnaker Exploration Co.* 8,150 289,570
Meridian Resource Corp.* 42,437 218,975
Cimarex Energy Co.*+ 3,278 127,842
Resource America, Inc. -- Class A 3,270 114,597
Overseas Shipholding Group, Inc. 1,480 93,107
Swift Energy Co.* 3,230 91,861
Giant Industries, Inc.* 2,940 75,558
Comstock Resources, Inc.* 2,520 72,425
Energy Partners Ltd.* 2,167 56,277
---------------
TOTAL OIL & GAS 3,736,829
---------------
ENERGY EQUIPMENT & SERVICES 2.4%
Maverick Tube Corp.* 10,250 333,228
Global Industries, Ltd.* 33,910 318,754
Unit Corp.*+ 6,760 305,349
Cal Dive International, Inc.*+ 6,560 297,168
Universal Compression Holdings,
Inc.* 7,560 286,297
Atwood Oceanics, Inc.* 3,180 211,597
Newpark Resources, Inc.* 24,360 143,481
Veritas DGC, Inc.* 3,315 99,317
Offshore Logistics, Inc.* 2,270 75,636
Lone Star Technologies, Inc.* 1,590 62,694
Todco -- Class A* 1,030 26,615
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 2,160,136
---------------
TOTAL ENERGY 5,896,965
---------------
MATERIALS 5.7%
CHEMICALS 2.6%
Cytec Industries, Inc.+ 7,520 407,960
Airgas, Inc.+ 13,350 318,931
Georgia Gulf Corp. 6,820 313,584
PolyOne Corp.* 32,400 287,712
MacDermid, Inc.+ 8,440 274,300
Arch Chemicals, Inc. 9,070 258,223
FMC Corp.* 4,200 224,490
W.R. Grace & Co.*+ 16,949 144,405
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Minerals Technologies, Inc. 900 $ 59,202
Westlake Chemical Corp. 1,490 48,202
---------------
TOTAL CHEMICALS 2,337,009
---------------
METALS & MINING 1.7%
Allegheny Technologies, Inc. 16,930 408,182
Cleveland-Cliffs, Inc.+ 4,786 348,756
Stillwater Mining Co.* 23,400 230,490
Oregon Steel Mills, Inc.* 8,940 205,620
AK Steel Holding Corp.* 14,140 156,388
Wheeling-Pittsburgh Corp.* 3,490 108,365
Hecla Mining Co.*+ 10,100 55,348
---------------
TOTAL METALS & MINING 1,513,149
---------------
CONTAINERS & PACKAGING 0.8%
AptarGroup, Inc. 7,200 374,256
Silgan Holdings, Inc. 4,580 297,608
Crown Holdings, Inc.* 3,450 53,682
---------------
TOTAL CONTAINERS & PACKAGING 725,546
---------------
PAPER & FOREST PRODUCTS 0.4%
Potlatch Corp. 6,810 320,547
---------------
TOTAL PAPER & FOREST PRODUCTS 320,547
---------------
CONSTRUCTION MATERIALS 0.2%
Texas Industries, Inc. 4,220 226,825
---------------
TOTAL CONSTRUCTION MATERIALS 226,825
---------------
TOTAL MATERIALS 5,123,076
---------------
UTILITIES 3.4%
ELECTRIC UTILITIES 1.4%
Sierra Pacific Resources*+ 31,000 333,250
Cleco Corp. 15,000 319,500
IDACORP, Inc.+ 10,726 304,297
UIL Holding Corp. 1,890 95,728
Otter Tail Power Co. 3,820 95,653
PNM Resources, Inc.+ 3,060 81,641
---------------
TOTAL ELECTRIC UTILITIES 1,230,069
---------------
GAS UTILITIES 1.3%
Southern Union Co.*+ 14,750 370,372
Atmos Energy Corp. 13,520 365,040
Laclede Group, Inc. 8,990 262,508
South Jersey Industries, Inc. 3,994 225,262
---------------
TOTAL GAS UTILITIES 1,223,182
---------------
MULTI-UTILITIES 0.5%
CMS Energy Corp.*+ 35,780 466,571
---------------
TOTAL MULTI-UTILITIES 466,571
---------------
WATER UTILITIES 0.2%
American States Water Co. 6,550 165,715
---------------
TOTAL WATER UTILITIES 165,715
---------------
TOTAL UTILITIES 3,085,537
---------------
50 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONSUMER STAPLES 2.6%
FOOD PRODUCTS 1.0%
Chiquita Brands International, Inc.+ 13,530 $ 362,333
Sanderson Farms, Inc. 6,080 262,717
Ralcorp Holdings, Inc.+ 2,470 116,954
Lance, Inc. 4,280 68,780
American Italian Pasta Co. --
Class A+ 1,270 34,798
---------------
TOTAL FOOD PRODUCTS 845,582
---------------
FOOD & DRUG RETAILING 0.9%
Longs Drug Stores Corp.+ 10,620 363,416
Central European Distribution
Corp.* 8,680 288,957
Smart & Final, Inc.* 13,350 162,336
---------------
TOTAL FOOD & DRUG RETAILING 814,709
---------------
PERSONAL PRODUCTS 0.3%
Nu Skin Enterprises, Inc.+ 13,070 294,206
Playtex Products, Inc.* 550 4,950
---------------
TOTAL PERSONAL PRODUCTS 299,156
---------------
HOUSEHOLD PRODUCTS 0.2%
Central Garden and Pet Co.* 4,700 206,142
---------------
TOTAL HOUSEHOLD PRODUCTS 206,142
---------------
TOBACCO 0.2%
Vector Group Ltd. 10,260 157,799
---------------
TOTAL TOBACCO 157,799
---------------
TOTAL CONSUMER STAPLES 2,323,388
---------------
TELECOMMUNICATION SERVICES 1.1%
DIVERSIFIED TELECOMMUNICATION
SERVICES 0.6%
Premiere Global Services, Inc.*+ 26,230 296,923
Time Warner Telecom, Inc. --
Class A* 29,245 116,103
Golden Telecom, Inc.+ 4,230 108,288
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 521,314
---------------
WIRELESS TELECOMMUNICATION
SERVICES 0.5%
USA Mobility, Inc.* 8,370 271,188
Dobson Communications Corp. --
Class A*+ 48,840 98,657
Ubiquitel, Inc.* 11,010 73,767
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 443,612
---------------
TOTAL TELECOMMUNICATION SERVICES 964,926
---------------
TOTAL COMMON STOCKS
(Cost $77,049,731) 86,462,057
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 15.9%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $ 4,311,456 $ 4,311,456
2.60% due 04/01/05 3,233,592 3,233,592
2.57% due 04/01/05 3,233,592 3,233,592
2.55% due 04/01/05 3,613,408 3,613,408
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $14,392,048) 14,392,048
---------------
SECURITIES LENDING COLLATERAL 14.2%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 12,796,731 12,796,731
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $12,796,731) 12,796,731
---------------
TOTAL INVESTMENTS 125.8%
(Cost $104,238,510) $ 113,650,836
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (25.8)% $ (23,311,699)
===============
NET ASSETS - 100.0% $ 90,339,137
- ------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
June 2005 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $26,050,560) 424 $ (58,814)
---------------
UNITS
-----------
EQUITY INDEX SWAP AGREEMENT
May 2005 Russell 2000 Index Swap,
Maturing 05/24/05**
(Notional Market Value
$23,063,082) 37,497 $ (277,861)
---------------
* NON-INCOME PRODUCING SECURITY.
** PRICE RETURN BASED ON RUSSELL 2000 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
9.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 51
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
INVERSE SMALL-CAP FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 94.8%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $14,533,932 $ 14,533,932
2.60% due 04/01/05 10,900,448 10,900,448
2.57% due 04/01/05 10,900,448 10,900,448
2.55% due 04/01/05 12,180,810 12,180,810
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $48,515,638) 48,515,638
---------------
TOTAL INVESTMENTS 94.8%
(Cost $48,515,638) $ 48,515,638
===============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 5.2% $ 2,670,499
===============
NET ASSETS - 100.0% $ 51,186,137
- ------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
June 2005 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $10,383,360) 169 $ 240,835
---------------
UNITS
-----------
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
May 2005 Russell 2000 Index Swap,
Maturing 05/24/05*
(Notional Market Value
$41,178,680) 66,950 $ 443,792
---------------
* PRICE RETURN BASED ON RUSSELL 2000 INDEX +/- FINANCING AT A VARIABLE RATE.
52 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 94.4%
U.S. Treasury Bond
5.38% due 02/15/31 $79,531,000 $ 86,813,057
---------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $79,481,057) 86,813,057
---------------
REPURCHASE AGREEMENTS 4.1%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 1,127,737 1,127,737
2.60% due 04/01/05 845,803 845,803
2.57% due 04/01/05 845,803 845,803
2.55% due 04/01/05 945,150 945,150
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,764,493) 3,764,493
---------------
TOTAL INVESTMENTS 98.5%
(Cost $83,245,550) $ 90,577,550
===============
OTHER ASSETS IN EXCESS OF
LIABILITIES - 1.5% $ 1,405,545
===============
NET ASSETS - 100.0% $ 91,983,095
- ------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
June 2005 U.S. Treasury Bond
Futures Contracts
(Aggregate Market Value of
Contracts $33,867,500) 304 $ (61,627)
---------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 53
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
JUNO MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 76.9%
Farmer Mac*
2.57% due 04/27/05 $ 100,000,000 $ 99,814,389
2.71% due 05/20/05 50,000,000 49,815,569
2.84% due 05/31/05 50,000,000 49,763,333
2.71% due 04/26/05 25,000,000 24,952,951
Federal Home Loan Bank*
2.50% due 04/06/05 50,000,000 49,982,639
2.50% due 04/08/05 50,000,000 49,975,694
2.51% due 04/08/05 50,000,000 49,975,646
2.51% due 04/13/05 50,000,000 49,958,167
2.55% due 04/20/05 50,000,000 49,932,708
2.55% due 04/22/05 50,000,000 49,925,625
2.58% due 04/22/05 50,000,000 49,924,750
2.59% due 04/29/05 50,000,000 49,899,278
2.72% due 05/06/05 50,000,000 49,867,778
2.60% due 05/17/05 50,000,000 49,833,889
2.73% due 05/18/05 50,000,000 49,821,792
2.71% due 05/19/05 50,000,000 49,819,333
2.78% due 05/25/05 50,000,000 49,791,500
2.79% due 05/26/05 50,000,000 49,786,875
2.78% due 05/27/05 50,000,000 49,783,778
2.79% due 06/07/05 50,000,000 49,740,375
2.80% due 06/08/05 50,000,000 49,735,555
2.95% due 07/01/05 50,000,000 49,627,153
2.50% due 04/14/05 25,000,000 24,977,431
2.48% due 04/15/05 25,000,000 24,975,889
2.53% due 04/20/05 25,000,000 24,966,618
2.70% due 04/15/05 16,000,000 15,983,200
Freddie Mac*
2.91% due 06/14/05 100,000,000 99,401,833
2.54% due 04/20/05 75,000,000 74,899,458
2.42% due 04/05/05 50,000,000 49,986,556
2.56% due 04/12/05 50,000,000 49,960,889
2.55% due 04/22/05 50,000,000 49,925,625
2.58% due 04/25/05 50,000,000 49,914,000
2.59% due 04/25/05 50,000,000 49,913,667
2.58% due 04/28/05 50,000,000 49,903,250
2.70% due 05/04/05 50,000,000 49,876,250
2.64% due 05/10/05 50,000,000 49,857,000
2.68% due 05/11/05 50,000,000 49,851,111
2.63% due 05/17/05 50,000,000 49,831,972
2.64% due 05/17/05 50,000,000 49,831,333
2.72% due 05/24/05 50,000,000 49,799,778
2.75% due 05/24/05 50,000,000 49,797,569
2.75% due 05/31/05 50,000,000 49,771,250
2.63% due 05/03/05 25,000,000 24,941,555
2.75% due 05/17/05 25,000,000 24,912,153
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $2,135,007,164) 2,135,007,164
---------------
MARKET
VALUE
CONTACTS (NOTE 1)
- ------------------------------------------------------------------------------
OPTIONS PURCHASED 0.0%
Call Options on:
June 2005 U.S. Treasury Bond
Index Futures Contracts
Expiring June 2005 with
strike price of 1280 7,172 $ 112,062
June 2005 U.S. Treasury Bond
Index Futures Contracts
Expiring June 2005 with
strike price of 1190 108 1,688
June 2005 U.S. Treasury Bond
Index Futures Contracts
Expiring June 2005 with
strike price of 1210 75 1,172
---------------
TOTAL OPTIONS PURCHASED
(Cost $149,861) 114,922
---------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 107.0%
Joint Repurchase Agreement (Note 6)
2.63% due 04/01/05 $ 216,355,302 216,355,302
2.60% due 04/01/05 162,266,478 162,266,478
2.57% due 04/01/05 162,266,478 162,266,478
2.55% due 04/01/05 181,326,217 181,326,217
Individual Repurchase Agreement
Lehman Brothers, Inc. at 1.65%
due 04/01/05
(Secured by U.S. Treasury Bonds,
at a rate of 5.38% and maturing
02/15/31 as collateral, with a
Market Value of $1,420,193,699)
and a Maturity Value of
$1,392,373,814 1,392,310,000 1,392,310,000
Individual Repurchase Agreement
Citigroup Global Market at 1.60%
due 04/01/05
(Secured by U.S. Treasury Bonds,
at a rate of 5.38% and maturing
02/15/31 as collateral, with
a Market Value of $873,000,000)
and a Maturity Value
of $855,920,392 855,882,353 855,882,353
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,970,406,828) 2,970,406,828
---------------
TOTAL INVESTMENTS 183.9%
(Cost $5,105,563,853) $ 5,105,528,914
===============
54 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
JUNO MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS SOLD SHORT (81.1%)
U.S. Treasury Bond
at 5.38%
due 02/15/31 $2,061,330,000 $(2,250,070,528)
---------------
TOTAL U.S. TREASURY OBLIGATIONS
SOLD SHORT
(Cost $2,259,301,732) $(2,250,070,528)
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (2.8)% $ (79,866,101)
===============
NET ASSETS - 100.0% $ 2,775,592,285
==============================================================================
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
June 2005 U.S. Treasury Bond
Futures Contracts
(Aggregate Market Value of
Contracts $785,414,063) 7,050 $ 9,719,920
===============
* 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 ANNUAL REPORT | 55
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 106.4%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $16,478,906 $ 16,478,906
2.60% due 04/01/05 12,359,180 12,359,180
2.57% due 04/01/05 12,359,180 12,359,180
2.55% due 04/01/05+ 32,060,310 32,060,310
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $73,257,576) 73,257,576
---------------
TOTAL INVESTMENTS 106.4%
(Cost $73,257,576) $ 73,257,576
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (6.4)% $ (4,403,786)
===============
NET ASSETS - 100.0% $ 68,853,790
- ------------------------------------------------------------------------------
UNREALIZED
LOSS
UNITS (NOTE 1)
- ------------------------------------------------------------------------------
EQUITY INDEX SWAP AGREEMENT
June 2005 Dow Jones Europe STOXX 50
Index Swap, Maturing 06/14/05*
(Notional Market Value
$86,056,369) 23,150 $ (3,486,146)
---------------
* 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 EQUITY INDEX SWAP COLLATERAL
AT MARCH 31, 2005.
56 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP JAPAN FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 106.9%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $ 9,026,139 $ 9,026,139
2.60% due 04/01/05 6,769,604 6,769,604
2.57% due 04/01/05 6,769,604 6,769,604
2.55% due 04/01/05+ 18,738,631 18,738,631
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $41,303,978) 41,303,978
---------------
TOTAL INVESTMENTS 106.9%
(Cost $41,303,978) $ 41,303,978
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (6.9)% $ (2,670,812)
===============
NET ASSETS - 100.0% $ 38,633,166
- ------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
June 2005 Nikkei 225
Index Futures Contracts
(Aggregate Market Value of
Contracts $696,000) 12 $ (72)
June 2005 Yen Currency
Exchange Futures Contracts
(Aggregate Market Value of
Contracts $2,580,325) 22 (78,072)
---------------
(TOTAL AGGREGATE MARKET VALUE OF
CONTRACTS $3,276,325) $ (78,144)
===============
UNITS
-----------
EQUITY INDEX SWAP AGREEMENT
June 2005 Topix 100 Index
Swap, Maturing 06/14/05*
(Notional Market Value
$47,664,126) 6,252,388 $ (2,261,655)
===============
* PRICE RETURN BASED ON TOPIX 100 INDEX +/- FINANCING AT A VARIABLE RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT MARCH 31, 2005.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 57
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.7%
INDUSTRIALS 20.1%
COMMERCIAL SERVICES & SUPPLIES 5.1%
Waste Connections, Inc.* 16,709 $ 580,638
United Stationers, Inc.* 11,562 523,180
School Specialty, Inc.* 7,968 312,027
G & K Services, Inc. -- Class A 7,373 297,058
Consolidated Graphics, Inc.* 4,731 248,851
Tetra Tech, Inc.*+ 19,600 247,352
Central Parking Corp. 12,801 219,921
NCO Group, Inc.* 11,184 218,647
Viad Corp. 7,685 206,726
Mobile Mini, Inc.* 5,088 205,606
Imagistics International, Inc.* 5,700 199,101
Bowne & Co., Inc. 12,519 188,286
Spherion Corp.* 21,293 159,485
CDI Corp. 6,946 153,715
Volt Information Sciences, Inc.* 5,290 127,753
Standard Register Co. 9,928 123,604
Insurance Auto Auctions, Inc.* 4,036 112,403
SOURCECORP, Inc.* 5,466 110,085
PRG-Schultz International, Inc.* 21,657 108,502
Angelica Corp. 3,231 90,468
On Assignment, Inc.* 8,781 44,783
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 4,478,191
---------------
MACHINERY 4.6%
Timken Co. 31,512 861,538
Briggs & Stratton Corp.+ 18,000 655,380
Watts Industries, Inc. -- Class A. 11,291 368,199
Mueller Industries, Inc. 12,686 357,111
Albany International Corp. --
Class A 11,113 343,169
Gardner Denver, Inc.* 6,927 273,686
Thomas Industries, Inc. 6,118 242,518
Stewart & Stevenson Services, Inc. 10,010 229,129
Barnes Group, Inc. 8,171 222,006
Valmont Industries, Inc. 8,396 187,399
Astec Industries, Inc.* 6,954 153,336
Robbins & Myers, Inc. 5,035 110,820
Lydall, Inc.* 5,614 62,315
Wolverine Tube, Inc.* 5,200 46,540
---------------
TOTAL MACHINERY 4,113,146
---------------
AEROSPACE & DEFENSE 2.4%
Curtiss-Wright Corp. 7,478 426,246
Moog, Inc. -- Class A* 8,934 403,817
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
DRS Technologies, Inc.* 9,467 $ 402,348
Esterline Technologies Corp.* 8,539 295,022
Triumph Group, Inc.* 5,512 214,637
Cubic Corp. 9,380 177,657
AAR Corp.* 11,306 153,762
Kaman Corp. -- Class A 8,038 100,073
---------------
TOTAL AEROSPACE & DEFENSE 2,173,562
---------------
TRADING COMPANIES & DISTRIBUTORS 1.5%
Hughes Supply, Inc. 23,080 686,630
Watsco, Inc. 9,283 390,814
Applied Industrial Technologies, Inc. 10,305 280,296
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 1,357,740
---------------
CONSTRUCTION & ENGINEERING 1.5%
Shaw Group, Inc.*+ 22,413 488,604
URS Corp.* 15,184 436,540
EMCOR Group, Inc.* 5,266 246,554
Insituform Technologies, Inc. --
Class A* 9,375 136,031
---------------
TOTAL CONSTRUCTION & ENGINEERING 1,307,729
---------------
ROAD & RAIL 1.4%
USF Corp. 9,798 472,851
Kansas City Southern*+ 21,892 421,640
Arkansas Best Corp.+ 8,794 332,237
---------------
TOTAL ROAD & RAIL 1,226,728
---------------
ELECTRICAL EQUIPMENT 1.3%
A.O. Smith Corp. 10,291 297,101
Regal-Beloit Corp.+ 10,118 291,297
Woodward Governor Co. 4,029 288,879
Vicor Corp. 14,700 153,468
C&D Technologies, Inc. 8,867 89,114
MagneTek, Inc.* 9,957 53,071
---------------
TOTAL ELECTRICAL EQUIPMENT 1,172,930
---------------
BUILDING PRODUCTS 1.2%
Lennox International, Inc. 21,056 461,547
Universal Forest Products, Inc. 6,243 242,541
Griffon Corp.*+ 10,200 218,382
Apogee Enterprises, Inc. 9,525 136,017
---------------
TOTAL BUILDING PRODUCTS 1,058,487
---------------
AIRLINES 0.7%
SkyWest, Inc. 20,018 372,135
Frontier Airlines, Inc.* 12,469 130,675
Mesa Air Group, Inc.* 11,030 77,210
---------------
TOTAL AIRLINES 580,020
---------------
58 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES 0.4%
Tredegar Corp. 13,504 $ 227,678
Standex International Corp. 4,358 118,973
---------------
TOTAL INDUSTRIAL CONGLOMERATES 346,651
---------------
TOTAL INDUSTRIALS 17,815,184
---------------
FINANCIALS 19.5%
BANKS 5.5%
South Financial Group, Inc. 24,795 757,239
Whitney Holding Corp. 14,701 654,341
Chittenden Corp. 16,175 421,682
Susquehanna Bancshares, Inc. 16,243 396,004
Provident Bankshares Corp. 11,562 381,084
Umpqua Holding Corp. 15,634 365,054
ABM Industries, Inc. 16,964 326,218
First Republic Bank 8,568 277,346
Community Bank System, Inc. 10,670 244,450
Irwin Financial Corp. 9,910 228,128
Boston Private Financial Holdings,
Inc. 9,600 228,000
Sterling Bancshares, Inc./TX 15,651 222,244
Riggs National Corp. 11,076 211,441
Gold Banc Corp., Inc. 14,000 196,420
---------------
TOTAL BANKS 4,909,651
---------------
THRIFTS & MORTGAGE FINANCE 4.6%
Downey Financial Corp. 9,748 599,794
Fremont General Corp.+ 26,950 592,631
MAF Bancorp, Inc. 11,727 487,140
Flagstar Bancorp, Inc.+ 21,466 419,660
Commercial Federal Corp. 13,699 378,777
Brookline Bancorp, Inc. 20,646 307,625
FirstFed Financial Corp.* 5,733 292,440
Sterling Financial Corp./WA* 7,925 282,923
Bankunited Financial Corp. --
Class A* 10,484 281,600
Anchor BanCorp Wisconsin, Inc. 8,023 225,527
Dime Community Bancshares 13,000 197,600
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 4,065,717
---------------
REAL ESTATE 4.3%
Shurgard Storage Centers, Inc. --
Class A 16,274 666,909
Capital Automotive REIT+ 14,984 496,270
Lexington Corporate
Properties Trust+ 16,941 371,686
Entertainment Properties Trust 8,871 367,526
Colonial Properties Trust 9,540 366,431
Gables Residential Trust 10,178 338,927
Commercial Net Lease Realty 18,121 334,332
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CRT Properties, Inc. 10,900 $ 237,402
Sovran Self Storage, Inc. 5,519 218,718
Parkway Properties, Inc./MD 4,595 214,586
Glenborough Realty Trust, Inc. 11,173 213,628
---------------
TOTAL REAL ESTATE 3,826,415
---------------
INSURANCE 3.9%
Delphi Financial Group, Inc. --
Class A 11,049 475,107
Selective Insurance Group, Inc. 9,678 447,414
ProAssurance Corp.* 10,225 403,887
UICI 15,982 387,564
RLI Corp. 8,771 363,558
Zenith National Insurance Corp. 6,772 351,196
LandAmerica Financial Group, Inc. 6,233 311,837
Stewart Information Services Corp.+ 6,295 236,188
Infinity Property & Casualty Corp. 7,200 225,072
Presidential Life Corp. 10,224 166,447
SCPIE Holdings Inc.* 3,560 39,267
---------------
TOTAL INSURANCE 3,407,537
---------------
CAPITAL MARKETS 0.7%
Investment Technology Group, Inc.* 14,645 256,288
Piper Jaffray Cos., Inc.* 6,966 254,886
SWS Group, Inc. 6,075 97,382
---------------
TOTAL CAPITAL MARKETS 608,556
---------------
CONSUMER FINANCE 0.3%
Cash America International, Inc. 10,029 219,936
Rewards Network, Inc.* 8,700 36,192
---------------
TOTAL CONSUMER FINANCE 256,128
---------------
DIVERSIFIED FINANCIALS 0.2%
Financial Federal Corp. 6,029 213,246
---------------
TOTAL DIVERSIFIED FINANCIALS 213,246
---------------
TOTAL FINANCIALS 17,287,250
---------------
CONSUMER DISCRETIONARY 15.0%
SPECIALTY RETAIL 5.4%
Zale Corp.* 18,140 539,121
Men's Wearhouse, Inc.*+ 12,545 529,524
Burlington Coat Factory Warehouse
Corp. 15,634 448,696
GameStop Corp. -- Class B* 17,700 394,710
Linens `N Things, Inc.*+ 15,728 390,526
PEP Boys-Manny Moe & Jack 19,951 350,739
Sonic Automotive, Inc. 14,405 327,138
Movie Gallery, Inc.+ 10,293 295,203
Stage Stores, Inc.* 6,250 239,937
Jo-Ann Stores, Inc.* 7,850 220,506
TBC Corp.* 7,725 215,218
Group 1 Automotive, Inc.* 8,099 213,004
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 59
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Dress Barn, Inc.* 10,384 $ 189,196
Gymboree Corp.* 10,775 135,119
Haverty Furniture Cos., Inc. 7,935 121,009
Goody's Family Clothing, Inc. 11,417 103,096
Hancock Fabrics, Inc./DE 6,652 49,491
---------------
TOTAL SPECIALTY RETAIL 4,762,233
---------------
HOUSEHOLD DURABLES 3.2%
M.D.C. Holdings, Inc. 14,661 1,021,139
Standard-Pacific Corp.+ 11,654 841,302
La-Z-Boy, Inc. 18,199 253,512
Russ Berrie & Co., Inc. 7,341 140,580
Skyline Corp. 3,011 115,893
Libbey, Inc. 4,775 100,275
National Presto Industries, Inc. 2,418 97,446
Department 56, Inc.* 4,766 83,214
Bassett Furniture Industries, Inc. 4,083 80,435
Applica, Inc.* 8,383 42,418
Enesco Group, Inc.* 4,978 33,104
Fedders Corp. 10,580 29,412
---------------
TOTAL HOUSEHOLD DURABLES 2,838,730
---------------
HOTELS RESTAURANTS & LEISURE 2.7%
Jack in the Box, Inc.* 12,869 477,440
Aztar Corp.*+ 12,134 346,547
Landry's Restaurants, Inc. 9,220 266,642
Pinnacle Entertainment, Inc.* 13,927 232,581
Marcus Corp. 10,520 215,660
Ryan's Restaurant Group, Inc.* 14,586 211,935
Lone Star Steakhouse & Saloon, Inc. 7,155 206,815
Steak n Shake Co.* 9,670 187,115
O'Charleys, Inc.* 7,495 162,941
Multimedia Games, Inc.* 9,800 76,048
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 2,383,724
---------------
TEXTILES & APPAREL 1.1%
Kellwood Co.+ 9,685 278,831
Brown Shoe Co., Inc. 6,358 217,889
Russell Corp. 11,413 206,347
Stride Rite Corp. 12,885 171,370
Ashworth, Inc.* 4,705 53,590
Haggar Corp. 2,519 50,859
---------------
TOTAL TEXTILES & APPAREL 978,886
---------------
LEISURE EQUIPMENT & PRODUCTS 0.7%
K2, Inc.* 16,287 223,946
Jakks Pacific, Inc.* 9,199 197,503
Action Performance Cos., Inc. 6,425 85,003
Sturm Ruger & Co., Inc. 9,400 65,142
Meade Instruments Corp.* 7,022 20,434
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 592,028
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MULTILINE RETAIL 0.5%
Fred's, Inc. 13,700 $ 235,229
ShopKo Stores, Inc.* 10,330 229,533
---------------
TOTAL MULTILINE RETAIL 464,762
---------------
INTERNET & CATALOG RETAIL 0.4%
Insight Enterprises, Inc.* 17,056 299,503
J. Jill Group, Inc.* 7,050 97,008
---------------
TOTAL INTERNET & CATALOG RETAIL 396,511
---------------
AUTO COMPONENTS 0.3%
Superior Industries International,
Inc.+ 8,600 227,126
Standard Motor Products, Inc. 6,979 81,654
---------------
TOTAL AUTO COMPONENTS 308,780
---------------
DISTRIBUTORS 0.3%
Building Material Holding Corp. 4,799 213,459
Advanced Marketing Services, Inc.* 6,687 40,122
---------------
TOTAL DISTRIBUTORS 253,581
---------------
AUTOMOBILES 0.3%
Monaco Coach Corp. 10,300 166,345
Coachmen Industries, Inc. 5,476 74,474
---------------
TOTAL AUTOMOBILES 240,819
---------------
MEDIA 0.1%
4Kids Entertainment, Inc.* 4,680 103,475
---------------
TOTAL MEDIA 103,475
---------------
TOTAL CONSUMER DISCRETIONARY 13,323,529
---------------
INFORMATION TECHNOLOGY 13.5%
SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 4.4%
Varian Semiconductor Equipment
Associates, Inc.*+ 12,750 484,627
Cymer, Inc.*+ 12,900 345,333
Skyworks Solutions, Inc.* 54,296 344,780
FEI Co.* 11,650 269,697
Axcelis Technologies, Inc.*+ 34,900 254,770
DSP Group, Inc.* 9,800 252,448
Brooks Automation, Inc.*+ 15,600 236,808
Photronics, Inc.* 11,365 205,706
Exar Corp.* 14,566 195,184
Dupont Photomasks, Inc.* 6,449 171,995
Veeco Instruments, Inc.* 10,400 156,520
Actel Corp.* 8,879 136,559
Ultratech, Inc.* 8,345 121,837
Cohu, Inc. 7,543 120,311
Standard Microsystems Corp.* 6,457 112,094
Advanced Energy Industries, Inc.* 11,400 110,238
Rudolph Technologies, Inc.*+ 5,885 88,628
Pericom Semiconductor Corp.* 9,240 79,187
60 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Kopin Corp.* 24,440 $ 75,031
ESS Technologies, Inc.* 13,840 72,937
Alliance Semiconductor Corp.* 12,373 30,809
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 3,865,499
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 4.2%
Anixter International, Inc.*+ 12,963 468,613
Benchmark Electronics, Inc.* 14,436 459,498
Coherent, Inc.* 10,603 357,957
Paxar Corp.* 13,852 295,602
Aeroflex, Inc.* 26,005 242,627
Checkpoint Systems, Inc.* 13,115 221,381
Itron, Inc.* 7,400 219,336
Technitrol, Inc.* 14,168 211,387
Agilsys, Inc. 10,046 197,504
Electro Scientific Industries, Inc.* 9,878 191,534
CTS Corp. 12,536 162,968
Methode Electronics, Inc. -- Class A 12,533 151,775
Park Electrochemical Corp. 6,940 140,604
Photon Dynamics, Inc.* 5,900 112,454
Radisys Corp.*+ 6,709 95,000
Bell Microproducts, Inc.* 9,867 73,805
Gerber Scientific, Inc.* 7,730 56,274
Planar Systems, Inc.* 5,063 45,668
---------------
TOTAL ELECTRONIC EQUIPMENT &
INSTRUMENTS 3,703,987
---------------
SOFTWARE 1.7%
THQ, Inc.* 13,575 382,001
Nash Finch Co. 4,376 166,244
JDA Software Group, Inc.* 10,203 143,250
Verity, Inc.* 13,008 122,926
MRO Software, Inc.* 8,700 122,061
SPSS, Inc.* 6,100 106,079
Radiant Systems, Inc.* 9,290 91,042
MapInfo Corp.* 7,100 85,484
Phoenix Technologies, Ltd.* 8,589 81,767
EPIQ Systems, Inc.* 6,240 80,995
Concord Communications, Inc.* 6,400 64,768
NYFIX, Inc.* 11,345 61,036
Captaris, Inc.* 10,612 42,979
---------------
TOTAL SOFTWARE 1,550,632
---------------
COMMUNICATIONS EQUIPMENT 1.4%
Belden CDT, Inc.+ 16,371 363,600
Black Box Corp. 6,021 225,246
Symmetricom, Inc.* 15,798 175,200
Bel Fuse, Inc. -- Class B 3,851 116,685
Audiovox Corp. -- Class A* 8,015 102,111
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
C-COR, Inc.* 16,625 $ 101,080
PC-Tel, Inc.* 7,289 53,647
Brooktrout, Inc.* 4,480 50,400
Network Equipment Technologies,
Inc.* 8,562 48,204
Tollgrade Communications, Inc.* 4,634 31,974
---------------
TOTAL COMMUNICATIONS EQUIPMENT 1,268,147
---------------
COMPUTERS & PERIPHERALS 0.8%
Hutchinson Technology, Inc.* 9,146 318,098
Adaptec, Inc.*+ 38,841 186,049
Pinnacle Systems, Inc.* 24,192 135,233
SBS Technologies, Inc.* 5,400 60,210
---------------
TOTAL COMPUTERS & PERIPHERALS 699,590
---------------
IT CONSULTING & SERVICES 0.6%
MAXIMUS, Inc. 7,545 252,682
Ciber, Inc.* 21,751 158,130
Pegasus Solutions, Inc.* 7,550 89,241
Intrado, Inc.* 6,050 74,415
---------------
TOTAL IT CONSULTING & SERVICES 574,468
---------------
INTERNET SOFTWARE & SERVICES 0.4%
Digital Insight Corp.* 12,506 205,098
FindWhat.com* 10,600 109,922
---------------
TOTAL INTERNET SOFTWARE & SERVICES 315,020
---------------
TOTAL INFORMATION TECHNOLOGY 11,977,343
---------------
MATERIALS 8.1%
METALS & MINING 3.7%
Commercial Metals Co. 20,530 695,762
Carpenter Technology Corp. 8,463 502,787
Quanex Corp.+ 8,604 458,765
Reliance Steel & Aluminum Co. 11,370 454,914
Century Aluminum Co.*+ 11,200 338,912
Aleris International, Inc.* 10,124 252,594
RTI International Metals, Inc.* 7,535 176,319
Brush Engineered Materials, Inc.* 6,738 128,224
Ryerson Tull, Inc. 8,775 111,179
Steel Technologies, Inc. 4,463 107,067
A.M. Castle & Co.* 5,501 69,313
---------------
TOTAL METALS & MINING 3,295,836
---------------
CHEMICALS 2.1%
OM Group, Inc.* 9,926 301,949
H.B. Fuller Co. 9,957 288,753
PolyOne Corp.* 31,952 283,734
Arch Chemicals, Inc. 8,201 233,482
Cambrex Corp. 9,153 194,959
A. Schulman, Inc. 10,697 186,342
Wellman, Inc. 11,167 161,475
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 61
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Quaker Chemical Corp. 3,414 $ 70,123
Material Sciences Corp.* 4,991 67,129
Penford Corp. 3,137 50,976
---------------
TOTAL CHEMICALS 1,838,922
---------------
CONTAINERS & PACKAGING 1.4%
AptarGroup, Inc. 12,514 650,478
Myers Industries, Inc. 12,034 169,800
Rock-Tenn Co. -- Class A 12,467 165,811
Chesapeake Corp. 6,875 144,512
Caraustar Industries, Inc.* 9,952 128,381
---------------
TOTAL CONTAINERS & PACKAGING 1,258,982
---------------
PAPER & FOREST PRODUCTS 0.5%
Schweitzer-Mauduit International,
Inc. 5,151 172,816
Buckeye Technologies, Inc.* 13,027 140,691
Pope & Talbot, Inc. 5,698 100,171
---------------
TOTAL PAPER & FOREST PRODUCTS 413,678
---------------
CONSTRUCTION MATERIALS 0.4%
Texas Industries, Inc. 7,610 409,038
---------------
TOTAL CONSTRUCTION MATERIALS 409,038
---------------
TOTAL MATERIALS 7,216,456
---------------
HEALTH CARE 8.0%
HEALTH CARE PROVIDERS & SERVICES 5.2%
Accredo Health, Inc.* 17,100 759,411
Pediatrix Medical Group, Inc.* 7,900 541,861
United Surgical Partners International,
Inc.*+ 9,900 453,123
Province Healthcare Co.*+ 16,512 397,774
Owens & Minor, Inc. 13,749 373,285
Sunrise Senior Living, Inc.*+ 7,094 344,768
Chemed Corp. 4,440 339,571
Priority Healthcare Corp. --
Class B* 15,250 329,858
Parexel International Corp.* 9,055 212,793
NDCHealth Corp. 12,600 201,348
Cross Country Healthcare, Inc.* 11,147 186,824
RehabCare Group, Inc.* 5,687 163,274
Gentiva Health Services, Inc.* 8,414 136,139
Hooper Holmes, Inc. 22,677 86,626
OCA, Inc.*+ 17,453 74,175
Curative Health Services, Inc.* 4,500 15,300
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 4,616,130
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 2.4%
Invacare Corp. 10,891 486,065
Conmed Corp.* 10,404 313,368
Viasys Healthcare, Inc.* 10,821 206,465
Analogic Corp. 4,743 205,135
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
DJ Orthopedics, Inc.* 7,577 $ 189,804
Vital Signs, Inc. 4,468 178,228
ICU Medical, Inc.*+ 4,700 166,850
Datascope Corp. 5,201 159,047
Wilson Greatbatch Technologies,
Inc.* 7,500 136,800
Theragenics Corp* 10,450 35,948
Osteotech, Inc.* 5,975 22,705
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,100,415
---------------
PHARMACEUTICALS 0.3%
Alpharma, Inc. -- Class A 18,382 226,466
Bradley Pharmaceuticals, Inc.*+ 5,500 52,580
---------------
TOTAL PHARMACEUTICALS 279,046
---------------
BIOTECHNOLOGY 0.1%
Savient Pharmaceuticals, Inc.* 21,136 58,124
Arqule, Inc.* 12,130 57,132
---------------
TOTAL BIOTECHNOLOGY 115,256
---------------
TOTAL HEALTH CARE 7,110,847
---------------
UTILITIES 7.5%
GAS UTILITIES 4.5%
Southern Union Co.*+ 36,851 925,335
UGI Corp. 17,824 809,566
Atmos Energy Corp. 26,730 721,710
Piedmont Natural Gas Co.+ 26,776 616,919
Northwest Natural Gas Co. 9,591 346,906
Southwest Gas Corp. 12,567 303,619
Laclede Group, Inc. 7,299 213,131
Cascade Natural Gas Corp. 3,959 79,022
---------------
TOTAL GAS UTILITIES 4,016,208
---------------
ELECTRIC UTILITIES 2.4%
Allete, Inc. 10,328 432,227
Unisource Energy Corp. 11,995 371,485
Cleco Corp. 17,109 364,422
El Paso Electric Co.*+ 16,566 314,754
UIL Holding Corp. 5,046 255,580
CH Energy Group, Inc. 5,500 251,350
Central Vermont Public Service Corp. 4,334 97,428
Green Mountain Power Corp. 1,849 54,176
---------------
TOTAL ELECTRIC UTILITIES 2,141,422
---------------
MULTI-UTILITIES 0.4%
Avista Corp. 16,959 296,782
---------------
TOTAL MULTI-UTILITIES 296,782
---------------
WATER UTILITIES 0.2%
American States Water Co. 5,799 146,715
---------------
TOTAL WATER UTILITIES 146,715
---------------
TOTAL UTILITIES 6,601,127
---------------
62 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ENERGY 4.1%
ENERGY EQUIPMENT & SERVICES 2.8%
Maverick Tube Corp.* 14,900 $ 484,399
SEACOR Holdings, Inc.*+ 6,380 406,725
Veritas DGC, Inc.*+ 11,670 349,633
Oceaneering International, Inc.* 8,915 334,312
Offshore Logistics, Inc.* 8,226 274,090
W-H Energy Services, Inc.* 9,716 232,504
Dril-Quip, Inc.* 6,009 184,717
Input/Output, Inc.*+ 27,100 174,795
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 2,441,175
---------------
OIL & GAS 1.3%
Stone Energy Corp.* 9,334 453,352
Spinnaker Exploration Co.* 11,858 421,315
Swift Energy Co.*+ 9,799 278,684
---------------
TOTAL OIL & GAS 1,153,351
---------------
TOTAL ENERGY 3,594,526
---------------
CONSUMER STAPLES 3.6%
FOOD PRODUCTS 1.9%
Corn Products International, Inc. 25,372 659,418
Flowers Foods, Inc. 15,121 426,564
Hain Celestial Group, Inc.* 12,706 236,840
American Italian Pasta Co. --
Class A+ 6,310 172,894
J&J Snack Foods Corp. 3,193 149,528
---------------
TOTAL FOOD PRODUCTS 1,645,244
---------------
FOOD & DRUG RETAILING 1.6%
Performance Food Group Co.* 16,352 452,623
Longs Drug Stores Corp.+ 13,211 452,080
Casey's General Stores, Inc. 17,513 314,709
Great Atlantic & Pacific Tea Co.*+ 13,451 200,420
---------------
TOTAL FOOD & DRUG RETAILING 1,419,832
---------------
TOBACCO 0.1%
DIMON, Inc.+ 15,733 98,331
---------------
TOTAL TOBACCO 98,331
---------------
TOTAL CONSUMER STAPLES 3,163,407
---------------
TELECOMMUNICATION SERVICES 0.3%
DIVERSIFIED TELECOMMUNICATION
SERVICES 0.2%
General Communication -- Class A* 20,284 185,193
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 185,193
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES 0.1%
Boston Communications Group,
Inc.* 6,087 $ 43,339
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 43,339
---------------
TOTAL TELECOMMUNICATION SERVICES 228,532
---------------
TOTAL COMMON STOCKS
(Cost $78,815,318) 88,318,201
---------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.4%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $ 94,982 94,982
2.60% due 04/01/05 71,237 71,237
2.57% due 04/01/05 71,237 71,237
2.55% due 04/01/05 79,604 79,604
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $317,060) 317,060
---------------
SECURITIES LENDING COLLATERAL 6.3%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 5,623,856 5,623,856
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $5,623,856) 5,623,856
---------------
TOTAL INVESTMENTS 106.4%
(Cost $84,756,234) $ 94,259,117
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (6.4)% $ (5,677,395)
===============
NET ASSETS - 100.0% $ 88,581,722
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
9.
REIT - REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 63
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.4%
FINANCIALS 22.1%
INSURANCE 7.6%
Fidelity National Financial, Inc. 40,715 $ 1,341,152
Everest Re Group Ltd. 13,064 1,111,877
Old Republic International Corp. 42,533 990,594
W.R. Berkley Corp. 19,565 970,424
Unitrin, Inc. 16,031 727,807
First American Corp. 20,850 686,799
Protective Life Corp. 16,214 637,210
HCC Insurance Holdings, Inc.+ 15,814 571,834
Stancorp Financial Group, Inc. 6,645 563,363
American Financial Group, Inc./OH+ 17,174 528,959
Allmerica Financial Corp.* 12,449 447,542
AmerUs Group Co.+ 9,163 432,952
Ohio Casualty Corp.* 14,426 331,510
Horace Mann Educators Corp. 9,968 176,832
---------------
TOTAL INSURANCE 9,518,855
---------------
THRIFTS & MORTGAGE FINANCE 4.8%
New York Community Bancorp, Inc.+ 61,780 1,121,925
Radian Group, Inc. 21,428 1,022,973
PMI Group, Inc.+ 22,208 844,126
Independence Community Bank
Corp.+ 19,780 771,420
Astoria Financial Corp. 26,024 658,407
Webster Financial Corp. 12,322 559,542
IndyMac Bancorp, Inc.+ 14,407 489,838
Washington Federal, Inc. 20,178 470,349
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 5,938,580
---------------
BANKS 3.5%
Hibernia Corp. -- Class A 36,148 1,157,097
Mercantile Bankshares Corp. 18,438 937,757
City National Corp. 11,500 802,930
Colonial BancGroup, Inc.+ 31,177 639,752
FirstMerit Corp.+ 19,647 525,754
Greater Bay Bancorp+ 11,872 289,795
---------------
TOTAL BANKS 4,353,085
---------------
REAL ESTATE 2.9%
Liberty Property Trust 19,973 779,946
AMB Property Corp.+ 19,339 731,014
Hospitality Properties Trust 15,641 631,583
New Plan Excel Realty Trust+ 23,965 601,761
Mack-Cali Realty Corp. 14,180 600,523
Highwoods Properties, Inc.+ 12,469 334,419
---------------
TOTAL REAL ESTATE 3,679,246
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CAPITAL MARKETS 1.6%
A.G. Edwards, Inc.+ 17,769 $ 796,051
Raymond James Financial, Inc. 17,203 521,251
Jefferies Group, Inc.+ 13,340 502,651
LaBranche & Co., Inc.* 14,015 130,340
---------------
TOTAL CAPITAL MARKETS 1,950,293
---------------
DIVERSIFIED FINANCIALS 1.0%
Leucadia National Corp. 25,041 860,158
GATX Corp.+ 11,511 382,050
---------------
TOTAL DIVERSIFIED FINANCIALS 1,242,208
---------------
CONSUMER FINANCE 0.7%
AmeriCredit Corp.*+ 36,240 849,466
---------------
TOTAL CONSUMER FINANCE 849,466
---------------
TOTAL FINANCIALS 27,531,733
---------------
CONSUMER DISCRETIONARY 17.1%
HOUSEHOLD DURABLES 7.2%
D.R. Horton, Inc.+ 72,460 2,118,730
Lennar Corp. -- Class A+ 36,410 2,063,719
Toll Brothers, Inc.*+ 17,464 1,377,036
Mohawk Industries, Inc.*+ 15,580 1,313,394
Hovnanian Enterprises, Inc. --
Class A* 14,200 724,200
Ryland Group, Inc. 11,084 687,430
American Greetings Corp. --
Class A+ 15,925 405,769
Furniture Brands International, Inc. 12,366 269,702
---------------
TOTAL HOUSEHOLD DURABLES 8,959,980
---------------
SPECIALTY RETAIL 2.9%
Foot Locker, Inc. 36,278 1,062,945
Barnes & Noble, Inc.* 16,291 561,877
Rent-A-Center, Inc.* 17,700 483,387
Borders Group, Inc. 17,527 466,569
AnnTaylor Stores Corp.*+ 16,494 422,081
Pier 1 Imports, Inc.+ 20,070 365,876
Payless Shoesource, Inc.*+ 15,905 251,140
---------------
TOTAL SPECIALTY RETAIL 3,613,875
---------------
MEDIA 1.9%
Belo Corp. -- Class A 26,789 646,687
Lee Enterprises, Inc.+ 10,500 455,700
Entercom Communications Corp.* 11,662 414,234
Media General, Inc. 5,540 342,649
Scholastic Corp.* 9,205 339,572
Emmis Communications Corp. --
Class A*+ 13,075 251,302
---------------
TOTAL MEDIA 2,450,144
---------------
64 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
HOTELS RESTAURANTS & LEISURE 1.8%
Caesars Entertainment, Inc.*+ 72,923 $ 1,443,146
CBRL Group, Inc.+ 11,264 465,203
Bob Evans Farms, Inc. 8,212 192,572
Krispy Kreme Doughnuts, Inc.*+ 14,400 109,872
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 2,210,793
---------------
AUTO COMPONENTS 1.6%
Lear Corp. 15,662 694,766
BorgWarner, Inc. 13,056 635,566
ArvinMeritor, Inc.+ 16,210 250,769
Modine Manufacturing Co. 8,044 235,931
Bandag, Inc. 4,568 214,605
---------------
TOTAL AUTO COMPONENTS 2,031,637
---------------
MULTILINE RETAIL 1.5%
Neiman-Marcus Group, Inc. --
Class A 11,408 1,043,946
Saks, Inc.* 32,501 586,643
99 Cents Only Stores* 16,200 213,354
---------------
TOTAL MULTILINE RETAIL 1,843,943
---------------
LEISURE EQUIPMENT & PRODUCTS 0.2%
Callaway Golf Co. 17,809 227,955
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 227,955
---------------
TOTAL CONSUMER DISCRETIONARY 21,338,327
---------------
INFORMATION TECHNOLOGY 12.5%
SOFTWARE 2.9%
Cadence Design Systems, Inc.*+ 62,970 941,402
Synopsys, Inc.*+ 35,500 642,550
Activision, Inc.* 43,300 640,840
Fair Isaac Corp.+ 16,400 564,816
Sybase, Inc.*+ 22,200 409,812
Ascential Software Corp.* 13,691 253,694
Mentor Graphics Corp.*+ 17,800 243,860
---------------
TOTAL SOFTWARE 3,696,974
---------------
SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 2.8%
International Rectifier Corp.*+ 15,600 709,800
Intersil Corp. -- Class A+ 35,138 608,590
Fairchild Semiconductor International,
Inc.*+ 27,870 427,247
Cypress Semiconductor Corp.*+ 29,300 369,180
Atmel Corp.* 111,300 328,335
Integrated Device Technology, Inc.* 24,840 298,825
RF Micro Devices, Inc.* 43,720 228,219
Credence Systems Corp.* 22,221 175,768
Lattice Semiconductor Corp.* 26,463 142,106
Triquint Semiconductor, Inc.* 32,013 108,204
LTX Corp.* 14,300 63,492
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT $ 3,459,766
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.1%
Arrow Electronics, Inc.* 27,046 685,616
Avnet, Inc.*+ 28,062 516,902
Tech Data Corp.*+ 13,555 502,348
Vishay Intertechnology, Inc.*+ 38,769 481,899
KEMET Corp.* 20,165 156,279
Newport Corp.* 9,961 144,335
Plexus Corp.* 10,096 116,205
---------------
TOTAL ELECTRONIC
EQUIPMENT & INSTRUMENTS 2,603,584
---------------
IT CONSULTING & SERVICES 1.8%
CheckFree Corp.*+ 20,189 822,903
Ceridian Corp.* 34,600 589,930
BISYS Group, Inc.*+ 27,976 438,664
MPS Group, Inc.* 23,891 251,094
Keane, Inc.* 14,456 188,362
---------------
TOTAL IT CONSULTING & SERVICES 2,290,953
---------------
COMPUTERS & PERIPHERALS 1.8%
Sandisk Corp.*+ 38,000 1,056,400
Storage Technology Corp.* 24,792 763,594
Imation Corp. 7,938 275,845
McData Corp. -- Class A* 27,516 103,735
---------------
TOTAL COMPUTERS & PERIPHERALS 2,199,574
---------------
COMMUNICATIONS EQUIPMENT 1.1%
Polycom, Inc.* 22,870 387,646
3Com Corp.* 88,477 314,978
Utstarcom, Inc.*+ 26,607 291,347
CommScope, Inc.* 12,709 190,127
Powerwave Technologies, Inc.*+ 24,388 188,763
---------------
TOTAL COMMUNICATIONS EQUIPMENT 1,372,861
---------------
TOTAL INFORMATION TECHNOLOGY 15,623,712
---------------
UTILITIES 11.2%
ELECTRIC UTILITIES 6.3%
Wisconsin Energy Corp. 27,320 969,860
Pepco Holdings, Inc.+ 43,833 920,055
Alliant Energy Corp. 26,943 721,533
NSTAR 12,429 674,895
Northeast Utilities 29,919 576,539
OGE Energy Corp.+ 20,760 559,482
Great Plains Energy, Inc.+ 17,329 529,921
Puget Energy, Inc. 23,270 512,871
Hawaiian Electric Industries, Inc. 18,758 478,704
Westar Energy, Inc. 20,009 432,995
PNM Resources, Inc.+ 14,946 398,759
Duquesne Light Holdings, Inc.+ 17,926 321,234
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 65
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Sierra Pacific Resources*+ 27,396 $ 294,507
IDACORP, Inc.+ 9,684 274,735
Black Hills Corp. 7,574 250,472
---------------
TOTAL ELECTRIC UTILITIES 7,916,562
---------------
MULTI-UTILITIES 4.1%
SCANA Corp. 26,203 1,001,479
Energy East Corp.+ 34,218 897,196
MDU Resources Group, Inc. 27,507 759,743
Oneok, Inc. 24,080 742,145
National Fuel Gas Co.+ 19,235 549,929
Vectren Corp. 17,669 470,702
WPS Resources Corp. 8,704 460,616
Aquila, Inc.*+ 56,310 215,667
---------------
TOTAL MULTI-UTILITIES 5,097,477
---------------
GAS UTILITIES 0.8%
AGL Resources, Inc. 17,428 608,760
WGL Holdings, Inc. 11,355 351,551
---------------
TOTAL GAS UTILITIES 960,311
---------------
TOTAL UTILITIES 13,974,350
---------------
INDUSTRIALS 9.1%
COMMERCIAL SERVICES & SUPPLIES 3.1%
Republic Services, Inc.+ 35,149 1,176,788
Manpower, Inc. 20,980 913,049
Adesa, Inc. 21,385 499,554
Laureate Education, Inc.* 11,306 483,784
DeVry, Inc.*+ 16,400 310,288
Banta Corp. 5,840 249,952
Kelly Services, Inc. 8,209 236,337
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 3,869,752
---------------
MACHINERY 2.0%
SPX Corp.+ 17,505 757,616
Kennametal, Inc. 8,912 423,231
AGCO Corp.* 21,092 384,929
Flowserve Corp.* 12,910 333,982
Trinity Industries, Inc.+ 11,133 313,617
Federal Signal Corp. 11,209 170,041
Tecumseh Products Co. -- Class A 4,291 169,966
---------------
TOTAL MACHINERY 2,553,382
---------------
ROAD & RAIL 1.1%
Yellow Roadway Corp.*+ 11,300 661,502
Swift Transportation Co., Inc.*+ 17,108 378,771
Werner Enterprises, Inc.+ 18,350 356,541
---------------
TOTAL ROAD & RAIL 1,396,814
---------------
CONSTRUCTION & ENGINEERING 0.9%
Jacobs Engineering Group, Inc.*+ 13,100 680,152
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Granite Construction, Inc. 9,666 $ 253,926
Quanta Services, Inc.* 27,290 208,222
---------------
TOTAL CONSTRUCTION & ENGINEERING 1,142,300
---------------
INDUSTRIAL CONGLOMERATES 0.4%
Teleflex, Inc. 9,438 483,037
---------------
TOTAL INDUSTRIAL CONGLOMERATES 483,037
---------------
ELECTRICAL EQUIPMENT 0.4%
Thomas & Betts Corp.* 13,718 443,091
---------------
TOTAL ELECTRICAL EQUIPMENT 443,091
---------------
MARINE 0.3%
Alexander & Baldwin, Inc. 9,949 409,899
---------------
TOTAL MARINE 409,899
---------------
BUILDING PRODUCTS 0.3%
York International Corp.+ 9,652 378,165
---------------
TOTAL BUILDING PRODUCTS 378,165
---------------
TRADING COMPANIES & DISTRIBUTORS 0.3%
United Rentals, Inc.*+ 18,143 366,670
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 366,670
---------------
AIRLINES 0.2%
Alaska Air Group, Inc.*+ 6,311 185,796
---------------
TOTAL AIRLINES 185,796
---------------
AEROSPACE & DEFENSE 0.1%
Sequa Corp. -- Class A* 2,402 124,544
---------------
TOTAL AEROSPACE & DEFENSE 124,544
---------------
TOTAL INDUSTRIALS 11,353,450
---------------
ENERGY 8.3%
ENERGY EQUIPMENT & SERVICES 4.8%
Weatherford International Ltd.*+ 31,702 1,836,814
ENSCO International, Inc.+ 35,185 1,325,067
Pride International, Inc.*+ 31,786 789,564
Cooper Cameron Corp.*+ 12,778 731,030
Tidewater, Inc.+ 14,162 550,335
Helmerich & Payne, Inc.+ 11,800 468,342
Hanover Compressor Co.*+ 18,240 220,157
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 5,921,309
---------------
OIL & GAS 3.5%
Pioneer Natural Resources Co.+ 34,017 1,453,206
Newfield Exploration Co.* 14,506 1,077,216
Pogo Producing Co.+ 15,043 740,717
Overseas Shipholding Group, Inc. 9,160 576,256
Forest Oil Corp.*+ 13,815 559,507
---------------
TOTAL OIL & GAS 4,406,902
---------------
TOTAL ENERGY 10,328,211
---------------
66 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MATERIALS 6.4%
CHEMICALS 3.8%
Lubrizol Corp. 15,567 $ 632,643
Valspar Corp.+ 12,000 558,480
Scotts Miracle-Gro Co. -- Class A* 7,700 540,771
Cytec Industries, Inc.+ 9,942 539,354
RPM International, Inc. 27,101 495,406
Cabot Corp. 14,353 479,821
FMC Corp.* 8,615 460,472
Albemarle Corp. 10,662 387,670
Minerals Technologies, Inc. 4,769 313,705
Sensient Technologies Corp. 10,906 235,133
Ferro Corp. 9,794 184,323
---------------
TOTAL CHEMICALS 4,827,778
---------------
PAPER & FOREST PRODUCTS 0.8%
Bowater, Inc.+ 12,942 487,525
Potlatch Corp. 6,921 325,771
Glatfelter 10,258 151,306
---------------
TOTAL PAPER & FOREST PRODUCTS 964,602
---------------
CONTAINERS & PACKAGING 0.7%
Sonoco Products Co.+ 22,949 662,078
Longview Fibre Co. 11,859 222,475
---------------
TOTAL CONTAINERS & PACKAGING 884,553
---------------
METALS & MINING 0.6%
Steel Dynamics, Inc.+ 10,500 361,725
Worthington Industries, Inc.+ 18,500 356,680
---------------
TOTAL METALS & MINING 718,405
---------------
CONSTRUCTION MATERIALS 0.5%
Martin Marietta Materials, Inc. 11,218 627,311
---------------
TOTAL CONSTRUCTION MATERIALS 627,311
---------------
TOTAL MATERIALS 8,022,649
---------------
HEALTH CARE 6.1%
HEALTH CARE PROVIDERS & SERVICES 4.1%
Pacificare Health Systems, Inc.*+ 19,647 1,118,307
Triad Hospitals, Inc.*+ 17,967 900,147
Omnicare, Inc.+ 24,300 861,435
Health Net, Inc.* 25,869 846,175
Universal Health Services, Inc. --
Class B+ 13,570 711,068
Community Health Systems, Inc.*+ 20,345 710,244
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 5,147,376
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
BIOTECHNOLOGY 1.1%
Invitrogen Corp.*+ 11,894 $ 823,065
Millennium Pharmaceuticals, Inc.*+ 71,326 600,565
---------------
TOTAL BIOTECHNOLOGY 1,423,630
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.6%
Steris Corp.* 16,080 406,020
Varian, Inc.* 8,100 306,909
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 712,929
---------------
PHARMACEUTICALS 0.3%
Perrigo Co. 16,800 321,720
---------------
TOTAL PHARMACEUTICALS 321,720
---------------
TOTAL HEALTH CARE 7,605,655
---------------
CONSUMER STAPLES 5.7%
FOOD PRODUCTS 3.3%
Tyson Foods, Inc. -- Class A 82,306 1,372,864
Dean Foods Co.* 34,766 1,192,474
Smithfield Foods, Inc.* 25,912 817,524
J.M. Smucker Co.+ 13,563 682,219
---------------
TOTAL FOOD PRODUCTS 4,065,081
---------------
BEVERAGES 1.6%
Constellation Brands, Inc. --
Class A*+ 25,118 1,327,988
PepsiAmericas, Inc. 32,292 731,737
---------------
TOTAL BEVERAGES 2,059,725
---------------
FOOD & DRUG RETAILING 0.6%
BJ's Wholesale Club, Inc.*+ 16,152 501,681
Ruddick Corp. 10,843 251,016
---------------
TOTAL FOOD & DRUG RETAILING 752,697
---------------
TOBACCO 0.2%
Universal Corp./Richmond VA 5,994 274,345
---------------
TOTAL TOBACCO 274,345
---------------
TOTAL CONSUMER STAPLES 7,151,848
---------------
TELECOMMUNICATION SERVICES 0.9%
WIRELESS TELECOMMUNICATION SERVICES 0.9%
Telephone & Data Systems, Inc.+ 13,392 1,092,787
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 1,092,787
---------------
TOTAL TELECOMMUNICATION SERVICES 1,092,787
---------------
TOTAL COMMON STOCKS
(Cost $113,390,349) 124,022,722
---------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 67
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 0.9%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $ 344,248 $ 344,248
2.60% due 04/01/05 258,186 258,186
2.57% due 04/01/05 258,186 258,186
2.55% due 04/01/05 288,512 288,512
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,149,132) 1,149,132
---------------
SECURITIES LENDING COLLATERAL 21.2%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 26,490,036 26,490,036
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $26,490,036) 26,490,036
---------------
TOTAL INVESTMENTS 121.5%
(Cost $141,029,517) $ 151,661,890
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (21.5)% $ (26,858,891)
===============
NET ASSETS - 100.0% $ 124,802,999
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
9.
68 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.8%
FINANCIALS 36.9%
BANKS 11.4%
Bank of America Corp. 21,682 $ 956,176
Wells Fargo & Co. 9,080 542,984
Wachovia Corp.+ 8,610 438,335
U.S. Bancorp 10,022 288,834
SunTrust Banks, Inc. 1,990 143,419
Fifth Third Bancorp+ 2,970 127,651
National City Corp. 3,638 121,873
BB&T Corp.+ 2,965 115,872
Regions Financial Corp.+ 2,498 80,935
PNC Financial Services Group, Inc. 1,514 77,941
KeyCorp 2,181 70,773
North Fork Bancorporation, Inc. 2,530 70,182
M&T Bank Corp. 622 63,481
Comerica, Inc. 916 50,453
Marshall & Ilsley Corp. 1,200 50,100
AmSouth Bancorp+ 1,903 49,383
Synovus Financial Corp.+ 1,660 46,248
Zions Bancorporation 484 33,406
Compass Bancshares, Inc. 660 29,964
Huntington Bancshares, Inc. 1,241 29,660
First Horizon National Corp. 663 27,044
---------------
TOTAL BANKS 3,414,714
---------------
INSURANCE 8.1%
American International Group, Inc.+ 13,977 774,466
Allstate Corp.+ 3,682 199,049
Prudential Financial, Inc. 2,754 158,080
MetLife, Inc. 3,997 156,283
St. Paul Travelers Cos., Inc. 3,596 132,081
Hartford Financial Services Group,
Inc.+ 1,575 107,982
AFLAC, Inc. 2,716 101,198
Progressive Corp. 1,077 98,825
Marsh & McLennan Cos., Inc. 2,830 86,089
Chubb Corp.+ 1,030 81,648
Loews Corp. 999 73,466
ACE Ltd. 1,529 63,102
XL Capital Ltd. 741 53,626
Ambac Financial Group, Inc. 578 43,205
Lincoln National Corp.+ 937 42,296
MBIA, Inc.+ 758 39,628
Cincinnati Financial Corp. 904 39,423
Aon Corp.+ 1,694 38,691
Jefferson-Pilot Corp.+ 737 36,150
SAFECO Corp. 684 33,318
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Torchmark Corp. 580 $ 30,276
UnumProvident Corp.+ 1,589 27,045
---------------
TOTAL INSURANCE 2,415,927
---------------
DIVERSIFIED FINANCIALS 6.8%
Citigroup, Inc. 27,858 1,251,938
J.P. Morgan Chase & Co. 19,121 661,587
Principal Financial Group, Inc. 1,646 63,355
CIT Group, Inc. 1,130 42,940
---------------
TOTAL DIVERSIFIED FINANCIALS 2,019,820
---------------
CAPITAL MARKETS 5.5%
Morgan Stanley 5,878 336,516
Merrill Lynch & Co., Inc. 5,480 310,168
Goldman Sachs Group, Inc.+ 2,603 286,304
Lehman Brothers Holdings, Inc.+ 1,448 136,344
Bank of New York Co., Inc. 4,166 121,022
Franklin Resources, Inc. 1,337 91,785
State Street Corp.+ 1,789 78,215
Charles Schwab Corp.+ 7,226 75,945
Mellon Financial Corp. 2,274 64,900
Bear Stearns Cos., Inc. 608 60,739
Northern Trust Corp. 1,178 51,172
E*Trade Financial Corp.* 1,997 23,964
Janus Capital Group, Inc. 1,264 17,633
---------------
TOTAL CAPITAL MARKETS 1,654,707
---------------
THRIFTS & MORTGAGE FINANCE 3.3%
Fannie Mae+ 5,190 282,595
Freddie Mac 3,700 233,840
Washington Mutual, Inc. 4,689 185,216
Countrywide Financial Corp.+ 3,116 101,145
Golden West Financial Corp.+ 1,640 99,220
Sovereign Bancorp, Inc. 2,006 44,453
MGIC Investment Corp. 516 31,822
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 978,291
---------------
CONSUMER FINANCE 1.0%
MBNA Corp. 6,859 168,389
Capital One Financial Corp.+ 1,301 97,276
Providian Financial Corp.*+ 1,577 27,061
---------------
TOTAL CONSUMER FINANCE 292,726
---------------
REAL ESTATE 0.8%
Equity Office Properties Trust+ 2,166 65,261
Equity Residential 1,513 48,734
ProLogis 988 36,655
Archstone-Smith Trust+ 1,050 35,815
Plum Creek Timber (REIT) Co., Inc. 988 35,272
Apartment Investment & Management
Co. -- Class A 505 18,786
---------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 69
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TOTAL REAL ESTATE $ 240,523
---------------
TOTAL FINANCIALS 11,016,708
---------------
CONSUMER DISCRETIONARY 13.6%
MEDIA 7.1%
Time Warner, Inc.* 24,587 431,502
Comcast Corp. -- Class A*+ 11,913 402,421
Viacom, Inc. -- Class B 9,150 318,694
Walt Disney Co.+ 10,963 314,967
News Corp. -- Class A 17,680 299,145
Gannett Co., Inc. 1,372 108,498
Clear Channel Communications,
Inc.+ 3,074 105,961
Tribune Co. 1,708 68,098
Univision Communications,
Inc. -- Class A*+ 1,736 48,070
Interpublic Group of Cos., Inc.*+ 2,270 27,876
---------------
TOTAL MEDIA 2,125,232
---------------
HOTELS RESTAURANTS & LEISURE 1.9%
McDonald's Corp. 6,747 210,102
Carnival Corp. 3,398 176,050
Starwood Hotels & Resorts Worldwide,
Inc. 1,114 66,873
Hilton Hotels Corp.+ 2,070 46,265
Darden Restaurants, Inc.+ 843 25,863
Wendy's International, Inc.+ 610 23,814
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 548,967
---------------
MULTILINE RETAIL 1.6%
Sears Holdings Corp.*+ 880 117,190
Kohl's Corp.*+ 1,840 94,999
JC Penney Holding Co., Inc. 1,533 79,594
May Department Stores Co. 1,567 58,010
Federated Department Stores, Inc.+ 908 57,785
Nordstrom, Inc. 756 41,867
Dillard's, Inc. -- Class A 442 11,890
Big Lots, Inc.* 601 7,224
---------------
TOTAL MULTILINE RETAIL 468,559
---------------
SPECIALTY RETAIL 0.7%
Limited Brands, Inc.+ 2,184 53,071
Office Depot, Inc.* 1,673 37,107
Toys 'R' Us, Inc.* 1,157 29,804
AutoNation, Inc.*+ 1,423 26,952
Tiffany & Co. 780 26,926
Circuit City Stores, Inc. 1,050 16,852
OfficeMax, Inc. 503 16,851
---------------
TOTAL SPECIALTY RETAIL 207,563
---------------
AUTOMOBILES 0.7%
Ford Motor Co.+ 9,816 111,215
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
General Motors Corp.+ 3,029 $ 89,023
---------------
TOTAL AUTOMOBILES 200,238
---------------
HOUSEHOLD DURABLES 0.6%
Pulte Homes, Inc.+ 683 50,289
Centex Corp. 663 37,970
KB Home+ 252 29,600
Leggett & Platt, Inc. 1,021 29,486
Whirlpool Corp.+ 360 24,383
Snap-On, Inc. 306 9,728
---------------
TOTAL HOUSEHOLD DURABLES 181,456
---------------
TEXTILES & APPAREL 0.3%
VF Corp. 599 35,425
Liz Claiborne, Inc. 579 23,235
Jones Apparel Group, Inc.+ 653 21,869
Reebok International Ltd. 316 13,999
---------------
TOTAL TEXTILES & APPAREL 94,528
---------------
LEISURE EQUIPMENT & PRODUCTS 0.3%
Eastman Kodak Co.+ 1,536 49,997
Brunswick Corp. 514 24,081
Hasbro, Inc.+ 946 19,345
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 93,423
---------------
AUTO COMPONENTS 0.3%
Johnson Controls, Inc. 1,018 56,764
Delphi Corp.+ 3,010 13,485
Dana Corp. 799 10,219
Cooper Tire & Rubber Co. 400 7,344
Visteon Corp.+ 695 3,968
---------------
TOTAL AUTO COMPONENTS 91,780
---------------
DISTRIBUTORS 0.1%
Genuine Parts Co. 936 40,707
---------------
TOTAL DISTRIBUTORS 40,707
---------------
TOTAL CONSUMER DISCRETIONARY 4,052,453
---------------
ENERGY 8.5%
OIL & GAS 7.7%
ChevronTexaco Corp. 11,368 662,868
ConocoPhillips 3,701 399,116
Occidental Petroleum Corp.+ 2,122 151,023
Devon Energy Corp. 2,604 124,341
Apache Corp. 1,756 107,520
Burlington Resources, Inc. 2,096 104,947
Anadarko Petroleum Corp. 1,327 100,985
Valero Energy Corp. 1,378 100,966
Marathon Oil Corp. 1,858 87,177
Unocal Corp.+ 1,409 86,921
Kerr-McGee Corp.+ 864 67,677
EOG Resources, Inc.+ 1,272 61,997
70 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Williams Cos., Inc.+ 2,991 $ 56,261
Kinder Morgan, Inc. 663 50,189
Amerada Hess Corp.+ 494 47,528
Sunoco, Inc. 371 38,406
El Paso Corp.+ 3,452 36,522
Ashland, Inc. 377 25,436
---------------
TOTAL OIL & GAS 2,309,880
---------------
ENERGY EQUIPMENT & SERVICES 0.8%
Transocean, Inc.*+ 1,725 88,768
Nabors Industries Ltd.* 799 47,253
National-Oilwell Varco, Inc.* 900 42,030
Noble Corp. 725 40,752
Rowan Cos., Inc. 578 17,300
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 236,103
---------------
TOTAL ENERGY 2,545,983
---------------
INDUSTRIALS 7.9%
AEROSPACE & DEFENSE 1.9%
Honeywell International, Inc. 4,619 171,873
General Dynamics Corp.+ 1,072 114,758
Northrop Grumman Corp. 1,976 106,665
Raytheon Co. 2,429 94,002
L-3 Communications Holdings, Inc. 620 44,032
Goodrich Corp.+ 641 24,544
---------------
TOTAL AEROSPACE & DEFENSE 555,874
---------------
INDUSTRIAL CONGLOMERATES 1.4%
Tyco International Ltd. 10,796 364,905
Textron, Inc. 736 54,920
---------------
TOTAL INDUSTRIAL CONGLOMERATES 419,825
---------------
MACHINERY 1.3%
Deere & Co. 1,334 89,551
Ingersoll-Rand Co. -- Class A 926 73,756
Eaton Corp. 810 52,974
ITT Industries, Inc. 495 44,669
Dover Corp. 1,094 41,342
Parker Hannifin Corp. 641 39,050
Pall Corp. 663 17,981
Cummins, Inc. 241 16,954
---------------
TOTAL MACHINERY 376,277
---------------
ROAD & RAIL 1.1%
Burlington Northern Santa Fe Corp.+ 2,018 108,831
Union Pacific Corp.+ 1,388 96,743
Norfolk Southern Corp. 2,123 78,657
CSX Corp.+ 1,157 48,189
---------------
TOTAL ROAD & RAIL 332,420
---------------
COMMERCIAL SERVICES & SUPPLIES 0.8%
Cendant Corp. 5,649 116,030
Waste Management, Inc. 3,075 88,714
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
RR Donnelley & Sons Co. 1,177 $ 37,217
Allied Waste Industries, Inc.* 1,705 12,463
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 254,424
---------------
AIR FREIGHT & COURIERS 0.6%
FedEx Corp. 1,609 151,166
Ryder System, Inc. 346 14,428
---------------
TOTAL AIR FREIGHT & COURIERS 165,594
---------------
BUILDING PRODUCTS 0.3%
Masco Corp. 2,403 83,312
---------------
TOTAL BUILDING PRODUCTS 83,312
---------------
ELECTRICAL EQUIPMENT 0.2%
Cooper Industries Ltd. -- Class A 495 35,402
American Power Conversion Corp.+ 1,023 26,711
---------------
TOTAL ELECTRICAL EQUIPMENT 62,113
---------------
AIRLINES 0.2%
Southwest Airlines Co. 4,179 59,509
---------------
TOTAL AIRLINES 59,509
---------------
TRADING COMPANIES & DISTRIBUTORS 0.1%
W.W. Grainger, Inc. 484 30,139
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 30,139
---------------
TOTAL INDUSTRIALS 2,339,487
---------------
HEALTH CARE 7.8%
PHARMACEUTICALS 3.7%
Pfizer, Inc. 40,420 1,061,833
Mylan Laboratories, Inc. 1,580 27,998
Watson Pharmaceuticals, Inc.*+ 589 18,100
King Pharmaceuticals, Inc.* 1,294 10,753
---------------
TOTAL PHARMACEUTICALS 1,118,684
---------------
HEALTH CARE PROVIDERS & SERVICES 3.5%
WellPoint, Inc.* 1,587 198,930
Cardinal Health, Inc.+ 2,320 129,456
HCA, Inc.+ 2,257 120,907
Aetna, Inc.+ 1,580 118,421
Caremark Rx, Inc.* 2,438 96,984
Medco Health Solutions, Inc.*+ 1,462 72,471
CIGNA Corp. 717 64,028
McKesson Corp. 1,578 59,570
Laboratory Corporation of America
Holdings*+ 740 35,668
AmerisourceBergen Corp.+ 600 34,374
Health Management Associates,
Inc. -- Class A+ 1,304 34,139
Tenet Healthcare Corp.*+ 2,503 28,860
Humana, Inc.*+ 852 27,213
Manor Care, Inc. 464 16,871
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,037,892
---------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 71
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
BIOTECHNOLOGY 0.4%
Biogen Idec, Inc.* 1,790 $ 61,773
Chiron Corp.* 1,000 35,060
Applera Corp. - Applied Biosystems
Group+ 1,055 20,826
---------------
TOTAL BIOTECHNOLOGY 117,659
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.2%
Thermo Electron Corp.* 853 21,572
Bausch & Lomb, Inc. 284 20,817
PerkinElmer, Inc. 684 14,111
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 56,500
---------------
TOTAL HEALTH CARE 2,330,735
---------------
INFORMATION TECHNOLOGY 7.5%
SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 2.3%
Texas Instruments, Inc. 9,270 236,292
Applied Materials, Inc.* 9,110 148,037
KLA-Tencor Corp.*+ 1,050 48,310
National Semiconductor Corp. 1,920 39,571
Freescale Semiconductor, Inc. --
Class B* 2,096 36,156
Fisher Scientific International, Inc.*+ 631 35,917
Micron Technology, Inc.*+ 3,283 33,946
Advanced Micro Devices, Inc.*+ 2,073 33,417
Nvidia Corp.* 893 21,218
Novellus Systems, Inc.*+ 750 20,048
Teradyne, Inc.*+ 1,040 15,184
LSI Logic Corp.* 2,070 11,571
Applied Micro Circuits Corp.* 1,652 5,435
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 685,102
---------------
COMPUTERS & PERIPHERALS 2.1%
Hewlett-Packard Co. 16,210 355,648
EMC Corp./MA* 12,860 158,435
Sun Microsystems, Inc.*+ 18,051 72,926
NCR Corp.*+ 1,000 33,740
---------------
TOTAL COMPUTERS & PERIPHERALS 620,749
---------------
COMMUNICATIONS EQUIPMENT 1.0%
Motorola, Inc.+ 13,069 195,643
Comverse Technology, Inc.*+ 1,061 26,758
Scientific-Atlanta, Inc. 820 23,140
Tellabs, Inc.* 2,480 18,104
JDS Uniphase Corp.*+ 7,752 12,946
Andrew Corp.* 860 10,071
ADC Telecommunications, Inc.* 4,344 8,644
CIENA Corp.* 3,073 5,286
---------------
TOTAL COMMUNICATIONS EQUIPMENT 300,592
---------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
IT CONSULTING & SERVICES 0.9%
Electronic Data Systems Corp.+ 2,760 $ 57,049
SunGard Data Systems, Inc.* 1,546 53,337
Computer Sciences Corp.*+ 1,020 46,767
Fiserv, Inc.*+ 1,051 41,830
Affiliated Computer Services,
Inc. -- Class A*+ 686 36,522
Sabre Holdings Corp. 728 15,929
Unisys Corp.* 1,800 12,708
Convergys Corp.*+ 758 11,317
---------------
TOTAL IT CONSULTING & SERVICES 275,459
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.5%
Agilent Technologies, Inc.* 2,610 57,942
Jabil Circuit, Inc.*+ 1,083 30,887
Molex, Inc. 1,010 26,624
Solectron Corp.*+ 5,210 18,079
Sanmina-SCI Corp.* 2,797 14,600
Tektronix, Inc. 479 11,750
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 159,882
---------------
SOFTWARE 0.4%
Veritas Software Corp.* 2,270 52,710
Siebel Systems, Inc.* 2,722 24,852
BMC Software, Inc.* 1,190 17,850
Compuware Corp.* 2,082 14,990
Novell, Inc.* 2,020 12,039
---------------
TOTAL SOFTWARE 122,441
---------------
OFFICE ELECTRONICS 0.3%
Xerox Corp.* 5,121 77,583
---------------
TOTAL OFFICE ELECTRONICS 77,583
---------------
TOTAL INFORMATION TECHNOLOGY 2,241,808
---------------
UTILITIES 5.6%
ELECTRIC UTILITIES 3.7%
Exelon Corp.+ 3,554 163,093
Southern Co. 3,974 126,492
Entergy Corp. 1,201 84,863
FPL Group, Inc. 1,988 79,818
FirstEnergy Corp.+ 1,768 74,168
American Electric Power Co., Inc.+ 2,125 72,377
PG&E Corp. 1,970 67,177
Edison International 1,747 60,656
Progress Energy, Inc.+ 1,325 55,584
PPL Corp. 1,017 54,908
Consolidated Edison, Inc. 1,294 54,581
Ameren Corp.+ 1,040 50,970
DTE Energy Co.+ 934 42,478
Cinergy Corp.+ 1,027 41,614
Xcel Energy, Inc.+ 2,146 36,868
72 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Pinnacle West Capital Corp. 494 $ 21,000
TECO Energy, Inc. 1,067 16,731
Allegheny Energy, Inc.*+ 736 15,206
---------------
TOTAL ELECTRIC UTILITIES 1,118,584
---------------
MULTI-UTILITIES 1.6%
Duke Energy Corp.+ 5,132 143,747
Dominion Resources, Inc./VA+ 1,776 132,188
Public Service Enterprise Group, Inc. 1,272 69,184
Sempra Energy+ 1,250 49,800
Constellation Energy Group, Inc. 944 48,805
CMS Energy Corp.*+ 1,152 15,022
Calpine Corp.*+ 2,872 8,042
Dynegy, Inc. -- Class A* 2,040 7,976
---------------
TOTAL MULTI-UTILITIES 474,764
---------------
GAS UTILITIES 0.3%
KeySpan Corp.+ 862 33,592
NiSource, Inc.+ 1,450 33,046
Peoples Energy Corp. 210 8,803
Nicor, Inc.+ 232 8,605
---------------
TOTAL GAS UTILITIES 84,046
---------------
TOTAL UTILITIES 1,677,394
---------------
TELECOMMUNICATION SERVICES 5.6%
DIVERSIFIED TELECOMMUNICATION SERVICES 5.6%
Verizon Communications, Inc.+ 16,298 578,579
SBC Communications, Inc.+ 17,790 421,445
BellSouth Corp.+ 9,831 258,457
Sprint Corp.+ 7,899 179,703
Alltel Corp.+ 1,633 89,570
AT&T Corp. 4,275 80,156
CenturyTel, Inc.+ 718 23,579
Citizens Communications Co.+ 1,803 23,331
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 1,654,820
---------------
TOTAL TELECOMMUNICATION SERVICES 1,654,820
---------------
MATERIALS 3.6%
METALS & MINING 1.3%
Alcoa, Inc. 4,670 141,921
Newmont Mining Corp.+ 2,384 100,724
Phelps Dodge Corp.+ 514 52,289
Nucor Corp.+ 852 49,041
United States Steel Corp.+ 610 31,019
---------------
TOTAL METALS & MINING 374,994
---------------
CHEMICALS 1.2%
Monsanto Co. 1,420 91,590
Air Products & Chemicals, Inc. 1,220 77,214
PPG Industries, Inc.+ 925 66,156
Rohm & Haas Co. 1,209 58,032
Eastman Chemical Co. 421 24,839
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Engelhard Corp. 653 $ 19,609
Great Lakes Chemical Corp. 306 9,829
---------------
TOTAL CHEMICALS 347,269
---------------
PAPER & FOREST PRODUCTS 0.9%
International Paper Co.+ 2,608 95,949
Weyerhaeuser Co. 1,282 87,817
Georgia-Pacific Corp. 1,388 49,260
MeadWestvaco Corp. 1,083 34,461
Louisiana-Pacific Corp.+ 588 14,782
---------------
TOTAL PAPER & FOREST PRODUCTS 282,269
---------------
CONTAINERS & PACKAGING 0.1%
Temple-Inland, Inc. 304 22,055
Bemis Co. 578 17,988
---------------
TOTAL CONTAINERS & PACKAGING 40,043
---------------
CONSTRUCTION MATERIALS 0.1%
Vulcan Materials Co. 547 31,086
---------------
TOTAL CONSTRUCTION MATERIALS 31,086
---------------
TOTAL MATERIALS 1,075,661
---------------
CONSUMER STAPLES 2.8%
FOOD & DRUG RETAILING 1.3%
CVS Corp. 2,144 112,817
Costco Wholesale Corp.+ 2,516 111,157
Kroger Co.*+ 3,968 63,607
Safeway, Inc.*+ 2,397 44,416
Albertson's, Inc.+ 1,977 40,825
Supervalu, Inc. 725 24,179
---------------
TOTAL FOOD & DRUG RETAILING 397,001
---------------
FOOD PRODUCTS 0.9%
General Mills, Inc. 1,959 96,285
Archer-Daniels-Midland Co. 3,517 86,448
ConAgra Foods, Inc.+ 2,763 74,656
---------------
TOTAL FOOD PRODUCTS 257,389
---------------
BEVERAGES 0.3%
Coca-Cola Enterprises, Inc. 2,521 51,731
Molson Coors Brewing Co. --
Class B 410 31,640
---------------
TOTAL BEVERAGES 83,371
---------------
TOBACCO 0.2%
Reynolds American, Inc. 788 63,505
---------------
TOTAL TOBACCO 63,505
---------------
PERSONAL PRODUCTS 0.1%
Alberto-Culver Co. -- Class B 484 23,164
---------------
TOTAL PERSONAL PRODUCTS 23,164
---------------
TOTAL CONSUMER STAPLES 824,430
---------------
TOTAL COMMON STOCKS
(Cost $25,902,180) 29,759,479
---------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 73
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 8.4%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $ 748,114 $ 748,114
2.60% due 04/01/05 561,087 561,087
2.57% due 04/01/05 561,087 561,087
2.55% due 04/01/05 626,991 626,991
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,497,279) 2,497,279
---------------
SECURITIES LENDING COLLATERAL 14.8%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 4,416,102 4,416,102
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,416,102) 4,416,102
---------------
TOTAL INVESTMENTS 123.0%
(Cost $32,815,561) $ 36,672,860
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (23.0)% $ (6,852,453)
===============
NET ASSETS - 100.0% $ 29,820,407
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
9.
REIT - REAL ESTATE INVESTMENT TRUST.
74 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.6%
CONSUMER DISCRETIONARY 21.1%
SPECIALTY RETAIL 5.5%
Tractor Supply Co.* 4,199 $ 183,286
Guitar Center, Inc.*+ 2,774 152,098
Children's Place Retail Stores, Inc.*+ 2,949 140,815
Finish Line, Inc. -- Class A 5,300 122,695
Electronics Boutique Holdings
Corp.* 2,656 114,128
HOT Topic, Inc.*+ 5,092 111,260
Aaron Rents, Inc. 5,444 108,880
Stein Mart, Inc.* 4,650 104,625
Too, Inc.* 3,785 93,376
Select Comfort Corp.* 4,049 82,762
Hibbett Sporting Goods, Inc.* 2,565 77,053
Cato Corp. -- Class A 2,265 73,046
Christopher & Banks Corp. 3,916 68,922
Genesco, Inc.* 2,418 68,720
Cost Plus, Inc.* 2,390 64,243
Omnova Solutions, Inc.* 4,411 23,687
---------------
TOTAL SPECIALTY RETAIL 1,589,596
---------------
HOTELS RESTAURANTS & LEISURE 4.7%
Sonic Corp.* 6,593 220,206
Panera Bread Co. -- Class A*+ 3,315 187,397
P.F. Chang's China Bistro, Inc.*+ 2,830 169,234
Argosy Gaming Co.* 3,229 148,276
CEC Entertainment, Inc.*+ 3,981 145,704
Rare Hospitality International, Inc.* 3,728 115,121
IHOP Corp. 2,180 103,942
Triarc Cos. -- Class B 7,060 97,640
WMS Industries, Inc.*+ 3,349 94,308
Papa John's International, Inc.* 1,837 63,781
Bally Total Fitness Holding Corp.* 3,731 12,984
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 1,358,593
---------------
HOUSEHOLD DURABLES 3.4%
NVR, Inc.* 734 576,190
Meritage Homes Corp.* 2,820 166,154
Ethan Allen Interiors, Inc.+ 3,934 125,888
Champion Enterprises, Inc.* 7,849 73,781
Interface, Inc. -- Class A* 5,700 38,874
---------------
TOTAL HOUSEHOLD DURABLES 980,887
---------------
TEXTILES & APPAREL 2.9%
Fossil, Inc.*+ 7,791 201,982
Quiksilver, Inc.*+ 6,233 180,944
Wolverine World Wide, Inc. 6,285 134,687
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
K-Swiss, Inc. -- Class A 3,755 $ 124,028
Phillips-Van Heusen Corp. 3,395 90,443
Oxford Industries, Inc. 1,834 67,106
OshKosh B'Gosh, Inc. -- Class A 1,290 39,345
---------------
TOTAL TEXTILES & APPAREL 838,535
---------------
LEISURE EQUIPMENT & PRODUCTS 2.3%
Polaris Industries, Inc. 4,685 329,027
SCP Pool Corp. 5,715 182,080
Nautilus, Inc. 3,600 85,536
Arctic Cat, Inc. 2,236 60,506
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 657,149
---------------
MEDIA 1.2%
Arbitron, Inc. 3,398 145,774
Advo, Inc. 3,344 125,233
Lawson Products, Inc. 1,020 47,736
Thomas Nelson, Inc. 1,612 38,124
---------------
TOTAL MEDIA 356,867
---------------
AUTOMOBILES 0.6%
Winnebago Industries, Inc.+ 3,679 116,256
Fleetwood Enterprises, Inc.*+ 6,081 52,905
---------------
TOTAL AUTOMOBILES 169,161
---------------
MULTILINE RETAIL 0.4%
Shuffle Master, Inc.*+ 3,805 110,193
---------------
TOTAL MULTILINE RETAIL 110,193
---------------
AUTO COMPONENTS 0.1%
Midas, Inc.* 1,726 39,404
---------------
TOTAL AUTO COMPONENTS 39,404
---------------
TOTAL CONSUMER DISCRETIONARY 6,100,385
---------------
HEALTH CARE 17.2%
HEALTH CARE EQUIPMENT & SUPPLIES 9.5%
Cooper Cos., Inc.+ 4,753 346,494
Respironics, Inc.*+ 3,858 224,806
ResMed, Inc.* 3,714 209,470
Idexx Laboratories, Inc.*+ 3,681 199,363
Diagnostic Products Corp. 3,190 154,077
Sybron Dental Specialties, Inc.* 4,264 153,078
Immucor, Inc.* 4,913 148,323
Advanced Medical Optics, Inc.* 4,017 145,456
Mentor Corp.+ 4,438 142,460
American Medical Systems Holdings,
Inc.* 7,386 126,891
Haemonetics Corp./MA* 2,780 117,205
Cyberonics, Inc.* 2,619 115,681
Integra LifeSciences Holdings
Corp.*+ 3,163 111,401
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 75
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
PolyMedica Corp. 3,000 $ 95,280
Biosite, Inc.*+ 1,771 92,145
ArthroCare Corp.* 2,585 73,672
Hologic, Inc.* 2,245 71,559
Intermagnetics General Corp.* 2,790 67,909
SurModics, Inc.* 1,919 61,235
Merit Medical Systems Inc.* 2,896 34,723
Kensey Nash Corp.*+ 1,240 33,579
BioLase Technology, Inc.+ 2,674 22,729
Possis Medical, Inc.* 1,989 16,648
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,764,184
---------------
HEALTH CARE PROVIDERS & SERVICES 5.6%
Pharmaceutical Product Development,
Inc.* 6,191 299,954
Cerner Corp.*+ 3,985 209,252
AMERIGROUP Corp.* 5,480 200,349
Sierra Health Services, Inc.*+ 2,890 184,498
Centene Corp.*+ 4,494 134,775
American Healthways, Inc.*+ 3,616 119,400
AmSurg Corp.* 3,202 81,011
LCA-Vision, Inc. 2,210 73,593
SFBC International, Inc.* 1,950 68,718
LabOne, Inc.*+ 1,883 64,926
Dendrite International, Inc.* 4,577 64,261
Amedisys, Inc.* 1,669 50,487
Odyssey HealthCare, Inc.* 4,014 47,205
CryoLife, Inc.*+ 2,560 15,846
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,614,275
---------------
PHARMACEUTICALS 1.8%
MGI Pharma, Inc.*+ 7,769 196,323
Medicis Pharmaceutical Corp. --
Class A 5,993 179,670
Connetics Corp.*+ 3,900 98,631
Noven Pharmaceuticals, Inc.* 2,564 43,485
---------------
TOTAL PHARMACEUTICALS 518,109
---------------
BIOTECHNOLOGY 0.3%
Enzo Biochem, Inc.* 3,551 51,205
Regeneron Pharmaceuticals, Inc.* 6,108 31,212
---------------
TOTAL BIOTECHNOLOGY 82,417
---------------
TOTAL HEALTH CARE 4,978,985
---------------
INFORMATION TECHNOLOGY 16.5%
SOFTWARE 5.7%
Take-Two Interactive Software, Inc.*+ 4,945 193,350
Hyperion Solutions Corp.*+ 4,269 188,306
Kronos, Inc./MA* 3,411 174,336
Factset Research Systems, Inc.+ 5,126 169,209
Micros Systems, Inc.* 4,054 148,822
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Ansys, Inc.* 3,423 $ 117,101
Serena Software, Inc.*+ 4,774 113,430
Progress Software Corp.* 3,952 103,621
Filenet Corp.* 4,326 98,546
Internet Security Systems, Inc.* 5,020 91,866
Altiris, Inc.*+ 2,955 70,477
Manhattan Associates, Inc.* 3,291 67,038
Sonic Solutions, Inc.* 2,563 38,573
Catapult Communications Corp.* 1,592 33,989
Napster, Inc.*+ 4,590 29,881
---------------
TOTAL SOFTWARE 1,638,545
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 4.1%
Flir Systems, Inc.*+ 7,490 226,947
Trimble Navigation Ltd.* 5,683 192,142
Cognex Corp. 5,043 125,470
Dionex Corp.* 2,289 124,751
Global Imaging Systems, Inc.* 2,539 90,033
Rogers Corp.* 1,837 73,480
Scansource, Inc.* 1,380 71,525
Littelfuse, Inc.* 2,434 69,734
MTS Systems Corp. 2,240 65,027
Daktronics, Inc.* 2,074 44,902
BEI Technologies, Inc. 1,620 38,831
X-Rite, Inc. 2,288 34,412
Keithley Instruments, Inc. 1,776 28,647
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,185,901
---------------
IT CONSULTING & SERVICES 2.5%
Global Payments, Inc.+ 4,213 271,696
CACI International, Inc. -- Class A* 3,200 176,736
eFunds Corp.* 5,350 119,412
Mantech International Corp. --
Class A* 3,550 81,899
Talx Corp. 2,262 41,078
Startek, Inc. 1,583 26,594
Carreker Corp.* 2,713 15,220
---------------
TOTAL IT CONSULTING & SERVICES 732,635
---------------
SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 1.3%
Microsemi Corp.* 6,535 106,455
ATMI, Inc.* 3,444 86,238
Power Integrations, Inc.* 3,394 70,901
Helix Technology Corp. 2,862 44,275
Kulicke & Soffa Industries, Inc.* 5,591 35,167
Supertex, Inc.* 1,430 26,183
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 369,219
---------------
76 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES 1.2%
Websense, Inc.* 2,559 $ 137,674
WebEx Communications, Inc.*+ 4,895 105,683
j2 Global Communications, Inc.* 2,574 88,314
Zix Corp.*+ 3,526 13,188
---------------
TOTAL INTERNET SOFTWARE & SERVICES 344,859
---------------
COMPUTERS & PERIPHERALS 0.9%
Avid Technology, Inc.*+ 3,716 201,110
Synaptics, Inc.* 2,794 64,821
---------------
TOTAL COMPUTERS & PERIPHERALS 265,931
---------------
COMMUNICATIONS EQUIPMENT 0.8%
Harmonic, Inc.* 7,911 75,629
Inter-Tel, Inc. 2,832 69,384
ViaSat, Inc.* 2,933 54,818
Digi International, Inc.* 2,370 32,516
---------------
TOTAL COMMUNICATIONS EQUIPMENT 232,347
---------------
TOTAL INFORMATION TECHNOLOGY 4,769,437
---------------
INDUSTRIALS 16.0%
MACHINERY 5.1%
Oshkosh Truck Corp. 3,918 321,237
IDEX Corp. 5,551 223,983
Toro Co.+ 2,505 221,692
Clarcor, Inc. 2,800 145,488
Manitowoc Co., Inc. 3,231 130,500
JLG Industries, Inc. 5,430 117,017
Kaydon Corp.+ 3,090 97,026
CUNO, Inc.* 1,855 95,328
Wabash National Corp.+ 3,324 81,106
Lindsay Manufacturing Co. 1,291 24,632
Milacron, Inc.* 5,324 16,238
---------------
TOTAL MACHINERY 1,474,247
---------------
COMMERCIAL SERVICES & SUPPLIES 2.6%
Brady Corp. -- Class A 5,298 171,390
John H. Harland Co. 3,049 104,764
Watson Wyatt & Co., Holdings 3,557 96,750
Labor Ready, Inc.*+ 4,599 85,771
Heidrick & Struggles International,
Inc.* 2,102 77,291
Pre-Paid Legal Services, Inc.+ 1,703 57,630
Coinstar, Inc.* 2,692 57,070
Administaff, Inc. 2,783 40,632
Vertrue, Inc.*+ 1,033 36,610
CPI Corp. 853 12,880
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 740,788
---------------
AEROSPACE & DEFENSE 2.5%
Engineered Support Systems, Inc. 2,920 156,278
Armor Holdings, Inc.* 3,637 134,896
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Gencorp, Inc. 5,800 $ 116,000
Teledyne Technologies, Inc.* 3,583 112,148
EDO Corp. 2,190 65,809
Mercury Computer Systems, Inc.* 2,303 63,517
Ceradyne, Inc.* 2,665 59,616
Applied Signal Technology, Inc. 1,224 28,030
---------------
TOTAL AEROSPACE & DEFENSE 736,294
---------------
ELECTRICAL EQUIPMENT 1.9%
Roper Industries, Inc. 4,619 302,544
Acuity Brands, Inc.+ 4,652 125,604
Baldor Electric Co. 3,614 93,277
Artesyn Technologies, Inc.*+ 4,298 37,436
---------------
TOTAL ELECTRICAL EQUIPMENT 558,861
---------------
ROAD & RAIL 1.8%
Landstar System, Inc.* 6,644 217,591
Heartland Express, Inc. 8,219 157,394
Knight Transportation, Inc. 6,194 152,806
---------------
TOTAL ROAD & RAIL 527,791
---------------
BUILDING PRODUCTS 0.9%
Simpson Manufacturing Co., Inc. 5,220 161,298
ElkCorp 2,179 83,804
---------------
TOTAL BUILDING PRODUCTS 245,102
---------------
AIR FREIGHT & COURIERS 0.8%
EGL, Inc.* 5,620 128,136
Forward Air Corp. 2,351 100,106
---------------
TOTAL AIR FREIGHT & COURIERS 228,242
---------------
MARINE 0.4%
Kirby Corp.* 2,720 114,322
---------------
TOTAL MARINE 114,322
---------------
TOTAL INDUSTRIALS 4,625,647
---------------
FINANCIALS 9.4%
BANKS 5.7%
East-West Bancorp, Inc. 5,743 212,031
UCBH Holdings, Inc. 4,981 198,742
First Bancorp Puerto Rico+ 4,417 186,618
Hudson United Bancorp 4,925 173,606
First Midwest Bancorp, Inc./IL 5,083 165,096
United Bankshares, Inc. 4,720 156,421
Southwest Bancorp of Texas, Inc.+ 7,672 140,781
Wintrust Financial Corp. 2,362 111,227
Republic Bancorp, Inc./MI 7,720 104,529
TrustCo Bank Corp./NY 8,140 93,529
PrivateBancorp, Inc. 2,227 69,950
Nara Bancorp, Inc. 2,550 35,827
---------------
TOTAL BANKS 1,648,357
---------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 77
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
REAL ESTATE 2.0%
New Century Financial Corp. 5,988 $ 280,358
Essex Property Trust, Inc.+ 2,513 173,247
Kilroy Realty Corp. 3,120 127,639
---------------
TOTAL REAL ESTATE 581,244
---------------
INSURANCE 1.1%
Philadelphia Consolidated
Holding Co.* 2,440 189,173
Hilb Rogal & Hobbs Co. 3,941 141,088
---------------
TOTAL INSURANCE 330,261
---------------
THRIFTS & MORTGAGE FINANCE 0.4%
BankAtlantic Bancorp, Inc. -- Class A 6,555 114,057
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 114,057
---------------
CONSUMER FINANCE 0.2%
World Acceptance Corp.* 2,050 52,316
---------------
TOTAL CONSUMER FINANCE 52,316
---------------
TOTAL FINANCIALS 2,726,235
---------------
ENERGY 9.2%
OIL & GAS 5.8%
Patina Oil & Gas Corp. 7,741 309,640
Vintage Petroleum, Inc.+ 7,206 226,701
Southwestern Energy Co.* 3,972 225,451
Cabot Oil & Gas Corp. 3,623 199,808
Cimarex Energy Co.*+ 4,560 177,840
St. Mary Land & Exploration Co. 3,138 157,057
Frontier Oil Corp. 2,952 107,040
Remington Oil & Gas Corp.* 3,035 95,663
Penn Virginia Corp. 2,015 92,488
Petroleum Development Corp.* 1,814 68,370
---------------
TOTAL OIL & GAS 1,660,058
---------------
ENERGY EQUIPMENT & SERVICES 3.4%
Unit Corp.*+ 5,009 226,256
Cal Dive International, Inc.*+ 4,201 190,305
Hydril*+ 2,542 148,478
Lone Star Technologies, Inc.*+ 3,185 125,585
CARBO Ceramics, Inc. 1,747 122,552
Atwood Oceanics, Inc.* 1,650 109,791
Tetra Technologies, Inc.* 2,449 69,650
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 992,617
---------------
TOTAL ENERGY 2,652,675
---------------
MATERIALS 5.0%
METALS & MINING 2.0%
Massey Energy Co.+ 8,334 333,693
Cleveland-Cliffs, Inc.+ 2,360 171,973
Amcol International Corp. 3,215 60,314
---------------
TOTAL METALS & MINING 565,980
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONSTRUCTION MATERIALS 1.5%
Florida Rock Industries, Inc.+ 4,752 $ 279,513
Headwaters, Inc.*+ 4,339 142,406
---------------
TOTAL CONSTRUCTION MATERIALS 421,919
---------------
CHEMICALS 0.9%
Georgia Gulf Corp. 3,666 168,563
MacDermid, Inc.+ 3,323 107,997
---------------
TOTAL CHEMICALS 276,560
---------------
PAPER & FOREST PRODUCTS 0.6%
Wausau-Mosinee Paper Corp. 5,665 80,103
Neenah Paper, Inc.+ 1,640 55,137
Deltic Timber Corp. 1,329 51,964
---------------
TOTAL PAPER & FOREST PRODUCTS 187,204
---------------
TOTAL MATERIALS 1,451,663
---------------
CONSUMER STAPLES 3.4%
FOOD PRODUCTS 1.4%
Ralcorp Holdings, Inc. 3,205 151,757
Delta & Pine Land Co. 4,223 114,021
Sanderson Farms, Inc. 2,183 94,327
Lance, Inc. 3,246 52,163
---------------
TOTAL FOOD PRODUCTS 412,268
---------------
HOUSEHOLD PRODUCTS 0.9%
Rayovac Corp.*+ 4,554 189,447
WD-40 Co. 1,813 58,904
---------------
TOTAL HOUSEHOLD PRODUCTS 248,351
---------------
PERSONAL PRODUCTS 0.7%
NBTY, Inc.* 7,324 183,759
Natures Sunshine Products, Inc. 1,684 28,915
---------------
TOTAL PERSONAL PRODUCTS 212,674
---------------
FOOD & DRUG RETAILING 0.4%
United Natural Foods, Inc.* 4,384 125,514
---------------
TOTAL FOOD & DRUG RETAILING 125,514
---------------
TOTAL CONSUMER STAPLES 998,807
---------------
UTILITIES 1.4%
MULTI-UTILITIES 0.9%
Energen Corp. 3,995 266,067
---------------
TOTAL MULTI-UTILITIES 266,067
---------------
GAS UTILITIES 0.5%
New Jersey Resources Corp. 3,050 132,766
---------------
TOTAL GAS UTILITIES 132,766
---------------
TOTAL UTILITIES 398,833
---------------
78 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES 0.4%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.4%
Commonwealth Telephone Enterprises,
Inc.* 2,292 $ 108,045
---------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 108,045
---------------
TOTAL TELECOMMUNICATION SERVICES 108,045
---------------
TOTAL COMMON STOCKS
(Cost $24,016,607) 28,810,712
---------------
FACE
AMOUNT
----------
REPURCHASE AGREEMENTS 0.4%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $ 39,358 39,358
2.60% due 04/01/05 29,518 29,518
2.57% due 04/01/05 29,518 29,518
2.55% due 04/01/05 32,985 32,985
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $131,379) 131,379
---------------
SECURITIES LENDING COLLATERAL 14.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 4,154,408 4,154,408
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,154,408) 4,154,408
---------------
TOTAL INVESTMENTS 114.4%
(Cost $28,302,394) $ 33,096,499
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (14.4)% $ (4,164,522)
===============
NET ASSETS - 100.0% $ 28,931,977
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
9.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 79
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 100.0%
CONSUMER DISCRETIONARY 21.9%
SPECIALTY RETAIL 10.1%
Chico's FAS, Inc.*+ 8,890 $ 251,231
Abercrombie & Fitch Co. -- Class A+ 4,342 248,536
Michaels Stores, Inc.+ 6,759 245,352
American Eagle Outfitters, Inc. 7,338 216,838
Ross Stores, Inc.+ 7,345 214,033
Williams-Sonoma, Inc.*+ 5,800 213,150
Petsmart, Inc.+ 7,234 207,978
Urban Outfitters, Inc.* 4,027 193,175
Advance Auto Parts, Inc.* 3,660 184,647
CarMax, Inc.* 5,186 163,359
O'Reilly Automotive, Inc.*+ 2,751 136,257
Claire's Stores, Inc.+ 4,928 113,541
Pacific Sunwear of California, Inc.*+ 3,695 103,386
Aeropostale, Inc.*+ 2,768 90,652
Regis Corp. 2,204 90,210
---------------
TOTAL SPECIALTY RETAIL 2,672,345
---------------
HOTELS RESTAURANTS & LEISURE 5.4%
Mandalay Resort Group 4,089 288,234
Boyd Gaming Corp. 4,343 226,487
Outback Steakhouse, Inc. 3,677 168,370
Brinker International, Inc.* 4,309 156,072
International Speedway Corp. --
Class A 2,653 143,925
Cheesecake Factory, Inc.*+ 3,878 137,475
GTECH Holdings Corp. 5,773 135,839
Applebee's International, Inc. 4,033 111,149
Ruby Tuesday, Inc.+ 3,234 78,554
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 1,446,105
---------------
MEDIA 2.9%
Washington Post Co. -- Class B 472 421,968
Harte-Hanks, Inc. 4,250 117,130
Valassis Communications, Inc.* 2,550 89,148
Reader's Digest Association, Inc. 4,961 85,875
Catalina Marketing Corp.+ 2,604 67,444
---------------
TOTAL MEDIA 781,565
---------------
HOUSEHOLD DURABLES 1.6%
Harman International Industries, Inc. 3,340 295,456
Blyth, Inc. 2,035 64,794
Tupperware Corp.+ 2,913 59,309
---------------
TOTAL HOUSEHOLD DURABLES 419,559
---------------
MULTILINE RETAIL 0.6%
Dollar Tree Stores, Inc.*+ 5,632 161,807
---------------
TOTAL MULTILINE RETAIL 161,807
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AUTO COMPONENTS 0.5%
Gentex Corp.+ 3,865 $ 123,294
---------------
TOTAL AUTO COMPONENTS 123,294
---------------
TEXTILES & APPAREL 0.5%
Timberland Co. -- Class A* 1,718 121,858
---------------
TOTAL TEXTILES & APPAREL 121,858
---------------
AUTOMOBILES 0.3%
Thor Industries, Inc.+ 2,828 84,585
---------------
TOTAL AUTOMOBILES 84,585
---------------
TOTAL CONSUMER DISCRETIONARY 5,811,118
---------------
HEALTH CARE 17.3%
HEALTH CARE PROVIDERS & SERVICES 6.4%
Coventry Health Care, Inc.* 5,292 360,597
Patterson Cos., Inc.*+ 6,830 341,159
Lincare Holdings, Inc.*+ 4,997 221,017
Henry Schein, Inc.*+ 4,313 154,578
Covance, Inc.* 3,110 148,067
Renal Care Group, Inc.* 3,355 127,289
LifePoint Hospitals, Inc.*+ 2,347 102,892
Westwood One, Inc.* 4,785 97,375
VCA Antech, Inc.* 4,086 82,660
Apria Healthcare Group, Inc.* 2,412 77,425
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,713,059
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 5.1%
Varian Medical Systems, Inc.*+ 6,766 231,938
DENTSPLY International, Inc. 4,015 218,456
Beckman Coulter, Inc.+ 3,024 200,945
Hillenbrand Industries, Inc. 3,081 170,903
Cytyc Corp.* 5,568 128,120
Edwards Lifesciences Corp.*+ 2,960 127,931
Inamed Corp.* 1,787 124,875
Gen-Probe, Inc.* 2,476 110,331
Visx, Inc.* 2,472 57,944
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,371,443
---------------
PHARMACEUTICALS 3.6%
Sepracor, Inc.*+ 5,232 300,369
Barr Pharmaceuticals, Inc.* 5,103 249,180
IVAX Corp.*+ 12,484 246,809
Valeant Pharmaceuticals International 4,549 102,443
Par Pharmaceutical Cos., Inc.*+ 1,687 56,413
---------------
TOTAL PHARMACEUTICALS 955,214
---------------
BIOTECHNOLOGY 2.2%
Charles River Laboratories International,
Inc.*+ 3,223 151,610
Cephalon, Inc.*+ 2,870 134,402
Martek Biosciences Corp.*+ 1,545 89,903
Protein Design Labs, Inc.* 5,251 83,963
80 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Techne Corp.*+ 1,915 $ 76,945
Vertex Pharmaceuticals, Inc.* 3,996 37,403
---------------
TOTAL BIOTECHNOLOGY 574,226
---------------
TOTAL HEALTH CARE 4,613,942
---------------
INDUSTRIALS 16.4%
COMMERCIAL SERVICES & SUPPLIES 6.1%
Dun & Bradstreet Corp.* 3,457 212,433
ChoicePoint, Inc.*+ 4,416 177,126
Career Education Corp.*+ 5,103 174,829
HNI Corp. 2,793 125,545
ITT Educational Services, Inc.*+ 2,286 110,871
Herman Miller, Inc.+ 3,515 105,872
Copart, Inc.* 4,477 105,478
Education Management Corp.* 3,657 102,213
Deluxe Corp. 2,489 99,211
Stericycle, Inc.*+ 2,241 99,052
Brink's Co. 2,823 97,676
Corinthian Colleges, Inc.* 4,506 70,834
Rollins, Inc. 3,412 63,463
Sotheby's Holdings, Inc. -- Class A*+ 3,160 53,594
Korn/Ferry International, Inc.* 1,937 36,861
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,635,058
---------------
MACHINERY 2.8%
Pentair, Inc.+ 5,011 195,429
Graco, Inc.+ 3,442 138,919
Donaldson Co., Inc.+ 4,141 133,671
Harsco Corp. 2,050 122,201
Crane Co.+ 2,729 78,568
Nordson Corp. 1,810 66,644
---------------
TOTAL MACHINERY 735,432
---------------
AIR FREIGHT & COURIERS 1.9%
Expeditors International Washington,
Inc.+ 5,310 284,350
C.H. Robinson Worldwide, Inc.+ 4,247 218,848
---------------
TOTAL AIR FREIGHT & COURIERS 503,198
---------------
AEROSPACE & DEFENSE 1.5%
Precision Castparts Corp. 3,270 251,823
Alliant Techsystems, Inc.*+ 1,881 134,397
---------------
TOTAL AEROSPACE & DEFENSE 386,220
---------------
ROAD & RAIL 1.1%
J.B. Hunt Transport Services, Inc. 4,048 177,181
CNF, Inc. 2,569 120,204
---------------
TOTAL ROAD & RAIL 297,385
---------------
ELECTRICAL EQUIPMENT 1.1%
Hubbell, Inc. -- Class B 3,032 154,935
AMETEK, Inc. 3,410 137,253
---------------
TOTAL ELECTRICAL EQUIPMENT 292,188
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS 0.8%
Fastenal Co.+ 3,778 $ 208,961
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 208,961
---------------
AIRLINES 0.5%
JetBlue Airways Corp.*+ 5,164 98,323
AirTran Holdings, Inc.*+ 4,265 38,598
---------------
TOTAL AIRLINES 136,921
---------------
INDUSTRIAL CONGLOMERATES 0.4%
Carlisle Cos., Inc. 1,547 107,934
---------------
TOTAL INDUSTRIAL CONGLOMERATES 107,934
---------------
CONSTRUCTION & ENGINEERING 0.2%
Dycom Industries, Inc.*+ 2,421 55,659
---------------
TOTAL CONSTRUCTION & ENGINEERING 55,659
---------------
TOTAL INDUSTRIALS 4,358,956
---------------
INFORMATION TECHNOLOGY 15.1%
IT CONSULTING & SERVICES 3.9%
Cognizant Technology Solutions
Corp.*+ 6,626 306,121
DST Systems, Inc.* 4,171 192,617
Alliance Data Systems Corp.*+ 4,069 164,388
Certegy, Inc. 3,117 107,910
Acxiom Corp. 4,301 90,020
Titan Corp.* 4,216 76,563
Gartner, Inc. -- Class A*+ 5,519 52,817
CSG Systems International, Inc.* 2,543 41,425
---------------
TOTAL IT CONSULTING & SERVICES 1,031,861
---------------
SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 3.1%
Microchip Technology, Inc. 10,276 267,279
Lam Research Corp.*+ 6,789 195,930
Cree, Inc.*+ 3,680 80,040
Silicon Laboratories, Inc.* 2,586 76,830
Integrated Circuit Systems, Inc.* 3,498 66,882
Semtech Corp.*+ 3,688 65,905
Micrel, Inc.*+ 4,480 41,306
Cabot Microelectronics Corp.*+ 1,233 38,691
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 832,863
---------------
SOFTWARE 2.7%
McAfee, Inc.*+ 7,975 179,916
Macromedia, Inc.*+ 3,539 118,556
Reynolds & Reynolds Co. -- Class A 3,221 87,160
Jack Henry & Associates, Inc. 4,508 81,099
Wind River Systems, Inc.* 4,096 61,768
Macrovision Corp.*+ 2,478 56,474
RSA Security, Inc.* 3,462 54,873
Transaction Systems Architects,
Inc. -- Class A* 1,964 45,466
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 81
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Advent Software, Inc.* 1,626 $ 29,561
---------------
TOTAL SOFTWARE 714,873
---------------
COMMUNICATIONS EQUIPMENT 2.0%
Harris Corp. 6,662 217,514
F5 Networks, Inc.*+ 1,826 92,195
Plantronics, Inc.+ 2,413 91,887
ADTRAN, Inc.+ 3,807 67,156
Avocent Corp.* 2,476 63,534
---------------
TOTAL COMMUNICATIONS EQUIPMENT 532,286
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.9%
CDW Corp.+ 4,137 234,485
Amphenol Corp. -- Class A+ 4,408 163,272
National Instruments Corp.+ 3,939 106,550
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 504,307
---------------
COMPUTERS & PERIPHERALS 0.7%
Diebold, Inc. 3,562 195,376
---------------
TOTAL COMPUTERS & PERIPHERALS 195,376
---------------
OFFICE ELECTRONICS 0.7%
Zebra Technologies Corp. --
Class A*+ 3,573 169,682
---------------
TOTAL OFFICE ELECTRONICS 169,682
---------------
INTERNET SOFTWARE & SERVICES 0.1%
Retek, Inc.* 2,788 31,281
---------------
TOTAL INTERNET SOFTWARE & SERVICES 31,281
---------------
TOTAL INFORMATION TECHNOLOGY 4,012,529
---------------
FINANCIALS 11.9%
BANKS 4.4%
Commerce Bancorp, Inc./NJ+ 7,906 256,708
Associated Banc-Corp. 6,446 201,309
TCF Financial Corp.+ 6,914 187,715
Bank of Hawaii Corp. 2,637 119,351
Wilmington Trust Corp. 3,354 117,725
Cullen/Frost Bankers, Inc. 2,590 116,938
Westamerica Bancorporation 1,584 82,004
Silicon Valley Bancshares*+ 1,790 78,867
---------------
TOTAL BANKS 1,160,617
---------------
CAPITAL MARKETS 3.8%
Legg Mason, Inc.+ 5,414 423,050
SEI Investments Co. 5,107 184,669
Investors Financial Services Corp.+ 3,306 161,697
Eaton Vance Corp. 6,684 156,673
Waddell & Reed Financial, Inc. --
Class A 4,118 81,289
---------------
TOTAL CAPITAL MARKETS 1,007,378
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
REAL ESTATE 2.3%
Developers Diversified Realty Corp. 5,366 $ 213,298
Weingarten Realty Investors+ 4,431 152,914
United Dominion Realty Trust, Inc. 6,605 137,846
Rayonier, Inc. 2,484 123,033
---------------
TOTAL REAL ESTATE 627,091
---------------
INSURANCE 1.1%
Brown & Brown, Inc. 3,446 158,826
Arthur J. Gallagher & Co. 4,606 132,653
---------------
TOTAL INSURANCE 291,479
---------------
CONSUMER FINANCE 0.3%
MoneyGram International, Inc. 4,405 83,211
---------------
TOTAL CONSUMER FINANCE 83,211
---------------
TOTAL FINANCIALS 3,169,776
---------------
ENERGY 6.4%
OIL & GAS 3.4%
Murphy Oil Corp. 4,581 452,282
Noble Energy, Inc.+ 2,926 199,027
Plains Exploration & Production Co.* 3,838 133,946
Western Gas Resources, Inc. 3,687 127,017
---------------
TOTAL OIL & GAS 912,272
---------------
ENERGY EQUIPMENT & SERVICES 3.0%
Smith International, Inc.+ 5,224 327,701
Patterson-UTI Energy, Inc.+ 8,335 208,542
Grant Prideco, Inc.* 6,150 148,584
FMC Technologies, Inc.* 3,409 113,111
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 797,938
---------------
TOTAL ENERGY 1,710,210
---------------
MATERIALS 4.4%
CHEMICALS 2.3%
Lyondell Chemical Co.+ 12,036 336,045
Crompton Corp.+ 6,950 101,470
Airgas, Inc.+ 3,735 89,229
Olin Corp. 3,493 77,894
---------------
TOTAL CHEMICALS 604,638
---------------
METALS & MINING 1.6%
Peabody Energy Corp. 6,440 298,558
Arch Coal, Inc. 3,103 133,460
---------------
TOTAL METALS & MINING 432,018
---------------
CONTAINERS & PACKAGING 0.5%
Packaging Corporation of America+ 5,327 129,393
---------------
TOTAL CONTAINERS & PACKAGING 129,393
---------------
TOTAL MATERIALS 1,166,049
---------------
82 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONSUMER STAPLES 3.8%
FOOD PRODUCTS 1.4%
Hormel Foods Corp.+ 6,915 $ 215,126
Tootsie Roll Industries, Inc. 2,685 80,545
Lancaster Colony Corp. 1,748 74,377
---------------
TOTAL FOOD PRODUCTS 370,048
---------------
HOUSEHOLD PRODUCTS 1.2%
Energizer Holdings, Inc.* 3,608 215,759
Church & Dwight Co., Inc. 3,107 110,205
---------------
TOTAL HOUSEHOLD PRODUCTS 325,964
---------------
FOOD & DRUG RETAILING 1.2%
Whole Foods Market, Inc.+ 3,097 316,297
---------------
TOTAL FOOD & DRUG RETAILING 316,297
---------------
TOTAL CONSUMER STAPLES 1,012,309
---------------
UTILITIES 2.6%
MULTI-UTILITIES 1.6%
Questar Corp. 4,200 248,850
Equitable Resources, Inc. 3,063 175,939
---------------
TOTAL MULTI-UTILITIES 424,789
---------------
ELECTRIC UTILITIES 0.6%
DPL, Inc.+ 6,300 157,500
---------------
TOTAL ELECTRIC UTILITIES 157,500
---------------
WATER UTILITIES 0.4%
Aqua America, Inc. 4,641 113,008
---------------
TOTAL WATER UTILITIES 113,008
---------------
TOTAL UTILITIES 695,297
---------------
TELECOMMUNICATION SERVICES 0.2%
DIVERSIFIED TELECOMMUNICATION
SERVICES 0.2%
Cincinnati Bell, Inc.*+ 12,215 51,914
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 51,914
---------------
TOTAL TELECOMMUNICATION SERVICES 51,914
---------------
TOTAL COMMON STOCKS
(Cost $23,790,773) 26,602,100
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 0.5%
Repurchase Agreement (Note 6)
2.63% due 04/01/05 $ 40,342 $ 40,342
2.60% due 04/01/05 30,257 30,257
2.57% due 04/01/05 30,257 30,257
2.55% due 04/01/05 33,810 33,810
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $134,666) 134,666
---------------
SECURITIES LENDING COLLATERAL 30.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 7,972,274 7,972,274
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $7,972,274) 7,972,274
---------------
TOTAL INVESTMENTS 130.5%
(Cost $31,897,713) $ 34,709,040
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (30.5)% $ (8,108,960)
===============
NET ASSETS - 100.0% $ 26,600,080
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
9
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 83
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.7%
INFORMATION TECHNOLOGY 23.4%
SOFTWARE 7.7%
Microsoft Corp. 63,903 $ 1,544,535
Oracle Corp.* 30,153 376,309
Adobe Systems, Inc.+ 1,427 95,852
Electronic Arts, Inc.*+ 1,824 94,447
Symantec Corp.*+ 4,223 90,077
Computer Associates International,
Inc.+ 3,277 88,807
Intuit, Inc.* 1,103 48,278
Autodesk, Inc. 1,364 40,593
Citrix Systems, Inc.*+ 1,011 24,082
Mercury Interactive Corp.*+ 501 23,737
Parametric Technology Corp.* 1,510 8,441
---------------
TOTAL SOFTWARE 2,435,158
---------------
COMPUTERS & PERIPHERALS 5.6%
International Business Machines
Corp. 9,314 851,113
Dell, Inc.* 14,593 560,663
Apple Computer, Inc.* 4,812 200,516
Network Appliance, Inc.*+ 2,137 59,109
Lexmark International, Inc.* 732 58,538
QLogic Corp.*+ 553 22,397
Gateway, Inc.* 2,092 8,431
---------------
TOTAL COMPUTERS & PERIPHERALS 1,760,767
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 4.0%
Intel Corp. 37,140 862,762
Maxim Integrated Products, Inc.+ 1,938 79,206
Analog Devices, Inc. 2,105 76,075
Linear Technology Corp.+ 1,818 69,647
Xilinx, Inc.+ 2,078 60,740
Broadcom Corp. -- Class A*+ 1,967 58,853
Altera Corp.* 2,186 43,239
PMC - Sierra, Inc.*+ 997 8,774
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 1,259,296
---------------
COMMUNICATIONS EQUIPMENT 3.9%
Cisco Systems, Inc.* 38,783 693,828
Qualcomm, Inc. 9,770 358,071
Corning, Inc.*+ 7,849 87,359
Lucent Technologies, Inc.*+ 24,749 68,060
Avaya, Inc.* 2,565 29,959
---------------
TOTAL COMMUNICATIONS EQUIPMENT 1,237,277
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
IT CONSULTING & SERVICES 1.3%
First Data Corp. 4,646 $ 182,634
Automatic Data Processing, Inc. 3,263 146,672
Paychex, Inc.+ 2,250 73,845
---------------
TOTAL IT CONSULTING & SERVICES 403,151
---------------
INTERNET SOFTWARE & SERVICES 0.9%
Yahoo!, Inc.*+ 8,122 275,336
---------------
TOTAL INTERNET SOFTWARE & SERVICES 275,336
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.0%
Symbol Technologies, Inc. 1,350 19,561
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 19,561
---------------
TOTAL INFORMATION TECHNOLOGY 7,390,546
---------------
CONSUMER STAPLES 18.5%
FOOD & DRUG RETAILING 5.0%
Wal-Mart Stores, Inc.+ 23,709 1,188,058
Walgreen Co. 5,875 260,967
Sysco Corp.+ 3,577 128,057
---------------
TOTAL FOOD & DRUG RETAILING 1,577,082
---------------
BEVERAGES 4.4%
Coca-Cola Co. 13,907 579,505
PepsiCo, Inc. 9,683 513,490
Anheuser-Busch Cos., Inc.+ 4,426 209,748
Pepsi Bottling Group, Inc.+ 1,404 39,101
Brown-Forman Corp. -- Class B 676 37,011
---------------
TOTAL BEVERAGES 1,378,855
---------------
HOUSEHOLD PRODUCTS 3.6%
Procter & Gamble Co.+ 14,204 752,812
Kimberly-Clark Corp. 2,735 179,772
Colgate-Palmolive Co. 2,970 154,945
Clorox Co. 853 53,730
---------------
TOTAL HOUSEHOLD PRODUCTS 1,141,259
---------------
TOBACCO 2.6%
Altria Group, Inc.+ 11,793 771,144
UST, Inc. 926 47,874
---------------
TOTAL TOBACCO 819,018
---------------
FOOD PRODUCTS 1.7%
Sara Lee Corp.+ 4,513 100,008
Kellogg Co. 2,311 99,997
Hershey Foods Corp. 1,376 83,193
WM Wrigley Jr Co. 1,259 82,553
H.J. Heinz Co. 1,957 72,096
Campbell Soup Co. 2,309 67,007
McCormick & Co., Inc. 775 26,683
---------------
TOTAL FOOD PRODUCTS 531,537
---------------
84 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
PERSONAL PRODUCTS 1.2%
Gillette Co. 5,555 $ 280,417
Avon Products, Inc. 2,648 113,705
---------------
TOTAL PERSONAL PRODUCTS 394,122
---------------
TOTAL CONSUMER STAPLES 5,841,873
---------------
HEALTH CARE 17.6%
PHARMACEUTICALS 10.1%
Johnson & Johnson, Inc.+ 17,056 1,145,481
Abbott Laboratories 8,952 417,342
Merck & Co., Inc. 12,412 401,777
Eli Lilly & Co. 6,502 338,754
Wyeth 7,471 315,127
Bristol-Myers Squibb Co.+ 10,894 277,361
Schering-Plough Corp. 8,239 149,538
Forest Laboratories, Inc.* 2,057 76,006
Allergan, Inc. 745 51,755
---------------
TOTAL PHARMACEUTICALS 3,173,141
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 4.0%
Medtronic, Inc. 6,767 344,779
Boston Scientific Corp.* 4,723 138,337
Guidant Corp. 1,784 131,837
Baxter International, Inc. 3,453 117,333
Zimmer Holdings, Inc.*+ 1,377 107,144
Stryker Corp. 2,259 100,774
Becton, Dickinson & Co. 1,420 82,956
St. Jude Medical, Inc.* 2,002 72,072
Biomet, Inc. 1,511 54,849
C.R. Bard, Inc. 581 39,554
Hospira, Inc.* 869 28,043
Waters Corp.* 673 24,087
Millipore Corp.* 277 12,022
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,253,787
---------------
BIOTECHNOLOGY 2.0%
Amgen, Inc.* 7,464 434,479
Gilead Sciences, Inc.* 2,565 91,827
Genzyme Corp.* 1,474 84,372
Medimmune, Inc.*+ 1,492 35,525
---------------
TOTAL BIOTECHNOLOGY 646,203
---------------
HEALTH CARE PROVIDERS & SERVICES 1.5%
UnitedHealth Group, Inc.+ 3,662 349,281
Quest Diagnostics, Inc.+ 560 58,873
Express Scripts, Inc.*+ 451 39,323
IMS Health, Inc. 1,310 31,951
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 479,428
---------------
TOTAL HEALTH CARE 5,552,559
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INDUSTRIALS 15.5%
INDUSTRIAL CONGLOMERATES 8.0%
General Electric Co. 59,191 $ 2,134,428
3M Co. 4,473 383,291
---------------
TOTAL INDUSTRIAL CONGLOMERATES 2,517,719
---------------
AEROSPACE & DEFENSE 2.4%
United Technologies Corp. 2,868 291,561
Boeing Co. 4,699 274,704
Lockheed Martin Corp. 2,484 151,673
Rockwell Collins, Inc. 994 47,304
---------------
TOTAL AEROSPACE & DEFENSE 765,242
---------------
MACHINERY 1.6%
Caterpillar, Inc. 1,911 174,742
Illinois Tool Works, Inc. 1,662 148,799
Danaher Corp.+ 1,729 92,346
Paccar, Inc. 1,035 74,924
Navistar International Corp.* 386 14,050
---------------
TOTAL MACHINERY 504,861
---------------
AIR FREIGHT & COURIERS 1.5%
United Parcel Service, Inc. -- Class B 6,442 468,591
---------------
TOTAL AIR FREIGHT & COURIERS 468,591
---------------
COMMERCIAL SERVICES & SUPPLIES 1.0%
Apollo Group, Inc. -- Class A*+ 1,106 81,910
Pitney Bowes, Inc. 1,299 58,611
H&R Block, Inc. 917 46,382
Cintas Corp.+ 1,023 42,260
Avery Dennison Corp. 612 37,901
Robert Half International, Inc. 973 26,232
Equifax, Inc. 760 23,325
Monster Worldwide, Inc.* 664 18,625
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 335,246
---------------
ELECTRICAL EQUIPMENT 0.7%
Emerson Electric Co. 2,357 153,040
Rockwell Automation, Inc. 1,034 58,566
---------------
TOTAL ELECTRICAL EQUIPMENT 211,606
---------------
BUILDING PRODUCTS 0.2%
American Standard Cos., Inc. 1,205 56,008
---------------
TOTAL BUILDING PRODUCTS 56,008
---------------
CONSTRUCTION & ENGINEERING 0.1%
Fluor Corp. 475 26,329
---------------
TOTAL CONSTRUCTION & ENGINEERING 26,329
---------------
AIRLINES 0.0%
Delta Air Lines, Inc.*+ 784 3,175
---------------
TOTAL AIRLINES 3,175
---------------
TOTAL INDUSTRIALS 4,888,777
---------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 85
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONSUMER DISCRETIONARY 9.6%
SPECIALTY RETAIL 3.9%
Home Depot, Inc.+ 12,290 $ 469,970
Lowe's Cos., Inc.+ 4,326 246,971
The Gap, Inc.+ 4,912 107,278
Best Buy Co., Inc. 1,814 97,974
Staples, Inc. 2,970 93,347
TJX Cos., Inc. 2,700 66,501
Bed Bath & Beyond, Inc.*+ 1,796 65,626
AutoZone, Inc.* 445 38,137
Sherwin-Williams Co. 795 34,972
RadioShack Corp. 882 21,609
---------------
TOTAL SPECIALTY RETAIL 1,242,385
---------------
HOTELS RESTAURANTS & LEISURE 1.2%
Starbucks Corp.* 2,391 123,519
Yum! Brands, Inc.+ 1,647 85,331
Marriott International, Inc. --
Class A+ 1,251 83,642
International Game Technology, Inc. 1,932 51,507
Harrah's Entertainment, Inc.+ 620 40,040
---------------
TOTAL HOTELS RESTAURANTS & LEISURE 384,039
---------------
MULTILINE RETAIL 1.0%
Target Corp. 5,020 251,100
Dollar General Corp. 1,837 40,249
Family Dollar Stores, Inc. 940 28,538
---------------
TOTAL MULTILINE RETAIL 319,887
---------------
INTERNET & CATALOG RETAIL 0.9%
eBay, Inc.* 7,863 292,975
---------------
TOTAL INTERNET & CATALOG RETAIL 292,975
---------------
MEDIA 0.9%
McGraw-Hill Cos., Inc.+ 1,066 93,008
Omnicom Group 1,044 92,415
NewYork Times Co. -- Class A 813 29,740
Knight-Ridder, Inc.+ 431 28,985
Dow Jones & Co., Inc. 463 17,302
Meredith Corp. 278 12,997
---------------
TOTAL MEDIA 274,447
---------------
TEXTILES & APPAREL 0.6%
Nike, Inc. -- Class B 1,473 122,715
Coach, Inc.* 1,060 60,028
---------------
TOTAL TEXTILES & APPAREL 182,743
---------------
HOUSEHOLD DURABLES 0.5%
Fortune Brands, Inc. 813 65,552
Black & Decker Corp. 452 35,703
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Newell Rubbermaid, Inc.+ 1,541 $ 33,810
Stanley Works 465 21,051
Maytag Corp. 442 6,175
---------------
TOTAL HOUSEHOLD DURABLES 162,291
---------------
AUTOMOBILES 0.3%
Harley-Davidson, Inc. 1,649 95,246
---------------
TOTAL AUTOMOBILES 95,246
---------------
LEISURE EQUIPMENT & PRODUCTS 0.2%
Mattel, Inc. 2,326 49,660
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 49,660
---------------
AUTO COMPONENTS 0.1%
Goodyear Tire & Rubber Co.*+ 978 13,056
---------------
TOTAL AUTO COMPONENTS 13,056
---------------
TOTAL CONSUMER DISCRETIONARY 3,016,729
---------------
ENERGY 8.8%
OIL & GAS 7.2%
Exxon Mobil Corp. 37,070 2,209,372
XTO Energy, Inc.+ 1,944 63,841
---------------
TOTAL OIL & GAS 2,273,213
---------------
ENERGY EQUIPMENT & SERVICES 1.6%
Schlumberger Ltd. 3,299 232,513
Halliburton Co. 2,814 121,705
Baker Hughes, Inc.+ 1,883 83,775
BJ Services Co.+ 904 46,900
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 484,893
---------------
TOTAL ENERGY 2,758,106
---------------
MATERIALS 2.8%
CHEMICALS 2.4%
EI Du Pont de Nemours & Co. 5,704 292,273
Dow Chemical Co.+ 5,417 270,037
Praxair, Inc. 1,824 87,297
Ecolab, Inc. 1,438 47,526
Sigma-Aldrich Corp. 411 25,174
International Flavors & Fragrances,
Inc. 527 20,816
Hercules, Inc.* 622 9,007
---------------
TOTAL CHEMICALS 752,130
---------------
CONTAINERS & PACKAGING 0.2%
Ball Corp. 624 25,884
Sealed Air Corp.* 467 24,256
Pactiv Corp.* 832 19,427
---------------
TOTAL CONTAINERS & PACKAGING 69,567
---------------
86 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
METALS & MINING 0.2%
Freeport-McMoRan Copper & Gold,
Inc. -- Class B+ 1,004 $ 39,768
Allegheny Technologies, Inc. 537 12,947
---------------
TOTAL METALS & MINING 52,715
---------------
TOTAL MATERIALS 874,412
---------------
FINANCIALS 2.2%
CONSUMER FINANCE 1.6%
American Express Co. 7,211 370,429
SLM Corp. 2,406 119,915
---------------
TOTAL CONSUMER FINANCE 490,344
---------------
REAL ESTATE 0.2%
Simon Property Group, Inc. 1,244 75,362
---------------
TOTAL REAL ESTATE 75,362
---------------
DIVERSIFIED FINANCIALS 0.2%
Moody's Corp. 830 67,114
---------------
TOTAL DIVERSIFIED FINANCIALS 67,114
---------------
CAPITAL MARKETS 0.2%
T. Rowe Price Group, Inc. 740 43,941
Federated Investors, Inc. -- Class B 594 16,816
---------------
TOTAL CAPITAL MARKETS 60,757
---------------
TOTAL FINANCIALS 693,577
---------------
TELECOMMUNICATION SERVICES 0.7%
WIRELESS TELECOMMUNICATION SERVICES 0.6%
Nextel Communications, Inc. --
Class A*+ 6,644 188,822
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 188,822
---------------
DIVERSIFIED TELECOMMUNICATION
SERVICES 0.1%
Qwest Communications International,
Inc.*+ 10,438 38,621
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 38,621
---------------
TOTAL TELECOMMUNICATION SERVICES 227,443
---------------
UTILITIES 0.6%
ELECTRIC UTILITIES 0.4%
TXU Corp.+ 1,346 107,182
CenterPoint Energy, Inc. 1,726 20,764
---------------
TOTAL ELECTRIC UTILITIES 127,946
---------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
MULTI-UTILITIES 0.2%
AES Corp.*+ 3,635 $ 59,541
---------------
TOTAL MULTI-UTILITIES 59,541
---------------
TOTAL UTILITIES 187,487
---------------
TOTAL COMMON STOCKS
(Cost $30,627,469) 31,431,509
---------------
FACE
AMOUNT
----------
SECURITIES LENDING COLLATERAL 3.3%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) $1,058,982 1,058,982
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,058,982) 1,058,982
---------------
TOTAL INVESTMENTS 103.0%
(Cost $31,686,451) $ 32,490,491
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (3.0)% $ (951,514)
===============
NET ASSETS - 100.0% $ 31,538,977
*NON-INCOME PRODUCING SECURITY.
+ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE 9.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 87
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 84.9%
Farmer Mac*
2.57% due 04/27/05 $ 50,000,000 $ 49,907,195
3.00% due 07/26/05 50,000,000 49,516,667
2.50% due 04/08/05 25,000,000 24,987,847
2.52% due 04/14/05 25,000,000 24,977,250
2.61% due 05/11/05 25,000,000 24,927,500
2.93% due 12/09/05 25,000,000 24,487,250
2.86% due 12/15/05 20,000,000 19,590,067
3.06% due 12/09/05 20,000,000 19,571,600
Federal Farm Credit Bank*
2.34% due 04/01/05 50,000,000 50,000,000
2.40% due 04/04/05 50,000,000 49,990,000
2.30% due 08/05/05 28,000,000 27,774,600
2.90% due 09/08/05 25,000,000 24,677,778
3.06% due 11/17/05 25,000,000 24,511,250
2.40% due 07/14/05 20,000,000 19,861,333
2.47% due 05/27/05 15,000,000 14,942,367
2.41% due 05/09/05 10,000,000 9,974,561
2.80% due 11/01/05 10,000,000 9,833,556
3.05% due 12/15/05 9,000,000 8,803,275
Federal Home Loan Bank*
2.98% due 07/15/05 100,000,000 99,130,833
2.50% due 04/06/05 50,000,000 49,982,639
2.60% due 06/22/05+ 50,000,000 49,703,889
2.95% due 07/01/05+ 50,000,000 49,627,152
3.05% due 08/12/05 50,000,000 49,437,521
2.49% due 06/01/05 25,000,000 24,894,521
Freddie Mac*
2.46% due 04/05/05 50,000,000 49,986,333
2.47% due 04/05/05 50,000,000 49,986,278
2.52% due 04/19/05 50,000,000 49,937,000
2.58% due 06/14/05 50,000,000 49,734,833
2.92% due 07/19/05 50,000,000 49,557,944
3.00% due 07/19/05 50,000,000 49,545,833
3.01% due 07/25/05 50,000,000 49,519,236
3.12% due 10/11/05 50,000,000 49,163,667
2.54% due 04/26/05 25,000,000 24,955,903
2.55% due 04/26/05 25,000,000 24,955,729
3.00% due 07/20/05 25,000,000 24,770,833
3.00% due 09/26/05 25,000,000 24,629,167
3.01% due 10/05/05 25,000,000 24,609,118
2.60% due 05/31/05 20,000,000 19,913,333
2.29% due 06/28/05 20,000,000 19,888,044
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $1,362,263,902) 1,362,263,902
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 13.4%
Individual Repurchase Agreement
Lehman Brothers, Inc. at 2.55%
due 04/01/05 (Secured by U.S.
Treasury Bills, as collateral,
maturing 09/01/05 with a
Market Value of $45,034,321
and maturing 09/15/05 with
a Market Value of $173,869,685),
having a collective Maturity Value
of $214,623,668)
$ 214,608,466 $ 214,608,466
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $214,608,466) 214,608,466
---------------
SECURITIES LENDING COLLATERAL 6.2%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 100,000,000 100,000,000
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $100,000,000) 100,000,000
---------------
TOTAL INVESTMENTS 104.5%
(Cost $1,676,872,368) $ 1,676,872,368
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (4.5)% $ (71,970,129)
===============
NET ASSETS - 100.0% $ 1,604,902,239
* 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.
+ All or a portion of this security is on loan at March 31, 2005 - See Note
9.
88 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
MASTER-FEEDER ARRANGEMENT
- --------------------------------------------------------------------------------
Nova Fund, Ursa Fund, Arktos Fund and Juno Fund are operating under a
`master-feeder arrangement'. Under a master-feeder arrangement, a Feeder Fund
("feeder") invests substantially all of its assets in the Master Portfolio
("master"), a separate open-ended investment company that has the same
investment objectives as the feeder, e.g., the Nova Fund would act as a feeder,
holding shares of the Nova Master Portfolio as its only investment. The Master
Portfolio, in turn, invests in securities and derivatives to meet its investment
objective.
The following statements represent the Feeder Funds, which are the part of the
master-feeder arrangement in which shareholders invest. Please see Notes to
Financial Statements for more information about the master-feeder arrangement.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 89
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 6 and 9) $ -- $ -- $ 1,032,383,378 $ --
Investments in Master Portfolio** (Note 3) 295,668,723 418,266,511 -- 236,748,234
Segregated Cash with Broker -- -- 660,000 --
Cash in Custodian Bank -- -- -- --
Receivable for Equity Index Swap Settlement
(Note 1) -- -- -- --
Receivable for Futures Contracts Settlement
(Note 1) -- -- -- --
Receivable for Securities Sold (Note 1) -- 7,361,108 4,783,577 2,700,087
Receivable for Shares Purchased 15,862,733 1,941,094 1,292,924 2,641,509
Investment Income Receivable (Note 1) -- -- 96,725 --
Receivable for Securities Lending -- -- 29,385 --
Other Assets -- -- -- 33,838
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 311,531,456 427,568,713 1,039,245,989 242,123,668
===============================================================================================================================
LIABILITIES
Payable for Equity Index Swap Settlement
(Note 1) -- -- -- --
Payable for Futures Contracts Settlement
(Note 1) -- -- 35,200 --
Payable upon Return of Securities Loaned
(Note 9) -- -- 192,617,562 --
Payable for Securities Purchased (Note 1) 3,301,579 -- -- --
Liability for Shares Redeemed 12,455,552 9,170,689 8,217,303 5,270,275
Investment Advisory Fee Payable (Note 4) -- -- 555,282 --
Transfer Agent and Administrative Fee Payable
(Note 4) 63,981 85,996 185,094 46,677
Distribution and Service Fee Payable (Note 4) 17,118 14,411 5,184 5,973
Portfolio Accounting Fee Payable (Note 4) 24,503 31,107 50,876 18,671
Custody Fees Payable -- -- 17,769 --
Cash Payable to Custodian Bank -- -- -- --
Dividends Payable -- -- -- --
Payable to Master Portfolio -- -- -- --
Other Liabilities 59,148 136,861 249,629 43,514
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 15,921,881 9,439,064 201,933,899 5,385,110
===============================================================================================================================
NET ASSETS $ 295,609,575 $ 418,129,649 $ 837,312,090 $ 236,738,558
===============================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 355,582,883 $ 653,228,153 $ 1,485,042,681 $ 395,808,448
Undistributed Net Investment Income (Loss) -- -- 3,339,815 --
Accumulated Net Realized Loss on Investments,
Equity Index Swaps, and Futures Contracts (60,571,160) (225,180,425) (983,126,574) (165,406,089)
Net Unrealized Appreciation (Depreciation) on
Investments, Equity Index Swaps, and Futures
Contracts 597,852 (9,918,079) 332,056,168 6,336,199
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 295,609,575 $ 418,129,649 $ 837,312,090 $ 236,738,558
===============================================================================================================================
Investor Class $ 175,041,589 $ 326,085,031 $ 801,185,207 $ 198,288,491
Advisor Class 52,641,701 40,963,903 19,886,912 17,059,302
A-Class 18,462,770 7,317,684 1,818,036 5,697,351
C-Class 49,463,515 43,763,031 14,421,935 15,693,414
H-Class N/A N/A N/A N/A
SHARES OUTSTANDING
Investor Class 6,741,993 37,519,118 80,614,072 8,078,450
Advisor Class 2,099,260 4,899,046 2,071,620 700,763
A-Class 734,221 874,618 188,776 233,596
C-Class 1,986,905 5,250,763 1,518,345 668,271
H-Class N/A N/A N/A N/A
NET ASSET VALUES
Investor Class $ 25.96 $ 8.69 $ 9.94 $ 24.55
Advisor Class 25.08 8.36 9.60 24.34
A-Class 25.15 8.37 9.63 24.39
A-Class Maximum Offering Price Per Share*** 26.40 8.79 10.11 25.61
C-Class 24.89 8.33 9.50 23.48
H-Class N/A N/A N/A N/A
* THE COST OF SECURITIES AT VALUE IS $0, $0, $700,373,678, $0, $92,975,593,
$29,608,984, $104,238,510, $48,515,638, $83,245,550, $0, $73,257,576, AND
$41,303,978, RESPECTIVELY.
** THE COST OF INVESTMENTS IN MASTER PORTFOLIO IS $295,070,871, $428,184,590,
$0, $230,412,035, $0, $0, $0, $0, $0, $2,992,310,768, $0, AND $0,
RESPECTIVELY.
*** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
90 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
March 31,2005
- -------------------------------------------------------------------------------------------------------------------------------
INVERSE INVERSE
MEDIUS MID-CAP MEKROS SMALL-CAP
FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 6 and 9) $ 96,496,203 $ 29,608,984 $ 113,650,836 $ 48,515,638
Investments in Master Portfolio** (Note 3) -- -- -- --
Segregated Cash with Broker 3,067,100 1,928,856 4,321,303 3,402,597
Cash in Custodian Bank -- -- -- --
Receivable for Equity Index Swap Settlement
(Note 1) 196,146 -- 2,001 --
Receivable for Futures Contracts Settlement
(Note 1) 43,740 -- -- 31,265
Receivable for Securities Sold (Note 1) 1,970,055 -- 4,933,988 --
Receivable for Shares Purchased 2,270,706 77,658 6,961,546 502,356
Investment Income Receivable (Note 1) 30,873 2,130 122,048 3,490
Receivable for Securities Lending 789 -- 4,752 --
Other Assets -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 104,075,612 31,617,628 129,996,474 52,455,346
===============================================================================================================================
LIABILITIES
Payable for Equity Index Swap Settlement
(Note 1) -- 154,241 470,467 44,517
Payable for Futures Contracts Settlement
(Note 1) -- 20,720 167,269 --
Payable upon Return of Securities Loaned
(Note 9) 15,540,176 -- 12,796,731 --
Payable for Securities Purchased (Note 1) -- -- -- --
Liability for Shares Redeemed 10,167,161 263,614 26,041,928 1,174,278
Investment Advisory Fee Payable (Note 4) 77,778 21,018 101,954 28,780
Transfer Agent and Administrative Fee Payable
(Note 4) 21,605 5,838 28,321 7,995
Distribution and Service Fee Payable (Note 4) 8,034 2,045 8,825 3,769
Portfolio Accounting Fee Payable (Note 4) 8,642 2,335 11,328 3,198
Custody Fees Payable 3,053 561 3,073 768
Cash Payable to Custodian Bank -- -- -- --
Dividends Payable -- -- -- --
Payable to Master Portfolio -- -- -- --
Other Liabilities 13,589 3,055 27,441 5,904
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 25,840,038 473,427 39,657,337 1,269,209
===============================================================================================================================
NET ASSETS $ 78,235,574 $ 31,144,201 $ 90,339,137 $ 51,186,137
===============================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 78,165,138 $ 32,568,180 $ 111,522,106 $ 58,293,845
Undistributed Net Investment Income (Loss) -- 36,605 -- --
Accumulated Net Realized Loss on Investments,
Equity Index Swaps, and Futures Contracts (3,539,289) (1,539,795) (30,258,620) (7,792,335)
Net Unrealized Appreciation (Depreciation) on
Investments, Equity Index Swaps, and Futures
Contracts 3,609,725 79,211 9,075,651 684,627
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 78,235,574 $ 31,144,201 $ 90,339,137 $ 51,186,137
===============================================================================================================================
Investor Class N/A N/A N/A N/A
Advisor Class N/A N/A N/A N/A
A-Class $ 1,049,774 $ 60,657 $ 3,339,768 $ 403,551
C-Class 17,911,697 1,010,811 18,915,382 3,950,640
H-Class 59,274,103 30,072,733 68,083,987 46,831,946
SHARES OUTSTANDING
Investor Class N/A N/A N/A N/A
Advisor Class N/A N/A N/A N/A
A-Class 32,946 1,378 121,286 8,757
C-Class 577,278 23,174 708,827 86,422
H-Class 1,860,251 683,360 2,474,541 1,016,156
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 $ 31.86 $ 44.01 $ 27.54 $ 46.09
A-Class Maximum Offering Price Per Share*** 33.45 46.20 28.91 48.39
C-Class 31.03 43.62 26.69 45.71
H-Class 31.86 44.01 27.51 46.09
U.S. LARGE-CAP LARGE-CAP
GOVERNMENT JUNO EUROPE JAPAN
BOND FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 6 and 9) $ 90,577,550 $ -- $ 73,257,576 $ 41,303,978
Investments in Master Portfolio** (Note 3) -- 2,775,592,285 -- --
Segregated Cash with Broker 341,250 -- -- 38,000
Cash in Custodian Bank -- -- -- --
Receivable for Equity Index Swap Settlement
(Note 1) -- -- -- --
Receivable for Futures Contracts Settlement
(Note 1) 195,103 -- -- 6,961
Receivable for Securities Sold (Note 1) -- 22,133,753 -- --
Receivable for Shares Purchased 12,604,886 9,633,537 815,023 814,301
Investment Income Receivable (Note 1) 531,667 -- 5,250 2,959
Receivable for Securities Lending -- -- -- --
Other Assets -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 104,250,456 2,807,359,575 74,077,849 42,166,199
===============================================================================================================================
LIABILITIES
Payable for Equity Index Swap Settlement
(Note 1) -- -- 4,475,729 3,274,549
Payable for Futures Contracts Settlement
(Note 1) -- -- -- --
Payable upon Return of Securities Loaned
(Note 9) -- -- -- --
Payable for Securities Purchased (Note 1) 9,142,882 -- -- --
Liability for Shares Redeemed 3,013,399 30,854,051 638,553 192,411
Investment Advisory Fee Payable (Note 4) 41,544 -- 63,898 38,159
Transfer Agent and Administrative Fee Payable
(Note 4) 16,618 588,934 17,749 10,600
Distribution and Service Fee Payable (Note 4) 7,768 234,969 4,802 3,278
Portfolio Accounting Fee Payable (Note 4) 8,309 99,337 7,100 4,240
Custody Fees Payable 2,268 -- 1,704 1,379
Cash Payable to Custodian Bank 156 -- -- --
Dividends Payable 19,463 -- -- --
Payable to Master Portfolio -- 38 -- --
Other Liabilities 14,954 574,203 14,524 8,417
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 12,267,361 32,351,532 5,224,059 3,533,033
===============================================================================================================================
NET ASSETS $ 91,983,095 $ 2,775,008,043 $ 68,853,790 $ 38,633,166
===============================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 99,919,913 $ 3,074,975,120 $ 70,464,786 $ 41,986,398
Undistributed Net Investment Income (Loss) (19,463) -- -- --
Accumulated Net Realized Loss on Investments,
Equity Index Swaps, and Futures Contracts (15,187,728) (83,248,594) 1,875,150 (1,013,433)
Net Unrealized Appreciation (Depreciation) on
Investments, Equity Index Swaps, and Futures
Contracts 7,270,373 (216,718,483) (3,486,146) (2,339,799)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 91,983,095 $ 2,775,008,043 $ 68,853,790 $ 38,633,166
===============================================================================================================================
Investor Class $ 25,992,184 $ 1,472,039,519 N/A N/A
Advisor Class 53,282,869 232,541,287 N/A N/A
A-Class 1,703,229 177,178,424 $ 180,469 $ 279,927
C-Class 11,004,813 893,248,813 5,716,574 3,381,035
H-Class N/A N/A 62,956,747 34,972,204
SHARES OUTSTANDING
Investor Class 2,353,755 77,701,079 N/A N/A
Advisor Class 4,814,658 12,376,359 N/A N/A
A-Class 153,853 9,405,172 10,531 9,586
C-Class 993,964 48,932,311 344,963 118,196
H-Class N/A N/A 3,674,696 1,196,681
NET ASSET VALUES
Investor Class $ 11.04 $ 18.94 N/A N/A
Advisor Class 11.07 18.79 N/A N/A
A-Class 11.07 18.84 $ 17.14 $ 29.20
A-Class Maximum Offering Price Per Share*** 11.62 19.78 17.99 30.66
C-Class 11.07 18.25 16.57 28.61
H-Class N/A N/A 17.13 29.22
THE RYDEX SERIES FUNDS ANNUAL REPORT | 91
STATEMENTS OF ASSETS AND LIABILITIES (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) $ 94,259,117 $ 151,661,890 $ 36,672,860 $ 33,096,499
Cash in Custodian Bank -- -- 1,208 --
Receivable for Securities Sold (Note 1) 2,777,064 12,602,850 3,353,375 4,454,609
Receivable for Shares Purchased 2,029,753 6,798,392 1,635,959 233,255
Investment Income Receivable (Note 1) 82,259 106,113 58,168 48,788
Receivable for Securities Lending 1,528 2,273 544 3,962
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 99,149,721 171,171,518 41,722,114 37,837,113
===============================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned
(Note 9) 5,623,856 26,490,036 4,416,102 4,154,408
Payable for Securities Purchased (Note 1) -- -- 1,759,002 --
Liability for Shares Redeemed 4,824,845 19,713,749 5,653,064 4,650,986
Investment Advisory Fee Payable (Note 4) 63,983 91,105 39,128 56,594
Transfer Agent and Administrative Fee Payable
(Note 4) 21,328 30,368 13,042 18,865
Distribution and Service Fee Payable (Note 4) 5,649 8,326 2,696 2,859
Portfolio Accounting Fee Payable (Note 4) 8,531 12,147 5,217 7,546
Custody Fees Payable 2,047 2,915 1,252 1,811
Cash Payable to Custodian Bank -- -- -- --
Dividends Payable -- -- -- --
Other Liabilities 17,760 19,873 12,204 12,067
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 10,567,999 46,368,519 11,901,707 8,905,136
===============================================================================================================================
NET ASSETS $ 88,581,722 $ 124,802,999 $ 29,820,407 $ 28,931,977
===============================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 90,440,065 $ 124,329,202 $ 28,838,793 $ 27,675,042
Undistributed Net Investment Income (Loss) -- -- -- --
Accumulated Net Realized Gain (Loss) on
Investments Equity Index Swaps, and
Futures Contracts (11,361,226) (10,158,576) (2,875,685) (3,537,170)
Net Unrealized Appreciation (Depreciation) on
Investments, Equity Index Swaps, and
Futures Contracts 9,502,883 10,632,373 3,857,299 4,794,105
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 88,581,722 $ 124,802,999 $ 29,820,407 $ 28,931,977
===============================================================================================================================
Investor Class N/A N/A N/A N/A
Advisor Class N/A N/A N/A N/A
A-Class $ 714,493 $ 312,365 $ 210,618 $ 76,380
C-Class 12,118,947 8,831,021 4,636,171 2,710,321
H-Class 75,748,282 115,659,613 24,973,618 26,145,276
SHARES OUTSTANDING
Investor Class N/A N/A N/A N/A
Advisor Class N/A N/A N/A N/A
A-Class 25,320 11,365 7,929 2,731
C-Class 432,644 323,609 175,729 97,579
H-Class 2,682,743 4,207,933 940,124 934,878
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 $ 28.22 $ 27.49 $ 26.56 $ 27.96
A-Class Maximum Offering Price Per Share** 29.63 28.86 27.88 29.35
C-Class 28.01 27.29 26.38 27.78
H-Class 28.24 27.49 26.56 27.97
* THE COST OF SECURITIES AT VALUE IS $84,756,234, $141,029,517, $32,815,561,
$28,302,394, $31,897,713, $31,686,451 AND $1,676,872,368, RESPECTIVELY.
** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
92 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
March 31,2005
- --------------------------------------------------------------------------------
U.S.
MID-CAP LARGE-CAP GOVERNMENT
GROWTH GROWTH MONEY
FUND FUND MARKET FUND
- -----------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 6 and 9) $ 34,709,040 $ 32,490,491 $ 1,676,872,368
Cash in Custodian Bank -- -- 600
Receivable for Securities Sold (Note 1) 11,728,968 -- --
Receivable for Shares Purchased 1,048,262 3,517,255 120,655,896
Investment Income Receivable (Note 1) 37,007 23,621 15,201
Receivable for Securities Lending 1,219 146 1,679
- -----------------------------------------------------------------------------------------------------------
TOTAL ASSETS 47,524,496 36,031,513 1,797,545,744
===========================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned
(Note 9) 7,972,274 1,058,982 100,000,000
Payable for Securities Purchased (Note 1) -- 889,381 --
Liability for Shares Redeemed 12,859,306 2,455,360 91,348,693
Investment Advisory Fee Payable (Note 4) 53,603 15,224 646,726
Transfer Agent and Administrative Fee Payable
(Note 4) 17,868 5,075 258,690
Distribution and Service Fee Payable (Note 4) 3,721 1,608 64,174
Portfolio Accounting Fee Payable (Note 4) 7,147 2,030 67,468
Custody Fees Payable 1,728 487 31,043
Cash Payable to Custodian Bank -- 60,828 --
Dividends Payable -- -- 41,059
Other Liabilities 8,769 3,561 185,652
- -----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 20,924,416 4,492,536 192,643,505
===========================================================================================================
NET ASSETS $ 26,600,080 $ 31,538,977 $ 1,604,902,239
===========================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 27,426,006 $ 33,550,992 $ 1,605,366,585
Undistributed Net Investment Income (Loss) -- -- --
Accumulated Net Realized Gain (Loss) on
Investments Equity Index Swaps, and
Futures Contracts (3,637,253) (2,816,055) (464,346)
Net Unrealized Appreciation (Depreciation) on
Investments, Equity Index Swaps, and
Futures Contracts 2,811,327 804,040 --
- -----------------------------------------------------------------------------------------------------------
NET ASSETS $ 26,600,080 $ 31,538,977 $ 1,604,902,239
===========================================================================================================
Investor Class N/A N/A $ 1,196,009,380
Advisor Class N/A N/A 245,889,660
A-Class $ 553,420 $ 73,502 7,334,899
C-Class 2,313,444 19,703,210 155,668,300
H-Class 23,733,216 11,762,265 N/A
SHARES OUTSTANDING
Investor Class N/A N/A 1,196,428,615
Advisor Class N/A N/A 246,145,050
A-Class 20,615 3,003 7,334,899
C-Class 86,775 810,974 155,667,227
H-Class 883,500 480,351 N/A
NET ASSET VALUES
Investor Class N/A N/A $ 1.00
Advisor Class N/A N/A 1.00
A-Class $ 26.85 $ 24.48 1.00
A-Class Maximum Offering Price Per Share** 28.19 25.70 1.00
C-Class 26.66 24.30 1.00
H-Class 26.86 24.49 N/A
THE RYDEX SERIES FUNDS ANNUAL REPORT | 93
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ -- $ -- $ 368,681 $ --
Interest from Securities Lending, net
(Note 9) -- -- 289,525 --
Dividends, Net of Foreign Tax Withheld*
(Note 1) 852 -- 13,690,132 --
Other Income -- -- 678,195 --
- -------------------------------------------------------------------------------------------------------------------------------
Total Income 852 -- 15,026,533 --
- -------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 4) -- -- 7,056,687 --
Transfer Agent and Administrative Fees
(Note 4) 850,815 1,165,305 2,352,229 566,785
Distribution and Service Fees (Note 4):
Advisor Class 328,765 220,436 210,012 89,078
A-Class 20,375 10,544 2,703 6,028
C-Class 421,645 439,222 172,196 199,923
H-Class -- -- -- --
Portfolio Accounting Fees (Note 4) 317,349 406,038 619,070 224,325
Registration Fees 123,113 192,799 373,658 89,290
Trustees' Fees** 10,052 15,511 29,601 6,836
Custody Fees 1,130 1,789 218,673 876
Printing Expenses 110,086 202,760 377,431 83,710
Miscellaneous 90,945 152,987 274,458 74,347
- -------------------------------------------------------------------------------------------------------------------------------
Total Expenses 2,274,275 2,807,391 11,686,718 1,341,198
- -------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (2,273,423) (2,807,391) 3,339,815 (1,341,198)
===============================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 21,079,462 (48,980,060) 35,711,133 (32,513,314)
Equity Index Swaps -- -- -- --
Futures Contracts -- -- 1,089,639 --
- -------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 21,079,462 (48,980,060) 36,800,772 (32,513,314)
- -------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities (1,387,053) 8,268,455 (29,600,231) 8,512,163
Equity Index Swaps -- -- -- --
Futures Contracts -- -- (257,573) --
- -------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) (1,387,053) 8,268,455 (29,857,804) 8,512,163
- -------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 19,692,409 (40,711,605) 6,942,968 (24,001,151)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 17,418,986 $ (43,518,996) $ 10,282,783 $ (25,342,349)
===============================================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $15,562, $0, $0, $0, $16, $0, $0,
$0, $0, AND $0, RESPECTIVELY.
** RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(A)(19) OF THE 1940 ACT.
94 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
Year Ended March 31, 2005
- --------------------------------------------------------------------------------
INVERSE INVERSE
MEDIUS MID-CAP MEKROS SMALL-CAP
FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 303,263 $ 211,441 $ 978,391 $ 537,407
Interest from Securities Lending, net (Note 9) 6,732 -- 76,469 --
Dividends, Net of Foreign Tax Withheld*
(Note 1) 691,141 -- 1,559,814 --
Other Income 15,724 -- 141 791
- -------------------------------------------------------------------------------------------------------------------------------
Total Income 1,016,860 211,441 2,614,815 538,198
- -------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 4) 642,577 95,929 1,727,754 298,350
Transfer Agent and Administrative Fees
(Note 4) 178,494 26,647 479,932 82,875
Distribution and Service Fees (Note 4):
Advisor Class -- -- -- --
A-Class 1,330 252 4,443 743
C-Class 150,661 5,003 312,635 103,455
H-Class 139,498 25,145 397,330 56,268
Portfolio Accounting Fees (Note 4) 71,397 10,659 188,566 33,150
Registration Fees 31,730 2,308 73,866 10,390
Trustees' Fees** 2,256 176 5,889 1,093
Custody Fees 17,390 2,462 49,638 7,879
Printing Expenses 24,733 2,904 62,942 11,004
Miscellaneous 12,113 3,351 42,919 13,786
- -------------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,272,179 174,836 3,345,914 618,993
- -------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (255,319) 36,605 (731,099) (80,795)
===============================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 2,441,741 (8,219) (3,583,255) 13,448
Equity Index Swaps (1,119,332) (649,140) (5,330,142) (4,176,498)
Futures Contracts 455,865 (788,272) (10,076,318) (3,043,792)
- -------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 1,778,274 (1,445,631) (18,989,715) (7,206,842)
- -------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities (2,404,610) 64,715 (2,731,681) 118,550
Equity Index Swaps (323,152) (41,863) (625,194) 443,792
Futures Contracts (454,624) 129,586 (2,175,059) 325,972
- -------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) (3,182,386) 152,438 (5,531,934) 888,314
- -------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (1,404,112) (1,293,193) (24,521,649) (6,318,528)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ (1,659,431) $ (1,256,588) $ (25,252,748) $ (6,399,323)
===============================================================================================================================
U.S. LARGE-CAP LARGE-CAP
GOVERNMENT JUNO EUROPE JAPAN
BOND FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 5,080,427 $ -- $ 1,068,591 $ 993,908
Interest from Securities Lending, net (Note 9) -- -- -- --
Dividends, Net of Foreign Tax Withheld*
(Note 1) -- -- -- --
Other Income -- -- 297 --
- -------------------------------------------------------------------------------------------------------------------------------
Total Income 5,080,427 -- 1,068,888 993,908
- -------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 4) 529,565 -- 509,159 609,738
Transfer Agent and Administrative Fees
(Note 4) 211,826 6,658,694 141,433 169,372
Distribution and Service Fees (Note 4):
Advisor Class 301,492 701,775 -- --
A-Class 1,253 293,210 243 559
C-Class 92,489 8,586,841 35,619 54,779
H-Class -- -- 132,285 155,118
Portfolio Accounting Fees (Note 4) 105,913 1,135,845 56,573 67,749
Registration Fees 38,819 893,684 18,672 25,977
Trustees' Fees** 3,298 78,351 1,244 2,352
Custody Fees 25,013 9,516 12,813 16,150
Printing Expenses 32,870 926,322 18,814 22,925
Miscellaneous 29,609 963,790 12,036 20,280
- -------------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,372,147 20,248,028 938,891 1,144,999
- -------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 3,708,280 (20,248,028) 129,997 (151,091)
===============================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (2,343,281) (69,198,399) -- 119
Equity Index Swaps -- -- 9,209,592 (23,988,254)
Futures Contracts 997,078 -- 27,785 (252,937)
- -------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (1,346,203) (69,198,399) 9,237,377 (24,241,072)
- -------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities 2,526,615 (129,335,843) -- --
Equity Index Swaps -- -- (2,440,717) (13,936,598)
Futures Contracts (526,111) -- -- (1,964,475)
- -------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) 2,000,504 (129,335,843) (2,440,717) (15,901,073)
- -------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 654,301 (198,534,242) 6,796,660 (40,142,145)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 4,362,581 $ (218,782,270) $ 6,926,657 $ (40,293,236)
===============================================================================================================================
THE RYDEX SERIES FUNDS ANNUAL REPORT | 95
STATEMENTS OF OPERATIONS (CONCLUDED)
- --------------------------------------------------------------------------------
SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP
VALUE VALUE VALUE GROWTH
FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 10,759 $ 8,371 $ 7,368 $ 7,797
Interest from Securities Lending, net (Note 9) 8,007 7,323 3,131 17,691
Dividends, Net of Foreign Tax Withheld*
(Note 1) 1,137,295 1,409,003 1,427,326 349,072
Other Income -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total Income 1,156,061 1,424,697 1,437,825 374,560
- -------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 4) 605,378 480,840 510,432 451,892
Transfer Agent and Administrative Fees
(Note 4) 201,793 160,280 170,144 150,631
Distribution and Service Fees (Note 4):
Advisor Class -- -- -- --
A-Class 232 358 192 96
C-Class 20,333 26,431 33,973 28,433
H-Class 196,477 153,314 161,459 143,427
Portfolio Accounting Fees (Note 4) 80,717 64,112 68,058 60,252
Registration Fees 22,556 14,368 21,053 14,793
Trustees' Fees** 1,894 1,026 1,792 1,132
Custody Fees 20,771 16,869 16,349 15,259
Printing Expenses 24,146 18,881 20,396 15,126
Miscellaneous 28,336 19,419 23,927 20,024
- -------------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,202,633 955,898 1,027,775 901,065
- -------------------------------------------------------------------------------------------------------------------------------
Less Institutional Class Expense Reimbursed
by Advisor (Note 4 ) -- -- -- --
Less Institutional Class Expense Waived by
Servicer -- -- -- --
Less Expenses Waived by Distributor
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total Waived Expenses -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net Expenses 1,202,633 955,898 1,027,775 901,065
- -------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (46,572) 468,799 410,050 (526,505)
===============================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (3,115,971) (6,886,526) 3,485,343 1,784,678
Futures Contracts (6,780) -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (3,122,751) (6,886,526) 3,485,343 1,784,678
- -------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities 8,800,847 10,298,850 3,747,358 4,676,353
- -------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) 8,800,847 10,298,850 3,747,358 4,676,353
- -------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 5,678,096 3,412,324 7,232,701 6,461,031
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 5,631,524 $ 3,881,123 $ 7,642,751 $ 5,934,526
===============================================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $0, $0, $0, $0, AND $0,
RESPECTIVELY.
** RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(A)(19) OF THE 1940 ACT.
96 | THE RYDEX SERIES FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended March 31, 2005
- --------------------------------------------------------------------------------
U.S.
MID-CAP LARGE-CAP GOVERNMENT
GROWTH GROWTH MONEY
FUND FUND MARKET FUND
- -----------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 4,618 $ 3,926 $ 25,720,951
Interest from Securities Lending, net (Note 9) 3,448 827 24,237
Dividends, Net of Foreign Tax Withheld*
(Note 1) 237,435 679,466 --
Other Income -- -- 1,456
- -----------------------------------------------------------------------------------------------------------
Total Income 245,501 684,219 25,746,644
- -----------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 4) 230,429 176,237 7,699,470
Transfer Agent and Administrative Fees
(Note 4) 76,810 58,746 3,079,788
Distribution and Service Fees (Note 4):
Advisor Class -- -- 1,108,031
A-Class 190 33 10,641
C-Class 12,671 22,741 1,645,489
H-Class 73,451 53,027 --
Portfolio Accounting Fees (Note 4) 30,724 23,498 798,770
Registration Fees 6,909 6,042 575,418
Trustees' Fees** 547 512 49,362
Custody Fees 7,764 7,193 355,756
Printing Expenses 8,571 6,047 481,993
Miscellaneous 9,935 8,888 452,035
- -----------------------------------------------------------------------------------------------------------
Total Expenses 458,001 362,964 16,256,753
- -----------------------------------------------------------------------------------------------------------
Less Institutional Class Expense Reimbursed
by Advisor (Note 4 ) -- -- (27,871)
Less Institutional Class Expense Waived by
Servicer -- -- (67,165)
Less Expenses Waived by Distributor
Advisor Class -- -- (283,204)
A-Class -- -- (22)
C-Class -- -- (594,726)
- -----------------------------------------------------------------------------------------------------------
Total Waived Expenses -- -- (972,988)
- -----------------------------------------------------------------------------------------------------------
Net Expenses 458,001 362,964 15,283,765
- -----------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (212,500) 321,255 10,462,879
===========================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (1,424,940) (1,060,238) --
Futures Contracts -- 41,710 --
- -----------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (1,424,940) (1,018,528) --
- -----------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities 2,779,507 780,293 --
- -----------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) 2,779,507 780,293 --
- -----------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 1,354,567 (238,235) --
- -----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,142,067 $ 83,020 $ 10,462,879
===========================================================================================================
THE RYDEX SERIES FUNDS ANNUAL REPORT | 97
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
NOVA FUND URSA FUND
- -------------------------------------------------------------------------------------------------------------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (2,273,423) $ 340,080 $ (2,807,391) $ (2,380,206)
Net Realized Gain (Loss) on Investments 21,079,462 90,383,820 (48,980,060) (151,683,423)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (1,387,053) 4,757,494 8,268,455 (29,214,083)
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 17,418,986 95,481,394 (43,518,996) (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 1,414,735,507 1,416,342,537 1,531,545,815 2,501,275,661
Advisor Class* 370,298,449 306,125,216 250,858,378 266,048,066
A-Class** 23,896,367 1,000 15,446,772 1,000
C-Class*** 168,553,867 192,486,411 157,946,561 295,353,504
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 (1,436,144,681) (1,428,901,726) (1,524,063,187) (2,460,564,864)
Advisor Class* (368,804,662) (305,616,613) (250,498,960) (244,455,917)
A-Class** (6,350,348) -- (7,698,808) --
C-Class*** (154,161,133) (180,456,147) (156,062,212) (256,929,090)
H-Class*** -- -- -- --
===============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 12,023,366 36,339 17,474,359 115,151,891
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 29,442,352 95,458,721 (26,044,637) (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 $ 295,609,575 $ 266,167,223 $ 418,129,649 $ 444,174,286
===============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ -- $ -- $ --
===============================================================================================================================
OTC FUND
- ---------------------------------------------------------------------------------------
YEAR PERIOD
ENDED ENDED
MARCH 31, MARCH 31,
2005 2004
- ---------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 3,339,815 $ (9,083,636)
Net Realized Gain (Loss) on Investments 36,800,772 50,732,674
Net Change in Unrealized Appreciation
(Depreciation) on Investments (29,857,804) 218,083,908
- ---------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 10,282,783 259,732,946
- ---------------------------------------------------------------------------------------
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 1,396,741,796 1,663,377,353
Advisor Class* 207,549,823 145,760,607
A-Class** 3,898,356 1,000
C-Class*** 124,003,724 156,778,878
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 (1,467,509,576) (1,704,150,398)
Advisor Class* (242,728,205) (142,951,655)
A-Class** (2,044,524) --
C-Class*** (122,887,409) (154,712,316)
H-Class*** -- --
=======================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (102,976,015) (35,896,531)
- ---------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (92,693,232) 223,836,415
NET ASSETS--BEGINNING OF PERIOD 930,005,322 706,168,907
=======================================================================================
NET ASSETS--END OF PERIOD $ 837,312,090 $ 930,005,322
=======================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 3,339,815 $ --
=======================================================================================
* 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.
98 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
- -------------------------------------------------------------------------------------------------------------------------------
ARKTOS FUND MEDIUS FUND
- -------------------------------------------------------------------------------------------------------------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (1,341,198) $ (908,880) $ (255,319) $ (424,768)
Net Realized Gain (Loss) on Investments (32,513,314) (75,225,824) 1,778,274 15,367,682
Net Change in Unrealized Appreciation
(Depreciation) on Investments 8,512,163 2,089,842 (3,182,386) 6,114,604
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (25,342,349) (74,044,862) (1,659,431) 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 975,342,608 1,242,912,907 -- --
Advisor Class* 113,835,651 28,360,837 -- --
A-Class** 17,225,239 1,000 1,765,474 3,858
C-Class*** 144,800,328 150,430,699 159,054,038 139,180,601
H-Class*** -- -- 996,786,478 902,750,247
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** -- -- -- --
C-Class*** -- -- -- --
H-Class*** -- -- -- --
COST OF SHARES REDEEMED
Investor Class (967,546,717) (1,109,906,486) -- --
Advisor Class* (111,775,526) (10,056,568) -- --
A-Class** (11,578,445) -- (828,790) --
C-Class*** (160,566,879) (114,441,552) (156,154,210) (134,104,779)
H-Class*** -- -- (1,003,368,485) (866,491,167)
===============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (263,741) 187,300,837 (2,745,495) 41,338,760
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (25,606,090) 113,255,975 (4,404,926) 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 $ 236,738,558 $ 262,344,648 $ 78,235,574 $ 82,640,500
===============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ -- $ -- $ --
===============================================================================================================================
- -------------------------------------------------------------------------------------------------------------------------------
INVERSE
MID-CAP FUND MEKROS FUND
- -------------------------------------------------------------------------------------------------------------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 36,605 $ (3,411) $ (731,099) $ (1,353,110)
Net Realized Gain (Loss) on Investments (1,445,631) (94,164) (18,989,715) 63,829,139
Net Change in Unrealized Appreciation
(Depreciation) on Investments 152,438 (73,227) (5,531,934) 13,493,646
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (1,256,588) (170,802) (25,252,748) 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 -- -- (14,390) --
C-Class -- -- (270,032) --
H-Class -- -- (1,081,935) --
- -------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- (1,366,357) --
===============================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** 448,770 1,000 8,906,688 3,857
C-Class*** 29,108,039 510,083 310,997,432 413,199,562
H-Class*** 283,941,863 24,015,087 2,891,277,659 2,576,731,176
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** -- -- 12,877 --
C-Class*** -- -- 243,160 --
H-Class*** -- -- 984,732 --
COST OF SHARES REDEEMED
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** (374,744) -- (5,593,228) --
C-Class*** (28,127,040) (366,630) (338,792,919) (394,089,160)
H-Class*** (255,412,567) (21,172,270) (2,974,253,320) (2,494,270,646)
===============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 29,584,321 2,987,270 (106,216,919) 101,574,789
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 28,327,733 2,816,468 (132,836,024) 177,544,464
NET ASSETS--BEGINNING OF PERIOD 2,816,468 -- 223,175,161 45,630,697
===============================================================================================================================
NET ASSETS--END OF PERIOD $ 31,144,201 $ 2,816,468 $ 90,339,137 $ 223,175,161
===============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 36,605 $ -- $ -- $ --
===============================================================================================================================
THE RYDEX SERIES FUNDS ANNUAL REPORT | 99
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
INVERSE U.S. GOVERNMENT
SMALL-CAP FUND BOND FUND
- -------------------------------------------------------------------------------------------------------------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (80,795) $ (8,012) $ 3,708,280 $ 2,137,637
Net Realized Gain (Loss) on Investments (7,206,842) (585,493) (1,346,203) (2,154,408)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 888,314 (203,687) 2,000,504 2,247,394
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (6,399,323) (797,192) 4,362,581 2,230,623
- -------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- (1,418,873) (1,740,970)
Advisor Class -- -- (2,006,148) (276,878)
A-Class -- -- (18,194) --
C-Class -- -- (265,065) (119,789)
H-Class -- -- -- --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- (3,708,280) (2,137,637)
===============================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- 662,404,726 937,862,658
Advisor Class* -- -- 515,073,887 166,588,132
A-Class** 2,607,402 1,000 5,373,963 1,000
C-Class*** 142,203,545 17,865,104 197,577,382 71,640,020
H-Class*** 888,534,477 50,824,029 -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- 1,287,117 1,619,190
Advisor Class* -- -- 2,005,277 276,673
A-Class** -- -- 11,629 --
C-Class*** -- -- 248,777 112,328
H-Class*** -- -- -- --
COST OF SHARES REDEEMED
Investor Class -- -- (663,011,921) (966,933,885)
Advisor Class* -- -- (511,396,631) (119,380,064)
A-Class** (2,194,768) -- (3,603,761) --
C-Class*** (136,603,063) (17,257,781) (190,349,672) (69,703,957)
H-Class*** (842,508,878) (45,088,415) -- --
===============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 52,038,715 6,343,937 15,620,773 22,082,095
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 45,639,392 5,546,745 16,275,074 22,175,081
NET ASSETS--BEGINNING OF PERIOD 5,546,745 -- 75,708,021 53,532,940
===============================================================================================================================
NET ASSETS--END OF PERIOD $ 51,186,137 $ 5,546,745 $ 91,983,095 $ 75,708,021
===============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ -- $ (19,463) $ (242,383)
===============================================================================================================================
JUNO FUND
- ---------------------------------------------------------------------------------------
YEAR PERIOD
ENDED ENDED
MARCH 31, MARCH 31,
2005 2004
- ---------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (20,248,028) $ (5,820,858)
Net Realized Gain (Loss) on Investments (69,198,399) 17,200,721
Net Change in Unrealized Appreciation
(Depreciation) on Investments (129,335,843) (88,008,612)
- ---------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations (218,782,270) (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 3,330,861,237 2,756,117,189
Advisor Class* 517,196,846 109,156,186
A-Class** 251,608,326 5,056,682
C-Class*** 1,006,573,970 618,908,385
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 (2,639,552,558) (1,937,672,854)
Advisor Class* (323,759,333) (54,704,285)
A-Class** (65,491,818) --
C-Class*** (529,212,607) (164,593,541)
H-Class*** -- --
=======================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 1,548,224,063 1,332,267,762
- ---------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 1,329,441,793 1,255,639,013
NET ASSETS--BEGINNING OF PERIOD 1,445,566,250 189,927,237
=======================================================================================
NET ASSETS--END OF PERIOD $ 2,775,008,043 $ 1,445,566,250
=======================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ --
=======================================================================================
* 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.
100 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
- -------------------------------------------------------------------------------------------------------------------------------
LARGE-CAP LARGE-CAP
EUROPE FUND JAPAN FUND
- -------------------------------------------------------------------------------------------------------------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 129,997 $ (267,373) $ (151,091) $ (342,111)
Net Realized Gain (Loss) on Investments 9,237,377 10,115,575 (24,241,072) 6,626,890
Net Change in Unrealized Appreciation
(Depreciation) on Investments (2,440,717) (1,166,723) (15,901,073) 13,605,279
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 6,926,657 8,681,479 (40,293,236) 19,890,058
- -------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class (4,614) -- (4,728) --
C-Class (130,849) -- (87,423) --
H-Class (2,974,067) -- (858,925) --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class (110) -- (7,805) --
C-Class (3,107) (121,876) (144,310) (22,026)
H-Class (70,630) (3,323,463) (1,417,844) (331,142)
- -------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (3,183,377) (3,445,339) (2,521,035) (353,168)
===============================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** 871,043 1,000 444,818 54,619
C-Class*** 66,363,449 41,151,762 25,378,294 17,100,604
H-Class*** 388,867,179 372,420,819 547,540,563 635,111,524
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** 4,723 -- 10,828 --
C-Class*** 128,867 119,553 205,488 18,857
H-Class*** 2,925,682 3,275,637 1,992,473 293,399
COST OF SHARES REDEEMED
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** (696,912) -- (202,811) --
C-Class*** (63,147,820) (41,547,262) (26,256,103) (12,059,612)
H-Class*** (368,119,437) (349,399,148) (651,053,664) (479,360,611)
===============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 27,196,774 26,022,361 (101,940,114) 161,158,780
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 30,940,054 31,258,501 (144,754,385) 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 $ 68,853,790 $ 37,913,736 $ 38,633,166 $ 183,387,551
===============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ -- $ -- $ 11,502,296
===============================================================================================================================
- -------------------------------------------------------------------------------------------------------------------------------
SMALL-CAP MID-CAP
VALUE FUND VALUE FUND
- -------------------------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (46,572) $ (3,043) $ 468,799 $ 2,948
Net Realized Gain (Loss) on Investments (3,122,751) (476,796) (6,886,526) (443,253)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 8,800,847 702,036 10,298,850 333,523
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 5,631,524 222,197 3,881,123 (106,782)
- -------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- (1) --
C-Class -- -- (27) --
H-Class -- -- (2,201) --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class (346) -- (202) --
C-Class (29,580) -- (4,272) --
H-Class (793,116) -- (345,666) --
- -------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (823,042) -- (352,369) --
===============================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** 3,620,459 -- 2,295,545 --
C-Class*** 53,306,968 5,578,690 74,078,406 5,091,595
H-Class*** 815,754,097 49,997,813 640,902,168 56,066,523
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** 322 -- 203 --
C-Class*** 29,555 -- 4,206 --
H-Class*** 737,999 -- 344,422 --
COST OF SHARES REDEEMED
Investor Class -- -- -- --
Advisor Class* -- -- -- --
A-Class** (2,879,033) -- (1,989,278) --
C-Class*** (43,424,125) (3,436,117) (66,363,111) (4,406,697)
H-Class*** (765,479,308) (30,256,277) (546,771,708) (37,871,247)
===============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 61,666,934 21,884,109 102,500,853 18,880,174
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 66,475,416 22,106,306 106,029,607 18,773,392
NET ASSETS--BEGINNING OF PERIOD 22,106,306 -- 18,773,392 --
===============================================================================================================================
NET ASSETS--END OF PERIOD $ 88,581,722 $ 22,106,306 $ 124,802,999 $ 18,773,392
===============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ -- $ -- $ -- $ 2,227
===============================================================================================================================
THE RYDEX SERIES FUNDS ANNUAL REPORT | 101
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
LARGE-CAP SMALL-CAP
VALUE FUND GROWTH FUND
- -------------------------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 410,050 $ 3,279 $ (526,505) $ (1,601)
Net Realized Gain (Loss) on Investments 3,485,343 (470,175) 1,784,678 (38,944)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 3,747,358 109,941 4,676,353 117,752
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 7,642,751 (356,955) 5,934,526 77,207
- -------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class (10) -- -- --
H-Class (152) -- -- --
Institutional Class -- -- -- --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class (109) -- (756) --
C-Class (7,716) -- (41,366) --
H-Class (119,048) -- (975,731) --
Institutional Class -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (127,035) -- (1,017,853) --
===============================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class* 618,842 -- 132,229 --
C-Class** 62,540,030 6,863,402 68,843,123 4,370,288
H-Class** 564,704,785 42,220,344 665,148,507 4,806,391
Institutional Class -- -- -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class* 60 -- 716 --
C-Class** 7,724 -- 40,214 --
H-Class** 118,432 -- 959,499 --
Institutional Class -- -- -- --
COST OF SHARES REDEEMED
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class* (410,264) -- (58,702) --
C-Class** (60,564,073) (4,267,751) (69,112,781) (1,918,498)
H-Class** (555,417,649) (33,752,236) (646,986,972) (2,285,917)
Institutional Class -- -- -- --
===============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 11,597,887 11,063,759 18,965,833 4,972,264
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 19,113,603 10,706,804 23,882,506 5,049,471
NET ASSETS--BEGINNING OF PERIOD 10,706,804 -- 5,049,471 --
===============================================================================================================================
NET ASSETS--END OF PERIOD $ 29,820,407 $ 10,706,804 $ 28,931,977 $ 5,049,471
===============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ 160 $ -- $ --
===============================================================================================================================
MID-CAP
GROWTH FUND
- ---------------------------------------------------------------------------------------
PERIOD PERIOD
ENDED ENDED
MARCH 31, MARCH 31,
2005 2004
- ---------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (212,500) $ (1,082)
Net Realized Gain (Loss) on Investments (1,424,940) (11,115)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 2,779,507 31,820
- ---------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 1,142,067 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 (22) --
C-Class (287) --
H-Class (12,942) --
Institutional Class -- --
- ---------------------------------------------------------------------------------------
Total Distributions to Shareholders (13,251) --
=======================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- --
Advisor Class -- --
A-Class* 545,453 --
C-Class** 25,785,410 4,563,742
H-Class** 387,644,386 3,435,495
Institutional Class -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- --
Advisor Class -- --
A-Class* 22 --
C-Class** 286 --
H-Class** 12,834 --
Institutional Class -- --
COST OF SHARES REDEEMED
Investor Class -- --
Advisor Class -- --
A-Class* -- --
C-Class** (24,651,663) (3,397,291)
H-Class** (365,662,253) (2,824,780)
Institutional Class -- --
=======================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 23,674,475 1,777,166
- ---------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 24,803,291 1,796,789
NET ASSETS--BEGINNING OF PERIOD 1,796,789 --
=======================================================================================
NET ASSETS--END OF PERIOD $ 26,600,080 $ 1,796,789
=======================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ --
=======================================================================================
* 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.
102 | THE RYDEX SERIES FUNDS ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.
- -------------------------------------------------------------------------------------------------------------------------------
LARGE-CAP U.S. GOVERNMENT
GROWTH FUND MONEY MARKET FUND
- -------------------------------------------------------------------------------------------------------------------------------
PERIOD PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 321,255 $ (231) $ 10,462,879 $ 2,393,710
Net Realized Gain (Loss) on Investments (1,018,528) (4,523) -- 1,894
Net Change in Unrealized Appreciation
(Depreciation) on Investments 780,293 23,747 -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Operations 83,020 18,993 10,462,879 2,395,604
- -------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- (9,062,878) (2,074,169)
Advisor Class -- -- (868,123) (13,035)
A-Class -- -- (39,838) --
C-Class -- -- (306,404) (9,592)
H-Class -- -- -- --
Institutional Class -- -- (185,636) (296,914)
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class (1) -- -- --
C-Class (153) -- -- --
H-Class (8,523) -- -- --
Institutional Class -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (8,677) -- (10,462,879) (2,393,710)
===============================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- 18,938,656,129 20,632,372,433
Advisor Class -- -- 3,577,821,000 4,386,273,780
A-Class* 79,261 -- 23,938,925 1,000
C-Class** 108,039,150 907,686 2,540,283,761 3,269,540,461
H-Class** 387,101,308 2,068,170 -- --
Institutional Class -- -- 928 --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- 8,918,802 2,043,352
Advisor Class -- -- 853,605 13,574
A-Class* -- -- 22,293 --
C-Class** 153 -- 282,882 8,818
H-Class** 8,519 -- -- --
Institutional Class -- -- 20,804 28,440
COST OF SHARES REDEEMED
Investor Class -- -- (18,808,627,729) (20,796,030,723)
Advisor Class -- -- (3,582,384,097) (4,324,201,196)
A-Class* (6,027) -- (16,627,319) --
C-Class** (88,139,430) (916,545) (2,515,971,843) (3,340,221,448)
H-Class** (376,411,238) (1,285,366) -- --
Institutional Class -- -- (50,021,804) (10,036,610)
===============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 30,671,696 773,945 117,166,337 (180,208,119)
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 30,746,039 792,938 117,166,337 (180,206,225)
NET ASSETS--BEGINNING OF PERIOD 792,938 -- 1,487,735,902 1,667,942,127
===============================================================================================================================
NET ASSETS--END OF PERIOD $ 31,538,977 $ 792,938 $ 1,604,902,239 $ 1,487,735,902
===============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ -- $ -- $ --
===============================================================================================================================
THE RYDEX SERIES FUNDS ANNUAL REPORT | 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
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
MARCH 31, 2005 $ 24.12 $ (.11) $ 1.95 $ 1.84 $ --
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) --
NOVA FUND -- ADVISOR CLASS
MARCH 31, 2005 23.42 (.23) 1.89 1.66 --
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) --
NOVA FUND -- A-CLASS
MARCH 31, 2005 23.42 (.17) 1.90 1.73 --
March 31, 2004 * 23.42 -- -- -- --
NOVA FUND -- C-CLASS
MARCH 31, 2005 23.36 (.35) 1.88 1.53 --
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
MARCH 31, 2005 9.17 (.04) (.44) (.48) --
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)
URSA FUND -- ADVISOR CLASS
MARCH 31, 2005 8.87 (.08) (.43) (.51) --
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)
URSA FUND -- A-CLASS
MARCH 31, 2005 8.87 (.06) (.44) (.50) --
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
MARCH 31, 2005 $ -- $ -- $ 1.84 $ 25.96 7.63%
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)%
NOVA FUND -- ADVISOR CLASS
MARCH 31, 2005 -- -- 1.66 25.08 7.09%
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)%
NOVA FUND -- A-CLASS
MARCH 31, 2005 -- -- 1.73 25.15 7.39%
March 31, 2004 * -- -- -- 23.42 0.00%
NOVA FUND -- C-CLASS
MARCH 31, 2005 -- -- 1.53 24.89 6.55%
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
MARCH 31, 2005 -- -- (.48) 8.69 (5.23)%
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%
URSA FUND -- ADVISOR CLASS
MARCH 31, 2005 -- -- (.51) 8.36 (5.75)%
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%
URSA FUND -- A-CLASS
MARCH 31, 2005 -- -- (.50) 8.37 (5.64)%
March 31, 2004 * -- -- -- 8.87 0.00%
RATIO 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
MARCH 31, 2005 1.21%++ 1.21%++ (0.44)% 388% $ 175,042
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
NOVA FUND -- ADVISOR CLASS
MARCH 31, 2005 1.71%++ 1.71%++ (0.94)% 388% 52,642
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
NOVA FUND -- A-CLASS
MARCH 31, 2005 1.45%++ 1.45%++ (0.68)% 388% 18,463
March 31, 2004 * 0.00%**++@ 0.00%**++@ 0.00%** 540% 1
NOVA FUND -- C-CLASS
MARCH 31, 2005 2.21%++ 2.21%++ (1.44)% 388% 49,464
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
MARCH 31, 2005 1.38%++ 1.38%++ (0.46)% -- 326,085
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
URSA FUND -- ADVISOR CLASS
MARCH 31, 2005 1.88%++ 1.88%++ (0.96)% -- 40,964
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
URSA FUND -- A-CLASS
MARCH 31, 2005 1.63%++ 1.63%++ (0.71)% -- 7,318
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.
104 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
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
MARCH 31, 2005 $ 8.89 $ (.13) $ (.43) $ (.56) $ --
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
MARCH 31, 2005 9.73 .04 .17 .21 --
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) --
OTC FUND -- ADVISOR CLASS
MARCH 31, 2005 9.46 (.02) .16 .14 --
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) --
OTC FUND -- A-CLASS
MARCH 31, 2005 9.46 .06 .11 .17 --
March 31, 2004 * 9.46 -- -- -- --
OTC FUND -- C-CLASS
MARCH 31, 2005 9.41 (.03) .12 .09 --
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
MARCH 31, 2005 25.69 (.11) (1.03) (1.14) --
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 --
ARKTOS FUND -- ADVISOR CLASS
MARCH 31, 2005 25.60 (.24) (1.02) (1.26) --
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
MARCH 31, 2005 $ -- $ -- $ (.56) $ 8.33 (6.30)%
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
MARCH 31, 2005 -- -- .21 9.94 2.16%
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)%
OTC FUND -- ADVISOR CLASS
MARCH 31, 2005 -- -- .14 9.60 1.48%
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)%
OTC FUND -- A-CLASS
MARCH 31, 2005 -- -- .17 9.63 1.80%
March 31, 2004 * -- -- -- 9.46 0.00%
OTC FUND -- C-CLASS
MARCH 31, 2005 -- -- .09 9.50 0.96%
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
MARCH 31, 2005 -- -- (1.14) 24.55 (4.44)%
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%
ARKTOS FUND -- ADVISOR CLASS
MARCH 31, 2005 -- -- (1.26) 24.34 (4.92)%
March 31, 2004 * -- -- (4.37) 25.60 (14.58)%
RATIO 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
MARCH 31, 2005 2.38%++ 2.38%++ (1.46)% -- $ 43,763
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
MARCH 31, 2005 1.20% 1.20% 0.40% 132% 801,185
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
OTC FUND -- ADVISOR CLASS
MARCH 31, 2005 1.69% 1.69% (0.25)% 132% 19,887
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
OTC FUND -- A-CLASS
MARCH 31, 2005 1.45% 1.45% 0.59% 132% 1,818
March 31, 2004 * 0.00%**@ 0.00%**@ 0.00%** 139% 1
OTC FUND -- C-CLASS
MARCH 31, 2005 2.19% 2.19% (0.33)% 132% 14,422
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
MARCH 31, 2005 1.38%++ 1.38%++ (0.46)% -- 198,288
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
ARKTOS FUND -- ADVISOR CLASS
MARCH 31, 2005 1.88%++ 1.88%++ (0.96)% -- 17,059
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.
++ 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.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 105
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
MARCH 31, 2005 $ 25.60 $ (.17) $ (1.04) $ (1.21) $ --
March 31, 2004 * 25.60 -- -- -- --
ARKTOS FUND -- C-CLASS
MARCH 31, 2005 24.83 (.35) (1.00) (1.35) --
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
MARCH 31, 2005 28.30 (.03) 3.59 3.56 --
March 31, 2004 * 28.30 -- -- -- --
MEDIUS FUND -- C-CLASS
MARCH 31, 2005 27.76 (.26) 3.53 3.27 --
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
MARCH 31, 2005 28.30 (.06) 3.62 3.56 --
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
MARCH 31, 2005 49.01 (.06) (4.94) (5.00) --
March 31, 2004 * 49.01 -- -- -- --
INVERSE MID-CAP FUND -- C-CLASS
MARCH 31, 2005 48.98 (.27) (5.09) (5.36) --
March 31, 2004 * 50.00 (.08) (.94) (1.02) --
INVERSE MID-CAP FUND -- H-CLASS
MARCH 31, 2005 49.01 .18 (5.18) (5.00) --
March 31, 2004 * 50.00 (.05) (.94) (.99) --
MEKROS FUND -- A-CLASS
MARCH 31, 2005 26.22 (.03) 1.51 1.48 --
March 31, 2004 * 26.22 -- -- -- --
MEKROS FUND -- C-CLASS
MARCH 31, 2005 25.63 (.26) 1.48 1.22 --
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
MARCH 31, 2005 $ -- $ -- $(1.21) $24.39 (4.73)%
March 31, 2004 * -- -- -- 25.60 0.00%
ARKTOS FUND -- C-CLASS
MARCH 31, 2005 -- -- (1.35) 23.48 (5.44)%
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
MARCH 31, 2005 -- -- 3.56 31.86 12.58%
March 31, 2004 * -- -- -- 28.30 0.00%
MEDIUS FUND -- C-CLASS
MARCH 31, 2005 -- -- 3.27 31.03 11.78%
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
MARCH 31, 2005 -- -- 3.56 31.86 12.58%
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
MARCH 31, 2005 -- -- (5.00) 44.01 (10.20)%
March 31, 2004 * -- -- -- 49.01 0.00%
INVERSE MID-CAP FUND -- C-CLASS
MARCH 31, 2005 -- -- (5.36) 43.62 (10.94)%
March 31, 2004 * -- -- (1.02) 48.98 (2.04)%
INVERSE MID-CAP FUND -- H-CLASS
MARCH 31, 2005 -- -- (5.00) 44.01 (10.20)%
March 31, 2004 * -- -- (.99) 49.01 (1.98)%
MEKROS FUND -- A-CLASS
MARCH 31, 2005 (.16) (.16) 1.32 27.54 5.63%
March 31, 2004 * -- -- -- 26.22 0.00%
MEKROS FUND -- C-CLASS
MARCH 31, 2005 (.16) (.16) 1.06 26.69 4.75%
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)%
RATIO 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
MARCH 31, 2005 1.62%++ 1.62%++ (0.70)% -- $ 5,697
March 31, 2004 * 0.00%**++@ 0.00%**++@ 0.00%** -- 1
ARKTOS FUND -- C-CLASS
MARCH 31, 2005 2.38%++ 2.38%++ (1.46)% -- 15,693
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
MARCH 31, 2005 1.63% 1.63% (0.10)% 669% 1,050
March 31, 2004 * 0.00%**@ 0.00%**@ 0.00%** 1,239% 4
MEDIUS FUND -- C-CLASS
MARCH 31, 2005 2.37% 2.37% (0.91)% 669% 17,912
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
MARCH 31, 2005 1.62% 1.62% (0.21)% 669% 59,274
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
MARCH 31, 2005 1.63% 1.63% (0.13)% -- 61
March 31, 2004 * 0.00%**@ 0.00%**@ 0.00%** -- 1
INVERSE MID-CAP FUND -- C-CLASS
MARCH 31, 2005 2.36% 2.36% (0.58)% -- 1,011
March 31, 2004 * 2.23%** 2.23%** (1.45)%** -- 137
INVERSE MID-CAP FUND -- H-CLASS
MARCH 31, 2005 1.60% 1.60% 0.39% -- 30,073
March 31, 2004 * 1.54%** 1.54%** (0.74)%** -- 2,678
MEKROS FUND -- A-CLASS
MARCH 31, 2005 1.61% 1.61% (0.10)% 501% 3,340
March 31, 2004 * 0.00%**@ 0.00%**@ 0.00%** 965% 4
MEKROS FUND -- C-CLASS
MARCH 31, 2005 2.37% 2.37% (1.00)% 501% 18,915
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.
106 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
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
MARCH 31, 2005 $26.22 $ (.07) $ 1.52 $ 1.45 $ --
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 -- A-CLASS
MARCH 31, 2005 48.80 (.02) (2.69) (2.71) --
March 31, 2004* 48.80 -- -- -- --
INVERSE SMALL-CAP -- C-CLASS
MARCH 31, 2005 48.77 (.49) (2.57) (3.06) --
March 31, 2004* 50.00 (.08) (1.15) (1.23) --
INVERSE SMALL-CAP -- H-CLASS
MARCH 31, 2005 48.80 .04 (2.75) (2.71) --
March 31, 2004* 50.00 (.04) (1.16) (1.20) --
U.S. GOVERNMENT BOND FUND --
INVESTOR CLASS
MARCH 31, 2005 11.03 .42 -- .42 (.41)
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)
U.S. GOVERNMENT BOND FUND --
ADVISOR CLASS
MARCH 31, 2005 11.04 .36 .04 .40 (.37)
March 31, 2004* 10.00 .23 1.04 1.27 (.23)
U.S. GOVERNMENT BOND FUND -- A-CLASS
MARCH 31, 2005 11.05 .39 .02 .41 (.39)
March 31, 2004* 11.05 -- -- -- --
U.S. GOVERNMENT BOND FUND -- C-CLASS
MARCH 31, 2005 11.05 .31 .02 .33 (.31)
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)
JUNO FUND -- INVESTOR CLASS
MARCH 31, 2005 19.77 (.08) (.75) (.83) --
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) --
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
MARCH 31, 2005 $ (.16) $ (.16) $ 1.29 $ 27.51 5.52%
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 -- A-CLASS
MARCH 31, 2005 -- -- (2.71) 46.09 (5.55)%
March 31, 2004* -- -- -- 48.80 0.00%
INVERSE SMALL-CAP -- C-CLASS
MARCH 31, 2005 -- -- (3.06) 45.71 (6.27)%
March 31, 2004* -- -- (1.23) 48.77 (2.46)%
INVERSE SMALL-CAP -- H-CLASS
MARCH 31, 2005 -- -- (2.71) 46.09 (5.55)%
March 31, 2004* -- -- (1.20) 48.80 (2.40)%
U.S. GOVERNMENT BOND FUND --
INVESTOR CLASS
MARCH 31, 2005 -- (.41) .01 11.04 4.04%
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%
U.S. GOVERNMENT BOND FUND --
ADVISOR CLASS
MARCH 31, 2005 -- (.37) .03 11.07 3.75%
March 31, 2004* -- (.23) 1.04 11.04 12.84%
U.S. GOVERNMENT BOND FUND -- A-CLASS
MARCH 31, 2005 -- (.39) .02 11.07 3.86%
March 31, 2004* -- -- -- 11.05 0.00%
U.S. GOVERNMENT BOND FUND -- C-CLASS
MARCH 31, 2005 -- (.31) .02 11.07 3.10%
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)%
JUNO FUND -- INVESTOR CLASS
MARCH 31, 2005 -- -- (.83) 18.94 (4.20)%
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)%
RATIO TO
AVERAGE NET ASSETS:
-----------------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET OPERATING INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES EXPENSES< (LOSS) RATE*** OMITTED)
- --------------------------------------------------------------------------------------------------------------------------------
MEKROS FUND -- H-CLASS
MARCH 31, 2005 1.62% 1.62% 1.62% (0.26)% 501% $ 68,084
March 31, 2004 1.66% 1.66% 1.66% (0.62)% 965% 174,320
March 31, 2003 1.69% 1.69% 1.69% (0.20)% 746% 32,101
March 31, 2002 1.61% 1.61% 1.61% 0.74% 714% 120,045
March 31, 2001* 1.74%** 1.73%** 1.73%** 4.24%** -- 36,704
INVERSE SMALL-CAP -- A-CLASS
MARCH 31, 2005 1.63% 1.63% 1.63% (0.03)% -- 404
March 31, 2004* 0.00%**@ 0.00%**@ 0.00%**@ 0.00%** -- 1
INVERSE SMALL-CAP -- C-CLASS
MARCH 31, 2005 2.39% 2.39% 2.39% (0.97)% -- 3,951
March 31, 2004* 2.24%** 2.24%** 2.24%** (1.42)%** -- 492
INVERSE SMALL-CAP -- H-CLASS
MARCH 31, 2005 1.63% 1.63% 1.63% 0.09% -- 46,832
March 31, 2004* 1.54%** 1.54%** 1.54%** (0.72)%** -- 5,054
U.S. GOVERNMENT BOND FUND --
INVESTOR CLASS
MARCH 31, 2005 0.93% 0.93% 0.93% 3.95% 737% 25,992
March 31, 2004 0.95% 0.95% 0.95% 3.84% 1,143% 25,188
March 31, 2003 0.97% 0.97% 0.97% 4.00% 2,404% 51,370
March 31, 2002 0.88% 0.88% 0.88% 4.39% 860% 14,138
March 31, 2001 0.97% 0.96% 0.96% 4.38% 1,107% 80,686
U.S. GOVERNMENT BOND FUND --
ADVISOR CLASS
MARCH 31, 2005 1.41% 1.41% 1.41% 3.32% 737% 53,283
March 31, 2004* 1.45%** 1.45%** 1.45%** 3.21%** 1,143% 46,690
U.S. GOVERNMENT BOND FUND -- A-CLASS
MARCH 31, 2005 1.15% 1.15% 1.15% 3.63% 737% 1,703
March 31, 2004* 0.00%**@ 0.00%**@ 0.00%**@ 0.00%** 1,143% 1
U.S. GOVERNMENT BOND FUND -- C-CLASS
MARCH 31, 2005 1.92% 1.92% 1.92% 2.86% 737% 11,005
March 31, 2004 1.96% 1.96% 1.96% 2.85% 1,143% 3,828
March 31, 2003 1.95% 1.95% 1.95% 2.86% 2,404% 2,163
March 31, 2002* 1.79%** 1.79%** 1.79%** 3.53%** 860% 209
JUNO FUND -- INVESTOR CLASS
MARCH 31, 2005 5.11%++ 5.11%++ 1.32%++ (0.40)% 101% 1,472,040
March 31, 2004 5.57%++## 5.57%++## 1.38%++ (0.45)% 187% 898,294
March 31, 2003 5.65%++##/ 5.65%++##/ 1.41%++ (0.45)% -- 128,958
March 31, 2002 +++ 1.41%++ 1.41%++ 1.41%++ 1.12% -- 32,293
March 31, 2001 +++ 1.33%++ 1.33%++ 1.33%++ 4.61% -- 10,745
* 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.
++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
+++ JUNO FUND - PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 THROUGH
MARCH 31, 2002 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT
EFFECTIVE FEBRUARY 10, 2003.
@ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE
DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
## THE JUNO FUND HAS RESTATED ITS RATIOS OF GROSS AND NET EXPENSES TO AVERAGE
NET ASSETS IN THE FINANCIAL HIGHLIGHTS IN ORDER TO REFLECT THE
RECLASSIFICATION OF INTEREST EXPENSE FROM SECURITIES SOLD SHORT. THIS
RESTATEMENT HAD NO EFFECT ON THE JUNO FUND'S NET ASSET VALUE, PER SHARE
VALUE, NET INVESTMENT INCOME RATIOS, AND TOTAL INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS DURING ANY PERIOD.
/ UNAUDITED
< OPERATING EXPENSES EXCLUDED INTEREST EXPENSE FROM SECURITIES SOLD SHORT.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 107
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 -- ADVISOR CLASS
MARCH 31, 2005 $ 19.71 $ (.17) $ (.75) $ (.92) $ --
March 31, 2004 * 22.41 (.13) (2.57) (2.70) --
JUNO FUND -- A-CLASS
MARCH 31, 2005 19.71 (.13) (.74) (.87) --
March 31, 2004 * 19.71 -- -- -- --
JUNO FUND -- C-CLASS
MARCH 31, 2005 19.24 (.27) (.72) (.99) --
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
MARCH 31, 2005 14.98 .05 2.59 2.64 (.47)
March 31, 2004 * 14.98 -- -- -- --
LARGE-CAP EUROPE FUND -- C-CLASS
MARCH 31, 2005 14.62 (.09) 2.52 2.43 (.47)
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
MARCH 31, 2005 14.98 .05 2.58 2.63 (.47)
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
MARCH 31, 2005 34.60 .05 (3.96) (3.91) (.56)
March 31, 2004 * 34.60 -- -- -- --
LARGE-CAP JAPAN FUND -- C-CLASS
MARCH 31, 2005 34.18 (.25) (3.83) (4.08) (.56)
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 --
LARGE-CAP JAPAN FUND -- H-CLASS
MARCH 31, 2005 34.60 (.05) (3.84) (3.89) (.56)
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) --
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 -- ADVISOR CLASS
MARCH 31, 2005 $ -- $ -- $ (.92) $ 18.79 (4.67)%
March 31, 2004 * -- -- (2.70) 19.71 (12.05)%
JUNO FUND -- A-CLASS
MARCH 31, 2005 -- -- (.87) 18.84 (4.41)%
March 31, 2004 * -- -- -- 19.71 0.00%
JUNO FUND -- C-CLASS
MARCH 31, 2005 -- -- (.99) 18.25 (5.15)%
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
MARCH 31, 2005 (.01) (.48) 2.16 17.14 17.56%
March 31, 2004 * -- -- -- 14.98 0.00%
LARGE-CAP EUROPE FUND -- C-CLASS
MARCH 31, 2005 (.01) (.48) 1.95 16.57 16.55%
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
MARCH 31, 2005 (.01) (.48) 2.15 17.13 17.49%
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
MARCH 31, 2005 (.93) (1.49) (5.40) 29.20 (11.31)%
March 31, 2004 * -- -- -- 34.60 0.00%
LARGE-CAP JAPAN FUND -- C-CLASS
MARCH 31, 2005 (.93) (1.49) (5.57) 28.61 (11.96)%
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%
LARGE-CAP JAPAN FUND -- H-CLASS
MARCH 31, 2005 (.93) (1.49) (5.38) 29.22 (11.25)%
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)%
RATIO TO
AVERAGE NET ASSETS:
--------------------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET OPERATING INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES EXPENSES< (LOSS) RATE*** OMITTED)
- --------------------------------------------------------------------------------------------------------------------------------
JUNO FUND -- ADVISOR CLASS
MARCH 31, 2005 5.61%++ 5.61%++ 1.82%++ (0.90)% 101% $ 232,541
March 31, 2004 * 6.05%**++## 6.05%**++## 1.86%**++ (0.93)%** 187% 52,298
JUNO FUND -- A-CLASS
MARCH 31, 2005 5.35%++ 5.35%++ 1.56%++ (0.64)% 101% 177,178
March 31, 2004 * 0.00%**++@ 0.00%**++@ 0.00%**++@ 0.00%** 187% 5,057
JUNO FUND -- C-CLASS
MARCH 31, 2005 6.11%++ 6.11%++ 2.32%++ (1.40)% 101% 893,249
March 31, 2004 6.57%++## 6.57%++## 2.38%++ (1.45)% 187% 489,918
March 31, 2003 6.64%++##/ 6.64%++##/ 2.40%++ (1.64)% -- 60,969
March 31, 2002 +++ 2.47%++ 2.47%++ 2.47%++ 0.55% -- 877
March 31, 2001 *+++ 2.48%**++ 2.48%**++ 2.48%**++ 2.70%** -- 1,702
LARGE-CAP EUROPE FUND -- A-CLASS
MARCH 31, 2005 1.62% 1.62% 1.62% 0.29% -- 180
March 31, 2004 * 0.00%**@ 0.00%**@ 0.00%**@ 0.00%** -- 1
LARGE-CAP EUROPE FUND -- C-CLASS
MARCH 31, 2005 2.37% 2.37% 2.37% (0.57)% -- 5,717
March 31, 2004 2.47% 2.47% 2.47% (8.31)% -- 1,999
March 31, 2003 2.45% 2.45% 2.45% (0.96)% -- 1,957
March 31, 2002 * 2.69%** 2.69%** 2.69%** (0.82)%** -- 116
LARGE-CAP EUROPE FUND -- H-CLASS
MARCH 31, 2005 1.61% 1.61% 1.61% 0.28% -- 62,957
March 31, 2004 1.73% 1.73% 1.73% (11.25)% -- 35,914
March 31, 2003 1.68% 1.68% 1.68% (0.13)% -- 4,698
March 31, 2002 1.76% 1.76% 1.76% 1.18% -- 9,697
March 31, 2001 * 2.06%** 2.06%** 2.06%** 4.03%** 350% 9,977
LARGE-CAP JAPAN FUND -- A-CLASS
MARCH 31, 2005 1.62% 1.62% 1.62% 0.15% -- 280
March 31, 2004 * 0.00%**@ 0.00%**@ 0.00%**@ 0.00%** -- 55
LARGE-CAP JAPAN FUND -- C-CLASS
MARCH 31, 2005 2.38% 2.38% 2.38% (0.83)% -- 3,381
March 31, 2004 2.42% 2.42% 2.42% (2.85)% -- 5,572
March 31, 2003 +++ 2.36% 2.36% 2.36% (0.68)% -- 9
March 31, 2002 *+++ 2.20%** 2.20%** 2.20%** (0.72)%** -- 12
LARGE-CAP JAPAN FUND -- H-CLASS
MARCH 31, 2005 1.63% 1.63% 1.63% (0.17)% -- 34,972
March 31, 2004 1.66% 1.66% 1.66% 1.46% -- 177,760
March 31, 2003 +++ 1.69% 1.69% 1.69% (0.06)% -- 2,683
March 31, 2002 +++ 1.84% 1.84% 1.84% 1.44% -- 23,873
March 31, 2001 *+++ 1.77%** 1.77%** 1.77%** 4.17%** 699% 14,606
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 8, 2000 -- LARGE-CAP EUROPE FUND
H-CLASS AND LARGE-CAP JAPAN FUND H-CLASS; MARCH 28, 2001-- JUNO FUND
C-CLASS; MAY 10, 2001 -- LARGE-CAP EUROPE FUND 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.
++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
+++ JUNO FUND -- PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001
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 PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31, 2003 HAVE
BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE APRIL 21,
2003.
@ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE
DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
## THE JUNO FUND HAS RESTATED ITS RATIOS OF GROSS AND NET EXPENSES TO AVERAGE
NET ASSETS IN THE FINANCIAL HIGHLIGHTS IN ORDER TO REFLECT THE
RECLASSIFICATION OF INTEREST EXPENSE FROM SECURITIES SOLD SHORT. THIS
RESTATEMENT HAD NO EFFECT ON THE JUNO FUND'S NET ASSET VALUE, PER SHARE
VALUE, NET INVESTMENT INCOME RATIOS, AND TOTAL INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS DURING ANY PERIOD.
/ UNAUDITED
< OPERATING EXPENSES EXCLUDE INTEREST EXPENSE FROM SECURITIES SOLD SHORT.
108 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
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
- --------------------------------------------------------------------------------------------------------------------------------
SMALL-CAP VALUE FUND -- A-CLASS
MARCH 31, 2005 * $25.28 $ (.06) $ 3.13 $ 3.07 $ --
SMALL-CAP VALUE FUND -- C-CLASS
MARCH 31, 2005 25.59 (.24) 2.79 2.55 --
March 31, 2004* 25.00 (.05) .64 .59 --
SMALL-CAP VALUE FUND -- H-CLASS
MARCH 31, 2005 25.62 (.01) 2.76 2.75 --
March 31, 2004* 25.00 (.01) .63 .62 --
MID-CAP VALUE -- A-CLASS
MARCH 31, 2005* 24.58 .11 2.91 3.02 (--)#
MID-CAP VALUE -- C-CLASS
MARCH 31, 2005 25.11 (.07) 2.36 2.29 (--)#
March 31, 2004* 25.00 (.02) .13 .11 --
MID-CAP VALUE -- H-CLASS
MARCH 31, 2005 25.13 .21 2.26 2.47 (--)#
March 31, 2004* 25.00 .01 .12 .13 --
LARGE-CAP VALUE FUND -- A-CLASS
MARCH 31, 2005* 24.68 .12 1.81 1.93 (--)#
LARGE-CAP VALUE FUND -- C-CLASS
MARCH 31, 2005 24.85 .01 1.57 1.58 (--)#
March 31, 2004* 25.00 (.02) (.13) (.15) --
LARGE-CAP VALUE FUND -- H-CLASS
MARCH 31, 2005 24.87 .16 1.58 1.74 (--)#
March 31, 2004* 25.00 .01 (.14) (.13) --
SMALL-CAP GROWTH FUND -- A-CLASS
MARCH 31, 2005* 24.43 (.12) 3.90 3.78 --
SMALL-CAP GROWTH FUND -- C-CLASS
MARCH 31, 2005 25.33 (.44) 3.14 2.70 --
March 31, 2004* 25.00 (.04) .37 .33 --
SMALL-CAP GROWTH FUND -- H-CLASS
MARCH 31, 2005 25.34 (.23) 3.11 2.88 --
March 31, 2004* 25.00 (.02) .36 .34 --
MID-CAP GROWTH FUND -- A-CLASS
MARCH 31, 2005* 23.91 (.09) 3.04 2.95 --
MID-CAP GROWTH FUND -- C-CLASS
MARCH 31, 2005 25.15 (.37) 1.89 1.52 --
March 31, 2004* 25.00 (.05) .20 .15 --
MID-CAP GROWTH FUND -- H-CLASS
MARCH 31, 2005 25.17 (.17) 1.87 1.70 --
March 31, 2004* 25.00 (.02) .19 .17 --
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
- --------------------------------------------------------------------------------------------------------------------------------
SMALL-CAP VALUE FUND -- A-CLASS
MARCH 31, 2005 * $ (.13) $ (.13) $ 2.94 $ 28.22 12.14%
SMALL-CAP VALUE FUND -- C-CLASS
MARCH 31, 2005 (.13) (.13) 2.42 28.01 9.96%
March 31, 2004* -- -- .59 25.59 2.36%
SMALL-CAP VALUE FUND -- H-CLASS
MARCH 31, 2005 (.13) (.13) 2.62 28.24 10.73%
March 31, 2004* -- -- .62 25.62 2.48%
MID-CAP VALUE -- A-CLASS
MARCH 31, 2005* (.11) (.11) 2.91 27.49 12.29%
MID-CAP VALUE -- C-CLASS
MARCH 31, 2005 (.11) (.11) 2.18 27.29 9.12%
March 31, 2004* -- -- .11 25.11 0.44%
MID-CAP VALUE -- H-CLASS
MARCH 31, 2005 (.11) (.11) 2.36 27.49 9.83%
March 31, 2004* -- -- .13 25.13 0.52%
LARGE-CAP VALUE FUND -- A-CLASS
MARCH 31, 2005* (.05) (.05) 1.88 26.56 7.82%
LARGE-CAP VALUE FUND -- C-CLASS
MARCH 31, 2005 (.05) (.05) 1.53 26.38 6.35%
March 31, 2004* -- -- (.15) 24.85 (0.60)%
LARGE-CAP VALUE FUND -- H-CLASS
MARCH 31, 2005 (.05) (.05) 1.69 26.56 6.99%
March 31, 2004* -- -- (.13) 24.87 (0.52)%
SMALL-CAP GROWTH FUND -- A-CLASS
MARCH 31, 2005* (.25) (.25) 3.53 27.96 15.49%
SMALL-CAP GROWTH FUND -- C-CLASS
MARCH 31, 2005 (.25) (.25) 2.45 27.78 10.68%
March 31, 2004* -- -- .33 25.33 1.32%
SMALL-CAP GROWTH FUND -- H-CLASS
MARCH 31, 2005 (.25) (.25) 2.63 27.97 11.38%
March 31, 2004* -- -- .34 25.34 1.36%
MID-CAP GROWTH FUND -- A-CLASS
MARCH 31, 2005* (.01) (.01) 2.94 26.85 12.33%
MID-CAP GROWTH FUND -- C-CLASS
MARCH 31, 2005 (.01) (.01) 1.51 26.66 6.04%
March 31, 2004* -- -- .15 25.15 0.60%
MID-CAP GROWTH FUND -- H-CLASS
MARCH 31, 2005 (.01) (.01) 1.69 26.86 6.75%
March 31, 2004* -- -- .17 25.17 0.68%
RATIO TO
AVERAGE NET ASSETS:
-----------------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
INCOME TURNOVER PERIOD (000'S
EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------
SMALL-CAP VALUE FUND -- A-CLASS
MARCH 31, 2005 * 1.43%** (0.37)%** 744% $ 714
SMALL-CAP VALUE FUND -- C-CLASS
MARCH 31, 2005 2.21% (0.89)% 744% 12,119
March 31, 2004* 2.11%** (1.68)%** 177% 2,207
SMALL-CAP VALUE FUND -- H-CLASS
MARCH 31, 2005 1.47% (0.04)% 744% 75,748
March 31, 2004* 1.41%** (0.21)%** 177% 19,900
MID-CAP VALUE -- A-CLASS
MARCH 31, 2005* 1.42%** 0.69%** 731% 312
MID-CAP VALUE -- C-CLASS
MARCH 31, 2005 2.21% (0.28)% 731% 8,831
March 31, 2004* 2.11%** (0.50)%** 172% 710
MID-CAP VALUE -- H-CLASS
MARCH 31, 2005 1.46% 0.77% 731% 115,660
March 31, 2004* 1.41%** 0.19%** 172% 18,064
LARGE-CAP VALUE FUND -- A-CLASS
MARCH 31, 2005* 1.43%** 0.77%** 747% 211
LARGE-CAP VALUE FUND -- C-CLASS
MARCH 31, 2005 2.20% 0.03% 747% 4,636
March 31, 2004* 2.10%** (0.53)%** 202% 2,612
LARGE-CAP VALUE FUND -- H-CLASS
MARCH 31, 2005 1.47% 0.63% 747% 24,974
March 31, 2004* 1.41%** 0.34%** 202% 8,094
SMALL-CAP GROWTH FUND -- A-CLASS
MARCH 31, 2005* 1.43%** (0.74)%** 983% 76
SMALL-CAP GROWTH FUND -- C-CLASS
MARCH 31, 2005 2.21% (1.58)% 983% 2,710
March 31, 2004* 2.08%** (1.31)%** 117% 2,505
SMALL-CAP GROWTH FUND -- H-CLASS
MARCH 31, 2005 1.46% (0.84)% 983% 26,145
March 31, 2004* 1.41%** (0.85)%** 117% 2,544
MID-CAP GROWTH FUND -- A-CLASS
MARCH 31, 2005* 1.46%** (0.58)%** 1,211% 553
MID-CAP GROWTH FUND -- C-CLASS
MARCH 31, 2005 2.21% (1.43)% 1,211% 2,313
March 31, 2004* 2.10%** (1.50)%** 356% 1,172
MID-CAP GROWTH FUND -- H-CLASS
MARCH 31, 2005 1.46% (0.66)% 1,211% 23,733
March 31, 2004* 1.41%** (0.75)%** 356% 625
* SINCE THE COMMENCEMENT OF OPERATIONS: 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, MID-CAP GROWTH FUND C-CLASS AND MID-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.
# LESS THAN $.01 PER SHARE: LARGE-CAP VALUE FUND A-CLASS, C-CLASS AND
H-CLASS ACTUAL AMOUNT = $.0001; MID-CAP VALUE FUND A-CLASS, C-CLASS AND
H-CLASS ACTUAL AMOUNT = $.0007.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 109
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 GROWTH FUND -- A-CLASS
MARCH 31, 2005* $ 23.44 $ .09 $ .95 $ 1.04 $ --
LARGE-CAP GROWTH FUND -- C-CLASS
MARCH 31, 2005 24.18 (.01) .13 .12 --
March 31, 2004* 25.00 (.05) (.77) (.82) --
LARGE-CAP GROWTH FUND -- H-CLASS
MARCH 31, 2005 24.18 .37 (.06) .31 --
March 31, 2004* 25.00 -- (.82) (.82) --
U.S. GOVERNMENT MONEY MARKET FUND --
INVESTOR CLASS
MARCH 31, 2005 1.00 .01 -- .01 (.01)
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)
U.S. GOVERNMENT MONEY MARKET FUND --
ADVISOR CLASS
MARCH 31, 2005 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)
U.S. GOVERNMENT MONEY MARKET FUND --
A-CLASS
MARCH 31, 2005 1.00 .01 -- .01 (.01)
March 31, 2004* 1.00 -- -- -- --
U.S. GOVERNMENT MONEY MARKET FUND --
C-CLASS
MARCH 31, 2005 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)
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 GROWTH FUND -- A-CLASS
MARCH 31, 2005* $ (--)# $(--)# $ 1.04 $24.48 4.45%
LARGE-CAP GROWTH FUND -- C-CLASS
MARCH 31, 2005 (--)# (--)# .12 24.30 0.51%
March 31, 2004* -- -- (.82) 24.18 (3.28)%
LARGE-CAP GROWTH FUND -- H-CLASS
MARCH 31, 2005 (--)# (--)# .31 24.49 1.30%
March 31, 2004* -- -- (.82) 24.18 (3.28)%
U.S. GOVERNMENT MONEY MARKET FUND --
INVESTOR CLASS
MARCH 31, 2005 -- (.01) -- 1.00 0.82%
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%
U.S. GOVERNMENT MONEY MARKET FUND --
ADVISOR CLASS
MARCH 31, 2005 -- (--)# -- 1.00 0.43%
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%
U.S. GOVERNMENT MONEY MARKET FUND --
A-CLASS
MARCH 31, 2005 -- (.01) -- 1.00 0.59%
March 31, 2004* -- -- -- 1.00 0.00%
U.S. GOVERNMENT MONEY MARKET FUND --
C-CLASS
MARCH 31, 2005 -- (--)# -- 1.00 0.19%
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%
RATIO 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 GROWTH FUND -- A-CLASS
MARCH 31, 2005* 1.45%** 1.45%** 0.62%** 2,018% $ 74
LARGE-CAP GROWTH FUND -- C-CLASS
MARCH 31, 2005 2.20% 2.20% (0.06)% 2,018% 19,703
March 31, 2004* 2.08%** 2.08%** (1.25)%** 296% --
LARGE-CAP GROWTH FUND -- H-CLASS
MARCH 31, 2005 1.47% 1.47% 1.52% 2,018% 11,762
March 31, 2004* 1.41%** 1.41%** (0.16)%** 296% 793
U.S. GOVERNMENT MONEY MARKET FUND --
INVESTOR CLASS
MARCH 31, 2005 0.87% 0.87% 0.81% -- 1,196,009
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
U.S. GOVERNMENT MONEY MARKET FUND --
ADVISOR CLASS
MARCH 31, 2005 1.38% 1.25% 0.39% -- 245,890
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
U.S. GOVERNMENT MONEY MARKET FUND --
A-CLASS
MARCH 31, 2005 1.10% 1.10% 0.93% -- 7,335
March 31, 2004* 0.00%**@ 0.00%**@ 0.00%** -- 1
U.S. GOVERNMENT MONEY MARKET FUND --
C-CLASS
MARCH 31, 2005 1.87% 1.51% 0.19% -- 155,668
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
* SINCE THE COMMENCEMENT OF OPERATIONS: OCTOBER 19, 2000 -- U.S. GOVERNEMENT
MONEY MARKET FUND C-CLASS; FEBRUARY 20, 2004 -- 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 $.01 PER SHARE: LARGE-CAP GROWTH FUND A-CLASS, C-CLASS, AND
H-CLASS ACTUAL AMOUNT = $.0042 LESS THAN $.01 PER SHARE: U.S. GOVERNMENT
MONEY MARKET FUND ADVISOR CLASS ACTUAL AMOUNT = $.00433; U.S. GOVERNMENT
MONEY MARKET FUND C-CLASS ACTUAL AMOUNT = $.00185.
## LESS THAN $.01 PER SHARE: U.S. GOVERNMENT MONEY MARKET FUND INVESTOR CLASS
ACTUAL AMOUNT = $.0019; U.S. GOVERNMENT MONEY MARKET FUND 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.
110 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
MASTER-FEEDER ARRANGEMENT
- --------------------------------------------------------------------------------
Nova Fund, Ursa Fund, Arktos Fund and Juno Fund are operating under a
`master-feeder arrangement'. Under a master-feeder arrangement, a Feeder Fund
("feeder") invests substantially all of its assets in the Master Portfolio
("master"), a separate open-ended investment company that has the same
investment objectives as the feeder, e.g., the Nova Fund would act as a feeder,
holding shares of the Nova Master Portfolio as its only investment. The Master
Portfolio, in turn, invests in securities and derivatives to meet its investment
objective.
The following statements represent the Master Portfolios, which are the part of
the master-feeder arrangement in which Feeder Funds invest. Please see Notes to
Financial Statements for more information about the master-feeder arrangement.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 111
STATEMENTS OF ASSETS AND LIABILITIES March 31, 2005
- --------------------------------------------------------------------------------
NOVA URSA ARKTOS JUNO
MASTER MASTER MASTER MASTER
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Note 1) $ 350,542,485 $ 411,588,502 $ 230,512,458 $ 5,105,528,914
Segregated Cash with Broker 8,820,000 9,875,250 6,357,000 8,911,929
Receivable for Equity Index Swap Settlement (Note 1) -- 4,091,622 2,395,809 --
Receivable for Futures Contracts Settlement (Note 1) -- 374,970 339,040 --
Receivable for Shares Purchased 3,301,579 -- -- --
Investment Income Receivable (Note 1) 427,692 15,221 16,562 153,807
Receivable from "Feeder" Fund -- -- -- 38
Receivable for Securities Lending 2,642 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 363,094,398 425,945,565 239,620,869 5,114,594,688
- ---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Short Sale at Market Value -- -- -- 2,250,070,528
Payable to cover Short Sale -- -- -- 45,686,956
Payable for Futures Contracts Settlement (Note 1) 338,460 -- -- 5,160,776
Payable upon Return of Securities Loaned (Note 9) 66,889,063 -- -- --
Liability for Shares Redeemed -- 7,361,108 2,700,087 22,133,753
Investment Advisory Fee Payable (Note 4) 192,007 309,688 168,066 2,120,771
Custody Fees Payable 6,145 8,258 4,482 56,575
Interest Payable -- -- -- 13,773,044
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 67,425,675 7,679,054 2,872,635 2,339,002,403
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 295,668,723 $ 418,266,511 $ 236,748,234 $ 2,775,592,285
=================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 480,844,987 $ 954,365,559 $ 377,518,576 $ 2,982,244,157
Undistributed Net Investment Income 4,285,546 -- -- --
Accumulated Net Realized Loss on Investments, Options,
Equity Index Swaps, and Futures Contracts (219,080,903) (544,600,758) (144,177,922) (225,568,057)
Net Unrealized Appreciation (Depreciation) on
Investments, Options,
Equity Index Swaps, and Futures Contracts 29,619,093 8,501,710 3,407,580 18,916,185
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 295,668,723 $ 418,266,511 $ 236,748,234 $ 2,775,592,285
=================================================================================================================================
SHARES OUTSTANDING 6,447,773 7,393,567 4,072,933 82,633,610
NET ASSET VALUES $ 45.86 $ 56.57 $ 58.13 $ 33.59
* THE COST OF SECURITIES AT VALUE IS $317,625,847, $411,588,502,
$230,512,458, AND $5,105,563,853, RESPECTIVELY.
112 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
STATEMENTS OF OPERATIONS Year Ended March 31, 2005
- --------------------------------------------------------------------------------
NOVA URSA ARKTOS JUNO
MASTER MASTER MASTER MASTER
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 905,799 $ 7,629,023 $ 3,596,678 $ 74,353,774
Interest from Securities Lending, net (Note 9) 31,297 -- -- --
Dividends (Note 1) 5,887,772 -- -- --
Other Income 91,143 2,340 1,560 --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Income 6,916,011 7,631,363 3,598,238 74,353,774
- ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 4) 2,553,536 4,196,787 2,040,941 23,980,129
Interest Expense -- -- -- 101,199,683
Custody Fees 76,929 106,100 51,721 610,183
- ---------------------------------------------------------------------------------------------------------------------------------
Total Expenses 2,630,465 4,302,887 2,092,662 125,789,995
- ---------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 4,285,546 3,328,476 1,505,576 (51,436,221)
=================================================================================================================================
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 10,825,320 (429,770) (10,475) (1,163,198)
Equity Index Swaps -- (16,699,597) (18,989,273) --
Futures Contracts 11,300,761 (40,932,338) (15,029,903) (71,335,005)
Securities Sold Short -- -- -- (90,642,226)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 22,126,081 (58,061,705) (34,029,651) (163,140,429)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (1,986,801) 272,888 5,750 (8,450)
Equity Index Swaps -- 4,373,395 7,192,449 --
Futures Contracts (4,731,570) 9,375,343 1,324,723 17,475,894
Securities Sold Short -- -- -- (1,425,012)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (6,718,371) 14,021,626 8,522,922 16,042,432
- ---------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 15,407,710 (44,040,079) (25,506,729) (147,097,997)
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 19,693,256 $ (40,711,603) $ (24,001,153) $ (198,534,218)
=================================================================================================================================
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 113
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
NOVA MASTER URSA MASTER
PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- --------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 4,285,546 $ 2,001,263 $ 3,328,476 $ 457,359
Net Realized Gain (Loss) on Investments 22,126,081 68,768,506 (58,061,705) (179,451,413)
Net Change in Unrealized Appreciation (Depreciation)
on Investments (6,718,371) 26,372,811 14,021,626 (1,544,687)
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 19,693,256 97,142,580 (40,711,603) (180,538,741)
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income (852) (2,001,263) -- (358,769)
================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 920,744,587 843,312,217 912,482,213 1,810,929,200
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT 852 2,000,411 -- 358,768
COST OF SHARES REDEEMED (911,016,929) (844,999,096) (897,785,236) (1,715,171,812)
================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE
TRANSACTIONS 9,728,510 313,532 14,696,977 96,116,156
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 29,420,914 95,454,849 (26,014,626) (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 $ 295,668,723 $ 266,247,809 $ 418,266,511 $ 444,281,137
================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 4,285,546 $ 852 $ -- $ --
- --------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN SHARES
Shares Purchased 21,299,256 22,882,252 15,339,086 26,591,281
Shares Purchased Through Reinvestment 19 46,745 -- 5,066
- --------------------------------------------------------------------------------------------------------------------------------
Total Purchased 21,299,275 22,928,997 15,339,086 26,596,347
Shares Redeemed (21,129,327) (22,879,528) (15,419,385) (25,653,073)
- --------------------------------------------------------------------------------------------------------------------------------
Net Shares Purchased (Redeemed) 169,948 49,469 (80,299) 943,274
- --------------------------------------------------------------------------------------------------------------------------------
ARKTOS MASTER
PORTFOLIO
- ------------------------------------------------------------------------------------------
YEAR YEAR
ENDED ENDED
MARCH 31, MARCH 31,
2005 2004
- ------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 1,505,576 $ 157,526
Net Realized Gain (Loss) on Investments (34,029,651) (73,450,902)
Net Change in Unrealized Appreciation (Depreciation)
on Investments 8,522,922 157,395
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (24,001,153) (73,135,981)
- ------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- --
==========================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 587,882,270 673,721,154
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT -- --
COST OF SHARES REDEEMED (589,489,042) (487,375,862)
==========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE
TRANSACTIONS (1,606,772) 186,345,292
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (25,607,925) 113,209,311
NET ASSETS--BEGINNING OF PERIOD 262,356,159 149,146,848
- ------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 236,748,234 $ 262,356,159
==========================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ --
- ------------------------------------------------------------------------------------------
TRANSACTIONS IN SHARES
Shares Purchased 9,816,871 10,063,195
Shares Purchased Through Reinvestment -- --
- ------------------------------------------------------------------------------------------
Total Purchased 9,816,871 10,063,195
Shares Redeemed (10,077,144) (7,410,835)
- ------------------------------------------------------------------------------------------
Net Shares Purchased (Redeemed) (260,273) 2,652,360
- ------------------------------------------------------------------------------------------
114 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
JUNO MASTER
PORTFOLIO
- ------------------------------------------------------------------------------------------
YEAR YEAR
ENDED ENDED
MARCH 31, MARCH 31,
2005 2004
- ------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (51,436,221) $ (25,151,819)
Net Realized Gain (Loss) on Investments (163,140,429) (47,089,829)
Net Change in Unrealized Appreciation (Depreciation)
on Investments 16,042,432 1,433,752
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (198,534,218) (70,807,896)
- ------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- --
==========================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 2,584,286,537 2,015,262,602
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT -- --
COST OF SHARES REDEEMED (1,056,001,980) (688,581,094)
==========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE
TRANSACTIONS 1,528,284,557 1,326,681,508
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 1,329,750,339 1,255,873,612
NET ASSETS--BEGINNING OF PERIOD 1,445,841,946 189,968,334
- ------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 2,775,592,285 $ 1,445,841,946
==========================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ --
- ------------------------------------------------------------------------------------------
TRANSACTIONS IN SHARES
Shares Purchased 71,015,584 54,919,947
Shares Purchased Through Reinvestment -- --
- ------------------------------------------------------------------------------------------
Total Purchased 71,015,584 54,919,947
Shares Redeemed (29,804,719) (18,583,233)
- ------------------------------------------------------------------------------------------
Net Shares Purchased (Redeemed) 41,210,865 36,336,714
- ------------------------------------------------------------------------------------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 115
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
MARCH 31, 2005 $ 42.41 $ .66 $ 2.79 $ 3.45 $ (--)# $ -- $ ( --)#
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
MARCH 31, 2005 59.44 .45 (3.32) (2.87) -- -- --
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
MARCH 31, 2005 60.55 .37 (2.79) (2.42) -- -- --
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
MARCH 31, 2005 34.90 (.62) (.69) (1.31) -- -- --
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)
RATIO TO AVERAGE NET ASSETS:
-------------------------------------------------------------
NET INCREASE NET ASSET NET
(DECREASE)IN VALUE TOTAL INVESTMENT
NET ASSET END OF INVESTMENT GROSS NET OPERATING INCOME
VALUE PERIOD RETURN EXPENSES EXPENSES EXPENSES/ (LOSS)
- --------------------------------------------------------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
MARCH 31, 2005 $ 3.45 $ 45.86 8.14% 0.77% 0.77% 0.77% 1.26%
March 31, 2004 14.99 42.41 55.84% 0.78% 0.78% 0.78% 0.81%
March 31, 2003 (17.94) 27.42 (38.94)% 0.79% 0.79% 0.79% 0.91%
March 31, 2002* (4.64) 45.36 (8.54)% 0.86%** 0.86%** 0.86%** 0.69%**
URSA MASTER PORTFOLIO
MARCH 31, 2005 (2.87) 56.57 (4.83)% 0.92% 0.92% 0.92% 0.71%
March 31, 2004 (21.57) 59.44 (26.58)% 0.93% 0.93% 0.93% 0.09%
March 31, 2003 16.44 81.01 26.21% 0.94% 0.94% 0.94% 0.52%
March 31, 2002 (.62) 64.57 1.37% 0.94% 0.94% 0.94% 1.90%
March 31, 2001* 15.48 65.19 38.06% 0.95%** 0.95%** 0.95%** 5.11%**
ARKTOS MASTER PORTFOLIO
MARCH 31, 2005 (2.42) 58.13 (4.00)% 0.92% 0.92% 0.92% 0.66%
March 31, 2004 (28.18) 60.55 (31.76)% 0.93% 0.93% 0.93% 0.10%
March 31, 2003 3.55 88.73 20.95% 0.94% 0.94% 0.94% 0.51%
March 31, 2002 (11.29) 85.18 (8.03)% 0.94% 0.94% 0.94% 1.63%
March 31, 2001* 42.80 96.47 91.61% 0.96%** 0.95%** 0.95%** 6.58%**
JUNO MASTER PORTFOLIO
MARCH 31, 2005 (1.31) 33.59 (3.75)% 4.71% 4.71% 0.92% (1.93)%
March 31, 2004 (2.45) 34.90 (6.56)% 5.12%## 5.12%## 0.93% (3.39)%
March 31, 2003 (8.90) 37.35 (19.24)% 5.18%##+ 5.18%##+ 0.94% (2.72)%
March 31, 2002 .86 46.25 4.12% 0.93% 0.93% 0.93% 1.61%
March 31, 2001* (4.52) 45.39 (3.67)% 0.94%** 0.94%** 0.94%** 5.04%**
NET ASSET
PORTFOLIO END OF
TURNOVER PERIOD (000'S
RATE*** OMITTED)
- ----------------------------------------------------
NOVA MASTER PORTFOLIO
MARCH 31, 2005 388% $ 295,669
March 31, 2004 540% 266,248
March 31, 2003 603% 170,793
March 31, 2002* 401% 291,992
URSA MASTER PORTFOLIO
MARCH 31, 2005 -- 418,267
March 31, 2004 -- 444,281
March 31, 2003 -- 529,062
March 31, 2002 -- 228,485
March 31, 2001* -- 225,040
ARKTOS MASTER PORTFOLIO
MARCH 31, 2005 -- 236,748
March 31, 2004 -- 262,356
March 31, 2003 -- 149,147
March 31, 2002 -- 115,929
March 31, 2001* 1,788% 78,919
JUNO MASTER PORTFOLIO
MARCH 31, 2005 101% 2,775,592
March 31, 2004 187% 1,445,842
March 31, 2003 -- 189,968
March 31, 2002 -- 33,105
March 31, 2001* -- 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.
+ UNAUDITED
# LESS THAN $.01 PER SHARE: NOVA MASTER PORTFOLIO= $.00009
## THE JUNO MASTER PORTFOLIO HAS RESTATED ITS RATIOS OF GROSS AND NET
EXPENSES TO AVERAGE NET ASSETS IN THE FINANCIAL HIGHLIGHTS IN ORDER TO
REFLECT THE RECLASSIFICATION OF INTEREST EXPENSE FROM SECURITIES SOLD
SHORT. THIS RESTATEMENT HAD NO EFFECT ON THE JUNO MASTER PORTFOLIO'S NET
ASSET VALUE, PER SHARE VALUE, NET INVESTMENT INCOME RATIOS, AND TOTAL
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS DURING ANY PERIOD.
/ OPERATING EXPENSES EXCLUDE INTEREST EXPENSE FROM SECURITIES SOLD SHORT.
116 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 five separate classes
of shares, Investor Class Shares, Advisor Class Shares, A-Class Shares, C-Class
Shares, and H-Class Shares. As of February 28, 2005, the Institutional Class of
U.S. Government Money Market was closed. 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% 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%
$1,000,000 or greater 0.00% 0.00%
At March 31, 2005, 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. In the normal course of business, the Funds enter
into contracts that contain a variety of representations and warranties, which
provide general indemnifications. The Funds' maximum exposure under these
arrangements is unknown, as this would involve future claims that may be made
against the Funds and/or its affiliates that have not yet occurred. However,
based on experience, the Funds expect the risk of loss to be remote.
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. These methods
include, but are not limited to: (i) general information as to how these
securities and assets trade; (ii) in connection with futures contracts and
options thereupon, and other derivative investments, information as to how (a)
these contracts and other derivative investments trade in the futures or other
derivative markets, respectively, and (b) the securities underlying these
contracts and other derivative investments trade in the cash market; and (iii)
other information and considerations, including current values in
related-markets. 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
THE RYDEX SERIES FUNDS ANNUAL REPORT | 117
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
income and net realized capital gains are determined in accordance with income
tax regulations which may differ from accounting principles generally accepted
in the United States. These differences are primarily due to differing
treatments for items such as deferral of wash sales and post-October losses and
regulated futures contracts and options.
D. When a Fund engages in a short sale, an amount equal to the proceeds is
reflected as an asset and an equivalent liability. The amount of the liability
is subsequently marked-to-market to reflect the market value of the short sale.
The Fund maintains a segregated account of securities as collateral for short
sales. The Fund is exposed to market risk based on the amount, if any, that the
market value of the security exceeds the market value of the securities in the
segregated account. Dividend and interest expenses and fees paid to brokers to
borrow securities in connection with short sales are considered part of the cost
of short sale transactions.
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. The Fund may leave Cash in Custodian Bank overnight in its cash account with
the custodian, U.S. Bank. Periodically, the Fund may have Cash Payable to
Custodian Bank as an overdraft balance. A fee is incurred on this overdraft,
calculated by multiplying the overdraft by a rate based on the federal funds
rate. Segregated Cash with the 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.
118 | THE RYDEX SERIES FUNDS ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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.
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.
Short sales are transactions in which the Fund sells a security it does not own.
If the security the Fund sold short goes down in price between the time the Fund
sells the security and closes its short position, the Fund will realize a gain
on the transaction. Conversely, if the security goes up in price during the
period, the Fund will realize a loss on the transaction. The risk of such price
increases is the principal risk of engaging in short sales.
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.
Both the Master Portfolio and Feeder Fund, are set up as independent registered
investment companies. 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 March 31, 2005, 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
THE RYDEX SERIES FUNDS ANNUAL REPORT | 119
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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
Inverse Mid-Cap Fund, the Mekros Fund, the Inverse Small-Cap Fund, the Large-Cap
Europe Fund, the Large-Cap Japan Fund, the Ursa Master Portfolio, the Arktos
Master Portfolio, and the Juno Master Portfolio. For the year ending March 31,
2005, the Advisor voluntarily reimbursed $27,871 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-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 year ended March 31, 2005, the Servicer
voluntarily waived transfer agent service fees in the amount of $53,552 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 year
ended March 31, 2005, the Servicer voluntarily waived accounting fees in the
amount of $13,613 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 Servicer also provides other necessary services to the Trust, such as
accounting and auditing services, legal services, printing and mailing, etc., on
a pass-through basis. Such expenses vary from Fund to Fund and are allocated to
the Funds based on relative net assets.
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
year ended March 31, 2005, the Distributor voluntarily waived $283,204 of 12b-1
expenses in the Advisor Class and $22 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 to the
financial advisor. The Distributor retains the service and distribution fees on
accounts with no authorized dealer of record. For the year ended March 31, 2005,
the Distributor waived $594,726 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, 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
net operating losses not utilized during the current year, swap reclasses,
capital loss carryforward expired, amortization of organizational cost, and the
utilization of earnings and profits distributed to the shareholders on
redemption of shares as part of the dividends paid deduction for income tax
purposes. These reclassifications have no effect on net assets or net asset
values per share. Any taxable gain remaining at fiscal year end is distributed
in the following year.
120 | THE RYDEX SERIES FUNDS ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The tax character of distributions paid during April 1, 2004 - March 31, 2005
was as follows:
ORDINARY LONG-TERM RETURN OF TOTAL
FUND INCOME CAPITAL GAIN CAPITAL DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Nova Fund $ -- $ -- $ -- $ --
Ursa Fund -- -- -- --
OTC Fund -- -- -- --
Arktos Fund -- -- -- --
Medius Fund -- -- -- --
Inverse Mid-Cap Fund -- -- -- --
Mekros Fund -- 1,366,357 -- 1,366,357
Inverse Small-Cap Fund -- -- -- --
U.S. Government Bond Fund 3,708,280 -- -- 3,708,280
Juno Fund -- -- -- --
Large-Cap Europe Fund 3,166,707 16,670 -- 3,183,377
Large-Cap Japan Fund 1,362,350 1,158,685 -- 2,521,035
Small-Cap Value Fund 822,977 65 -- 823,042
Mid-Cap Value Fund 352,305 64 -- 352,369
Large-Cap Value Fund 126,830 205 -- 127,035
Small-Cap Growth Fund 1,017,853 -- -- 1,017,853
Mid-Cap Growth Fund 13,251 -- -- 13,251
Large-Cap Growth Fund 8,677 -- -- 8,677
U.S. Government Money Market Fund 10,462,879 -- -- 10,462,879
Nova Master Portfolio 852 -- -- 852
Ursa Master Portfolio -- -- -- --
Arktos Master Portfolio -- -- -- --
Juno Master Portfolio -- -- -- --
The tax character of distributions paid during April 1, 2003-March 31, 2004, was
as follows:
ORDINARY LONG-TERM RETURN OF TOTAL
FUND INCOME CAPITAL GAIN CAPITAL DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Nova Fund $ 59,012 $ -- $ -- $ 59,012
Ursa Fund 13,664,357 2,861,109 -- 16,525,466
OTC Fund -- -- -- --
Arktos Fund -- -- -- --
Medius Fund -- -- -- --
Inverse Mid-Cap Fund -- -- -- --
Mekros Fund -- -- -- --
Inverse Small-Cap Fund -- -- -- --
U.S. Government Bond Fund 2,137,637 -- -- 2,137,637
Juno Fund -- -- -- --
Large-Cap Europe Fund 3,415,848 29,491 -- 3,445,339
Large-Cap Japan Fund 353,168 -- -- 353,168
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 2,393,710 -- -- 2,393,710
Nova Master Portfolio 2,001,263 -- -- 2,001,263
Ursa Master Portfolio -- -- 358,769 358,769
Arktos Master Portfolio -- -- -- --
Juno Master Portfolio -- -- -- --
THE RYDEX SERIES FUNDS ANNUAL REPORT | 121
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The tax character of distributable earnings/(accumulated losses) at March 31,
2005 was as follows:
UNDISTRIBUTED
UNDISTRIBUTED REALIZED GAIN/ NET UNREALIZED
ORDINARY (ACCUMULATED APPRECIATION/ CAPITAL LOSS
FUND INCOME LOSS) (DEPRECIATION) CARRYFORWARD
- ------------------------------------------------------------------------------------------
Nova Fund $ -- $ -- $ (9,856,534) $ 38,119,864(1)
Ursa Fund -- -- (165,605,665) 29,296,956(1)
OTC Fund 3,339,815 -- 140,165,536 791,235,942(3)
Arktos Fund -- -- (100,922,939) 4,527,330(2)
Medius Fund -- -- 988,401 917,965(3)
Inverse Mid-Cap Fund 36,605 -- (41,863) 886,896(3)
Mekros Fund -- -- 4,172,722 25,355,689(1)
Inverse Small-Cap Fund -- -- 443,792 5,577,120(3)
U.S. Government Bond Fund -- -- 414,161 6,648,574(3)
Juno Fund -- -- (296,825,751) 1,148,023(1)
Large-Cap Europe Fund 1,875,150 -- (3,486,146) --
Large-Cap Japan Fund -- -- (2,261,655) --
Small-Cap Value Fund -- -- (1,858,343) --
Mid-Cap Value Fund 625,565 6,703 (158,471) --
Large-Cap Value Fund 777,778 5,191 298,341 --
Small-Cap Growth Fund -- -- 1,256,934 --
Mid-Cap Growth Fund 462,332 7,071 (1,295,328) --
Large-Cap Growth Fund 280,376 25,119 (2,317,509) --
U.S. Government Money
Market Fund 20,069 -- -- 464,346(3)
Nova Master Portfolio 4,285,546 -- 21,666,579 211,128,389(3)
Ursa Master Portfolio -- -- 4,091,623 517,265,075(3)
Arktos Master Portfolio -- -- 2,179,735 141,151,872(3)
Juno Master Portfolio -- -- (116,957,109) 89,694,763(3)
ALL AMOUNTS EXPIRE ON MARCH 31ST OF THE YEAR INDICATED.
(1) EXPIRES IN 2013
(2) EXPIRES IN 2012
(3) OTC FUND: $383,452,643 EXPIRES IN 2010, $302,251,932 EXPIRES IN 2011,
$60,857,728 EXPIRES IN 2012, AND $44,673,639 EXPIRES IN 2013
MEDIUS FUND: $236,957 EXPIRES IN 2011 AND $681,008 EXPIRES IN 2013
INVERSE MID-CAP FUND: $102,676 EXPIRES IN 2012 AND $784,220 EXPIRES IN
2013
INVERSE SMALL-CAP FUND: $670,630 EXPIRES IN 2012 AND $4,906,490 EXPIRES IN
2013
U.S. GOVERNMENT BOND FUND: $3,233,691 EXPIRES IN 2008, $378,399 EXPIRES IN
2010, $1,693,557 EXPIRES IN 2011, AND $1,342,927 EXPIRES IN 2012
U.S. GOVERNMENT MONEY MARKET FUND: $340,343 EXPIRES IN 2008 AND $124,003
EXPIRES IN 2009
NOVA MASTER PORTFOLIO: $3,820,353 EXPIRES IN 2008, $100,261,487 EXPIRES IN
2009, $41,531,696 EXPIRES IN 2010, AND $65,514,853 EXPIRES IN 2011
URSA MASTER PORTFOLIO: $102,945,587 EXPIRES IN 2006, $102,218,150 EXPIRES
IN 2007, $124,148,192 EXPIRES IN 2008, $122,425,227 EXPIRES IN 2012, AND
$65,527,919 EXPIRES IN 2013
ARKTOS MASTER PORTFOLIO: $57,832,849 EXPIRES IN 2008, $60,215,201 EXPIRES
IN 2009, $19,380,747 EXPIRES IN 2012, AND $3,723,075 EXPIRES IN 2013
JUNO MASTER PORTFOLIO: $2,486,456 EXPIRES IN 2006, $1,206,560 EXPIRES IN
2007, $1,582,486 EXPIRES IN 2009, $3,660,853 EXPIRES IN 2011, $16,998,940
EXPIRES IN 2012, AND $63,759,468 EXPIRES IN 2013
The Funds' tax basis capital gains and losses are determined only at the end of
each fiscal year. Tax basis capital losses in excess of capital gains are
carried forward to offset future net capital gains. For the year ending March
31, 2005, the following Funds offset net realized gains with capital losses from
previous years:
FUND AMOUNT
- -----------------------------------------------------
Arktos Fund $ 1,258,946
U.S. Government Bond Fund 1,475,436
Nova Master Portfolio 16,306,832
In addition, $42,864,695 and $106,438 of capital loss carryforward expired as of
March 31, 2005 in the Ursa Master Portfolio and the Juno Master Portfolio,
respectively. These expired amounts are no longer available to offset net
capital gains in the future.
122 | THE RYDEX SERIES FUNDS ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
TAX BASIS OF DISTRIBUTIONS AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
At March 31, 2005, 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 $ 305,525,257 $ 11,996,912 $ (21,853,446) $ (9,856,534)
Ursa Fund 583,872,176 40,195,885 (205,801,550) (165,605,665)
OTC Fund 892,264,310 150,490,808 (10,325,272) 140,165,536
Arktos Fund 337,671,173 53,619,621 (154,542,560) (100,922,939)
Medius Fund 95,596,917 2,888,377 (1,899,976) 988,401
Inverse Mid-Cap Fund 29,730,058 611,036 (652,899) (41,863)
Mekros Fund 109,141,439 7,766,906 (3,594,184) 4,172,722
Inverse Small-Cap Fund 48,756,473 2,659,007 (2,215,215) 443,792
U.S. Government Bond Fund 90,101,762 1,682,942 (1,268,781) 414,161
Juno Fund 3,072,418,036 1,993,303 (298,819,054) (296,825,751)
Large-Cap Europe Fund 73,257,576 -- (3,486,146) (3,486,146)
Large-Cap Japan Fund 41,225,834 1,091,578 (3,353,233) (2,261,655)
Small-Cap Value Fund 96,117,460 -- (1,858,343) (1,858,343)
Mid-Cap Value Fund 151,820,361 -- (158,471) (158,471)
Large-Cap Value Fund 36,374,519 632,815 (334,474) 298,341
Small-Cap Growth Fund 31,839,565 1,689,957 (433,023) 1,256,934
Mid-Cap Growth Fund 36,004,368 -- (1,295,328) (1,295,328)
Large-Cap Growth Fund 34,808,000 -- (2,317,509) (2,317,509)
U.S. Government Money Market
Fund 1,676,872,368 -- -- --
Nova Master Portfolio 325,578,361 30,371,453 (8,704,874) 21,666,579
Ursa Master Portfolio 415,998,589 31,427,306 (27,335,683) 4,091,623
Arktos Master Portfolio 231,740,303 5,205,785 (3,026,050) 2,179,735
Juno Master Portfolio 5,241,437,147 18,951,124 (135,908,233) (116,957,109)
POST-OCTOBER LOSSES DEFERRED
Pursuant to federal income tax regulations applicable to investment companies,
the funds have elected to treat net capital losses realized between November 1
and March 31 of each year as occurring on the first day of the following tax
year. For the year ended March 31, 2005, $11,996,912, $40,195,885, $53,619,621,
$531,825, $1,974,380, $1,682,942, $1,993,303, $1,091,578, $99,696, $22,925,596,
and $1,798,205 of realized capital losses reflected in the accompanying
financial statements will not be recognized for federal income tax purposes
until 2006 for Nova Fund, Ursa Fund, Arktos Fund, Inverse Mid-Cap Fund, Inverse
Small-Cap Fund, U.S. Government Bond Fund, Juno Fund, Large-Cap Japan Fund,
Large-Cap Value Fund, Ursa Master Portfolio, and Arktos Master Portfolio,
respectively.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 123
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
6. REPURCHASE AGREEMENTS
The Funds transfer uninvested cash balances into a single joint account, along
with uninvested cash balances of 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 Financial Services Fund, the Health Care
Fund, the Leisure Fund, the Precious Metals Fund, the Real Estate Fund, the
Retailing Fund, the Technology Fund, the Telecommunications Fund, the Utilities
Fund, the Core Equity Fund, and the Sector Rotation Fund (included in the Trust,
but contained in separate reports). 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' custodians and is
evaluated daily to ensure that its market value exceeds 102% of the delivery
value of the repurchase agreement at maturity.
The repurchase agreements that were executed by the joint accounts and
outstanding as of March 31, 2005 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- ------------------------------------------------------------------------------------------------
Lehman Brothers, Inc. 2.55% due 04/01/05 $ 412,296,394 $ 412,296,394 $ 412,325,599
Bear Stearns Cos., Inc. 2.63% due 04/01/05 400,000,000 400,000,000 400,029,222
Citigroup, Inc. 2.60% due 04/01/05 300,000,000 300,000,000 300,021,667
Morgan Stanley 2.57% due 04/01/05 300,000,000 300,000,000 300,021,417
- ------------------------------------------------------------------------------------------------
$ 1,412,296,394 $ 1,412,397,905
- ------------------------------------------------------------------------------------------------
As of March 31, 2005, the collateral for the repurchase agreements in the joint
accounts was as follows:
SECURITY TYPE RANGE OF RATES PAR VALUE MARKET VALUE
- ------------------------------------------------------------------------------
U. S. Treasury Bonds 2.375% - 10.375% $ 437,823,491 $ 598,097,915
U. S. Treasury Notes 2.000% - 5.750% 421,496,836 435,285,951
U. S. Treasury Bills 0.000% 415,061,000 412,102,321
- ------------------------------------------------------------------------------
$ 1,445,486,187
- ------------------------------------------------------------------------------
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 year ended March 31, 2005, 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 $1,209,960,704 $ 371,797,590 $ -- $ 639,120,489 $ -- $720,935,762 $ -- $ --
Sales $1,296,437,682 $ 356,379,453 $ -- $ 692,472,828 $ -- $714,822,205 $ -- $ --
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 $ 635,237,228 $ 552,918,163 $ 486,967,754 $ 579,067,730 $338,822,174 $432,305,391 $ --
Sales $ 574,417,078 $ 450,719,631 $ 475,105,432 $ 561,706,971 $315,339,233 $401,381,261 $ --
NOVA URSA ARKTOS JUNO
MASTER MASTER MASTER MASTER
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------------------------------------------------------------
Purchases $1,111,802,383 $ -- $ -- $3,183,637,967
Sales $1,101,425,527 $ -- $ -- $1,997,666,870
124 | THE RYDEX SERIES FUNDS ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
8. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of no par value
shares. Transactions in shares for the year ended March 31, 2005 were:
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT
- ----------------------------------------------------------------------------------------------------------
Year Ended Period Ended Year Ended Period Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------
NOVA FUND
Investor Class 57,482,445 67,357,207 -- 1,744
Advisor Class 15,439,006 15,207,769 -- 481
A-Class** 997,223 43 -- --
C-Class 7,074,750 9,610,613 -- 300
URSA FUND
Investor Class 168,290,971 231,991,260 -- 1,231,642
Advisor Class 28,731,154 25,481,658 -- 148,589
A-Class** 1,774,311 113 -- --
C-Class 17,864,496 28,760,680 -- 117,706
OTC FUND
Investor Class 140,651,741 187,487,977 -- --
Advisor Class 21,246,975 16,736,615 -- --
A-Class** 403,601 106 -- --
C-Class 12,971,805 18,113,943 -- --
ARKTOS FUND
Investor Class 38,823,800 43,953,006 -- --
Advisor Class* 4,507,444 1,082,356 -- --
A-Class** 709,777 39 -- --
C-Class 5,928,300 5,688,199 -- --
MEDIUS FUND
A-Class** 60,112 136 -- --
C-Class 5,615,876 5,910,213 -- --
H-Class 34,349,386 37,923,012 -- --
INVERSE MID-CAP FUND
A-Class** 9,062 20 -- --
C-Class*** 618,408 10,119 -- --
H-Class*** 6,074,879 477,713 -- --
MEKROS FUND
A-Class** 331,933 147 461 --
C-Class 12,055,055 19,364,591 8,959 --
H-Class 110,648,003 121,252,681 35,282 --
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
- ------------------------------------------------------------------------------------------------------
Year Ended Period Ended Year Ended Period Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
- ------------------------------------------------------------------------------------------------------
NOVA FUND
Investor Class (58,494,317) (68,032,795) (1,011,872) (673,844)
Advisor Class (15,321,064) (15,015,450) 117,942 192,800
A-Class** (263,045) -- 734,178 43
C-Class (6,487,904) (9,041,407) 586,846 569,506
URSA FUND
Investor Class (169,302,511) (230,807,881) (1,011,540) 2,415,021
Advisor Class (28,912,809) (23,673,595) (181,655) 1,956,652
A-Class** (899,806) -- 874,505 113
C-Class (17,743,222) (25,119,522) 121,274 3,758,864
OTC FUND
Investor Class (148,285,352) (192,409,806) (7,633,611) (4,921,829)
Advisor Class (25,259,286) (17,050,053) (4,012,311) (313,438)
A-Class** (214,931) -- 188,670 106
C-Class (12,904,659) (17,876,604) 67,146 237,339
ARKTOS FUND
Investor Class (38,920,504) (39,652,718) (96,704) 4,300,288
Advisor Class* (4,508,845) (380,192) (1,401) 702,164
A-Class** (476,220) -- 233,557 39
C-Class (6,644,566) (4,376,063) (716,266) 1,312,136
MEDIUS FUND
A-Class** (27,302) -- 32,810 136
C-Class (5,558,920) (5,743,848) 56,956 166,365
H-Class (34,898,715) (36,425,611) (549,329) 1,497,401
INVERSE MID-CAP FUND
A-Class** (7,704) -- 1,358 20
C-Class*** (598,039) (7,314) 20,369 2,805
H-Class*** (5,446,167) (423,065) 628,712 54,648
MEKROS FUND
A-Class** (211,255) -- 121,139 147
C-Class (13,261,033) (18,520,133) (1,197,019) 844,458
H-Class (114,857,270) (117,084,903) (4,173,985) 4,167,778
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003.
** SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004.
*** SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004.
THE RYDEX Series Funds annual report | 125
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT
- -----------------------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
- -----------------------------------------------------------------------------------------------------------
INVERSE SMALL-CAP FUND
A-Class** 51,552 20 -- --
C-Class**** 2,900,097 351,994 -- --
H-Class**** 18,267,219 1,004,310 -- --
U.S. GOVERNMENT BOND FUND
Investor Class 62,414,845 87,071,724 121,807 151,723
Advisor Class* 47,245,621 15,427,166 183,519 25,684
A-Class** 483,989 90 1,075 --
C-Class 18,129,933 6,731,059 23,019 10,600
JUNO FUND
Investor Class 164,148,402 131,573,796 -- --
Advisor Class* 26,247,651 5,230,222 -- --
A-Class** 12,533,793 256,554 -- --
C-Class 51,258,840 30,540,629 -- --
LARGE-CAP EUROPE FUND
A-Class** 49,853 67 271 --
C-Class 4,295,340 2,958,449 7,616 7,972
H-Class 23,821,380 27,246,596 171,099 213,700
LARGE-CAP JAPAN FUND
A-Class** 14,460 1,579 370 --
C-Class 837,470 605,176 7,145 638
H-Class 17,570,283 23,930,244 68,002 9,823
SMALL-CAP VALUE FUND
A-Class*** 127,767 -- 11 --
C-Class**** 1,959,880 219,914 1,040 --
H-Class**** 30,483,096 1,980,061 25,822 --
MID-CAP VALUE FUND
A-Class*** 84,808 -- 8 --
C-Class**** 2,866,918 201,326 159 --
H-Class**** 24,551,108 2,240,099 12,968 --
LARGE-CAP VALUE FUND
A-Class*** 23,110 -- 2 --
C-Class**** 2,417,522 274,300 288 --
H-Class**** 22,324,716 1,686,564 4,393 --
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
- -----------------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
- -----------------------------------------------------------------------------------------------------
INVERSE SMALL-CAP FUND
A-Class** (42,815) -- 8,737 20
C-Class**** (2,823,759) (341,910) 76,338 10,084
H-Class**** (17,354,618) (900,755) 912,601 103,555
U.S. GOVERNMENT BOND FUND
Investor Class (62,466,069) (89,630,083) 70,583 (2,406,636)
Advisor Class* (46,842,070) (11,225,262) 587,070 4,227,588
A-Class** (331,301) -- 153,763 90
C-Class (17,505,300) (6,592,487) 647,652 149,172
JUNO FUND
Investor Class (131,892,342) (92,203,564) 32,256,060 39,370,232
Advisor Class* (16,525,201) (2,576,313) 9,722,450 2,653,909
A-Class** (3,385,175) -- 9,148,618 256,554
C-Class (27,791,309) (7,996,442) 23,467,531 22,544,187
LARGE-CAP EUROPE FUND
A-Class** (39,660) -- 10,464 67
C-Class (4,094,711) (3,030,695) 208,245 (64,274)
H-Class (22,714,914) (25,538,506) 1,277,565 1,921,790
LARGE-CAP JAPAN FUND
A-Class** (6,823) -- 8,007 1,579
C-Class (889,463) (444,211) (44,848) 161,603
H-Class (21,578,874) (19,224,952) (3,940,589) 4,715,115
SMALL-CAP VALUE FUND
A-Class*** (102,458) -- 25,320 --
C-Class**** (1,614,516) (133,674) 346,404 86,240
H-Class**** (28,602,905) (1,203,331) 1,906,013 776,730
MID-CAP VALUE FUND
A-Class*** (73,451) -- 11,365 --
C-Class**** (2,571,732) (173,062) 295,345 28,264
H-Class**** (21,074,966) (1,521,276) 3,489,110 718,823
LARGE-CAP VALUE FUND
A-Class*** (15,183) -- 7,929 --
C-Class**** (2,347,191) (169,190) 70,619 105,110
H-Class**** (21,714,513) (1,361,036) 614,596 325,528
* SINCE THE COMMENCEMENT OF OPERATIONS: AUGUST 1, 2003.
** SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004.
*** SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
**** SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004.
126 | THE RYDEX SERIES FUNDS ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT
- ---------------------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
A-Class** 4,801 -- 26 --
C-Class*** 2,598,719 175,753 1,452 --
H-Class*** 24,995,214 191,728 34,490 --
MID-CAP GROWTH FUND
A-Class** 20,614 -- 1 --
C-Class*** 1,014,418 180,817 11 --
H-Class*** 15,067,599 137,463 497 --
LARGE-CAP GROWTH FUND
A-Class** 3,244 -- -- --
C-Class*** 4,428,678 37,893 6 --
H-Class*** 16,112,122 85,377 348 --
U.S.GOVERNMENT MONEY MARKET FUND
Investor Class 18,938,656,130 20,632,372,433 8,910,853 2,043,352
Advisor Class 3,577,821,001 4,386,273,780 853,529 13,574
A-Class* 23,938,925 1,000 22,293 --
C-Class 2,540,283,761 3,269,540,461 282,501 8,818
Institutional Class 1,000 -- 20,804 28,440
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
- -----------------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
- -----------------------------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
A-Class** (2,096) -- 2,731 --
C-Class*** (2,601,481) (76,864) (1,310) 98,889
H-Class*** (24,195,230) (91,324) 834,474 100,404
MID-CAP GROWTH FUND
A-Class** -- -- 20,615 --
C-Class*** (974,263) (134,208) 40,166 46,609
H-Class*** (14,209,407) (112,652) 858,689 24,811
LARGE-CAP GROWTH FUND
A-Class** (241) -- 3,003 --
C-Class*** (3,617,714) (37,889) 810,970 4
H-Class*** (15,664,901) (52,595) 447,569 32,782
U.S. GOVERNMENT MONEY MARKET FUND
Investor Class (18,808,627,729) (20,796,030,722) 138,939,254 (161,614,937)
Advisor Class (3,582,384,097) (4,324,201,196) (3,709,567) 62,086,158
A-Class* (16,627,319) -- 7,333,899 1,000
C-Class (2,515,971,844) (3,340,221,449) 24,594,418 (70,672,170)
Institutional Class (50,021,804) (10,036,610) (50,000,000) (10,008,170)
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004.
** SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
*** SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 127
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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 100% of the value of the securities on
loan, which is initially held in a segregated account at U.S. Bank. As agent,
U.S. Bank may, for investment purposes, pool the Trust's collateral in joint
accounts with cash collateral from one or more other securities lending
customers of U.S. Bank. Under the terms of the Trust's securities lending
agreement with U.S. Bank, cash collateral may be invested by U.S. Bank in
certain high quality, liquid investments. At March 31, 2005, the pooled cash
collateral investments consisted of repurchase agreements (36.31%), commercial
paper (38.00%), corporate bonds (25.08%), and mutual funds (0.61%). 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 March 31, 2005 the following funds participated in securities lending and
received cash collateral:
VALUE OF
CASH SECURITIES
FUND COLLATERAL LOANED
- ------ ------------- -------------
Nova Fund $ 66,889,063 $ 64,901,284
OTC Fund 192,617,562 184,603,749
Medius Fund 15,540,176 15,100,204
Mekros Fund 12,796,731 12,259,757
Small-Cap Value Fund 5,623,856 5,408,617
Mid-Cap Value Fund 26,490,036 25,724,372
Large-Cap Value Fund 4,416,102 4,270,873
Small-Cap Growth Fund 4,154,408 4,013,163
Mid-Cap Growth Fund 7,972,274 7,733,291
Large-Cap Growth Fund 1,058,982 1,014,327
U.S. Government Money Market Fund 100,000,000 99,380,000
10. JUNO RECLASSIFICATION
The Juno Master Portfolio's previously issued financial statements for the years
ended March 31, 2004 and 2003 presented interest expense on securities sold
short as a negative number in the total income section of the Statement of
Operations. Under generally accepted accounting principles it is preferable to
present interest expense on securities sold short as an expense on the Statement
of Operations. Accordingly, Juno Master Portfolio has reclassified interest
expense on securities sold short to be presented in the total expense section.
The ratios of gross and net expenses to average net assets in the financial
highlights of the Juno Master Portfolio and Juno Fund have been restated
accordingly. This reclassification had no effect on the Juno Master Portfolio or
Juno Fund's net asset value, per share value, net investment income ratios, and
total increase (decrease) in net assets from operations during any periods. This
reclassification would be reflected in the financial statements as follows:
For the year ended MARCH 31, 2004 MARCH 31, 2003
(AS PREVIOUSLY REPORTED) (AS RESTATED) (AS PREVIOUSLY REPORTED) (AS RESTATED)
-----------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS-
Juno Master Portfolio
Total Income ($18,246,060) $ 12,826,101 ($1,359,861) $ 1,873,716
Total Expenses $ 6,905,759 $ 37,977,920 $ 716,851 $ 3,950,428
-----------------------------------------------------------------------------------
Net Loss ($25,151,819) ($25,151,819) ($2,076,712) ($2,076,712)
FINANCIAL HIGHLIGHTS
Ratio of Gross and Net expenses to Average Net Assets
Juno Fund Investor Class 1.38% 5.57% 1.41% 5.65%
Advisor Class 1.86% 6.05% -- --
C-Class 2.38% 6.57% 2.40% 6.64%
Juno Master Portfolio.. 0.93% 5.12% 0.94% 5.18%
128 | THE RYDEX SERIES FUNDS ANNUAL REPORT
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders
of the Rydex Series Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, after the
restatement described in Note 10, in all material respects, the financial
position of Nova Fund, Ursa Fund, OTC Fund, Arktos Fund, Medius Fund, Mekros
Fund, U.S. Government Bond Fund, Juno Fund, Large-Cap Europe Fund, Large-Cap
Japan Fund, Small-Cap Value Fund, Mid-Cap Value Fund, Large-Cap Value Fund,
Small-Cap Growth Fund, Mid-Cap Growth Fund, Large-Cap Growth Fund, Inverse
Small-Cap Fund, Inverse Mid-Cap Fund, U.S. Government Money Market Fund, Nova
Master Portfolio, Ursa Master Portfolio, Arktos Master Portfolio, and Juno
Master Portfolio (constituting twenty-three of the forty-three Funds and
Portfolios of the Rydex Series Funds, hereafter referred to as the "Funds") at
March 31, 2005, the results of each of their operations and the changes in each
of their net assets and the financial highlights for each of the periods
presented, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at March
31, 2005 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion. The financial highlights for the periods presented on and
prior to March 31, 2003, except for Small-Cap Value Fund, Mid-Cap Value Fund,
Large-Cap Value Fund, Small-Cap Growth Fund, Mid-Cap Growth Fund, Large-Cap
Growth Fund, Inverse Small-Cap Fund, and Inverse Mid-Cap Fund, which commenced
on February 20, 2004, were audited by other auditors whose report dated May 16,
2003 expressed an unqualified opinion on those statements.
As discussed in Note 10, the Juno Master Portfolio and Juno Fund restated the
financial highlights for the years ended March 31, 2004 and 2003.
PricewaterhouseCoopers LLP
Baltimore, Maryland
May 23, 2005
THE RYDEX SERIES FUNDS ANNUAL REPORT | 129
OTHER INFORMATION
- --------------------------------------------------------------------------------
UNAUDITED TAX INFORMATION
This information is being provided as required by the Internal Revenue Code.
Amounts shown may differ from those elsewhere in the report because of
differences in tax and financial reporting practices.
Of the ordinary income distributions paid during the year for OTC Fund, Inverse
Mid-Cap Fund, Large-Cap Europe Fund, Mid-Cap Value Fund, Large-Cap Value Fund,
Large-Cap Growth Fund, and Nova Master Portfolio, 0%, 0%, 0%, 100%, 100%, 0%,
and 0%, respectively, qualifies for the dividends received deductions for
corporations. In addition, 0%, 0%, 100%, and 100% of the ordinary income
distributions paid during the year by Large-Cap Europe Fund, Large-Cap Japan
Fund, Mid-Cap Value Fund, and Large-Cap Value Fund respectively, is considered
Qualified Dividend Income for tax purposes.
Of the ordinary income distributions paid during the year by U.S. Government
Money Market Fund and U.S. Government Bond Fund, Large-Cap Europe Fund and
Large-Cap Japan Fund, 31.79%, 98.65%, 0.40% and 0%, respectively, was
attributable to Federal obligations. In calculating the foregoing percentages,
Fund expenses have been allocated on a pro rata basis. The law varies in each
state as to whether and what percentage of dividend income attributable to
Federal obligations is exempt from state income tax. We recommend that you
consult your tax advisor to determine if any portion of the dividends you
received is exempt from state income taxes.
The Funds distributions to shareholders included:
LARGE-CAP LARGE-CAP
MEKROS EUROPE JAPAN
FUND FUND FUND
---------------- ---------------- ----------------
From short-term capital gains: $ -- $ 57,177 $ 411,274
From long-term capital gains,
subject to the 15% rate gains category: $ 1,366,354 $ 16,671 $ 1,158,685
SMALL-CAP MID-CAP LARGE-CAP
VALUE VALUE VALUE
FUND FUND FUND
---------------- ---------------- ----------------
From short-term capital gains: $ 822,977 $ 350,076 $ 126,668
From long-term capital gains,
subject to the 15% rate gains category: $ 66 $ 65 $ 205
SMALL-CAP MID-CAP LARGE-CAP
GROWTH GROWTH GROWTH
FUND FUND FUND
---------------- ---------------- ----------------
From short-term capital gains: $ 1,017,853 $ 13,250 $ 8,677
From long-term capital gains,
subject to the 15% rate gains category: $ -- $ -- $ --
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.
QUARTERLY PORTFOLIO SCHEDULES INFORMATION
The Trust files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q; which are available on
the SEC's website at http://www.sec.gov. The Fund's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request by calling 1-800-820-0888.
130 | THE RYDEX SERIES FUNDS ANNUAL REPORT
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 1-800-820-0888.
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 101
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 101
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 101
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 102
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 101
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.
---------------------------
THE RYDEX SERIES FUNDS ANNUAL REPORT | 131
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 101
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 Trust, Rydex
Vice President and Treasurer (1963) 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 Dynamic Funds,
Vice President and Secretary (1970) 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 Rydex
Chief Compliance Officer and Dynamic Funds, 2004 to present; Assistant Secretary of Rydex Series Funds, Rydex
Assistant Secretary (1967) 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 ANNUAL REPORT | 132
- --------------------------------------------------------------------------------
This page intentionally left blank.
[LOGO] RYDEXINVESTMENTS
ESSENTIAL FOR MODERN MARKETS(TM)
9601 Blackwell Road o Suite 500 o Rockville, MD 20850
www.rydexinvestments.com o 800.820.0888
RBENF-ANN-2-0305x0306
BANKING FUND
BASIC MATERIALS FUND
BIOTECHNOLOGY FUND
CONSUMER PRODUCTS FUND
ELECTRONICS FUND
ENERGY FUND
ENERGY SERVICES FUND
MARCH 31, 2005
RYDEX SERIES FUNDS SECTOR FUNDS ANNUAL REPORT
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]
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 EXPENSES .......................................... 3
PERFORMANCE REPORTS AND FUND PROFILES ...................................... 8
SCHEDULES OF INVESTMENTS ................................................... 26
STATEMENTS OF ASSETS AND LIABILITIES ....................................... 54
STATEMENTS OF OPERATIONS ................................................... 58
STATEMENTS OF CHANGES IN NET ASSETS ........................................ 62
FINANCIAL HIGHLIGHTS ....................................................... 68
NOTES TO FINANCIAL STATEMENTS .............................................. 77
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM .................... 87
OTHER INFORMATION .......................................................... 88
UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS .................... 90
THE RYDEX SERIES FUNDS ANNUAL REPORT | 1
LETTER TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
The year ended March 31, 2005 was a difficult one for investors in almost all
asset classes. Markets were--for the most part--range-bound as investors
struggled with concerns driven by widening deficits, record energy prices,
inflation worries, slowing earnings growth, rising interest rates and the
specter of continuing geopolitical dangers such as weapons proliferation and
terrorism. Balancing these concerns were some powerful positives, however.
Consumer sentiment and spending remained buoyant throughout the 12-month period,
both interest rates and inflation remained low and equity valuations were in
line with historical averages. To this it should be added that, although the
U.S. economy's ability to generate meaningful job growth was somewhat of a
disappointment, unemployment remained quite low by historical standards.
Finally, the evident progress in the war in Iraq served to bolster investor
confidence.
Investment returns during this 12-month period reflected this tug-of-war. The
Dow Jones Industrial Average was able to eke out only a 3.56% gain, while the
broader S&P 500(R) Index rose 6.69%. Equity investors remained wary of highly
valued tech stocks as demonstrated by a 0.83% gain in the tech-heavy Nasdaq
Composite. Investors' four-year-long love affair with smaller stocks also began
to wane during this period. The small cap Russell 2000(R) Index returned 5.41%,
trailing the S&P 500 Index by nearly 1.30%.
For investors in international stocks, one additional macroeconomic trend--the
continuing decline in the exchange value of the U.S. dollar--represented a
significant boost to investment returns. The MSCI EAFE Index, which is the
broadest proxy for international stocks in the developed world, returned 11.04%.
Likewise, stocks in the developing markets were strong performers as the MSCI EM
Index returned 13.05% when translated back into U.S. dollars.
The challenge for stock investors during this 12-month period was a distinct
lack of market direction. Markets look forward and, although the earnings
environment can be described as positive, it can also be described as slowing.
S&P earnings for 2004 were up 20%, but by the first quarter, the year-over-year
pace had slowed to 7.5%. Valuations did not represent a head wind, but higher
energy prices certainly did. As oil prices rose to a record $57/barrel, stocks
pulled back. In fact, throughout much of the year, the relationship between oil
prices and stocks was inverse and predictable. If you knew where oil was going,
you knew where stocks were going.
After being the most widely anticipated bond market development that didn't
happen in 2004, long-term interest rates finally rose. The 10-year Treasury Note
finished the first quarter yielding 4.48% from a starting point near 3.84% a
year earlier. Certainly the seven consecutive increases in the federal funds
rate beginning in the second quarter of 2004 played a role; however, other
factors were at work. Primary among these were concerns over the exchange value
of the greenback. Record federal budget and current account deficits prompted
concern that foreign central banks would cease or curtail purchases of U.S.
Treasury securities, necessitating a substantial increase in interest rates in
order to attract overseas capital. Inflation worries also rose to the fore
during this period. In addition to rising energy prices, commodity prices rose
across the board as the voracious Chinese economy sucked up raw materials at a
tremendous rate. The adage that China inflates what it imports and deflates what
it exports was certainly true during this period. So while inflation remained in
check, it was an uneasy balancing act.
Thus it was a good year for investment strategies that were not dependent on a
highly directional market. Sector rotation strategies were profitable for
investors. Rising interest rates at both ends of the yield curve hurt the
financial services and banking sectors, while technology, telecommunications and
transportation were hurt by high valuations and energy costs. Overseas demand
for products boosted the basic materials sector, decreased tax rates on
dividends benefited the utilities sector and the energy and energy services
sectors got a helping hand from rising crude oil prices.
The upcoming year could be more of the same. A substantial reacceleration in
corporate earnings growth, a precipitous decline in interest rates and/or energy
prices and a rapid improvement in the federal budget and trade deficits could
bring upside potential. Downside risks include a freefall in the exchange value
of the U.S. dollar and a dramatic spike in inflation and interest rates (though
this seems remote). Going into the year, economic growth remains sound,
inflation is tame and interest rates are at historical lows. The year will
undoubtedly be a challenge, but, as always, opportunities will exist for savvy
investors.
We appreciate the trust you have placed in our firm by investing with us.
Sincerely,
/s/ Carl G. Verboncoeur
- -----------------------------
Carl G.Verboncoeur
President
2 | THE RYDEX SERIES FUNDS ANNUAL REPORT
ABOUT SHAREHOLDERS' FUND 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 incur two types of costs: (i) transaction costs,
including sales charges (loads) on purchase payments, reinvested dividends, or
other distributions; redemption fees; and exchange fees; and (ii) ongoing costs,
including management fees, administrative services, and shareholder reports,
among others. These ongoing costs, or operating expenses, are deducted from a
fund's gross income and reduce the investment return of the fund.
A fund's expenses are expressed as a percentage of its average net assets, which
is known as the expense ratio. The following examples are intended to help 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 September 30, 2004 and
ending March 31, 2005.
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 and 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 ANNUAL REPORT | 3
ABOUT SHAREHOLDERS' FUND 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+ SEPTEMBER 30, 2004 MARCH 31, 2005 PERIOD*
- ------------------------------------------------------------------------------------------
BANKING FUND
Investor Class 1.31% $1,000.00 $ 988.16 $ 6.55
Advisor Class 1.86% 1,000.00 985.67 9.24
A-Class 1.57% 1,000.00 985.62 7.83
C-Class 2.34% 1,000.00 981.57 11.60
BASIC MATERIALS FUND
Investor Class 1.31% 1,000.00 1,106.06 6.89
Advisor Class 1.80% 1,000.00 1,102.96 9.48
A-Class 1.55% 1,000.00 1,105.19 8.18
C-Class 2.30% 1,000.00 1,100.97 12.10
BIOTECHNOLOGY FUND
Investor Class 1.31% 1,000.00 920.46 6.29
Advisor Class 1.81% 1,000.00 918.02 8.72
A-Class 1.53% 1,000.00 918.61 7.38
C-Class 2.30% 1,000.00 915.36 11.05
CONSUMER PRODUCTS FUND
Investor Class 1.28% 1,000.00 1,116.94 6.81
Advisor Class 1.79% 1,000.00 1,115.60 9.51
A-Class 1.56% 1,000.00 1,116.73 8.27
C-Class 2.29% 1,000.00 1,116.17 12.14
ELECTRONICS FUND
Investor Class 1.31% 1,000.00 1,057.44 6.76
Advisor Class 1.82% 1,000.00 1,055.14 9.39
A-Class 1.58% 1,000.00 1,056.20 8.14
C-Class 2.31% 1,000.00 1,053.19 11.91
ENERGY FUND
Investor Class 1.32% 1,000.00 1,212.01 7.29
Advisor Class 1.81% 1,000.00 1,207.81 9.99
A-Class 1.45% 1,000.00 1,209.99 8.05
C-Class 2.31% 1,000.00 1,206.13 12.78
ENERGY SERVICES FUND
Investor Class 1.29% 1,000.00 1,167.89 7.01
Advisor Class 1.79% 1,000.00 1,165.14 9.72
A-Class 1.53% 1,000.00 1,166.27 8.29
C-Class 2.29% 1,000.00 1,162.45 12.40
FINANCIAL SERVICES FUND
Investor Class 1.31% 1,000.00 1,033.65 6.67
Advisor Class 1.82% 1,000.00 1,031.63 9.25
A-Class 1.55% 1,000.00 1,030.68 7.90
C-Class 2.31% 1,000.00 1,027.18 11.74
4 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
ABOUT SHAREHOLDERS' FUND EXPENSES (CONTINUED)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ SEPTEMBER 30, 2004 MARCH 31, 2005 PERIOD*
- ------------------------------------------------------------------------------------------
HEALTH CARE FUND
Investor Class 1.32% $1,000.00 $1,054.77 $ 6.81
Advisor Class 1.82% 1,000.00 1,051.50 9.36
A-Class 1.56% 1,000.00 1,050.60 8.00
C-Class 2.31% 1,000.00 1,048.15 11.89
INTERNET FUND
Investor Class 1.30% 1,000.00 979.67 6.45
Advisor Class 1.79% 1,000.00 977.29 8.87
A-Class 1.55% 1,000.00 978.23 7.69
C-Class 2.30% 1,000.00 974.58 11.37
LEISURE FUND
Investor Class 1.28% 1,000.00 1,147.48 6.91
Advisor Class 1.80% 1,000.00 1,144.75 9.69
A-Class 1.55% 1,000.00 1,144.75 8.32
C-Class 2.29% 1,000.00 1,141.36 12.29
PRECIOUS METALS FUND
Investor Class 1.21% 1,000.00 865.05 5.66
Advisor Class 1.72% 1,000.00 863.10 8.02
A-Class 1.46% 1,000.00 864.08 6.81
C-Class 2.21% 1,000.00 860.97 10.32
REAL ESTATE FUND
A-Class 1.54% 1,000.00 1,047.87 7.90
C-Class 2.30% 1,000.00 1,044.28 11.78
H-Class 1.56% 1,000.00 1,048.25 8.01
RETAILING FUND
Investor Class 1.31% 1,000.00 1,129.48 7.01
Advisor Class 1.81% 1,000.00 1,127.94 9.68
A-Class 1.67% 1,000.00 1,128.76 8.91
C-Class 2.31% 1,000.00 1,124.88 12.31
TECHNOLOGY FUND
Investor Class 1.29% 1,000.00 1,047.57 6.64
Advisor Class 1.81% 1,000.00 1,044.65 9.29
A-Class 1.54% 1,000.00 1,046.78 7.90
C-Class 2.31% 1,000.00 1,043.80 11.83
TELECOMMUNICATIONS FUND
Investor Class 1.37% 1,000.00 995.14 6.84
Advisor Class 1.85% 1,000.00 992.14 9.24
A-Class 1.55% 1,000.00 993.57 7.76
C-Class 2.39% 1,000.00 990.67 11.93
TRANSPORTATION FUND
Investor Class 1.30% 1,000.00 1,097.94 6.81
Advisor Class 1.80% 1,000.00 1,095.63 9.43
A-Class 1.54% 1,000.00 1,097.17 8.10
C-Class 2.30% 1,000.00 1,092.60 12.06
UTILITIES FUND
Investor Class 1.31% 1,000.00 1,121.50 6.99
Advisor Class 1.82% 1,000.00 1,118.87 9.66
A-Class 1.54% 1,000.00 1,120.80 8.16
C-Class 2.30% 1,000.00 1,116.76 12.23
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 5
ABOUT SHAREHOLDERS' FUND EXPENSES (CONTINUED)
- --------------------------------------------------------------------------------
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ SEPTEMBER 30, 2004 MARCH 31, 2005 PERIOD*
- ------------------------------------------------------------------------------------------
BANKING FUND
Investor Class 1.31% $1,000.00 $1,018.33 $ 6.67
Advisor Class 1.86% 1,000.00 1,015.57 9.43
A-Class 1.57% 1,000.00 1,017.02 7.98
C-Class 2.34% 1,000.00 1,013.15 11.85
BASIC MATERIALS FUND
Investor Class 1.31% 1,000.00 1,018.33 6.67
Advisor Class 1.80% 1,000.00 1,015.87 9.13
A-Class 1.55% 1,000.00 1,017.13 7.87
C-Class 2.30% 1,000.00 1,013.33 11.67
BIOTECHNOLOGY FUND
Investor Class 1.31% 1,000.00 1,018.33 6.67
Advisor Class 1.81% 1,000.00 1,015.79 9.21
A-Class 1.53% 1,000.00 1,017.25 7.75
C-Class 2.30% 1,000.00 1,013.33 11.67
CONSUMER PRODUCTS FUND
Investor Class 1.28% 1,000.00 1,018.49 6.51
Advisor Class 1.79% 1,000.00 1,015.91 9.09
A-Class 1.56% 1,000.00 1,017.09 7.91
C-Class 2.29% 1,000.00 1,013.38 11.62
ELECTRONICS FUND
Investor Class 1.31% 1,000.00 1,018.33 6.67
Advisor Class 1.82% 1,000.00 1,015.77 9.23
A-Class 1.58% 1,000.00 1,016.99 8.01
C-Class 2.31% 1,000.00 1,013.28 11.72
ENERGY FUND
Investor Class 1.32% 1,000.00 1,018.32 6.68
Advisor Class 1.81% 1,000.00 1,015.79 9.21
A-Class 1.45% 1,000.00 1,017.62 7.38
C-Class 2.31% 1,000.00 1,013.28 11.72
ENERGY SERVICES FUND
Investor Class 1.29% 1,000.00 1,018.45 6.55
Advisor Class 1.79% 1,000.00 1,015.91 9.09
A-Class 1.53% 1,000.00 1,017.25 7.75
C-Class 2.29% 1,000.00 1,013.38 11.62
FINANCIAL SERVICES FUND
Investor Class 1.31% 1,000.00 1,018.33 6.67
Advisor Class 1.82% 1,000.00 1,015.77 9.23
A-Class 1.55% 1,000.00 1,017.13 7.87
C-Class 2.31% 1,000.00 1,013.28 11.72
HEALTH CARE FUND
Investor Class 1.32% 1,000.00 1,018.32 6.68
Advisor Class 1.82% 1,000.00 1,015.77 9.23
A-Class 1.56% 1,000.00 1,017.10 7.90
C-Class 2.31% 1,000.00 1,013.28 11.72
6 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
ABOUT SHAREHOLDERS' FUND EXPENSES (CONCLUDED)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ SEPTEMBER 30, 2004 MARCH 31, 2005 PERIOD*
- ------------------------------------------------------------------------------------------
INTERNET FUND
Investor Class 1.30% $1,000.00 $1,018.42 $ 6.58
Advisor Class 1.79% 1,000.00 1,015.91 9.09
A-Class 1.55% 1,000.00 1,017.13 7.87
C-Class 2.30% 1,000.00 1,013.33 11.67
LEISURE FUND
Investor Class 1.28% 1,000.00 1,018.49 6.51
Advisor Class 1.80% 1,000.00 1,015.87 9.13
A-Class 1.55% 1,000.00 1,017.13 7.87
C-Class 2.29% 1,000.00 1,013.38 11.62
PRECIOUS METALS FUND
Investor Class 1.21% 1,000.00 1,018.86 6.14
Advisor Class 1.72% 1,000.00 1,016.28 8.72
A-Class 1.46% 1,000.00 1,017.60 7.40
C-Class 2.21% 1,000.00 1,013.77 11.23
REAL ESTATE FUND
A-Class 1.54% 1,000.00 1,017.18 7.82
C-Class 2.30% 1,000.00 1,013.33 11.67
H-Class 1.56% 1,000.00 1,017.09 7.91
RETAILING FUND
Investor Class 1.31% 1,000.00 1,018.33 6.67
Advisor Class 1.81% 1,000.00 1,015.79 9.21
A-Class 1.67% 1,000.00 1,016.53 8.47
C-Class 2.31% 1,000.00 1,013.28 11.72
TECHNOLOGY FUND
Investor Class 1.29% 1,000.00 1,018.45 6.55
Advisor Class 1.81% 1,000.00 1,015.79 9.21
A-Class 1.54% 1,000.00 1,017.18 7.82
C-Class 2.31% 1,000.00 1,013.28 11.72
TELECOMMUNICATIONS FUND
Investor Class 1.37% 1,000.00 1,018.06 6.94
Advisor Class 1.85% 1,000.00 1,015.61 9.39
A-Class 1.55% 1,000.00 1,017.13 7.87
C-Class 2.39% 1,000.00 1,012.86 12.14
TRANSPORTATION FUND
Investor Class 1.30% 1,000.00 1,018.42 6.58
Advisor Class 1.80% 1,000.00 1,015.87 9.13
A-Class 1.54% 1,000.00 1,017.18 7.82
C-Class 2.30% 1,000.00 1,013.33 11.67
UTILITIES FUND
Investor Class 1.31% 1,000.00 1,018.33 6.67
Advisor Class 1.82% 1,000.00 1,015.77 9.23
A-Class 1.54% 1,000.00 1,017.18 7.82
C-Class 2.30% 1,000.00 1,013.33 11.67
* 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
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 7
PERFORMANCE REPORTS AND 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.
Inception: April 1, 1998
While still very low, fed fund rates increased from 1% to 2.75% during 2004.
Rising rates hurt banks, and Rydex Banking Fund underperformed the S&P 500 Index
for the first time in four years. While regional and diversified banks performed
well, thrifts, mortgage finance and diversified financial services companies had
poor years. Rydex Banking Fund Investor Class returned 1.61% for the year,
trailing the S&P 500 Index's 6.69% return.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
DATE BANKING FUND C-CLASS S&P 500 INDEX
---- -------------------- -------------
3/30/2001 10,000 10,000
3/31/2001 10,000 10,000
4/30/2001 9,915 10,778
5/31/2001 10,411 10,850
6/30/2001 10,399 10,586
7/31/2001 10,520 10,482
8/31/2001 10,085 9,826
9/30/2001 9,541 9,032
10/31/2001 8,960 9,204
11/30/2001 9,615 9,910
12/31/2001 9,891 9,997
1/31/2002 9,979 9,851
2/28/2002 10,016 9,661
3/31/2002 10,719 10,025
4/30/2002 11,058 9,417
5/31/2002 11,247 9,348
6/30/2002 10,845 8,682
7/31/2002 10,205 8,005
8/31/2002 10,531 8,058
9/30/2002 9,263 7,182
10/31/2002 9,577 7,814
11/30/2002 9,761 8,274
12/31/2002 9,581 7,788
1/31/2003 9,555 7,584
2/28/2003 9,439 7,470
3/31/2003 9,181 7,543
4/30/2003 9,980 8,164
5/31/2003 10,612 8,594
6/30/2003 10,586 8,704
7/31/2003 10,986 8,857
8/31/2003 10,973 9,030
9/30/2003 10,973 8,934
10/31/2003 11,992 9,439
11/30/2003 12,298 9,522
12/31/2003 12,467 10,022
1/31/2004 12,714 10,206
2/29/2004 13,053 10,347
3/31/2004 12,831 10,191
4/30/2004 12,181 10,031
5/31/2004 12,779 10,169
6/30/2004 12,740 10,367
7/31/2004 12,649 10,024
8/31/2004 13,066 10,064
9/30/2004 13,118 10,173
10/31/2004 13,300 10,329
11/30/2004 13,689 10,747
12/31/2004 14,035 11,112
1/31/2005 13,476 10,841
2/28/2005 13,276 11,069
3/31/2005 12,876 10,873
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
DATE BANKING FUND INVESTOR CLASS S&P 500 INDEX
---- --------------------------- -------------
4/1/1998 10,000 10,000
4/30/1998 10,220 10,041
5/31/1998 9,860 9,869
6/30/1998 10,030 10,269
7/31/1998 10,070 10,160
8/31/1998 7,420 8,691
9/30/1998 7,560 9,248
10/31/1998 8,270 10,000
11/30/1998 8,650 10,606
12/31/1998 8,910 11,217
1/31/1999 8,760 11,687
2/28/1999 8,720 11,323
3/31/1999 8,770 11,776
4/30/1999 9,380 12,232
5/31/1999 8,730 11,943
6/30/1999 9,120 12,606
7/31/1999 8,410 12,213
8/31/1999 8,010 12,152
9/30/1999 7,460 11,819
10/31/1999 8,600 12,567
11/30/1999 7,980 12,823
12/31/1999 7,230 13,578
1/31/2000 7,070 12,896
2/29/2000 6,210 12,651
3/31/2000 7,310 13,889
4/30/2000 6,860 13,471
5/31/2000 7,600 13,195
6/30/2000 6,540 13,520
7/31/2000 6,940 13,309
8/31/2000 7,800 14,135
9/30/2000 7,980 13,389
10/31/2000 7,850 13,333
11/30/2000 7,550 12,281
12/31/2000 8,410 12,342
1/31/2001 8,760 12,779
2/28/2001 8,290 11,614
3/31/2001 8,270 10,878
4/30/2001 8,200 11,724
5/31/2001 8,630 11,802
6/30/2001 8,620 11,515
7/31/2001 8,720 11,402
8/31/2001 8,370 10,688
9/30/2001 7,930 9,825
10/31/2001 7,440 10,012
11/30/2001 8,012 10,780
12/31/2001 8,240 10,875
1/31/2002 8,323 10,716
2/28/2002 8,354 10,509
3/31/2002 8,956 10,905
4/30/2002 9,257 10,243
5/31/2002 9,423 10,168
6/30/2002 9,102 9,444
7/31/2002 8,562 8,708
8/31/2002 8,842 8,765
9/30/2002 7,794 7,812
10/31/2002 8,064 8,500
11/30/2002 8,216 9,000
12/31/2002 8,077 8,471
1/31/2003 8,066 8,249
2/28/2003 7,981 8,126
3/31/2003 7,779 8,205
4/30/2003 8,450 8,880
5/31/2003 8,994 9,348
6/30/2003 8,994 9,467
7/31/2003 9,356 9,634
8/31/2003 9,356 9,822
9/30/2003 9,366 9,718
10/31/2003 10,251 10,268
11/30/2003 10,515 10,358
12/31/2003 10,687 10,901
1/31/2004 10,891 11,101
2/29/2004 11,202 11,256
3/31/2004 11,009 11,086
4/30/2004 10,461 10,912
5/31/2004 10,977 11,062
6/30/2004 10,955 11,277
7/31/2004 10,902 10,903
8/31/2004 11,256 10,948
9/30/2004 11,320 11,066
10/31/2004 11,492 11,235
11/30/2004 11,846 11,690
12/31/2004 12,154 12,088
1/31/2005 11,681 11,793
2/28/2005 11,505 12,041
3/31/2005 11,186 11,828
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/01/98) (04/01/98) (09/01/04) (03/30/01)
- --------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------------------------------------
BANKING FUND 1.61% 8.88% 1.62% 1.17% 8.15% 0.99% -0.95% 0.35% 6.52%
S&P 500 INDEX 6.69% -3.16% 2.43% 6.69% -3.16% 2.43% 7.84% 6.69% 2.11%
- --------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
BANKING FUND
OTHER 6%
COMMERCIAL BANKS 52%
THRIFTS & MORTGAGE FINANCE 42%
"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)
- --------------------------------------------------
Wachovia Corp. 4.8%
J.P. Morgan Chase & Co. 4.7%
Bank of America Corp. 4.3%
Fannie Mae 3.9%
Freddie Mac 3.9%
Washington Mutual, Inc. 3.7%
Fifth Third Bancorp 3.3%
BB&T Corp. 3.2%
Golden West Financial Corp. 3.1%
National City Corp. 3.1%
- --------------------------------------------------
Top Ten Total 38.0%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
8 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
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.
Inception: April 1, 1998
Basic materials companies sharply outgained the S&P 500 Index during the period,
as a maturing economic recovery and overseas demand for products helped boost
the sector. Strong demand for raw materials by China was unabated, and steady
growth in the U.S. economy propelled basic materials companies. Construction
materials and chemical companies led the way, while makers of paper and forest
products were the laggards, gaining only slightly. Rydex Basic Materials Fund
Investor Class returned 20.42% during the year.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
BASIC MATERIALS FUND
DATE C-CLASS S&P 500 INDEX
---- -------------------- -------------
5/3/2001 10,000 10,000
5/31/2001 10,389 10,072
6/30/2001 9,909 9,826
7/31/2001 9,870 9,730
8/31/2001 9,818 9,121
9/30/2001 8,703 8,384
10/31/2001 8,846 8,544
11/30/2001 9,802 9,199
12/31/2001 9,657 9,280
1/31/2002 9,723 9,145
2/28/2002 10,169 8,968
3/31/2002 10,510 9,306
4/30/2002 9,959 8,741
5/31/2002 10,353 8,677
6/30/2002 10,038 8,059
7/31/2002 8,844 7,431
8/31/2002 8,818 7,479
9/30/2002 7,610 6,667
10/31/2002 7,833 7,253
11/30/2002 8,609 7,680
12/31/2002 8,254 7,229
1/31/2003 7,781 7,040
2/28/2003 7,479 6,934
3/31/2003 7,387 7,001
4/30/2003 8,009 7,578
5/31/2003 8,416 7,977
6/30/2003 8,473 8,079
7/31/2003 8,920 8,222
8/31/2003 9,253 8,382
9/30/2003 8,925 8,293
10/31/2003 9,722 8,762
11/30/2003 9,938 8,839
12/31/2003 10,850 9,303
1/31/2004 10,467 9,473
2/29/2004 10,952 9,605
3/31/2004 10,877 9,460
4/30/2004 10,401 9,312
5/31/2004 10,626 9,439
6/30/2004 11,379 9,623
7/31/2004 11,044 9,305
8/31/2004 11,203 9,342
9/30/2004 11,785 9,443
10/31/2004 11,582 9,588
11/30/2004 12,750 9,976
12/31/2004 12,953 10,315
1/31/2005 12,525 10,064
2/28/2005 13,437 10,275
3/31/2005 12,975 10,093
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
BASIC MATERIALS FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- -------------------- -------------
4/1/1998 10,000 10,000
4/30/1998 10,280 10,041
5/31/1998 9,800 9,869
6/30/1998 9,330 10,269
7/31/1998 8,440 10,160
8/31/1998 7,370 8,691
9/30/1998 7,760 9,248
10/31/1998 8,040 10,000
11/30/1998 8,150 10,606
12/31/1998 7,810 11,217
1/31/1999 7,570 11,687
2/28/1999 7,610 11,323
3/31/1999 7,750 11,776
4/30/1999 9,620 12,232
5/31/1999 8,840 11,943
6/30/1999 9,210 12,606
7/31/1999 9,160 12,213
8/31/1999 8,730 12,152
9/30/1999 8,420 11,819
10/31/1999 8,630 12,567
11/30/1999 8,540 12,823
12/31/1999 9,520 13,578
1/31/2000 8,240 12,896
2/29/2000 7,430 12,651
3/31/2000 7,970 13,889
4/30/2000 7,690 13,471
5/31/2000 7,410 13,195
6/30/2000 6,730 13,520
7/31/2000 6,770 13,309
8/31/2000 6,840 14,135
9/30/2000 6,060 13,389
10/31/2000 6,680 13,333
11/30/2000 6,560 12,281
12/31/2000 7,550 12,342
1/31/2001 7,340 12,779
2/28/2001 7,380 11,614
3/31/2001 7,010 10,878
4/30/2001 7,740 11,724
5/31/2001 8,020 11,802
6/30/2001 7,660 11,515
7/31/2001 7,630 11,402
8/31/2001 7,610 10,688
9/30/2001 6,740 9,825
10/31/2001 6,870 10,012
11/30/2001 7,607 10,780
12/31/2001 7,516 10,875
1/31/2002 7,577 10,716
2/28/2002 7,921 10,509
3/31/2002 8,194 10,905
4/30/2002 7,769 10,243
5/31/2002 8,093 10,168
6/30/2002 7,850 9,444
7/31/2002 6,929 8,708
8/31/2002 6,909 8,765
9/30/2002 5,968 7,812
10/31/2002 6,150 8,500
11/30/2002 6,759 9,000
12/31/2002 6,495 8,471
1/31/2003 6,120 8,249
2/28/2003 5,897 8,126
3/31/2003 5,816 8,205
4/30/2003 6,309 8,880
5/31/2003 6,637 9,348
6/30/2003 6,688 9,467
7/31/2003 7,042 9,634
8/31/2003 7,313 9,822
9/30/2003 7,056 9,718
10/31/2003 7,698 10,268
11/30/2003 7,874 10,358
12/31/2003 8,608 10,901
1/31/2004 8,313 11,101
2/29/2004 8,700 11,256
3/31/2004 8,649 11,086
4/30/2004 8,275 10,912
5/31/2004 8,459 11,062
6/30/2004 9,067 11,277
7/31/2004 8,808 10,903
8/31/2004 8,944 10,948
9/30/2004 9,417 11,066
10/31/2004 9,257 11,235
11/30/2004 10,201 11,690
12/31/2004 10,374 12,088
1/31/2005 10,042 11,793
2/28/2005 10,779 12,041
3/31/2005 10,415 11,828
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/01/98) (04/14/98) (09/01/04) (05/03/01)
- --------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------------------------------------
BASIC MATERIALS FUND 20.42% 5.50% 0.58% 19.84% 5.00% -0.61% 15.66% 19.29% 6.89%
S&P 500 INDEX 6.69% -3.16% 2.43% 6.69% -3.16% 2.33% 7.84% 6.69% 0.24%
- --------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
BASIC MATERIALS FUND
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
CHEMICALS 42%
METALS & MINING 28%
PAPER & FOREST PRODUCTS 12%
CONTAINERS & PACKAGING 12%
OTHER 6%
"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)
- --------------------------------------------------
Dow Chemical Co. 3.8%
International Paper Co. 3.7%
Praxair, Inc. 3.0%
Alcoa, Inc. 2.8%
EI Du Pont de Nemours & Co. 2.7%
International Flavors & Fragrances, Inc. 2.5%
Air Products & Chemicals, Inc. 2.5%
Valspar Corp. 2.4%
Monsanto Co. 2.3%
Louisiana-Pacific Corp. 2.3%
- --------------------------------------------------
Top Ten Total 28.0%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 9
PERFORMANCE REPORTS AND 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.
Inception: April 1, 1998
After holding up well in the previous three quarters, biotechnology firms fell
precipitously in the first quarter of 2005. The most disappointing news came
from Biogen, which announced a voluntary suspension of its multiple sclerosis
product, Tysabri, after it caused significant adverse events in two patients.
Cell Therapeutics also made headlines with disappointing clinical trials. Many
other biotechnology companies sold off in sympathy, and the group sustained
losses in each of the first three months of the year. For the year ended March
31, 2005, shares of Rydex Biotechnology Fund Investor Class fell by 14.45%.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
BIOTECHNOLOGY FUND
DATE C-CLASS S&P 500 INDEX
---- ------------------ -------------
3/30/2001 10,000 10,000
3/31/2001 10,000 10,000
4/30/2001 11,436 10,778
5/31/2001 12,101 10,850
6/30/2001 12,415 10,586
7/31/2001 10,993 10,482
8/31/2001 11,099 9,826
9/30/2001 9,594 9,032
10/31/2001 11,025 9,204
11/30/2001 12,022 9,910
12/31/2001 11,357 9,997
1/31/2002 9,709 9,851
2/28/2002 9,229 9,661
3/31/2002 9,538 10,025
4/30/2002 8,038 9,417
5/31/2002 7,198 9,348
6/30/2002 6,325 8,682
7/31/2002 6,399 8,005
8/31/2002 6,122 8,058
9/30/2002 5,863 7,182
10/31/2002 6,385 7,814
11/30/2002 6,856 8,274
12/31/2002 6,117 7,788
1/31/2003 5,974 7,584
2/28/2003 5,877 7,470
3/31/2003 6,219 7,543
4/30/2003 6,874 8,164
5/31/2003 8,093 8,594
6/30/2003 7,872 8,704
7/31/2003 8,597 8,857
8/31/2003 8,444 9,030
9/30/2003 8,430 8,934
10/31/2003 8,435 9,439
11/30/2003 8,518 9,522
12/31/2003 8,860 10,022
1/31/2004 9,298 10,206
2/29/2004 9,340 10,347
3/31/2004 9,197 10,191
4/30/2004 9,298 10,031
5/31/2004 9,044 10,169
6/30/2004 9,012 10,367
7/31/2004 8,098 10,024
8/31/2004 8,130 10,064
9/30/2004 8,509 10,173
10/31/2004 8,172 10,329
11/30/2004 8,486 10,747
12/31/2004 8,934 11,112
1/31/2005 8,463 10,841
2/28/2005 8,135 11,069
3/31/2005 7,789 10,873
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
BIOTECHNOLOGY FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- ------------------ -------------
4/1/1998 10,000 10,000
4/30/1998 9,750 10,041
5/31/1998 9,300 9,869
6/30/1998 9,090 10,269
7/31/1998 9,220 10,160
8/31/1998 7,250 8,691
9/30/1998 9,020 9,248
10/31/1998 9,650 10,000
11/30/1998 9,940 10,606
12/31/1998 11,830 11,217
1/31/1999 12,690 11,687
2/28/1999 11,860 11,323
3/31/1999 12,810 11,776
4/30/1999 12,080 12,232
5/31/1999 13,020 11,943
6/30/1999 13,700 12,606
7/31/1999 15,640 12,213
8/31/1999 17,150 12,152
9/30/1999 15,860 11,819
10/31/1999 16,190 12,567
11/30/1999 17,922 12,823
12/31/1999 23,215 13,578
1/31/2000 27,174 12,896
2/29/2000 39,483 12,651
3/31/2000 28,948 13,889
4/30/2000 24,859 13,471
5/31/2000 23,937 13,195
6/30/2000 32,126 13,520
7/31/2000 29,369 13,309
8/31/2000 36,155 14,135
9/30/2000 34,822 13,389
10/31/2000 32,838 13,333
11/30/2000 28,227 12,281
12/31/2000 29,861 12,342
1/31/2001 28,237 12,779
2/28/2001 26,693 11,614
3/31/2001 21,711 10,878
4/30/2001 24,839 11,724
5/31/2001 26,302 11,802
6/30/2001 27,014 11,515
7/31/2001 23,947 11,402
8/31/2001 24,197 10,688
9/30/2001 20,929 9,825
10/31/2001 24,067 10,012
11/30/2001 26,262 10,780
12/31/2001 24,839 10,875
1/31/2002 21,250 10,716
2/28/2002 20,208 10,509
3/31/2002 20,909 10,905
4/30/2002 17,632 10,243
5/31/2002 15,797 10,168
6/30/2002 13,903 9,444
7/31/2002 14,073 8,708
8/31/2002 13,482 8,765
9/30/2002 12,921 7,812
10/31/2002 14,083 8,500
11/30/2002 15,136 9,000
12/31/2002 13,522 8,471
1/31/2003 13,221 8,249
2/28/2003 13,011 8,126
3/31/2003 13,783 8,205
4/30/2003 15,246 8,880
5/31/2003 17,972 9,348
6/30/2003 17,491 9,467
7/31/2003 19,115 9,634
8/31/2003 18,804 9,822
9/30/2003 18,794 9,718
10/31/2003 18,814 10,268
11/30/2003 19,025 10,358
12/31/2003 19,797 10,901
1/31/2004 20,799 11,101
2/29/2004 20,909 11,256
3/31/2004 20,609 11,086
4/30/2004 20,849 10,912
5/31/2004 20,308 11,062
6/30/2004 20,238 11,277
7/31/2004 18,203 10,903
8/31/2004 18,293 10,948
9/30/2004 19,155 11,066
10/31/2004 18,414 11,235
11/30/2004 19,145 11,690
12/31/2004 20,168 12,088
1/31/2005 19,115 11,793
2/28/2005 18,393 12,041
3/31/2005 17,632 11,828
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- -------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/01/98) (04/01/98) (09/01/04) (03/30/01)
- -------------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- -------------------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY FUND -14.45% -9.44% 8.44% -14.85% -9.89% 7.83% -5.37% -15.31% -6.05%
S&P 500 INDEX 6.69% -3.16% 2.43% 6.69% -3.16% 2.43% 7.84% 6.69% 2.11%
- -------------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
BIOTECHNOLOGY FUND
BIOTECHNOLOGY 99%
HEALTH CARE EQUIPMENT & SUPPLIES 1%
"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. 10.9%
Genentech, Inc. 8.8%
Gilead Sciences, Inc. 5.7%
Genzyme Corp. 5.5%
Biogen Idec, Inc. 4.7%
Medimmune, Inc. 3.9%
Applera Corp. - Applied
Biosystems Group 3.3%
Invitrogen Corp. 3.2%
Charles River Laboratories
International, Inc. 3.1%
Affymetrix, Inc. 3.0%
- --------------------------------------------------
Top Ten Total 52.1%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
10 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in
manufacturing finished goods and services both domestically and internationally.
Inception: July 6, 1998
Rydex Consumer Products Fund Investor Class returned 6.40% for the 12-month
period ending March 31, 2005, roughly in line with the S&P 500 Index's return of
6.69%. The tobacco industry--which benefited from a resolution of the Department
of Justice's $280 billion racketeering case--was the strongest group in the
sector, while makers of personal products, food and household products all
posted smaller gains. In general, consumer product companies all benefited from
expanding valuations as the economy reached a state of stable economic
expansion, and investors sought firms that have historically performed well
within such an environment. Beverage makers were the laggards of the sector,
suffering modest losses during the year. Concerns about the health detriments of
soda products and weaker-than-expected sales volume weighed heavily on the
group.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
CONSUMER PRODUCTS FUND
DATE C-CLASS S&P 500 INDEX
---- ---------------------- -------------
7/24/2001 10,000 10,000
7/31/2001 10,179 10,339
8/31/2001 10,481 9,692
9/30/2001 10,193 8,909
10/31/2001 10,220 9,079
11/30/2001 10,533 9,776
12/31/2001 10,602 9,861
1/31/2002 10,685 9,717
2/28/2002 11,085 9,530
3/31/2002 11,457 9,888
4/30/2002 11,595 9,289
5/31/2002 11,692 9,220
6/30/2002 11,044 8,564
7/31/2002 10,520 7,896
8/31/2002 10,644 7,948
9/30/2002 9,761 7,084
10/31/2002 10,313 7,708
11/30/2002 10,305 8,161
12/31/2002 10,124 7,682
1/31/2003 9,764 7,481
2/28/2003 9,473 7,368
3/31/2003 9,486 7,440
4/30/2003 10,004 8,053
5/31/2003 10,735 8,477
6/30/2003 10,901 8,585
7/31/2003 10,915 8,737
8/31/2003 11,132 8,907
9/30/2003 11,206 8,812
10/31/2003 11,641 9,311
11/30/2003 11,967 9,393
12/31/2003 12,185 9,885
1/31/2004 12,403 10,067
2/29/2004 12,861 10,207
3/31/2004 12,935 10,053
4/30/2004 13,135 9,895
5/31/2004 13,028 10,031
6/30/2004 13,338 10,226
7/31/2004 12,421 9,887
8/31/2004 12,616 9,927
9/30/2004 12,264 10,035
10/31/2004 12,403 10,188
11/30/2004 13,086 10,600
12/31/2004 13,665 10,961
1/31/2005 13,772 10,694
2/28/2005 13,809 10,919
3/31/2005 13,646 10,726
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
CONSUMER PRODUCTS FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- ---------------------- -------------
7/6/1998 10,000 10,000
7/31/1998 9,040 9,691
8/31/1998 7,710 8,290
9/30/1998 7,370 8,821
10/31/1998 8,490 9,539
11/30/1998 8,840 10,117
12/31/1998 9,270 10,700
1/31/1999 9,450 11,147
2/28/1999 9,240 10,801
3/31/1999 9,710 11,233
4/30/1999 9,838 11,668
5/31/1999 9,454 11,392
6/30/1999 9,548 12,025
7/31/1999 9,382 11,649
8/31/1999 9,039 11,591
9/30/1999 8,199 11,274
10/31/1999 9,008 11,987
11/30/1999 8,863 12,231
12/31/1999 9,485 12,951
1/31/2000 8,531 12,300
2/29/2000 7,534 12,068
3/31/2000 7,846 13,248
4/30/2000 7,991 12,850
5/31/2000 7,877 12,586
6/30/2000 7,711 12,896
7/31/2000 7,462 12,695
8/31/2000 7,555 13,483
9/30/2000 7,316 12,771
10/31/2000 7,949 12,717
11/30/2000 7,908 11,715
12/31/2000 8,261 11,772
1/31/2001 8,167 12,190
2/28/2001 7,908 11,078
3/31/2001 7,451 10,376
4/30/2001 7,628 11,183
5/31/2001 7,866 11,258
6/30/2001 7,649 10,984
7/31/2001 7,680 10,876
8/31/2001 7,918 10,195
9/30/2001 7,711 9,371
10/31/2001 7,732 9,550
11/30/2001 7,958 10,283
12/31/2001 8,030 10,373
1/31/2002 8,093 10,221
2/28/2002 8,405 10,024
3/31/2002 8,696 10,401
4/30/2002 8,800 9,771
5/31/2002 8,883 9,699
6/30/2002 8,405 9,008
7/31/2002 8,010 8,306
8/31/2002 8,114 8,360
9/30/2002 7,448 7,452
10/31/2002 7,874 8,107
11/30/2002 7,879 8,585
12/31/2002 7,743 8,080
1/31/2003 7,471 7,869
2/28/2003 7,261 7,751
3/31/2003 7,272 7,826
4/30/2003 7,673 8,471
5/31/2003 8,241 8,917
6/30/2003 8,377 9,031
7/31/2003 8,391 9,190
8/31/2003 8,569 9,369
9/30/2003 8,639 9,269
10/31/2003 8,981 9,794
11/30/2003 9,241 9,880
12/31/2003 9,419 10,398
1/31/2004 9,594 10,589
2/29/2004 9,957 10,736
3/31/2004 10,024 10,574
4/30/2004 10,188 10,408
5/31/2004 10,111 10,551
6/30/2004 10,359 10,756
7/31/2004 9,657 10,400
8/31/2004 9,818 10,442
9/30/2004 9,548 10,555
10/31/2004 9,664 10,717
11/30/2004 10,204 11,150
12/31/2004 10,669 11,530
1/31/2005 10,763 11,249
2/28/2005 10,798 11,485
3/31/2005 10,683 11,282
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(07/06/98) (08/17/98) (09/01/04) (07/24/01)
- --------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND 6.40% 6.37% 0.99% 6.02% 5.91% 2.64% 8.33% 5.82% 8.80%
S&P 500 INDEX 6.69% -3.16% 1.81% 6.69% -3.16% 2.83% 7.84% 6.69% 1.92%
- --------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
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 PRODUCTS 33%
BEVERAGES 18%
HOUSEHOLD PRODUCTS 16%
FOOD & STAPLES RETAILING 12%
PERSONAL PRODUCTS 9%
AUTO COMPONENTS 7%
TOBACCO 3%
HEALTH CARE PROVIDERS & SERVICE 2%
"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)
- --------------------------------------------------
Altria Group, Inc. 6.8%
Procter & Gamble Co. 6.0%
Coca-Cola Co. 5.8%
PepsiCo, Inc. 4.9%
Anheuser-Busch Cos., Inc. 3.9%
Kimberly-Clark Corp. 3.6%
Colgate-Palmolive Co. 3.6%
Sysco Corp. 3.2%
Archer-Daniels-Midland Co. 3.0%
Avon Products, Inc. 3.0%
- --------------------------------------------------
Top Ten Total 43.8%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 11
PERFORMANCE REPORTS AND 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.
Inception: April 1, 1998
For the year ended March 31, 2005, the electronics sector was one of the hardest
hit. Semiconductor stocks suffered from a decided lack of pricing power due to
both excess capacity and international competition. Growth in demand for digital
consumer products and growing use of semiconductors in the auto industry have
made up for some of the slowdown in the traditional computing and wireless
markets, but were not enough to keep semiconductor stocks moving in the right
direction. Rydex Electronics Fund Investor Class returned -23.23% for the year.
Not surprisingly, this industry group is currently witnessing a sharp decline in
capital spending, which, over time, should diminish the effects of excess
capacity in the future.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
ELECTRONICS FUND
DATE C-CLASS S&P 500 INDEX
---- ---------------- -------------
3/26/2001 10,000 10,000
3/31/2001 8,835 10,067
4/30/2001 11,100 10,849
5/31/2001 9,872 10,922
6/30/2001 10,043 10,656
7/31/2001 9,669 10,551
8/31/2001 9,038 9,891
9/30/2001 6,261 9,092
10/31/2001 7,559 9,265
11/30/2001 8,729 9,976
12/31/2001 8,536 10,064
1/31/2002 8,793 9,917
2/28/2002 7,821 9,725
3/31/2002 8,985 10,091
4/30/2002 8,109 9,479
5/31/2002 7,521 9,410
6/30/2002 6,058 8,739
7/31/2002 5,272 8,058
8/31/2002 4,797 8,111
9/30/2002 3,707 7,229
10/31/2002 4,514 7,866
11/30/2002 5,689 8,329
12/31/2002 4,290 7,839
1/31/2003 4,081 7,634
2/28/2003 4,380 7,520
3/31/2003 4,231 7,593
4/30/2003 4,765 8,218
5/31/2003 5,588 8,651
6/30/2003 5,353 8,761
7/31/2003 5,865 8,916
8/31/2003 6,859 9,090
9/30/2003 6,213 8,993
10/31/2003 7,318 9,502
11/30/2003 7,714 9,586
12/31/2003 7,329 10,088
1/31/2004 7,511 10,273
2/29/2004 7,222 10,416
3/31/2004 6,944 10,259
4/30/2004 6,063 10,098
5/31/2004 6,704 10,237
6/30/2004 6,549 10,436
7/31/2004 5,449 10,090
8/31/2004 4,856 10,131
9/30/2004 5,021 10,241
10/31/2004 5,379 10,397
11/30/2004 5,534 10,818
12/31/2004 5,737 11,186
1/31/2005 5,203 10,913
2/28/2005 5,630 11,143
3/31/2005 5,288 10,946
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
ELECTRONICS FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- ---------------- -------------
4/1/1998 10,000 10,000
4/30/1998 10,260 10,041
5/31/1998 8,880 9,869
6/30/1998 8,850 10,269
7/31/1998 9,050 10,160
8/31/1998 7,350 8,691
9/30/1998 8,300 9,248
10/31/1998 9,780 10,000
11/30/1998 11,190 10,606
12/31/1998 12,610 11,217
1/31/1999 14,920 11,687
2/28/1999 13,030 11,323
3/31/1999 14,020 11,776
4/30/1999 14,000 12,232
5/31/1999 14,170 11,943
6/30/1999 16,800 12,606
7/31/1999 17,440 12,213
8/31/1999 18,970 12,152
9/30/1999 18,820 11,819
10/31/1999 20,800 12,567
11/30/1999 23,200 12,823
12/31/1999 27,940 13,578
1/31/2000 29,570 12,896
2/29/2000 38,740 12,651
3/31/2000 40,100 13,889
4/30/2000 39,460 13,471
5/31/2000 34,360 13,195
6/30/2000 38,570 13,520
7/31/2000 37,090 13,309
8/31/2000 42,840 14,135
9/30/2000 34,600 13,389
10/31/2000 31,530 13,333
11/30/2000 22,960 12,281
12/31/2000 22,910 12,342
1/31/2001 27,269 12,779
2/28/2001 18,562 11,614
3/31/2001 16,649 10,878
4/30/2001 20,927 11,724
5/31/2001 18,632 11,802
6/30/2001 18,974 11,515
7/31/2001 18,270 11,402
8/31/2001 17,092 10,688
9/30/2001 11,848 9,825
10/31/2001 14,314 10,012
11/30/2001 16,548 10,780
12/31/2001 16,196 10,875
1/31/2002 16,699 10,716
2/28/2002 14,857 10,509
3/31/2002 17,072 10,905
4/30/2002 15,421 10,243
5/31/2002 14,324 10,168
6/30/2002 11,546 9,444
7/31/2002 10,056 8,708
8/31/2002 9,160 8,765
9/30/2002 7,086 7,812
10/31/2002 8,637 8,500
11/30/2002 10,901 9,000
12/31/2002 8,234 8,471
1/31/2003 7,831 8,249
2/28/2003 8,415 8,126
3/31/2003 8,133 8,205
4/30/2003 9,170 8,880
5/31/2003 10,781 9,348
6/30/2003 10,328 9,467
7/31/2003 11,324 9,634
8/31/2003 13,257 9,822
9/30/2003 12,029 9,718
10/31/2003 14,183 10,268
11/30/2003 14,958 10,358
12/31/2003 14,223 10,901
1/31/2004 14,596 11,101
2/29/2004 14,042 11,256
3/31/2004 13,519 11,086
4/30/2004 11,807 10,912
5/31/2004 13,076 11,062
6/30/2004 12,774 11,277
7/31/2004 10,640 10,903
8/31/2004 9,482 10,948
9/30/2004 9,814 11,066
10/31/2004 10,529 11,235
11/30/2004 10,841 11,690
12/31/2004 11,244 12,088
1/31/2005 10,197 11,793
2/28/2005 11,052 12,041
3/31/2005 10,378 11,828
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ---------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/01/98) (04/02/98) (09/01/04) (03/26/01)
- ---------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- ---------------------------------------------------------------------------------------------------------------
ELECTRONICS FUND -23.23% -23.69% 0.53% -23.58% -24.06% 0.05% 8.03% -23.85% -14.68%
S&P 500 INDEX 6.69% -3.16% 2.43% 6.69% -3.16% 2.27% 7.84% 6.69% 2.28%
- ---------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
ELECTRONICS FUND
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 96%
MEDIA 2%
METALS & MINING 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. 12.2%
Texas Instruments, Inc. 6.7%
Applied Materials, Inc. 4.8%
Analog Devices, Inc. 3.2%
Broadcom Corp. - Class A 2.9%
Maxim Integrated Products, Inc. 2.8%
KLA-Tencor Corp. 2.8%
Xilinx, Inc. 2.7%
National Semiconductor Corp. 2.6%
Micron Technology, Inc. 2.5%
- --------------------------------------------------
Top Ten Total 43.2%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
12 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
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.
Inception: April 21, 1998
The energy sector was the best performer in the S&P 500 Index over the past 12
months. Rydex Energy Fund Investor Class was up 43.43% for the year ending March
31, 2005, as many of the Fund's holdings benefited handsomely from crude oil
prices, which rose about 50% during the period. The main drivers of higher crude
prices were increased global demand and tighter supply. Rapid growth in China,
as well as continued recovery in the U.S., has fueled the increase in demand.
Supply has become constrained as it becomes harder and more expensive to find
and extract new sources of oil. Moreover, the new sources are frequently in
countries with high geopolitical risk. The three-to-five-million-barrel-a-day
supply cushion that existed prior to 2003 has shrunk to about one million
barrels a day, and many industry experts see even higher oil prices to come.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
ENERGY FUND
DATE C-CLASS S&P 500 INDEX
---- ----------- -------------
4/19/2001 10,000 10,000
4/30/2001 10,581 9,968
5/31/2001 10,472 10,035
6/30/2001 9,621 9,790
7/31/2001 9,461 9,694
8/31/2001 9,191 9,087
9/30/2001 8,441 8,353
10/31/2001 8,753 8,513
11/30/2001 8,347 9,166
12/31/2001 8,840 9,246
1/31/2002 8,449 9,111
2/28/2002 8,695 8,935
3/31/2002 9,478 9,271
4/30/2002 9,163 8,709
5/31/2002 8,781 8,645
6/30/2002 8,474 8,029
7/31/2002 7,368 7,403
8/31/2002 7,504 7,452
9/30/2002 6,900 6,642
10/31/2002 7,266 7,227
11/30/2002 7,476 7,652
12/31/2002 7,595 7,203
1/31/2003 7,339 7,014
2/28/2003 7,433 6,909
3/31/2003 7,348 6,976
4/30/2003 7,424 7,550
5/31/2003 8,301 7,948
6/30/2003 8,225 8,050
7/31/2003 7,825 8,191
8/31/2003 8,242 8,351
9/30/2003 8,055 8,263
10/31/2003 8,199 8,730
11/30/2003 8,304 8,807
12/31/2003 9,329 9,269
1/31/2004 9,440 9,439
2/29/2004 9,935 9,570
3/31/2004 9,910 9,426
4/30/2004 10,115 9,278
5/31/2004 9,978 9,405
6/30/2004 10,627 9,588
7/31/2004 10,909 9,270
8/31/2004 10,653 9,308
9/30/2004 11,669 9,409
10/31/2004 11,704 9,553
11/30/2004 12,690 9,939
12/31/2004 12,246 10,277
1/31/2005 12,579 10,027
2/28/2005 14,348 10,238
3/31/2005 14,075 10,056
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
ENERGY FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- -------------- -------------
4/21/1998 10,000 10,000
4/30/1998 9,930 9,872
5/31/1998 9,490 9,703
6/30/1998 9,330 10,097
7/31/1998 8,570 9,989
8/31/1998 7,520 8,545
9/30/1998 8,620 9,092
10/31/1998 8,680 9,832
11/30/1998 8,530 10,428
12/31/1998 8,350 11,029
1/31/1999 7,760 11,490
2/28/1999 7,700 11,133
3/31/1999 8,990 11,578
4/30/1999 10,190 12,027
5/31/1999 9,860 11,743
6/30/1999 10,070 12,394
7/31/1999 10,290 12,007
8/31/1999 10,470 11,948
9/30/1999 9,970 11,620
10/31/1999 9,790 12,356
11/30/1999 9,850 12,607
12/31/1999 9,910 13,349
1/31/2000 9,830 12,679
2/29/2000 9,570 12,439
3/31/2000 10,870 13,655
4/30/2000 10,730 13,245
5/31/2000 11,730 12,973
6/30/2000 11,130 13,293
7/31/2000 10,850 13,085
8/31/2000 12,100 13,898
9/30/2000 12,210 13,164
10/31/2000 11,590 13,108
11/30/2000 10,750 12,075
12/31/2000 12,170 12,134
1/31/2001 11,590 12,564
2/28/2001 11,580 11,419
3/31/2001 11,430 10,695
4/30/2001 12,560 11,527
5/31/2001 12,440 11,604
6/30/2001 11,450 11,321
7/31/2001 11,260 11,210
8/31/2001 10,950 10,508
9/30/2001 10,060 9,660
10/31/2001 10,450 9,844
11/30/2001 9,967 10,599
12/31/2001 10,573 10,692
1/31/2002 10,119 10,536
2/28/2002 10,422 10,333
3/31/2002 11,371 10,721
4/30/2002 10,997 10,071
5/31/2002 10,553 9,997
6/30/2002 10,200 9,285
7/31/2002 8,877 8,561
8/31/2002 9,048 8,617
9/30/2002 8,321 7,681
10/31/2002 8,766 8,357
11/30/2002 9,024 8,849
12/31/2002 9,176 8,329
1/31/2003 8,873 8,111
2/28/2003 8,994 7,989
3/31/2003 8,893 8,067
4/30/2003 8,994 8,731
5/31/2003 10,055 9,191
6/30/2003 9,974 9,308
7/31/2003 9,499 9,472
8/31/2003 10,005 9,657
9/30/2003 9,792 9,554
10/31/2003 9,984 10,095
11/30/2003 10,108 10,184
12/31/2003 11,375 10,718
1/31/2004 11,528 10,915
2/29/2004 12,126 11,066
3/31/2004 12,105 10,899
4/30/2004 12,369 10,728
5/31/2004 12,207 10,875
6/30/2004 13,008 11,087
7/31/2004 13,373 10,720
8/31/2004 13,058 10,763
9/30/2004 14,326 10,880
10/31/2004 14,376 11,046
11/30/2004 15,598 11,493
12/31/2004 15,071 11,884
1/31/2005 15,487 11,595
2/28/2005 17,688 11,839
3/31/2005 17,363 11,629
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/21/98) (05/05/98) (09/01/04) (04/19/01)
- --------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------------------------------------
ENERGY FUND 43.43% 9.82% 8.27% 42.60% 9.27% 7.78% 30.46% 42.03% 9.04%
S&P 500 INDEX 6.69% -3.16% 2.20% 6.69% -3.16% 2.35% 7.84% 6.69% 0.14%
- --------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
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 73%
ENERGY EQUIPMENT & SERVICES 25%
ELECTRONIC EQUIPMENT & INSTRUMENTS 2%
"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. 7.2%
BP PLC - SP ADR 5.2%
Total SA - SP ADR 4.2%
ChevronTexaco Corp. 3.8%
Royal Dutch Petroleum Co. 3.7%
ConocoPhillips 3.6%
Shell Transport & Trading Co. PLC - SP ADR 3.3%
Devon Energy Corp. 2.2%
Amerada Hess Corp. 2.1%
Occidental Petroleum Corp. 2.1%
- --------------------------------------------------
Top Ten Total 37.4%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 13
PERFORMANCE REPORTS AND 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.
Inception: April 1, 1998
Rydex Energy Services Fund Investor Class was up 38.55% for the 12 months ending
March 31, 2005. With crude oil prices rising about 50% over the past 12 months,
integrated oil companies and exploration and production companies have increased
their spending on drilling activities. The energy services industry has been a
direct beneficiary of this increased spending. Worldwide rig count was 8.5%
higher in January 2005 than the previous January. Moreover, there have been
significant increases in the "dayrates" charged for using rigs. The broad energy
sector, which includes the energy services industry, was the best performer in
the S&P 500 Index over the past year.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
ENERGY SERVICES
DATE FUND C-CLASS S&P 500 INDEX
---- --------------- -------------
3/30/2001 10,000 10,000
3/31/2001 10,000 10,000
4/30/2001 11,418 10,778
5/31/2001 10,967 10,850
6/30/2001 8,736 10,586
7/31/2001 8,044 10,482
8/31/2001 7,022 9,826
9/30/2001 6,033 9,032
10/31/2001 7,165 9,204
11/30/2001 6,890 9,910
12/31/2001 7,385 9,997
1/31/2002 7,055 9,851
2/28/2002 7,374 9,661
3/31/2002 8,143 10,025
4/30/2002 8,264 9,417
5/31/2002 8,055 9,348
6/30/2002 7,110 8,682
7/31/2002 6,143 8,005
8/31/2002 6,308 8,058
9/30/2002 5,780 7,182
10/31/2002 6,220 7,814
11/30/2002 6,593 8,274
12/31/2002 6,538 7,788
1/31/2003 6,242 7,584
2/28/2003 6,560 7,470
3/31/2003 6,242 7,543
4/30/2003 6,300 8,164
5/31/2003 7,344 8,594
6/30/2003 6,901 8,704
7/31/2003 6,330 8,857
8/31/2003 6,784 9,030
9/30/2003 6,348 8,934
10/31/2003 6,308 9,439
11/30/2003 6,278 9,522
12/31/2003 7,051 10,022
1/31/2004 7,516 10,206
2/29/2004 7,982 10,347
3/31/2004 7,736 10,191
4/30/2004 7,725 10,031
5/31/2004 7,421 10,169
6/30/2004 8,092 10,367
7/31/2004 8,388 10,024
8/31/2004 8,231 10,064
9/30/2004 9,132 10,173
10/31/2004 8,905 10,329
11/30/2004 9,571 10,747
12/31/2004 9,407 11,112
1/31/2005 9,777 10,841
2/28/2005 10,835 11,069
3/31/2005 10,615 10,873
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
ENERGY SERVICES FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- ------------------- -------------
4/1/1998 10,000 10,000
4/30/1998 10,240 10,041
5/31/1998 9,300 9,869
6/30/1998 8,360 10,269
7/31/1998 6,660 10,160
8/31/1998 4,550 8,691
9/30/1998 5,420 9,248
10/31/1998 6,190 10,000
11/30/1998 4,770 10,606
12/31/1998 4,840 11,217
1/31/1999 4,610 11,687
2/28/1999 4,360 11,323
3/31/1999 6,020 11,776
4/30/1999 6,810 12,232
5/31/1999 6,450 11,943
6/30/1999 6,940 12,606
7/31/1999 7,090 12,213
8/31/1999 7,480 12,152
9/30/1999 6,740 11,819
10/31/1999 6,440 12,567
11/30/1999 6,530 12,823
12/31/1999 7,010 13,578
1/31/2000 6,900 12,896
2/29/2000 8,030 12,651
3/31/2000 9,310 13,889
4/30/2000 9,240 13,471
5/31/2000 9,960 13,195
6/30/2000 9,650 13,520
7/31/2000 9,230 13,309
8/31/2000 10,670 14,135
9/30/2000 10,410 13,389
10/31/2000 9,110 13,333
11/30/2000 7,800 12,281
12/31/2000 9,910 12,342
1/31/2001 10,050 12,779
2/28/2001 9,810 11,614
3/31/2001 9,100 10,878
4/30/2001 10,390 11,724
5/31/2001 10,000 11,802
6/30/2001 7,970 11,515
7/31/2001 7,340 11,402
8/31/2001 6,420 10,688
9/30/2001 5,510 9,825
10/31/2001 6,550 10,012
11/30/2001 6,300 10,780
12/31/2001 6,760 10,875
1/31/2002 6,480 10,716
2/28/2002 6,780 10,509
3/31/2002 7,490 10,905
4/30/2002 7,610 10,243
5/31/2002 7,420 10,168
6/30/2002 6,560 9,444
7/31/2002 5,670 8,708
8/31/2002 5,820 8,765
9/30/2002 5,350 7,812
10/31/2002 5,750 8,500
11/30/2002 6,100 9,000
12/31/2002 6,060 8,471
1/31/2003 5,780 8,249
2/28/2003 6,080 8,126
3/31/2003 5,790 8,205
4/30/2003 5,847 8,880
5/31/2003 6,823 9,348
6/30/2003 6,417 9,467
7/31/2003 5,890 9,634
8/31/2003 6,320 9,822
9/30/2003 5,917 9,718
10/31/2003 5,883 10,268
11/30/2003 5,863 10,358
12/31/2003 6,587 10,901
1/31/2004 7,030 11,101
2/29/2004 7,467 11,256
3/31/2004 7,247 11,086
4/30/2004 7,243 10,912
5/31/2004 6,960 11,062
6/30/2004 7,600 11,277
7/31/2004 7,887 10,903
8/31/2004 7,747 10,948
9/30/2004 8,597 11,066
10/31/2004 8,390 11,235
11/30/2004 9,023 11,690
12/31/2004 8,873 12,088
1/31/2005 9,230 11,793
2/28/2005 10,240 12,041
3/31/2005 10,040 11,828
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/01/98) (04/02/98) (09/01/04) (03/30/01)
- --------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------------------------------------
ENERGY SERVICES FUND 38.55% 1.52% 0.06% 37.91% 1.07% -0.18% 26.19% 37.22% 1.50%
S&P 500 INDEX 6.69% -3.16% 2.43% 6.69% -3.16% 2.27% 7.84% 6.69% 2.11%
- --------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
ENERGY SERVICES FUND
ENERGY EQUIPMENT & SERVICES 94%
ELECTRONIC EQUIPMENT & INSTRUMENTS 6%
"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. 7.6%
Halliburton Co. 6.7%
National Oilwell Varco, Inc. 6.0%
Weatherford International Ltd. 5.1%
Baker Hughes, Inc. 4.9%
Transocean, Inc. 4.6%
BJ Services Co. 4.5%
Diamond Offshore Drilling 3.8%
Nabors Industries Ltd. 3.7%
Cooper Cameron Corp. 3.6%
- --------------------------------------------------
Top Ten Total 50.5%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
14 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the financial services sector.
Inception: April 2, 1998
While still very low, fed fund rates increased from 1% to 2.75% during the year,
causing a slump in the shares of many financial services companies. For the
first time in three years, the sector underperformed the S&P 500 Index. Real
estate investment trusts, consumer finance companies and commercial banks were
the strongest industries in the financial services sector. Insurance and
reinsurance brokers, as well as diversified financial services, thrifts and
mortgage financers--which were hurt the most by rising rates--didn't fare as
well and contributed to a lackluster year. Rydex Financial Services Fund
Investor Class returned 3.46%, trailing the S&P 500 Index's 6.69% performance.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
FINANCIAL SERVICES FUND
DATE C-CLASS S&P 500 INDEX
---- ----------------------- -----------
4/19/2001 10,000 10,000
4/30/2001 9,837 9,968
5/31/2001 10,153 10,035
6/30/2001 10,057 9,790
7/31/2001 9,885 9,694
8/31/2001 9,273 9,087
9/30/2001 8,757 8,353
10/31/2001 8,403 8,513
11/30/2001 9,025 9,166
12/31/2001 9,295 9,246
1/31/2002 9,228 9,111
2/28/2002 9,209 8,935
3/31/2002 9,798 9,271
4/30/2002 9,721 8,709
5/31/2002 9,721 8,645
6/30/2002 9,218 8,029
7/31/2002 8,368 7,403
8/31/2002 8,522 7,452
9/30/2002 7,402 6,642
10/31/2002 7,769 7,227
11/30/2002 8,037 7,652
12/31/2002 7,766 7,203
1/31/2003 7,640 7,014
2/28/2003 7,407 6,909
3/31/2003 7,330 6,976
4/30/2003 8,056 7,550
5/31/2003 8,560 7,948
6/30/2003 8,579 8,050
7/31/2003 8,947 8,191
8/31/2003 8,918 8,351
9/30/2003 8,937 8,263
10/31/2003 9,538 8,730
11/30/2003 9,655 8,807
12/31/2003 9,985 9,269
1/31/2004 10,355 9,439
2/29/2004 10,685 9,570
3/31/2004 10,539 9,426
4/30/2004 10,005 9,278
5/31/2004 10,287 9,405
6/30/2004 10,335 9,588
7/31/2004 10,044 9,270
8/31/2004 10,394 9,308
9/30/2004 10,491 9,409
10/31/2004 10,666 9,553
11/30/2004 11,158 9,939
12/31/2004 11,588 10,277
1/31/2005 11,089 10,027
2/28/2005 11,138 10,238
3/31/2005 10,776 10,056
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
FINANCIAL SERVICES FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- ----------------------- -------------
4/2/1998 10,000 10,000
4/30/1998 10,020 9,935
5/31/1998 9,770 9,764
6/30/1998 10,170 10,161
7/31/1998 10,190 10,053
8/31/1998 7,730 8,599
9/30/1998 7,760 9,150
10/31/1998 8,700 9,894
11/30/1998 9,220 10,494
12/31/1998 9,380 11,099
1/31/1999 9,570 11,563
2/28/1999 9,650 11,204
3/31/1999 9,990 11,652
4/30/1999 10,550 12,103
5/31/1999 9,970 11,817
6/30/1999 10,370 12,473
7/31/1999 9,680 12,084
8/31/1999 9,210 12,024
9/30/1999 8,620 11,694
10/31/1999 9,980 12,434
11/30/1999 9,494 12,687
12/31/1999 9,243 13,434
1/31/2000 8,903 12,759
2/29/2000 8,001 12,518
3/31/2000 9,494 13,742
4/30/2000 9,083 13,329
5/31/2000 9,604 13,055
6/30/2000 9,093 13,377
7/31/2000 9,874 13,168
8/31/2000 10,906 13,986
9/30/2000 11,166 13,248
10/31/2000 11,066 13,192
11/30/2000 10,305 12,152
12/31/2000 11,256 12,211
1/31/2001 11,186 12,644
2/28/2001 10,395 11,491
3/31/2001 10,014 10,763
4/30/2001 10,305 11,600
5/31/2001 10,645 11,678
6/30/2001 10,555 11,393
7/31/2001 10,375 11,281
8/31/2001 9,744 10,575
9/30/2001 9,213 9,721
10/31/2001 8,853 9,906
11/30/2001 9,504 10,666
12/31/2001 9,797 10,760
1/31/2002 9,736 10,603
2/28/2002 9,726 10,398
3/31/2002 10,354 10,789
4/30/2002 10,283 10,135
5/31/2002 10,283 10,061
6/30/2002 9,757 9,344
7/31/2002 8,876 8,615
8/31/2002 9,048 8,672
9/30/2002 7,844 7,730
10/31/2002 8,239 8,410
11/30/2002 8,529 8,905
12/31/2002 8,235 8,382
1/31/2003 8,104 8,162
2/28/2003 7,870 8,040
3/31/2003 7,769 8,118
4/30/2003 8,560 8,786
5/31/2003 9,097 9,249
6/30/2003 9,118 9,367
7/31/2003 9,534 9,533
8/31/2003 9,503 9,718
9/30/2003 9,534 9,615
10/31/2003 10,183 10,159
11/30/2003 10,315 10,249
12/31/2003 10,682 10,786
1/31/2004 11,089 10,984
2/29/2004 11,446 11,137
3/31/2004 11,293 10,969
4/30/2004 10,743 10,796
5/31/2004 11,059 10,945
6/30/2004 11,120 11,158
7/31/2004 10,814 10,788
8/31/2004 11,191 10,832
9/30/2004 11,303 10,949
10/31/2004 11,517 11,116
11/30/2004 12,052 11,566
12/31/2004 12,524 11,960
1/31/2005 12,001 11,668
2/28/2005 12,063 11,914
3/31/2005 11,683 11,703
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/02/98) (04/06/98) (09/01/04) (04/19/01)
- --------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES FUND 3.46% 4.24% 2.25% 2.88% 3.88% 1.24% 4.22% 2.24% 1.91%
S&P 500 INDEX 6.69% -3.16% 2.27% 6.69% -3.16% 2.26% 7.84% 6.69% 0.14%
- --------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
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 22%
COMMERCIAL BANKS 18%
REAL ESTATE 16%
THRIFTS & MORTGAGE FINANCE 15%
DIVERSIFIED FINANCIAL SERVICES 10%
CAPITAL MARKETS 9%
CONSUMER FINANCE 7%
BIOTECHNOLOGY 2%
CHEMICALS 1%
"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. 3.4%
American International Group, Inc. 2.9%
Wachovia Corp. 2.6%
J.P. Morgan Chase & Co. 2.6%
Fannie Mae 2.2%
American Express Co. 2.0%
Golden West Financial Corp. 2.0%
National City Corp. 1.9%
Countrywide Financial Corp. 1.9%
Bank of New York Co., Inc. 1.8%
- --------------------------------------------------
Top Ten Total 23.3%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 15
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
HEALTH CARE FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the health care industry.
Inception: April 17, 1998
In the year ended March 31, 2005, Rydex Health Care Fund Investor Class returned
1.68%. The different industries within the sector posted vastly disparate
results. Health care providers and service companies produced robust returns for
investors, while the medical technology industry was relatively flat and shares
of pharmaceutical and biotechnology firms fell.
The strong performance of service providers may be attributed to the
continued ability of managed care providers to push price increases through to
the end customers. Hospitals got a boost by improving bad debt, volume and
pricing trends. On the negative side, major pharmaceuticals lagged throughout
the year due to concerns regarding the presidential election, Medicare drug
benefits and drug pipelines. Just as resolution for two of these issues
approached, Merck announced that several adverse events had been tied to its
popular COX-2 pain medication, Vioxx. This placed a significant cloud over the
industry for the remainder of the period as congressional panels convened to
review the FDA's approval process and oversight of the pharmaceutical industry.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
HEALTH CARE FUND
DATE C-CLASS S&P 500 INDEX
---- ---------------- -------------
3/30/2001 10,000 10,000
3/31/2001 10,000 10,000
4/30/2001 10,276 10,778
5/31/2001 10,409 10,850
6/30/2001 10,107 10,586
7/31/2001 10,418 10,482
8/31/2001 10,053 9,826
9/30/2001 10,036 9,032
10/31/2001 10,009 9,204
11/30/2001 10,400 9,910
12/31/2001 10,124 9,997
1/31/2002 9,938 9,851
2/28/2002 9,947 9,661
3/31/2002 10,000 10,025
4/30/2002 9,431 9,417
5/31/2002 9,289 9,348
6/30/2002 8,436 8,682
7/31/2002 8,213 8,005
8/31/2002 8,284 8,058
9/30/2002 7,778 7,182
10/31/2002 8,089 7,814
11/30/2002 8,222 8,274
12/31/2002 8,018 7,788
1/31/2003 8,027 7,584
2/28/2003 7,849 7,470
3/31/2003 8,027 7,543
4/30/2003 8,516 8,164
5/31/2003 9,111 8,594
6/30/2003 9,342 8,704
7/31/2003 9,751 8,857
8/31/2003 9,671 9,030
9/30/2003 9,698 8,934
10/31/2003 9,938 9,439
11/30/2003 10,178 9,522
12/31/2003 10,489 10,022
1/31/2004 10,889 10,206
2/29/2004 10,942 10,347
3/31/2004 10,764 10,191
4/30/2004 10,880 10,031
5/31/2004 10,836 10,169
6/30/2004 10,898 10,367
7/31/2004 10,178 10,024
8/31/2004 10,276 10,064
9/30/2004 10,338 10,173
10/31/2004 10,098 10,329
11/30/2004 10,418 10,747
12/31/2004 11,031 11,112
1/31/2005 10,711 10,841
2/28/2005 10,942 11,069
3/31/2005 10,836 10,873
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
HEALTH CARE FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- ---------------- -------------
4/17/1998 10,000 10,000
4/30/1998 10,070 9,907
5/31/1998 9,790 9,736
6/30/1998 10,490 10,132
7/31/1998 10,450 10,024
8/31/1998 9,270 8,575
9/30/1998 10,220 9,124
10/31/1998 10,550 9,866
11/30/1998 11,080 10,464
12/31/1998 11,520 11,067
1/31/1999 11,330 11,530
2/28/1999 11,290 11,172
3/31/1999 11,450 11,619
4/30/1999 10,700 12,068
5/31/1999 10,370 11,783
6/30/1999 10,680 12,437
7/31/1999 10,160 12,049
8/31/1999 10,420 11,990
9/30/1999 9,560 11,661
10/31/1999 10,420 12,399
11/30/1999 10,605 12,651
12/31/1999 10,015 13,396
1/31/2000 10,475 12,723
2/29/2000 9,755 12,482
3/31/2000 10,255 13,703
4/30/2000 10,745 13,291
5/31/2000 11,056 13,018
6/30/2000 11,986 13,339
7/31/2000 11,476 13,130
8/31/2000 11,696 13,946
9/30/2000 12,116 13,210
10/31/2000 12,386 13,154
11/30/2000 12,826 12,117
12/31/2000 13,127 12,176
1/31/2001 12,036 12,608
2/28/2001 12,206 11,459
3/31/2001 11,256 10,733
4/30/2001 11,566 11,567
5/31/2001 11,736 11,644
6/30/2001 11,406 11,361
7/31/2001 11,756 11,249
8/31/2001 11,366 10,545
9/30/2001 11,346 9,693
10/31/2001 11,326 9,878
11/30/2001 11,776 10,636
12/31/2001 11,476 10,729
1/31/2002 11,276 10,572
2/28/2002 11,286 10,369
3/31/2002 11,366 10,758
4/30/2002 10,725 10,106
5/31/2002 10,565 10,032
6/30/2002 9,605 9,317
7/31/2002 9,355 8,591
8/31/2002 9,445 8,647
9/30/2002 8,874 7,707
10/31/2002 9,235 8,386
11/30/2002 9,405 8,879
12/31/2002 9,175 8,358
1/31/2003 9,205 8,139
2/28/2003 9,005 8,017
3/31/2003 9,215 8,095
4/30/2003 9,785 8,761
5/31/2003 10,475 9,223
6/30/2003 10,745 9,341
7/31/2003 11,226 9,505
8/31/2003 11,146 9,691
9/30/2003 11,186 9,588
10/31/2003 11,486 10,130
11/30/2003 11,776 10,219
12/31/2003 12,146 10,755
1/31/2004 12,616 10,953
2/29/2004 12,686 11,105
3/31/2004 12,506 10,937
4/30/2004 12,646 10,766
5/31/2004 12,596 10,913
6/30/2004 12,686 11,126
7/31/2004 11,856 10,757
8/31/2004 11,976 10,801
9/30/2004 12,056 10,918
10/31/2004 11,786 11,085
11/30/2004 12,176 11,533
12/31/2004 12,906 11,926
1/31/2005 12,546 11,635
2/28/2005 12,826 11,880
3/31/2005 12,716 11,669
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/17/98) (05/11/98) (09/01/04) (03/30/01)
- --------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------------------------------------
HEALTH CARE FUND 1.68% 4.40% 3.52% 1.16% 3.89% 3.10% 5.15% 0.66% 2.03%
S&P 500 INDEX 6.69% -3.16% 2.25% 6.69% -3.16% 2.46% 7.84% 6.69% 2.11%
- --------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
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 34%
HEALTH CARE PROVIDERS & SERVICES 28%
HEALTH CARE EQUIPMENT & SUPPLIES 22%
BIOTECHNOLOGY 14%
HOTELS RESTAURANTS & LEISURE 1%
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1%
"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. 7.8%
Johnson & Johnson 6.7%
Abbott Laboratories 4.2%
Amgen, Inc. 4.2%
UnitedHealth Group, Inc. 3.6%
Bristol-Myers Squibb Co. 3.1%
Eli Lilly & Co. 2.7%
Aetna, Inc. 2.4%
Medtronic, Inc. 2.3%
Merck & Co., Inc. 2.3%
- --------------------------------------------------
Top Ten Total 39.3%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
16 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
INTERNET FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that provide
products or services designed for or related to the Internet.
Inception: April 6, 2000
Tempered growth expectations and increased competition put pressure on Internet
retailers during the year ending March 31, 2005. While eBay and Overstock.com
had positive years, most Internet retailers did not. Amazon, Netflix and
InterActive Corp. were all down at least 20% for the year. The Internet software
and services industry (with companies such as Google, Yahoo!, and VeriSign) was
able to outperform the S&P 500 Index, but could not sufficiently buoy the rest
of the group to produce positive returns for the fund. Rydex Internet Fund
Investor Class returned -9.45% for the year.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
INTERNET FUND
DATE C-CLASS S&P 500 INDEX
---- ------------- -------------
4/19/2001 10,000 10,000
4/30/2001 9,489 9,968
5/31/2001 9,399 10,035
6/30/2001 8,906 9,790
7/31/2001 7,891 9,694
8/31/2001 6,330 9,087
9/30/2001 4,923 8,353
10/31/2001 5,661 8,513
11/30/2001 6,867 9,166
12/31/2001 6,833 9,246
1/31/2002 6,491 9,111
2/28/2002 5,204 8,935
3/31/2002 5,670 9,271
4/30/2002 4,684 8,709
5/31/2002 4,502 8,645
6/30/2002 3,875 8,029
7/31/2002 3,356 7,403
8/31/2002 3,390 7,452
9/30/2002 2,901 6,642
10/31/2002 3,582 7,227
11/30/2002 4,579 7,652
12/31/2002 3,822 7,203
1/31/2003 3,809 7,014
2/28/2003 3,743 6,909
3/31/2003 3,753 6,976
4/30/2003 4,124 7,550
5/31/2003 4,837 7,948
6/30/2003 4,910 8,050
7/31/2003 5,066 8,191
8/31/2003 5,354 8,351
9/30/2003 5,206 8,263
10/31/2003 5,699 8,730
11/30/2003 5,843 8,807
12/31/2003 6,208 9,269
1/31/2004 6,637 9,439
2/29/2004 6,522 9,570
3/31/2004 6,487 9,426
4/30/2004 6,099 9,278
5/31/2004 6,519 9,405
6/30/2004 6,773 9,588
7/31/2004 6,009 9,270
8/31/2004 5,672 9,308
9/30/2004 5,968 9,409
10/31/2004 6,302 9,553
11/30/2004 6,757 9,939
12/31/2004 6,942 10,277
1/31/2005 6,266 10,027
2/28/2005 5,861 10,238
3/31/2005 5,816 10,056
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
INTERNET FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- -------------- -------------
4/6/2000 10,000 10,000
4/30/2000 8,660 9,679
5/31/2000 7,040 9,480
6/30/2000 7,770 9,714
7/31/2000 7,590 9,562
8/31/2000 8,550 10,156
9/30/2000 7,290 9,620
10/31/2000 5,920 9,579
11/30/2000 4,120 8,824
12/31/2000 3,410 8,867
1/31/2001 4,160 9,182
2/28/2001 2,840 8,345
3/31/2001 2,090 7,816
4/30/2001 2,535 8,423
5/31/2001 2,513 8,480
6/30/2001 2,383 8,273
7/31/2001 2,114 8,192
8/31/2001 1,697 7,679
9/30/2001 1,321 7,059
10/31/2001 1,520 7,194
11/30/2001 1,845 7,745
12/31/2001 1,837 7,813
1/31/2002 1,746 7,699
2/28/2002 1,401 7,551
3/31/2002 1,528 7,835
4/30/2002 1,263 7,360
5/31/2002 1,215 7,305
6/30/2002 1,047 6,785
7/31/2002 908 6,256
8/31/2002 918 6,297
9/30/2002 786 5,613
10/31/2002 971 6,107
11/30/2002 1,243 6,466
12/31/2002 1,038 6,086
1/31/2003 1,035 5,927
2/28/2003 1,018 5,838
3/31/2003 1,022 5,895
4/30/2003 1,123 6,380
5/31/2003 1,319 6,716
6/30/2003 1,340 6,802
7/31/2003 1,383 6,922
8/31/2003 1,463 7,057
9/30/2003 1,424 6,982
10/31/2003 1,560 7,377
11/30/2003 1,601 7,442
12/31/2003 1,703 7,832
1/31/2004 1,821 7,976
2/29/2004 1,791 8,087
3/31/2004 1,783 7,965
4/30/2004 1,678 7,840
5/31/2004 1,795 7,947
6/30/2004 1,866 8,102
7/31/2004 1,657 7,834
8/31/2004 1,565 7,866
9/30/2004 1,648 7,951
10/31/2004 1,741 8,072
11/30/2004 1,869 8,399
12/31/2004 1,922 8,685
1/31/2005 1,736 8,473
2/28/2005 1,625 8,651
3/31/2005 1,615 8,498
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ----------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/06/00) (04/06/00) (09/01/04) (04/19/01)
- ----------------------------------------------------------------------------------------------
ONE SINCE ONE SINCE SINCE ONE SINCE
YEAR INCEPTION YEAR INCEPTION INCEPTION YEAR INCEPTION
- ----------------------------------------------------------------------------------------------
INTERNET FUND -9.45% -30.64% -9.87% -31.03% 2.61% -10.33% -12.83%
S&P 500 INDEX 6.69% -3.21% 6.69% -3.21% 7.84% 6.69% 0.14%
- ----------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
INTERNET FUND
OTHER 17%
COMMUNICATION & EQUIPMENT 26%
INTERNET SOFTWARE & SERVICES 23%
SOFTWARE 14%
INTERNET & CATALOG RETAIL 13%
MEDIA 7%
"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 19, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------
Cisco Systems, Inc. 9.0%
Yahoo!, Inc. 7.3%
Time Warner, Inc. 7.0%
Qualcomm, Inc. 5.9%
Research In Motion Ltd. 4.6%
eBay, Inc. 4.4%
Amazon.Com, Inc. 4.2%
Juniper Networks, Inc. 4.0%
Qwest Communications International, Inc. 2.8%
Checkfree Corp. 2.8%
- --------------------------------------------------
Top Ten Total 52.0%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 17
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
LEISURE FUND
OBJECTIVE: Seeks capital appreciation by investing in companies in the leisure
and entertainment businesses.
Inception: April 1, 1998
Leisure companies outperformed the S&P 500 Index for the third year in a row,
driven by hotels, resorts and cruise lines, and casinos and gaming. Increased
business travel and an improving economy enabled hotels to increase their rates.
Shares of Boyd Gaming and MGM Mirage fared especially well as their joint
venture, The Borgata, continued to gain market share in Atlantic City. The Fund
also benefited from a flurry of mergers and acquisitions in the gaming industry,
which are expected to continue. Shares of Rydex Leisure Fund Investor Class
returned 10.27% for the year ended March 31, 2005, outpacing the S&P 500 Index's
return of 6.69%.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
LEISURE FUND
DATE C-CLASS S&P 500 INDEX
---- ------------ -------------
5/3/2001 10,000 10,000
5/31/2001 10,300 10,072
6/30/2001 10,228 9,826
7/31/2001 9,462 9,730
8/31/2001 8,449 9,121
9/30/2001 6,546 8,384
10/31/2001 6,732 8,544
11/30/2001 7,342 9,199
12/31/2001 7,580 9,280
1/31/2002 7,859 9,145
2/28/2002 7,787 8,968
3/31/2002 8,201 9,306
4/30/2002 8,438 8,741
5/31/2002 8,366 8,677
6/30/2002 7,911 8,059
7/31/2002 7,249 7,431
8/31/2002 7,125 7,479
9/30/2002 6,515 6,667
10/31/2002 6,494 7,253
11/30/2002 6,805 7,680
12/31/2002 6,360 7,229
1/31/2003 6,081 7,040
2/28/2003 5,822 6,934
3/31/2003 6,070 7,001
4/30/2003 6,477 7,578
5/31/2003 6,898 7,977
6/30/2003 7,173 8,079
7/31/2003 7,401 8,222
8/31/2003 7,590 8,382
9/30/2003 7,494 8,293
10/31/2003 8,080 8,762
11/30/2003 8,283 8,839
12/31/2003 8,476 9,303
1/31/2004 8,728 9,473
2/29/2004 9,145 9,605
3/31/2004 9,283 9,460
4/30/2004 8,911 9,312
5/31/2004 8,811 9,439
6/30/2004 8,935 9,623
7/31/2004 8,594 9,305
8/31/2004 8,470 9,342
9/30/2004 8,876 9,443
10/31/2004 9,038 9,588
11/30/2004 9,659 9,976
12/31/2004 10,334 10,315
1/31/2005 10,131 10,064
2/28/2005 10,114 10,275
3/31/2005 10,131 10,093
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
LEISURE FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- -------------- -------------
4/1/1998 10,000 10,000
4/30/1998 9,790 10,041
5/31/1998 9,480 9,869
6/30/1998 9,810 10,269
7/31/1998 9,680 10,160
8/31/1998 8,190 8,691
9/30/1998 8,480 9,248
10/31/1998 9,180 10,000
11/30/1998 9,840 10,606
12/31/1998 10,630 11,217
1/31/1999 11,020 11,687
2/28/1999 10,950 11,323
3/31/1999 11,210 11,776
4/30/1999 11,160 12,232
5/31/1999 10,610 11,943
6/30/1999 10,760 12,606
7/31/1999 10,440 12,213
8/31/1999 9,950 12,152
9/30/1999 9,960 11,819
10/31/1999 10,510 12,567
11/30/1999 10,697 12,823
12/31/1999 11,626 13,578
1/31/2000 11,272 12,896
2/29/2000 10,657 12,651
3/31/2000 11,202 13,889
4/30/2000 10,798 13,471
5/31/2000 10,657 13,195
6/30/2000 10,697 13,520
7/31/2000 10,425 13,309
8/31/2000 10,788 14,135
9/30/2000 10,354 13,389
10/31/2000 10,203 13,333
11/30/2000 9,062 12,281
12/31/2000 9,032 12,342
1/31/2001 10,082 12,779
2/28/2001 9,365 11,614
3/31/2001 8,598 10,878
4/30/2001 9,648 11,724
5/31/2001 10,072 11,802
6/30/2001 10,001 11,515
7/31/2001 9,254 11,402
8/31/2001 8,265 10,688
9/30/2001 6,408 9,825
10/31/2001 6,620 10,012
11/30/2001 7,216 10,780
12/31/2001 7,448 10,875
1/31/2002 7,720 10,716
2/28/2002 7,660 10,509
3/31/2002 8,073 10,905
4/30/2002 8,316 10,243
5/31/2002 8,245 10,168
6/30/2002 7,801 9,444
7/31/2002 7,165 8,708
8/31/2002 7,034 8,765
9/30/2002 6,439 7,812
10/31/2002 6,428 8,500
11/30/2002 6,741 9,000
12/31/2002 6,307 8,471
1/31/2003 6,025 8,249
2/28/2003 5,783 8,126
3/31/2003 6,015 8,205
4/30/2003 6,435 8,880
5/31/2003 6,859 9,348
6/30/2003 7,142 9,467
7/31/2003 7,370 9,634
8/31/2003 7,569 9,822
9/30/2003 7,478 9,718
10/31/2003 8,073 10,268
11/30/2003 8,272 10,358
12/31/2003 8,474 10,901
1/31/2004 8,733 11,101
2/29/2004 9,157 11,256
3/31/2004 9,305 11,086
4/30/2004 8,935 10,912
5/31/2004 8,844 11,062
6/30/2004 8,975 11,277
7/31/2004 8,638 10,903
8/31/2004 8,524 10,948
9/30/2004 8,941 11,066
10/31/2004 9,113 11,235
11/30/2004 9,749 11,690
12/31/2004 10,442 12,088
1/31/2005 10,243 11,793
2/28/2005 10,236 12,041
3/31/2005 10,260 11,828
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/01/98) (06/03/98) (09/01/04) (05/03/01)
- --------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------------------------------------
LEISURE FUND 10.27% -1.74% 0.37% 9.72% -2.22% 0.80% 19.32% 9.13% 0.33%
S&P 500 INDEX 6.69% -3.16% 2.43% 6.69% -3.16% 2.80% 7.84% 6.69% 0.24%
- --------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
LEISURE FUND
HOTELS RESTAURANTS & LEISURE 57%
MEDIA 25%
LEISURE EQUIPMENT & PRODUCTS 13%
SOFTWARE 4%
CHEMICALS 1%
"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)
- --------------------------------------------------
News Corp. - Class A 8.0%
Time Warner, Inc. 6.4%
Viacom, Inc. - Class B 5.7%
McDonald's Corp. 5.0%
Walt Disney Co. 4.6%
Starbucks Corp. 3.8%
Hilton Hotels Corp. 3.1%
Darden Restaurants, Inc. 2.8%
International Game Technology, Inc. 2.7%
Marriott International, Inc. - Class A 2.7%
- --------------------------------------------------
Top Ten Total 44.8%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
18 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
PRECIOUS METALS FUND
OBJECTIVE: To provide capital appreciation by investing in U.S. and foreign
companies that are involved in the precious metals sector, including
exploration, mining, production and development, and other precious
metals-related services.
Inception: December 1, 1993
Precious metals stocks lost ground during the year ended March 31, 2005, and
trailed the broader S&P 500 Index by a wide margin. After a weak start, gold
stocks posted a strong rally into late November 2004 due to concerns over the
dollar's weakness. However, as the dollar and the equities market gained
strength, the price of gold and precious metals stocks began to fall back once
again. Rydex Precious Metals Fund Investor Class returned -19.58% during the
year.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
PRECIOUS METALS FUND
DATE C-CLASS S&P 500 INDEX
---- -------------------- -------------
4/27/2001 10,000 10,000
4/30/2001 9,922 9,971
5/31/2001 10,211 10,038
6/30/2001 9,922 9,794
7/31/2001 9,574 9,698
8/31/2001 10,171 9,090
9/30/2001 10,524 8,356
10/31/2001 10,220 8,516
11/30/2001 10,020 9,169
12/31/2001 10,345 9,249
1/31/2002 11,737 9,114
2/28/2002 12,699 8,939
3/31/2002 13,675 9,275
4/30/2002 14,124 8,712
5/31/2002 16,448 8,648
6/30/2002 14,159 8,032
7/31/2002 11,909 7,406
8/31/2002 13,804 7,455
9/30/2002 13,557 6,644
10/31/2002 12,506 7,229
11/30/2002 12,580 7,655
12/31/2002 15,195 7,205
1/31/2003 15,032 7,016
2/28/2003 14,026 6,911
3/31/2003 13,000 6,978
4/30/2003 12,694 7,553
5/31/2003 14,193 7,951
6/30/2003 14,795 8,052
7/31/2003 15,466 8,194
8/31/2003 17,390 8,354
9/30/2003 17,075 8,265
10/31/2003 18,407 8,733
11/30/2003 21,357 8,810
12/31/2003 21,396 9,272
1/31/2004 18,944 9,442
2/29/2004 19,950 9,573
3/31/2004 21,297 9,429
4/30/2004 15,939 9,281
5/31/2004 17,527 9,408
6/30/2004 16,782 9,591
7/31/2004 16,531 9,274
8/31/2004 17,814 9,311
9/30/2004 19,699 9,412
10/31/2004 19,442 9,556
11/30/2004 19,916 9,943
12/31/2004 18,199 10,281
1/31/2005 16,896 10,030
2/28/2005 18,110 10,241
3/31/2005 16,960 10,060
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
PRECIOUS METALS FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- -------------------- -------------
12/1/1993 10,000 10,000
12/31/1993 10,660 10,118
3/31/1994 10,030 9,734
6/30/1994 8,340 9,775
9/30/1994 9,520 10,253
12/31/1994 7,948 10,252
3/31/1995 8,854 11,250
6/30/1995 8,805 12,324
9/30/1995 9,107 13,303
12/31/1995 8,865 14,104
3/31/1996 10,570 14,861
6/30/1996 9,138 15,528
9/30/1996 8,553 16,008
12/31/1996 8,633 17,342
3/31/1997 7,705 17,807
6/30/1997 7,060 20,916
9/30/1997 8,028 22,482
12/31/1997 5,386 23,128
3/31/1998 5,870 26,354
6/30/1998 5,083 27,225
9/30/1998 5,285 24,516
12/31/1998 4,609 29,738
3/31/1999 4,226 31,219
6/30/1999 4,730 33,420
9/30/1999 5,386 31,333
12/31/1999 4,609 35,995
3/31/2000 3,792 36,820
6/30/2000 3,921 35,842
9/30/2000 3,522 35,495
12/31/2000 3,605 32,718
3/31/2001 3,576 28,839
6/30/2001 4,087 30,527
9/30/2001 4,343 26,046
12/31/2001 4,277 28,829
3/31/2002 5,667 28,908
6/30/2002 5,880 25,035
9/30/2002 5,644 20,710
12/31/2002 6,341 22,458
3/31/2003 5,439 21,751
6/30/2003 6,207 25,099
9/30/2003 7,182 25,763
12/31/2003 9,024 28,900
3/31/2004 9,004 29,389
6/30/2004 7,112 29,895
9/30/2004 8,370 29,337
12/31/2004 7,750 32,045
3/31/2005 7,240 31,356
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ----------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(12/01/93) (08/01/03) (09/01/04) (04/27/01)
- ----------------------------------------------------------------------------------------------------------------
ONE FIVE TEN SINCE ONE SINCE SINCE ONE SINCE
YEAR YEAR YEAR INCEPTION YEAR INCEPTION INCEPTION YEAR INCEPTION
- ----------------------------------------------------------------------------------------------------------------
PRECIOUS METALS FUND -19.58% 13.81% -1.99% -2.81% -19.92% 6.85% -4.97% -20.37% 14.40%
S&P 500 INDEX 6.69% -3.16% 10.79% 10.61% 6.69% 13.81% 7.84% 6.69% 0.15%
- ----------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
PRECIOUS METALS FUND
MATERIALS 100%
"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. 13.8%
Freeport-McMoRan Copper & Gold,
Inc. - Class B 9.3%
Barrick Gold Corp. 6.6%
Placer Dome, Inc. 5.4%
AngloGold Ashanti Ltd. - SP ADR 5.0%
Gold Fields Ltd. - SP ADR 4.8%
Goldcorp, Inc. 4.6%
Harmony Gold Mining Co. Ltd. - SP ADR 4.3%
Wheaton River Minerals Ltd. 3.9%
Pan American Silver Corp. 3.6%
- --------------------------------------------------
Top Ten Total 61.3%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 19
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
REAL ESTATE FUND
OBJECTIVE: Seeks to provide capital appreciation by investing in companies that
are involved in the real estate industry including real estate investment trusts
("REITs").
Inception: February 20, 2004
Since the end of 1999, real estate investment trusts (REITs) have easily
outperformed the broader stock market. More recently, historically high
valuations have resulted in a diminished upside potential in the minds of many
REIT investors. During the year ended March 31, 2005, robust consumer
consumption resulted in strong store sales, helping provide stability in the
commercial renting and leasing area. Still, the looming threat of interest rate
increases in the near future weighed heavily in other areas and provided
challenges for Rydex Real Estate Fund. For the year, the H-Class of the Fund
gained 5.06%, while the S&P 500 Index rose 6.69%.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
REAL ESTATE FUND
DATE C-CLASS S&P 500 INDEX
---- ---------------- -------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 10,000 9,973
2/24/2004 10,020 9,957
2/25/2004 10,100 9,998
2/26/2004 10,076 10,012
2/27/2004 10,092 10,012
2/28/2004 10,092 10,012
2/29/2004 10,092 10,012
3/1/2004 10,212 10,109
3/2/2004 10,284 10,049
3/3/2004 10,336 10,069
3/4/2004 10,380 10,103
3/5/2004 10,436 10,120
3/6/2004 10,436 10,120
3/7/2004 10,436 10,120
3/8/2004 10,424 10,036
3/9/2004 10,420 9,979
3/10/2004 10,288 9,834
3/11/2004 10,168 9,687
3/12/2004 10,288 9,807
3/13/2004 10,288 9,807
3/14/2004 10,288 9,807
3/15/2004 10,208 9,667
3/16/2004 10,232 9,722
3/17/2004 10,396 9,837
3/18/2004 10,448 9,824
3/19/2004 10,460 9,714
3/20/2004 10,460 9,714
3/21/2004 10,460 9,714
3/22/2004 10,408 9,589
3/23/2004 10,460 9,576
3/24/2004 10,368 9,553
3/25/2004 10,492 9,709
3/26/2004 10,392 9,700
3/27/2004 10,392 9,700
3/28/2004 10,392 9,700
3/29/2004 10,468 9,827
3/30/2004 10,564 9,867
3/31/2004 10,652 9,861
4/1/2004 10,744 9,914
4/2/2004 10,640 9,999
4/3/2004 10,640 9,999
4/4/2004 10,640 9,999
4/5/2004 10,244 10,075
4/6/2004 9,796 10,057
4/7/2004 9,964 9,991
4/8/2004 9,768 9,980
4/9/2004 9,768 9,980
4/10/2004 9,768 9,980
4/11/2004 9,768 9,980
4/12/2004 9,272 10,032
4/13/2004 9,192 9,895
4/14/2004 9,088 9,884
4/15/2004 9,284 9,890
4/16/2004 9,380 9,940
4/17/2004 9,380 9,940
4/18/2004 9,380 9,940
4/19/2004 9,432 9,951
4/20/2004 9,108 9,796
4/21/2004 9,140 9,849
4/22/2004 9,272 9,988
4/23/2004 9,184 9,994
4/24/2004 9,184 9,994
4/25/2004 9,184 9,994
4/26/2004 9,224 9,950
4/27/2004 9,300 9,972
4/28/2004 9,224 9,836
4/29/2004 9,100 9,764
4/30/2004 9,048 9,706
5/1/2004 9,048 9,706
5/2/2004 9,048 9,706
5/3/2004 9,184 9,796
5/4/2004 9,256 9,814
5/5/2004 9,164 9,833
5/6/2004 9,156 9,768
5/7/2004 8,808 9,634
5/8/2004 8,808 9,634
5/9/2004 8,808 9,634
5/10/2004 8,696 9,532
5/11/2004 8,776 9,607
5/12/2004 8,788 9,627
5/13/2004 8,788 9,620
5/14/2004 8,876 9,614
5/15/2004 8,876 9,614
5/16/2004 8,876 9,614
5/17/2004 8,932 9,514
5/18/2004 9,096 9,579
5/19/2004 8,888 9,556
5/20/2004 9,064 9,560
5/21/2004 9,064 9,599
5/22/2004 9,064 9,599
5/23/2004 9,064 9,599
5/24/2004 9,156 9,615
5/25/2004 9,336 9,770
5/26/2004 9,476 9,788
5/27/2004 9,516 9,845
5/28/2004 9,608 9,840
5/29/2004 9,608 9,840
5/30/2004 9,608 9,840
5/31/2004 9,608 9,840
6/1/2004 9,504 9,844
6/2/2004 9,632 9,881
6/3/2004 9,564 9,808
6/4/2004 9,576 9,859
6/5/2004 9,576 9,859
6/6/2004 9,576 9,859
6/7/2004 9,660 10,017
6/8/2004 9,648 10,033
6/9/2004 9,596 9,939
6/10/2004 9,568 9,984
6/11/2004 9,568 9,984
6/12/2004 9,568 9,984
6/13/2004 9,568 9,984
6/14/2004 9,400 9,889
6/15/2004 9,584 9,948
6/16/2004 9,628 9,962
6/17/2004 9,696 9,948
6/18/2004 9,744 9,975
6/19/2004 9,744 9,975
6/20/2004 9,744 9,975
6/21/2004 9,852 9,933
6/22/2004 9,832 9,970
6/23/2004 9,896 10,054
6/24/2004 9,872 10,026
6/25/2004 9,944 9,972
6/26/2004 9,944 9,972
6/27/2004 9,944 9,972
6/28/2004 9,988 9,964
6/29/2004 9,780 9,989
6/30/2004 9,904 10,031
7/1/2004 9,912 9,928
7/2/2004 10,112 9,897
7/3/2004 10,112 9,897
7/4/2004 10,112 9,897
7/5/2004 10,112 9,897
7/6/2004 10,076 9,816
7/7/2004 10,180 9,837
7/8/2004 10,012 9,757
7/9/2004 10,020 9,790
7/10/2004 10,020 9,790
7/11/2004 10,020 9,790
7/12/2004 10,108 9,803
7/13/2004 10,016 9,811
7/14/2004 10,072 9,779
7/15/2004 10,156 9,737
7/16/2004 10,128 9,690
7/17/2004 10,128 9,690
7/18/2004 10,128 9,690
7/19/2004 10,200 9,686
7/20/2004 10,232 9,754
7/21/2004 10,120 9,625
7/22/2004 9,880 9,651
7/23/2004 9,804 9,558
7/24/2004 9,804 9,558
7/25/2004 9,804 9,558
7/26/2004 9,724 9,539
7/27/2004 9,748 9,634
7/28/2004 9,816 9,641
7/29/2004 9,808 9,688
7/30/2004 9,888 9,699
7/31/2004 9,888 9,699
8/1/2004 9,888 9,699
8/2/2004 10,052 9,742
8/3/2004 10,076 9,681
8/4/2004 10,164 9,674
8/5/2004 9,988 9,516
8/6/2004 9,960 9,369
8/7/2004 9,960 9,369
8/8/2004 9,960 9,369
8/9/2004 9,972 9,381
8/10/2004 10,020 9,502
8/11/2004 10,012 9,479
8/12/2004 9,908 9,369
8/13/2004 9,908 9,383
8/14/2004 9,908 9,383
8/15/2004 9,908 9,383
8/16/2004 10,052 9,512
8/17/2004 10,152 9,534
8/18/2004 10,292 9,654
8/19/2004 10,120 9,620
8/20/2004 10,420 9,682
8/21/2004 10,420 9,682
8/22/2004 10,420 9,682
8/23/2004 10,404 9,660
8/24/2004 10,544 9,664
8/25/2004 10,480 9,742
8/26/2004 10,516 9,743
8/27/2004 10,536 9,768
8/28/2004 10,536 9,768
8/29/2004 10,536 9,768
8/30/2004 10,580 9,693
8/31/2004 10,660 9,738
9/1/2004 10,632 9,756
9/2/2004 10,688 9,866
9/3/2004 10,748 9,824
9/4/2004 10,748 9,824
9/5/2004 10,748 9,824
9/6/2004 10,748 9,824
9/7/2004 10,848 9,893
9/8/2004 10,828 9,850
9/9/2004 10,648 9,869
9/10/2004 10,676 9,918
9/11/2004 10,676 9,918
9/12/2004 10,676 9,918
9/13/2004 10,580 9,937
9/14/2004 10,428 9,959
9/15/2004 10,500 9,889
9/16/2004 10,696 9,917
9/17/2004 10,652 9,962
9/18/2004 10,652 9,962
9/19/2004 10,652 9,962
9/20/2004 10,532 9,906
9/21/2004 10,580 9,969
9/22/2004 10,496 9,830
9/23/2004 10,456 9,786
9/24/2004 10,480 9,801
9/25/2004 10,480 9,801
9/26/2004 10,480 9,801
9/27/2004 10,468 9,743
9/28/2004 10,544 9,803
9/29/2004 10,568 9,846
9/30/2004 10,644 9,844
10/1/2004 10,832 9,993
10/2/2004 10,832 9,993
10/3/2004 10,832 9,993
10/4/2004 10,856 10,027
10/5/2004 10,864 10,021
10/6/2004 10,932 10,091
10/7/2004 10,772 9,991
10/8/2004 10,848 9,916
10/9/2004 10,848 9,916
10/10/2004 10,848 9,916
10/11/2004 10,800 9,935
10/12/2004 10,912 9,913
10/13/2004 10,852 9,842
10/14/2004 10,944 9,750
10/15/2004 11,028 9,794
10/16/2004 11,028 9,794
10/17/2004 11,028 9,794
10/18/2004 11,092 9,845
10/19/2004 11,000 9,750
10/20/2004 10,944 9,754
10/21/2004 11,080 9,780
10/22/2004 10,964 9,685
10/23/2004 10,964 9,685
10/24/2004 10,964 9,685
10/25/2004 10,928 9,676
10/26/2004 11,104 9,820
10/27/2004 11,196 9,948
10/28/2004 11,208 9,970
10/29/2004 11,140 9,994
10/30/2004 11,140 9,994
10/31/2004 11,140 9,994
11/1/2004 11,276 9,997
11/2/2004 11,164 9,997
11/3/2004 11,292 10,111
11/4/2004 11,464 10,275
11/5/2004 11,152 10,315
11/6/2004 11,152 10,315
11/7/2004 11,152 10,315
11/8/2004 11,204 10,304
11/9/2004 11,228 10,301
11/10/2004 11,292 10,293
11/11/2004 11,408 10,386
11/12/2004 11,664 10,482
11/13/2004 11,664 10,482
11/14/2004 11,664 10,482
11/15/2004 11,776 10,480
11/16/2004 11,660 10,407
11/17/2004 11,432 10,466
11/18/2004 11,420 10,480
11/19/2004 11,272 10,363
11/20/2004 11,272 10,363
11/21/2004 11,272 10,363
11/22/2004 11,365 10,425
11/23/2004 11,493 10,422
11/24/2004 11,634 10,466
11/25/2004 11,634 10,466
11/26/2004 11,586 10,475
11/27/2004 11,586 10,475
11/28/2004 11,586 10,475
11/29/2004 11,558 10,440
11/30/2004 11,606 10,398
12/1/2004 11,827 10,557
12/2/2004 11,715 10,548
12/3/2004 11,883 10,556
12/4/2004 11,883 10,556
12/5/2004 11,883 10,556
12/6/2004 11,940 10,548
12/7/2004 11,743 10,431
12/8/2004 11,803 10,485
12/9/2004 11,875 10,542
12/10/2004 11,960 10,531
12/11/2004 11,960 10,531
12/12/2004 11,960 10,531
12/13/2004 11,936 10,627
12/14/2004 11,924 10,668
12/15/2004 11,984 10,690
12/16/2004 11,847 10,668
12/17/2004 11,960 10,589
12/18/2004 11,960 10,589
12/19/2004 11,960 10,589
12/20/2004 11,944 10,593
12/21/2004 12,060 10,689
12/22/2004 12,141 10,729
12/23/2004 12,040 10,734
12/24/2004 12,040 10,734
12/25/2004 12,040 10,734
12/26/2004 12,040 10,734
12/27/2004 12,016 10,688
12/28/2004 12,068 10,764
12/29/2004 12,113 10,765
12/30/2004 12,153 10,767
12/31/2004 12,125 10,752
1/1/2005 12,125 10,752
1/2/2005 12,125 10,752
1/3/2005 11,972 10,665
1/4/2005 11,815 10,542
1/5/2005 11,381 10,504
1/6/2005 11,465 10,544
1/7/2005 11,449 10,529
1/8/2005 11,449 10,529
1/9/2005 11,449 10,529
1/10/2005 11,425 10,565
1/11/2005 11,296 10,501
1/12/2005 11,244 10,544
1/13/2005 11,288 10,453
1/14/2005 11,385 10,516
1/15/2005 11,385 10,516
1/16/2005 11,385 10,516
1/17/2005 11,385 10,516
1/18/2005 11,534 10,618
1/19/2005 11,570 10,518
1/20/2005 11,485 10,436
1/21/2005 11,497 10,369
1/22/2005 11,497 10,369
1/23/2005 11,497 10,369
1/24/2005 11,393 10,333
1/25/2005 11,188 10,374
1/26/2005 11,212 10,425
1/27/2005 11,103 10,430
1/28/2005 11,152 10,402
1/29/2005 11,152 10,402
1/30/2005 11,152 10,402
1/31/2005 11,143 10,490
2/1/2005 11,224 10,563
2/2/2005 11,345 10,597
2/3/2005 11,324 10,571
2/4/2005 11,509 10,688
2/5/2005 11,509 10,688
2/6/2005 11,509 10,688
2/7/2005 11,457 10,677
2/8/2005 11,493 10,684
2/9/2005 11,534 10,595
2/10/2005 11,582 10,640
2/11/2005 11,654 10,716
2/12/2005 11,654 10,716
2/13/2005 11,654 10,716
2/14/2005 11,662 10,725
2/15/2005 11,694 10,761
2/16/2005 11,759 10,765
2/17/2005 11,735 10,680
2/18/2005 11,626 10,687
2/19/2005 11,626 10,687
2/20/2005 11,626 10,687
2/21/2005 11,626 10,687
2/22/2005 11,324 10,532
2/23/2005 11,300 10,592
2/24/2005 11,288 10,679
2/25/2005 11,493 10,780
2/26/2005 11,493 10,780
2/27/2005 11,493 10,780
2/28/2005 11,389 10,711
3/1/2005 11,509 10,772
3/2/2005 11,453 10,772
3/3/2005 11,513 10,776
3/4/2005 11,727 10,880
3/5/2005 11,727 10,880
3/6/2005 11,727 10,880
3/7/2005 11,795 10,909
3/8/2005 11,702 10,857
3/9/2005 11,365 10,748
3/10/2005 11,457 10,768
3/11/2005 11,308 10,689
3/12/2005 11,308 10,689
3/13/2005 11,308 10,689
3/14/2005 11,465 10,750
3/15/2005 11,429 10,669
3/16/2005 11,312 10,584
3/17/2005 11,409 10,603
3/18/2005 11,316 10,598
3/19/2005 11,316 10,598
3/20/2005 11,316 10,598
3/21/2005 11,252 10,546
3/22/2005 11,075 10,439
3/23/2005 11,007 10,446
3/24/2005 11,059 10,436
3/25/2005 11,059 10,436
3/26/2005 11,059 10,436
3/27/2005 11,059 10,436
3/28/2005 10,999 10,462
3/29/2005 10,991 10,384
3/30/2005 11,139 10,528
3/31/2005 11,115 10,521
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
REAL ESTATE FUND
DATE H-CLASS S&P 500 INDEX
---- ---------------- -------------
2/20/2004 10,000 10,000
2/21/2004 10,000 10,000
2/22/2004 10,000 10,000
2/23/2004 10,000 9,973
2/24/2004 10,020 9,957
2/25/2004 10,100 9,998
2/26/2004 10,076 10,012
2/27/2004 10,092 10,012
2/28/2004 10,092 10,012
2/29/2004 10,092 10,012
3/1/2004 10,212 10,109
3/2/2004 10,288 10,049
3/3/2004 10,336 10,069
3/4/2004 10,380 10,103
3/5/2004 10,436 10,120
3/6/2004 10,436 10,120
3/7/2004 10,436 10,120
3/8/2004 10,424 10,036
3/9/2004 10,420 9,979
3/10/2004 10,292 9,834
3/11/2004 10,168 9,687
3/12/2004 10,292 9,807
3/13/2004 10,292 9,807
3/14/2004 10,292 9,807
3/15/2004 10,212 9,667
3/16/2004 10,236 9,722
3/17/2004 10,400 9,837
3/18/2004 10,452 9,824
3/19/2004 10,464 9,714
3/20/2004 10,464 9,714
3/21/2004 10,464 9,714
3/22/2004 10,416 9,589
3/23/2004 10,464 9,576
3/24/2004 10,372 9,553
3/25/2004 10,500 9,709
3/26/2004 10,400 9,700
3/27/2004 10,400 9,700
3/28/2004 10,400 9,700
3/29/2004 10,480 9,827
3/30/2004 10,572 9,867
3/31/2004 10,660 9,861
4/1/2004 10,756 9,914
4/2/2004 10,652 9,999
4/3/2004 10,652 9,999
4/4/2004 10,652 9,999
4/5/2004 10,252 10,075
4/6/2004 9,800 10,057
4/7/2004 9,972 9,991
4/8/2004 9,776 9,980
4/9/2004 9,776 9,980
4/10/2004 9,776 9,980
4/11/2004 9,776 9,980
4/12/2004 9,276 10,032
4/13/2004 9,200 9,895
4/14/2004 9,096 9,884
4/15/2004 9,292 9,890
4/16/2004 9,388 9,940
4/17/2004 9,388 9,940
4/18/2004 9,388 9,940
4/19/2004 9,440 9,951
4/20/2004 9,116 9,796
4/21/2004 9,148 9,849
4/22/2004 9,284 9,988
4/23/2004 9,192 9,994
4/24/2004 9,192 9,994
4/25/2004 9,192 9,994
4/26/2004 9,232 9,950
4/27/2004 9,312 9,972
4/28/2004 9,232 9,836
4/29/2004 9,112 9,764
4/30/2004 9,056 9,706
5/1/2004 9,056 9,706
5/2/2004 9,056 9,706
5/3/2004 9,196 9,796
5/4/2004 9,264 9,814
5/5/2004 9,172 9,833
5/6/2004 9,168 9,768
5/7/2004 8,820 9,634
5/8/2004 8,820 9,634
5/9/2004 8,820 9,634
5/10/2004 8,704 9,532
5/11/2004 8,784 9,607
5/12/2004 8,796 9,627
5/13/2004 8,796 9,620
5/14/2004 8,884 9,614
5/15/2004 8,884 9,614
5/16/2004 8,884 9,614
5/17/2004 8,944 9,514
5/18/2004 9,108 9,579
5/19/2004 8,900 9,556
5/20/2004 9,076 9,560
5/21/2004 9,076 9,599
5/22/2004 9,076 9,599
5/23/2004 9,076 9,599
5/24/2004 9,172 9,615
5/25/2004 9,352 9,770
5/26/2004 9,492 9,788
5/27/2004 9,532 9,845
5/28/2004 9,624 9,840
5/29/2004 9,624 9,840
5/30/2004 9,624 9,840
5/31/2004 9,624 9,840
6/1/2004 9,520 9,844
6/2/2004 9,648 9,881
6/3/2004 9,580 9,808
6/4/2004 9,596 9,859
6/5/2004 9,596 9,859
6/6/2004 9,596 9,859
6/7/2004 9,680 10,017
6/8/2004 9,668 10,033
6/9/2004 9,616 9,939
6/10/2004 9,588 9,984
6/11/2004 9,588 9,984
6/12/2004 9,588 9,984
6/13/2004 9,588 9,984
6/14/2004 9,420 9,889
6/15/2004 9,608 9,948
6/16/2004 9,648 9,962
6/17/2004 9,720 9,948
6/18/2004 9,768 9,975
6/19/2004 9,768 9,975
6/20/2004 9,768 9,975
6/21/2004 9,876 9,933
6/22/2004 9,856 9,970
6/23/2004 9,920 10,054
6/24/2004 9,896 10,026
6/25/2004 9,972 9,972
6/26/2004 9,972 9,972
6/27/2004 9,972 9,972
6/28/2004 10,012 9,964
6/29/2004 9,800 9,989
6/30/2004 9,924 10,031
7/1/2004 9,932 9,928
7/2/2004 10,132 9,897
7/3/2004 10,132 9,897
7/4/2004 10,132 9,897
7/5/2004 10,132 9,897
7/6/2004 10,096 9,816
7/7/2004 10,200 9,837
7/8/2004 10,032 9,757
7/9/2004 10,040 9,790
7/10/2004 10,040 9,790
7/11/2004 10,040 9,790
7/12/2004 10,128 9,803
7/13/2004 10,036 9,811
7/14/2004 10,096 9,779
7/15/2004 10,180 9,737
7/16/2004 10,152 9,690
7/17/2004 10,152 9,690
7/18/2004 10,152 9,690
7/19/2004 10,224 9,686
7/20/2004 10,256 9,754
7/21/2004 10,144 9,625
7/22/2004 9,904 9,651
7/23/2004 9,828 9,558
7/24/2004 9,828 9,558
7/25/2004 9,828 9,558
7/26/2004 9,744 9,539
7/27/2004 9,772 9,634
7/28/2004 9,840 9,641
7/29/2004 9,832 9,688
7/30/2004 9,912 9,699
7/31/2004 9,912 9,699
8/1/2004 9,912 9,699
8/2/2004 10,076 9,742
8/3/2004 10,100 9,681
8/4/2004 10,192 9,674
8/5/2004 10,016 9,516
8/6/2004 9,984 9,369
8/7/2004 9,984 9,369
8/8/2004 9,984 9,369
8/9/2004 9,996 9,381
8/10/2004 10,044 9,502
8/11/2004 10,040 9,479
8/12/2004 9,932 9,369
8/13/2004 9,932 9,383
8/14/2004 9,932 9,383
8/15/2004 9,932 9,383
8/16/2004 10,080 9,512
8/17/2004 10,180 9,534
8/18/2004 10,320 9,654
8/19/2004 10,148 9,620
8/20/2004 10,448 9,682
8/21/2004 10,448 9,682
8/22/2004 10,448 9,682
8/23/2004 10,432 9,660
8/24/2004 10,572 9,664
8/25/2004 10,508 9,742
8/26/2004 10,548 9,743
8/27/2004 10,568 9,768
8/28/2004 10,568 9,768
8/29/2004 10,568 9,768
8/30/2004 10,612 9,693
8/31/2004 10,696 9,738
9/1/2004 10,664 9,756
9/2/2004 10,720 9,866
9/3/2004 10,784 9,824
9/4/2004 10,784 9,824
9/5/2004 10,784 9,824
9/6/2004 10,784 9,824
9/7/2004 10,884 9,893
9/8/2004 10,864 9,850
9/9/2004 10,684 9,869
9/10/2004 10,712 9,918
9/11/2004 10,712 9,918
9/12/2004 10,712 9,918
9/13/2004 10,616 9,937
9/14/2004 10,464 9,959
9/15/2004 10,536 9,889
9/16/2004 10,732 9,917
9/17/2004 10,688 9,962
9/18/2004 10,688 9,962
9/19/2004 10,688 9,962
9/20/2004 10,572 9,906
9/21/2004 10,616 9,969
9/22/2004 10,532 9,830
9/23/2004 10,492 9,786
9/24/2004 10,516 9,801
9/25/2004 10,516 9,801
9/26/2004 10,516 9,801
9/27/2004 10,504 9,743
9/28/2004 10,584 9,803
9/29/2004 10,608 9,846
9/30/2004 10,684 9,844
10/1/2004 10,872 9,993
10/2/2004 10,872 9,993
10/3/2004 10,872 9,993
10/4/2004 10,896 10,027
10/5/2004 10,904 10,021
10/6/2004 10,972 10,091
10/7/2004 10,812 9,991
10/8/2004 10,888 9,916
10/9/2004 10,888 9,916
10/10/2004 10,888 9,916
10/11/2004 10,840 9,935
10/12/2004 10,952 9,913
10/13/2004 10,892 9,842
10/14/2004 10,988 9,750
10/15/2004 11,072 9,794
10/16/2004 11,072 9,794
10/17/2004 11,072 9,794
10/18/2004 11,136 9,845
10/19/2004 11,044 9,750
10/20/2004 10,988 9,754
10/21/2004 11,124 9,780
10/22/2004 11,008 9,685
10/23/2004 11,008 9,685
10/24/2004 11,008 9,685
10/25/2004 10,972 9,676
10/26/2004 11,152 9,820
10/27/2004 11,244 9,948
10/28/2004 11,256 9,970
10/29/2004 11,188 9,994
10/30/2004 11,188 9,994
10/31/2004 11,188 9,994
11/1/2004 11,324 9,997
11/2/2004 11,212 9,997
11/3/2004 11,344 10,111
11/4/2004 11,516 10,275
11/5/2004 11,204 10,315
11/6/2004 11,204 10,315
11/7/2004 11,204 10,315
11/8/2004 11,252 10,304
11/9/2004 11,276 10,301
11/10/2004 11,340 10,293
11/11/2004 11,460 10,386
11/12/2004 11,716 10,482
11/13/2004 11,716 10,482
11/14/2004 11,716 10,482
11/15/2004 11,828 10,480
11/16/2004 11,716 10,407
11/17/2004 11,484 10,466
11/18/2004 11,476 10,480
11/19/2004 11,324 10,363
11/20/2004 11,324 10,363
11/21/2004 11,324 10,363
11/22/2004 11,421 10,425
11/23/2004 11,549 10,422
11/24/2004 11,690 10,466
11/25/2004 11,690 10,466
11/26/2004 11,642 10,475
11/27/2004 11,642 10,475
11/28/2004 11,642 10,475
11/29/2004 11,614 10,440
11/30/2004 11,662 10,398
12/1/2004 11,883 10,557
12/2/2004 11,771 10,548
12/3/2004 11,939 10,556
12/4/2004 11,939 10,556
12/5/2004 11,939 10,556
12/6/2004 11,996 10,548
12/7/2004 11,799 10,431
12/8/2004 11,863 10,485
12/9/2004 11,935 10,542
12/10/2004 12,020 10,531
12/11/2004 12,020 10,531
12/12/2004 12,020 10,531
12/13/2004 11,996 10,627
12/14/2004 11,984 10,668
12/15/2004 12,044 10,690
12/16/2004 11,907 10,668
12/17/2004 12,020 10,589
12/18/2004 12,020 10,589
12/19/2004 12,020 10,589
12/20/2004 12,004 10,593
12/21/2004 12,124 10,689
12/22/2004 12,205 10,729
12/23/2004 12,104 10,734
12/24/2004 12,104 10,734
12/25/2004 12,104 10,734
12/26/2004 12,104 10,734
12/27/2004 12,080 10,688
12/28/2004 12,132 10,764
12/29/2004 12,181 10,765
12/30/2004 12,217 10,767
12/31/2004 12,189 10,752
1/1/2005 12,189 10,752
1/2/2005 12,189 10,752
1/3/2005 12,040 10,665
1/4/2005 11,879 10,542
1/5/2005 11,445 10,504
1/6/2005 11,529 10,544
1/7/2005 11,513 10,529
1/8/2005 11,513 10,529
1/9/2005 11,513 10,529
1/10/2005 11,489 10,565
1/11/2005 11,360 10,501
1/12/2005 11,308 10,544
1/13/2005 11,352 10,453
1/14/2005 11,449 10,516
1/15/2005 11,449 10,516
1/16/2005 11,449 10,516
1/17/2005 11,449 10,516
1/18/2005 11,598 10,618
1/19/2005 11,638 10,518
1/20/2005 11,549 10,436
1/21/2005 11,561 10,369
1/22/2005 11,561 10,369
1/23/2005 11,561 10,369
1/24/2005 11,461 10,333
1/25/2005 11,252 10,374
1/26/2005 11,280 10,425
1/27/2005 11,171 10,430
1/28/2005 11,220 10,402
1/29/2005 11,220 10,402
1/30/2005 11,220 10,402
1/31/2005 11,212 10,490
2/1/2005 11,296 10,563
2/2/2005 11,417 10,597
2/3/2005 11,397 10,571
2/4/2005 11,582 10,688
2/5/2005 11,582 10,688
2/6/2005 11,582 10,688
2/7/2005 11,529 10,677
2/8/2005 11,565 10,684
2/9/2005 11,606 10,595
2/10/2005 11,654 10,640
2/11/2005 11,726 10,716
2/12/2005 11,726 10,716
2/13/2005 11,726 10,716
2/14/2005 11,734 10,725
2/15/2005 11,771 10,761
2/16/2005 11,831 10,765
2/17/2005 11,811 10,680
2/18/2005 11,702 10,687
2/19/2005 11,702 10,687
2/20/2005 11,702 10,687
2/21/2005 11,702 10,687
2/22/2005 11,397 10,532
2/23/2005 11,372 10,592
2/24/2005 11,364 10,679
2/25/2005 11,569 10,780
2/26/2005 11,569 10,780
2/27/2005 11,569 10,780
2/28/2005 11,465 10,711
3/1/2005 11,590 10,772
3/2/2005 11,533 10,772
3/3/2005 11,594 10,776
3/4/2005 11,807 10,880
3/5/2005 11,807 10,880
3/6/2005 11,807 10,880
3/7/2005 11,875 10,909
3/8/2005 11,787 10,857
3/9/2005 11,445 10,748
3/10/2005 11,537 10,768
3/11/2005 11,384 10,689
3/12/2005 11,384 10,689
3/13/2005 11,384 10,689
3/14/2005 11,549 10,750
3/15/2005 11,509 10,669
3/16/2005 11,393 10,584
3/17/2005 11,493 10,603
3/18/2005 11,401 10,598
3/19/2005 11,401 10,598
3/20/2005 11,401 10,598
3/21/2005 11,336 10,546
3/22/2005 11,159 10,439
3/23/2005 11,091 10,446
3/24/2005 11,139 10,436
3/25/2005 11,139 10,436
3/26/2005 11,139 10,436
3/27/2005 11,139 10,436
3/28/2005 11,079 10,462
3/29/2005 11,075 10,384
3/30/2005 11,224 10,528
3/31/2005 11,199 10,521
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- -------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(09/01/04) (02/20/04) (02/20/04)
- -------------------------------------------------------------------------------
SINCE ONE SINCE ONE SINCE
INCEPTION YEAR INCEPTION YEAR INCEPTION
- -------------------------------------------------------------------------------
REAL ESTATE FUND 4.98% 4.35% 10.00% 5.06% 10.75%
S&P 500 INDEX 7.84% 6.69% 4.69% 6.69% 4.69%
- -------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY; PERFORMANCE FOR A-CLASS SHARES
WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
REAL ESTATE FUND
REAL ESTATE 100%
"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)
- --------------------------------------------------
Realty Income Corp. 3.5%
Equity Office Properties Trust 2.5%
Simon Property Group, Inc. 2.4%
Equity Residential 2.0%
Vornado Realty Trust 1.9%
Public Storage, Inc. 1.8%
General Growth Properties, Inc. 1.8%
Boston Properties, Inc. 1.7%
Plum Creek Timber (REIT) Co., Inc. 1.7%
Archstone-Smith Trust 1.6%
- --------------------------------------------------
Top Ten Total 20.9%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
20 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
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.
Inception: April 1, 1998
Stocks in the retailing sector showed mixed results for the year ended March 31,
2005. Strong performance was seen in department stores, such as Federated, and
apparel retailers, such as Limited Brands. On the other hand, Internet and
catalog retailers, specialty retailers and general merchandisers such as
Wal-Mart all underperformed the broad-market S&P 500 Index. As a result, Rydex
Retailing Fund Investor Class produced returns of 4.77%, underperforming the S&P
500 Index's 6.69% return.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
RETAILING FUND
DATE C-CLASS S&P 500 INDEX
---- -------------- -------------
5/9/2001 10,000 10,000
5/31/2001 10,225 10,014
6/30/2001 9,794 9,770
7/31/2001 10,225 9,674
8/31/2001 9,391 9,068
9/30/2001 8,399 8,336
10/31/2001 8,633 8,495
11/30/2001 9,738 9,146
12/31/2001 10,112 9,227
1/31/2002 10,253 9,092
2/28/2002 10,234 8,917
3/31/2002 10,318 9,252
4/30/2002 10,140 8,691
5/31/2002 9,963 8,627
6/30/2002 9,373 8,012
7/31/2002 8,184 7,388
8/31/2002 8,371 7,436
9/30/2002 7,594 6,628
10/31/2002 8,099 7,212
11/30/2002 8,399 7,636
12/31/2002 7,631 7,187
1/31/2003 7,294 6,999
2/28/2003 7,079 6,894
3/31/2003 7,313 6,961
4/30/2003 8,071 7,534
5/31/2003 8,446 7,931
6/30/2003 8,745 8,033
7/31/2003 9,185 8,174
8/31/2003 9,953 8,334
9/30/2003 9,326 8,245
10/31/2003 10,281 8,712
11/30/2003 10,431 8,788
12/31/2003 10,122 9,249
1/31/2004 10,047 9,419
2/29/2004 10,627 9,550
3/31/2004 10,646 9,406
4/30/2004 10,215 9,258
5/31/2004 10,365 9,385
6/30/2004 10,468 9,568
7/31/2004 9,869 9,251
8/31/2004 9,635 9,288
9/30/2004 9,822 9,389
10/31/2004 10,094 9,532
11/30/2004 10,618 9,918
12/31/2004 10,964 10,256
1/31/2005 10,674 10,006
2/28/2005 10,787 10,216
3/31/2005 11,049 10,035
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
RETAILING FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- -------------- -------------
4/1/1998 10,000 10,000
4/30/1998 9,880 10,041
5/31/1998 10,270 9,869
6/30/1998 10,900 10,269
7/31/1998 10,560 10,160
8/31/1998 9,110 8,691
9/30/1998 9,040 9,248
10/31/1998 10,090 10,000
11/30/1998 11,180 10,606
12/31/1998 12,400 11,217
1/31/1999 12,870 11,687
2/28/1999 12,940 11,323
3/31/1999 13,540 11,776
4/30/1999 13,220 12,232
5/31/1999 12,440 11,943
6/30/1999 13,540 12,606
7/31/1999 12,650 12,213
8/31/1999 11,840 12,152
9/30/1999 12,110 11,819
10/31/1999 12,630 12,567
11/30/1999 13,194 12,823
12/31/1999 14,001 13,578
1/31/2000 12,105 12,896
2/29/2000 11,691 12,651
3/31/2000 13,335 13,889
4/30/2000 12,498 13,471
5/31/2000 11,792 13,195
6/30/2000 11,197 13,520
7/31/2000 10,944 13,309
8/31/2000 10,380 14,135
9/30/2000 10,682 13,389
10/31/2000 10,561 13,333
11/30/2000 10,228 12,281
12/31/2000 10,632 12,342
1/31/2001 11,641 12,779
2/28/2001 10,934 11,614
3/31/2001 10,380 10,878
4/30/2001 10,924 11,724
5/31/2001 11,025 11,802
6/30/2001 10,561 11,515
7/31/2001 11,045 11,402
8/31/2001 10,148 10,688
9/30/2001 9,078 9,825
10/31/2001 9,341 10,012
11/30/2001 10,551 10,780
12/31/2001 10,975 10,875
1/31/2002 11,136 10,716
2/28/2002 11,126 10,509
3/31/2002 11,217 10,905
4/30/2002 11,035 10,243
5/31/2002 10,844 10,168
6/30/2002 10,218 9,444
7/31/2002 8,947 8,708
8/31/2002 9,169 8,765
9/30/2002 8,332 7,812
10/31/2002 8,897 8,500
11/30/2002 9,240 9,000
12/31/2002 8,403 8,471
1/31/2003 8,049 8,249
2/28/2003 7,817 8,126
3/31/2003 8,070 8,205
4/30/2003 8,917 8,880
5/31/2003 9,331 9,348
6/30/2003 9,674 9,467
7/31/2003 10,168 9,634
8/31/2003 11,025 9,822
9/30/2003 10,349 9,718
10/31/2003 11,408 10,268
11/30/2003 11,580 10,358
12/31/2003 11,247 10,901
1/31/2004 11,176 11,101
2/29/2004 11,822 11,256
3/31/2004 11,842 11,086
4/30/2004 11,388 10,912
5/31/2004 11,560 11,062
6/30/2004 11,691 11,277
7/31/2004 11,025 10,903
8/31/2004 10,773 10,948
9/30/2004 10,985 11,066
10/31/2004 11,308 11,235
11/30/2004 11,903 11,690
12/31/2004 12,296 12,088
1/31/2005 11,973 11,793
2/28/2005 12,105 12,041
3/31/2005 12,407 11,828
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- -----------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/01/98) (04/21/98) (09/01/04) (05/09/01)
- -----------------------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- -----------------------------------------------------------------------------------------------------------------------------
RETAILING FUND 4.77% -1.43% 3.13% 4.35% -1.87% 2.76% 14.93% 3.78% 2.59%
S&P 500 INDEX 6.69% -3.16% 2.43% 6.69% -3.16% 2.20% 7.84% 6.69% 0.09%
- -----------------------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
RETAILING FUND
OTHER 5%
SPECIALTY RETAIL 52%
MULTILINE RETAIL 21%
FOOD & STAPLES RETAILING 13%
INTERNET & CATALOG RETAIL 9%
"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. 5.1%
Home Depot, Inc. 3.7%
Target Corp. 3.7%
Sears Holdings Corp. 3.3%
eBay, Inc. 3.3%
JC Penney Holding Co., Inc. 3.0%
Lowe's Cos., Inc. 2.9%
Kohl's Corp. 2.8%
Costco Wholesale Corp. 2.8%
Staples, Inc. 2.6%
- --------------------------------------------------
Top Ten Total 33.2%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 21
PERFORMANCE REPORTS AND 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, PC hardware and peripherals companies.
Inception: April 14, 1998
For the one-year period ending March 31, 2005, the technology sector
underperformed the S&P 500 Index by a wide margin. Although shares of software
companies were able to keep pace with the broad market, most chip makers
suffered double-digit losses. Large amounts of capital were committed to
building infrastructure in the 1990s, creating excess capacity that still
exists. This excess manufacturing capacity, along with international
competition, has resulted in a loss of pricing power, especially for hardware
and semiconductor manufacturers. As a result, Rydex Technology Fund Investor
Class returned -9.21% for the year.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
TECHNOLOGY FUND
DATE C-CLASS S&P 500 INDEX
---- --------------- -------------
4/18/2001 10,000 10,000
4/30/2001 10,196 10,094
5/31/2001 9,663 10,161
6/30/2001 9,602 9,914
7/31/2001 8,907 9,816
8/31/2001 7,719 9,202
9/30/2001 6,100 8,459
10/31/2001 7,065 8,620
11/30/2001 8,225 9,281
12/31/2001 8,077 9,363
1/31/2002 8,030 9,226
2/28/2002 6,950 9,048
3/31/2002 7,355 9,388
4/30/2002 6,511 8,819
5/31/2002 6,215 8,754
6/30/2002 5,317 8,130
7/31/2002 4,791 7,497
8/31/2002 4,750 7,546
9/30/2002 3,880 6,726
10/31/2002 4,791 7,318
11/30/2002 5,729 7,749
12/31/2002 4,784 7,293
1/31/2003 4,703 7,102
2/28/2003 4,771 6,996
3/31/2003 4,723 7,064
4/30/2003 5,209 7,646
5/31/2003 5,972 8,048
6/30/2003 5,978 8,151
7/31/2003 6,329 8,295
8/31/2003 6,957 8,456
9/30/2003 6,646 8,367
10/31/2003 7,321 8,840
11/30/2003 7,449 8,918
12/31/2003 7,443 9,385
1/31/2004 7,841 9,558
2/29/2004 7,638 9,691
3/31/2004 7,490 9,544
4/30/2004 6,957 9,395
5/31/2004 7,321 9,523
6/30/2004 7,422 9,709
7/31/2004 6,599 9,387
8/31/2004 6,221 9,425
9/30/2004 6,471 9,527
10/31/2004 6,842 9,673
11/30/2004 7,186 10,064
12/31/2004 7,389 10,407
1/31/2005 6,910 10,153
2/28/2005 6,950 10,367
3/31/2005 6,748 10,183
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
TECHNOLOGY FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- --------------- -------------
4/14/1998 10,000 10,000
4/30/1998 10,920 9,968
5/31/1998 10,170 9,797
6/30/1998 11,140 10,195
7/31/1998 11,500 10,086
8/31/1998 9,590 8,628
9/30/1998 11,090 9,180
10/31/1998 11,760 9,927
11/30/1998 13,120 10,529
12/31/1998 15,340 11,136
1/31/1999 17,910 11,601
2/28/1999 15,740 11,241
3/31/1999 17,020 11,690
4/30/1999 17,400 12,143
5/31/1999 17,010 11,856
6/30/1999 19,020 12,514
7/31/1999 18,810 12,124
8/31/1999 19,810 12,064
9/30/1999 19,900 11,733
10/31/1999 20,360 12,475
11/30/1999 22,910 12,729
12/31/1999 27,790 13,479
1/31/2000 25,790 12,801
2/29/2000 29,500 12,559
3/31/2000 31,590 13,788
4/30/2000 29,100 13,373
5/31/2000 25,960 13,099
6/30/2000 28,460 13,422
7/31/2000 26,960 13,212
8/31/2000 29,920 14,032
9/30/2000 24,590 13,292
10/31/2000 23,290 13,235
11/30/2000 18,940 12,192
12/31/2000 17,020 12,252
1/31/2001 19,990 12,686
2/28/2001 15,010 11,530
3/31/2001 12,700 10,799
4/30/2001 15,110 11,638
5/31/2001 14,340 11,716
6/30/2001 14,260 11,431
7/31/2001 13,240 11,319
8/31/2001 11,480 10,610
9/30/2001 9,090 9,753
10/31/2001 10,530 9,939
11/30/2001 12,270 10,702
12/31/2001 12,060 10,795
1/31/2002 12,000 10,638
2/28/2002 10,390 10,433
3/31/2002 11,000 10,825
4/30/2002 9,750 10,169
5/31/2002 9,320 10,094
6/30/2002 7,980 9,375
7/31/2002 7,190 8,644
8/31/2002 7,130 8,701
9/30/2002 5,830 7,755
10/31/2002 7,180 8,438
11/30/2002 8,600 8,934
12/31/2002 7,190 8,410
1/31/2003 7,080 8,189
2/28/2003 7,190 8,066
3/31/2003 7,110 8,145
4/30/2003 7,840 8,816
5/31/2003 9,030 9,280
6/30/2003 9,040 9,398
7/31/2003 9,580 9,564
8/31/2003 10,550 9,751
9/30/2003 10,090 9,647
10/31/2003 11,110 10,193
11/30/2003 11,300 10,283
12/31/2003 11,300 10,822
1/31/2004 11,910 11,020
2/29/2004 11,610 11,174
3/31/2004 11,390 11,005
4/30/2004 10,590 10,832
5/31/2004 11,150 10,981
6/30/2004 11,310 11,194
7/31/2004 10,080 10,824
8/31/2004 9,510 10,868
9/30/2004 9,880 10,985
10/31/2004 10,450 11,153
11/30/2004 10,990 11,605
12/31/2004 11,320 11,999
1/31/2005 10,590 11,707
2/28/2005 10,650 11,953
3/31/2005 10,350 11,742
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ----------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/14/98) (04/29/98) (09/01/04) (04/18/01)
- ----------------------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- ----------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND -9.21% -20.00% 0.50% -9.61% -20.27% -1.09% 8.05% -9.82% -9.48%
S&P 500 INDEX 6.69% -3.16% 2.33% 6.69% -3.16% 2.63% 7.84% 6.69% 0.46%
- ----------------------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
TECHNOLOGY FUND
OTHER 7%
SOFTWARE 25%
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 20%
COMPUTERS & PERIPHERALS 18%
COMMUNICATIONS EQUIPMENT 16%
IT SERVICES 9%
ELECTRONIC EQUIPMENT & INSTRUMENTS 5%
"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. 8.6%
Intel Corp. 5.9%
Cisco Systems, Inc. 5.5%
Dell, Inc. 4.1%
Hewlett-Packard Co. 3.9%
International Business Machines Corp. 3.9%
Motorola, Inc. 3.1%
Oracle Corp. 3.0%
Texas Instruments, Inc. 2.4%
Yahoo!, Inc. 2.3%
- --------------------------------------------------
Top Ten Total 42.7%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
22 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the
development, manufacture or sale of communications services or communications
equipment.
Inception: April 1, 1998
The telecommunications sector did not fare well during the one-year period
ending March 31, 2005. Much of the underperformance came during the first
quarter of 2005. While wireless service providers held up relatively well,
wireless equipment manufacturers did not. Phone makers Ericsson, Motorola and
Qualcomm all suffered large double-digit losses during the quarter. No part of
the sector was immune to selling pressure, as even the larger, more traditional
phone service companies lost ground. During the full year period, Rydex
Telecommunications Fund Investor Class posted a loss of 7.43%.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
TELECOMMUNICATIONS FUND
DATE C-CLASS S&P 500 INDEX
---- ----------------------- -------------
4/18/2001 10,000 10,000
4/30/2001 10,045 10,094
5/31/2001 9,008 10,161
6/30/2001 7,904 9,914
7/31/2001 7,871 9,816
8/31/2001 6,990 9,202
9/30/2001 6,878 8,459
10/31/2001 6,633 8,620
11/30/2001 7,072 9,281
12/31/2001 7,028 9,363
1/31/2002 6,345 9,226
2/28/2002 5,685 9,048
3/31/2002 5,584 9,388
4/30/2002 4,689 8,819
5/31/2002 4,555 8,754
6/30/2002 3,917 8,130
7/31/2002 3,480 7,497
8/31/2002 3,503 7,546
9/30/2002 2,910 6,726
10/31/2002 3,760 7,318
11/30/2002 4,510 7,749
12/31/2002 3,950 7,293
1/31/2003 3,928 7,102
2/28/2003 3,760 6,996
3/31/2003 3,671 7,064
4/30/2003 4,025 7,646
5/31/2003 4,476 8,048
6/30/2003 4,484 8,151
7/31/2003 4,506 8,295
8/31/2003 4,670 8,456
9/30/2003 4,655 8,367
10/31/2003 4,984 8,840
11/30/2003 5,025 8,918
12/31/2003 5,178 9,385
1/31/2004 5,729 9,558
2/29/2004 5,841 9,691
3/31/2004 5,639 9,544
4/30/2004 5,238 9,395
5/31/2004 5,283 9,523
6/30/2004 5,470 9,709
7/31/2004 5,100 9,387
8/31/2004 5,025 9,425
9/30/2004 5,219 9,527
10/31/2004 5,425 9,673
11/30/2004 5,699 10,064
12/31/2004 5,807 10,407
1/31/2005 5,392 10,153
2/28/2005 5,343 10,367
3/31/2005 5,171 10,183
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
TELECOMMUNICATIONS FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- ----------------------- -------------
4/1/1998 10,000 10,000
4/30/1998 9,880 10,041
5/31/1998 9,790 9,869
6/30/1998 10,130 10,269
7/31/1998 10,570 10,160
8/31/1998 9,010 8,691
9/30/1998 9,350 9,248
10/31/1998 10,360 10,000
11/30/1998 10,960 10,606
12/31/1998 12,420 11,217
1/31/1999 13,500 11,687
2/28/1999 12,900 11,323
3/31/1999 13,030 11,776
4/30/1999 13,770 12,232
5/31/1999 13,860 11,943
6/30/1999 15,120 12,606
7/31/1999 14,870 12,213
8/31/1999 13,920 12,152
9/30/1999 14,510 11,819
10/31/1999 16,010 12,567
11/30/1999 17,466 12,823
12/31/1999 19,696 13,578
1/31/2000 18,786 12,896
2/29/2000 19,486 12,651
3/31/2000 20,397 13,889
4/30/2000 19,076 13,471
5/31/2000 17,596 13,195
6/30/2000 18,526 13,520
7/31/2000 17,796 13,309
8/31/2000 18,096 14,135
9/30/2000 15,205 13,389
10/31/2000 14,445 13,333
11/30/2000 12,114 12,281
12/31/2000 11,934 12,342
1/31/2001 13,124 12,779
2/28/2001 9,133 11,614
3/31/2001 8,013 10,878
4/30/2001 9,013 11,724
5/31/2001 8,093 11,802
6/30/2001 7,102 11,515
7/31/2001 7,082 11,402
8/31/2001 6,282 10,688
9/30/2001 6,202 9,825
10/31/2001 5,982 10,012
11/30/2001 6,386 10,780
12/31/2001 6,346 10,875
1/31/2002 5,743 10,716
2/28/2002 5,141 10,509
3/31/2002 5,061 10,905
4/30/2002 4,247 10,243
5/31/2002 4,137 10,168
6/30/2002 3,555 9,444
7/31/2002 3,163 8,708
8/31/2002 3,183 8,765
9/30/2002 2,651 7,812
10/31/2002 3,424 8,500
11/30/2002 4,117 9,000
12/31/2002 3,615 8,471
1/31/2003 3,595 8,249
2/28/2003 3,434 8,126
3/31/2003 3,364 8,205
4/30/2003 3,682 8,880
5/31/2003 4,100 9,348
6/30/2003 4,107 9,467
7/31/2003 4,130 9,634
8/31/2003 4,288 9,822
9/30/2003 4,274 9,718
10/31/2003 4,582 10,268
11/30/2003 4,619 10,358
12/31/2003 4,763 10,901
1/31/2004 5,274 11,101
2/29/2004 5,385 11,256
3/31/2004 5,200 11,086
4/30/2004 4,834 10,912
5/31/2004 4,881 11,062
6/30/2004 5,059 11,277
7/31/2004 4,720 10,903
8/31/2004 4,656 10,948
9/30/2004 4,837 11,066
10/31/2004 5,032 11,235
11/30/2004 5,291 11,690
12/31/2004 5,395 12,088
1/31/2005 5,015 11,793
2/28/2005 4,975 12,041
3/31/2005 4,814 11,828
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- ------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/01/98) (04/01/98) (09/01/04) (04/18/01)
- ------------------------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND -7.43% -25.08% -9.92% -7.90% -25.36% -10.33% 2.58% -8.30% -15.38%
S&P 500 INDEX 6.69% -3.16% 2.43% 6.69% -3.16% 2.43% 7.84% 6.69% 0.46%
- ------------------------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
TELECOMMUNICATIONS FUND
OTHER 6%
COMMUNICATIONS EQUIPMENT 44%
DIVERSIFIED TELECOMMUNICATION SERVICES 29%
WIRELESS TELECOMMUNICATION SERVICES 21%
"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)
- --------------------------------------------------
Cisco Systems, Inc. 7.7%
Vodafone Group PLC - SP ADR 6.6%
SBC Communications, Inc. 5.7%
Verizon Communications, Inc. 5.0%
Nokia OYJ - SP ADR 5.0%
Qualcomm, Inc. 4.5%
Motorola, Inc. 4.3%
Sprint Corp. 3.5%
Juniper Networks, Inc. 3.4%
Telefonaktiebolaget LM Ericsson - SP ADR 3.4%
- --------------------------------------------------
Top Ten Total 49.1%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 23
PERFORMANCE REPORTS AND FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
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.
Inception: April 2, 1998
The transportation industry outperformed the broad market in 2004, despite the
poor performance of legacy airlines, such as United and Continental. In the
trucking industry, consolidation and increased demand were strong enough to
overcome the effects of rising fuel costs. The federal government's new
requirements for fewer road hours for truckers, combined with a lack of drivers,
have led to diminished capacity and increased pricing power in the group.
Concurrently, strong demand for these services resulted in larger profit margins
for these companies. Similarly, railroads experienced strong demand and were
among the best-performing stocks in the sector. Rydex Transportation Fund
Investor Class was up 19.00% during the year, versus a gain of 6.69% for the S&P
500 Index.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
TRANSPORTATION FUND
DATE C-CLASS S&P 500 INDEX
---- ------------------- -------------
5/14/2001 10,000 10,000
5/31/2001 10,299 10,063
6/30/2001 9,910 9,818
7/31/2001 10,060 9,721
8/31/2001 9,611 9,113
9/30/2001 7,979 8,377
10/31/2001 8,204 8,537
11/30/2001 9,222 9,191
12/31/2001 9,521 9,272
1/31/2002 10,060 9,137
2/28/2002 10,165 8,960
3/31/2002 10,344 9,297
4/30/2002 9,521 8,734
5/31/2002 9,596 8,669
6/30/2002 9,521 8,052
7/31/2002 8,398 7,424
8/31/2002 8,129 7,473
9/30/2002 7,710 6,661
10/31/2002 8,114 7,247
11/30/2002 8,428 7,674
12/31/2002 8,219 7,223
1/31/2003 7,620 7,034
2/28/2003 7,246 6,928
3/31/2003 7,410 6,995
4/30/2003 8,189 7,571
5/31/2003 8,418 7,970
6/30/2003 8,333 8,072
7/31/2003 8,718 8,214
8/31/2003 8,952 8,375
9/30/2003 8,882 8,286
10/31/2003 9,511 8,754
11/30/2003 9,496 8,831
12/31/2003 9,661 9,295
1/31/2004 9,197 9,465
2/29/2004 9,167 9,597
3/31/2004 9,197 9,452
4/30/2004 9,237 9,304
5/31/2004 9,381 9,431
6/30/2004 10,080 9,615
7/31/2004 9,566 9,296
8/31/2004 9,561 9,334
9/30/2004 9,915 9,435
10/31/2004 10,689 9,579
11/30/2004 11,262 9,967
12/31/2004 11,647 10,306
1/31/2005 10,858 10,055
2/28/2005 11,013 10,266
3/31/2005 10,833 10,085
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
TRANSPORTATION FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- ------------------- -------------
4/2/1998 10,000 10,000
4/30/1998 9,490 9,935
5/31/1998 9,070 9,764
6/30/1998 9,060 10,161
7/31/1998 8,600 10,053
8/31/1998 7,140 8,599
9/30/1998 7,120 9,150
10/31/1998 7,670 9,894
11/30/1998 7,910 10,494
12/31/1998 8,060 11,099
1/31/1999 8,020 11,563
2/28/1999 7,860 11,204
3/31/1999 7,990 11,652
4/30/1999 8,880 12,103
5/31/1999 8,630 11,817
6/30/1999 8,590 12,473
7/31/1999 8,090 12,084
8/31/1999 7,530 12,024
9/30/1999 6,880 11,694
10/31/1999 6,990 12,434
11/30/1999 6,640 12,687
12/31/1999 6,580 13,434
1/31/2000 5,870 12,759
2/29/2000 5,550 12,518
3/31/2000 6,240 13,742
4/30/2000 6,400 13,329
5/31/2000 5,960 13,055
6/30/2000 5,810 13,377
7/31/2000 6,310 13,168
8/31/2000 6,160 13,986
9/30/2000 5,850 13,248
10/31/2000 6,370 13,192
11/30/2000 6,350 12,152
12/31/2000 6,610 12,211
1/31/2001 6,940 12,644
2/28/2001 6,550 11,491
3/31/2001 6,420 10,763
4/30/2001 6,670 11,600
5/31/2001 6,880 11,678
6/30/2001 6,620 11,393
7/31/2001 6,710 11,281
8/31/2001 6,420 10,575
9/30/2001 5,330 9,721
10/31/2001 5,490 9,906
11/30/2001 6,180 10,666
12/31/2001 6,380 10,760
1/31/2002 6,740 10,603
2/28/2002 6,820 10,398
3/31/2002 6,950 10,789
4/30/2002 6,400 10,135
5/31/2002 6,470 10,061
6/30/2002 6,410 9,344
7/31/2002 5,660 8,615
8/31/2002 5,480 8,672
9/30/2002 5,210 7,730
10/31/2002 5,480 8,410
11/30/2002 5,690 8,905
12/31/2002 5,550 8,382
1/31/2003 5,160 8,162
2/28/2003 4,890 8,040
3/31/2003 5,010 8,118
4/30/2003 5,547 8,786
5/31/2003 5,703 9,249
6/30/2003 5,650 9,367
7/31/2003 5,913 9,533
8/31/2003 6,077 9,718
9/30/2003 6,033 9,615
10/31/2003 6,470 10,159
11/30/2003 6,467 10,249
12/31/2003 6,580 10,786
1/31/2004 6,270 10,984
2/29/2004 6,257 11,137
3/31/2004 6,280 10,969
4/30/2004 6,313 10,796
5/31/2004 6,420 10,945
6/30/2004 6,903 11,158
7/31/2004 6,557 10,788
8/31/2004 6,560 10,832
9/30/2004 6,807 10,949
10/31/2004 7,343 11,116
11/30/2004 7,743 11,566
12/31/2004 8,017 11,960
1/31/2005 7,480 11,668
2/28/2005 7,590 11,914
3/31/2005 7,473 11,703
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- -----------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/02/98) (06/09/98) (09/01/04) (05/14/01)
- -----------------------------------------------------------------------------------------------------------------------------
ONE FIVE SINCE ONE FIVE SINCE SINCE ONE SINCE
YEAR YEAR INCEPTION YEAR YEAR INCEPTION INCEPTION YEAR INCEPTION
- -----------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION FUND 19.00% 3.67% -4.08% 18.26% 2.89% -3.82% 13.93% 17.80% 2.08%
S&P 500 INDEX 6.69% -3.16% 2.27% 6.69% -3.16% 2.31% 7.84% 6.69% 0.22%
- -----------------------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
TRANSPORTATION FUND
OTHER 4%
ROAD & RAIL 50%
AIR FREIGHT & LOGISTICS 30%
AIRLINES 16%
"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 10.8%
FedEx Corp. 8.8%
Burlington Northern Santa Fe Corp. 7.4%
Norfolk Southern Corp. 7.1%
CSX Corp. 5.3%
Union Pacific Corp. 5.3%
Southwest Airlines Co. 4.3%
Yellow Roadway Corp. 4.3%
CNF, Inc. 3.8%
Expeditors International Washington, Inc. 2.5%
- --------------------------------------------------
Top Ten Total 59.6%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
24 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES (CONCLUDED)
- --------------------------------------------------------------------------------
UTILITIES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that operate
public utilities.
Inception: April 3, 2000
During the year ended March 31, 2005, utility companies were aided by lower tax
rates and by changes in their dividend policies. By the end of the first quarter
of 2005, the average yield on utilities stocks was about 3.8%. With rates on
fixed-income instruments remaining near historic lows, investors clamored to buy
shares in power providers. In addition to dividend policy activity, utilities
were also active in filing for higher rates as they began to emerge from a
period during which rates were frozen in exchange for the right to partially
deregulate. All of these factors combined to produce a return of 16.35% for
Rydex Utilities Fund Investor Class.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
UTILITIES FUND
DATE C-CLASS S&P 500 INDEX
---- -------------- -------------
4/27/2001 10,000 10,000
4/30/2001 10,024 9,971
5/31/2001 9,676 10,038
6/30/2001 8,902 9,794
7/31/2001 8,452 9,698
8/31/2001 8,231 9,090
9/30/2001 7,338 8,356
10/31/2001 7,267 8,516
11/30/2001 6,845 9,169
12/31/2001 7,047 9,249
1/31/2002 6,535 9,114
2/28/2002 6,309 8,939
3/31/2002 7,005 9,275
4/30/2002 6,887 8,712
5/31/2002 6,318 8,648
6/30/2002 5,840 8,032
7/31/2002 4,977 7,406
8/31/2002 5,128 7,455
9/30/2002 4,474 6,644
10/31/2002 4,491 7,229
11/30/2002 4,604 7,655
12/31/2002 4,699 7,205
1/31/2003 4,578 7,016
2/28/2003 4,361 6,911
3/31/2003 4,595 6,978
4/30/2003 5,013 7,553
5/31/2003 5,521 7,951
6/30/2003 5,518 8,052
7/31/2003 5,210 8,194
8/31/2003 5,290 8,354
9/30/2003 5,501 8,265
10/31/2003 5,587 8,733
11/30/2003 5,612 8,810
12/31/2003 5,834 9,272
1/31/2004 5,931 9,442
2/29/2004 6,001 9,573
3/31/2004 6,010 9,429
4/30/2004 5,822 9,281
5/31/2004 5,901 9,408
6/30/2004 5,995 9,591
7/31/2004 5,959 9,274
8/31/2004 6,153 9,311
9/30/2004 6,202 9,412
10/31/2004 6,342 9,556
11/30/2004 6,608 9,943
12/31/2004 6,738 10,281
1/31/2005 6,790 10,030
2/28/2005 6,907 10,241
3/31/2005 6,926 10,060
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
UTILITIES FUND
DATE INVESTOR CLASS S&P 500 INDEX
---- -------------- -------------
4/3/2000 10,000 10,000
4/30/2000 10,170 9,651
5/31/2000 10,280 9,453
6/30/2000 9,800 9,686
7/31/2000 10,080 9,534
8/31/2000 11,010 10,127
9/30/2000 11,980 9,592
10/31/2000 11,890 9,551
11/30/2000 11,580 8,798
12/31/2000 11,910 8,841
1/31/2001 11,540 9,155
2/28/2001 11,940 8,320
3/31/2001 11,840 7,793
4/30/2001 12,690 8,399
5/31/2001 12,270 8,455
6/30/2001 11,290 8,249
7/31/2001 10,730 8,168
8/31/2001 10,460 7,657
9/30/2001 9,330 7,038
10/31/2001 9,270 7,173
11/30/2001 8,747 7,723
12/31/2001 9,012 7,791
1/31/2002 8,376 7,677
2/28/2002 8,089 7,529
3/31/2002 8,991 7,812
4/30/2002 8,842 7,338
5/31/2002 8,132 7,284
6/30/2002 7,517 6,765
7/31/2002 6,414 6,238
8/31/2002 6,616 6,279
9/30/2002 5,778 5,597
10/31/2002 5,810 6,089
11/30/2002 5,963 6,448
12/31/2002 6,095 6,069
1/31/2003 5,941 5,910
2/28/2003 5,668 5,821
3/31/2003 5,974 5,878
4/30/2003 6,525 6,362
5/31/2003 7,189 6,697
6/30/2003 7,192 6,782
7/31/2003 6,795 6,902
8/31/2003 6,908 7,037
9/30/2003 7,189 6,962
10/31/2003 7,305 7,356
11/30/2003 7,344 7,420
12/31/2003 7,643 7,810
1/31/2004 7,777 7,953
2/29/2004 7,873 8,063
3/31/2004 7,889 7,942
4/30/2004 7,655 7,817
5/31/2004 7,762 7,924
6/30/2004 7,893 8,079
7/31/2004 7,850 7,811
8/31/2004 8,115 7,843
9/30/2004 8,188 7,928
10/31/2004 8,376 8,049
11/30/2004 8,736 8,374
12/31/2004 8,915 8,659
1/31/2005 8,992 8,448
2/28/2005 9,156 8,626
3/31/2005 9,183 8,473
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- -------------------------------------------------------------------------------------------------------------
INVESTOR CLASS ADVISOR CLASS A-CLASS C-CLASS
(04/03/00) (04/03/00) (09/01/04) (04/27/01)
- -------------------------------------------------------------------------------------------------------------
ONE SINCE ONE SINCE SINCE ONE SINCE
YEAR INCEPTION YEAR INCEPTION INCEPTION YEAR INCEPTION
- -------------------------------------------------------------------------------------------------------------
UTILITIES FUND 16.35% -1.69% 15.78% -2.21% 12.84% 15.23% -8.93%
S&P 500 INDEX 6.69% -3.26% 6.69% -3.26% 7.84% 6.69% 0.15%
- -------------------------------------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON INVESTOR CLASS SHARES AND C-CLASS SHARES ONLY; PERFORMANCE FOR ADVISOR
CLASS SHARES AND A-CLASS SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
UTILITIES FUND
OTHER 1%
ELECTRIC UTILITIES 57%
MULTI-UTILITIES & UNREGULATED POWER 29%
GAS UTILITIES 13%
"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)
- --------------------------------------------------
Exelon Corp. 3.2%
TXU Corp. 3.1%
Duke Energy Corp. 3.1%
American Electric Power Co., Inc. 2.8%
PG&E Corp. 2.7%
Southern Co. 2.4%
Progress Energy, Inc. 2.4%
Entergy Corp. 2.3%
Dominion Resources, Inc./VA 2.1%
NiSource, Inc. 2.1%
- --------------------------------------------------
Top Ten Total 26.2%
- --------------------------------------------------
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 25
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
BANKING FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.8%
Wachovia Corp.+ 8,203 $ 417,615
J.P. Morgan Chase & Co. 11,944 413,262
Bank of America Corp. 8,496 374,674
Fannie Mae+ 6,263 341,020
Freddie Mac 5,384 340,269
Washington Mutual, Inc. 8,175 322,912
Fifth Third Bancorp+ 6,710 288,396
BB&T Corp.+ 7,144 279,188
Golden West Financial Corp.+ 4,530 274,065
National City Corp. 8,134 272,489
Countrywide Financial Corp.+ 8,049 261,271
Wells Fargo & Co. 4,297 256,961
M&T Bank Corp. 2,350 239,841
Comerica, Inc. 3,885 213,986
Radian Group, Inc. 3,820 182,367
MGIC Investment Corp. 2,904 179,090
MAF Bancorp, Inc. 3,730 154,944
United Bankshares, Inc. 4,630 153,438
U.S. Bancorp 5,309 153,005
Commercial Federal Corp. 5,415 149,725
Flagstar Bancorp, Inc.+ 7,655 149,655
Greater Bay Bancorp 6,020 146,948
PrivateBancorp, Inc. 4,637 145,648
Republic Bancorp, Inc./MI 10,740 145,420
FirstFed Financial Corp.* 2,840 144,868
BankAtlantic Bancorp, Inc.
-- Class A 8,210 142,854
Sterling Financial Corp./WA* 4,000 142,800
Brookline Bancorp, Inc. 9,546 142,235
Community Bank System, Inc. 6,167 141,286
First Bancorp Puerto Rico+ 3,343 141,242
Irwin Financial Corp. 6,133 141,182
W Holding Co., Inc. 13,880 139,772
Bankunited Financial Corp.
-- Class A* 5,138 138,007
Dime Community Bancshares 8,805 133,836
International Bancshares Corp. 3,260 113,024
Banco Itau Holding Financeira SA
-- SP ADR 1,370 111,175
Banco Bradesco SA -- SP ADR 3,790 109,910
Uniao de Bancos Brasileiros SA 3,160 108,641
Nara Bancorp, Inc. 7,580 106,499
Mitsubishi Tokyo Financial Group, Inc.
-- SP ADR 12,260 106,049
Doral Financial Corp. 4,740 103,759
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
R&G Financial Corp. -- Class B 3,160 $ 98,497
Barclays PLC -- SP ADR 2,320 96,141
Anchor BanCorp Wisconsin, Inc. 3,008 84,555
Chittenden Corp. 2,950 76,906
SunTrust Banks, Inc.+ 1,052 75,833
BOK Financial Corp.* 1,830 74,444
Westcorp 1,260 53,235
Riggs National Corp. 2,180 41,616
Regions Financial Corp. 791 25,628
PNC Financial Services Group, Inc. 460 23,681
North Fork Bancorporation, Inc. 780 21,637
KeyCorp 635 20,606
------------
TOTAL COMMON STOCKS
(Cost $8,154,382) 8,716,107
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.4%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 34,748 34,748
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $34,748) 34,748
------------
SECURITIES LENDING COLLATERAL 11.5%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 1,009,928 1,009,928
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,009,928) 1,009,928
------------
TOTAL INVESTMENTS 111.7%
(Cost $9,199,058) $ 9,760,783
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (11.7)% $ (1,023,996)
============
NET ASSETS - 100.0% $ 8,736,787
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
ADR--AMERICAN DEPOSITORY RECEIPT.
26 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Dow Chemical Co.+ 41,567 $ 2,072,115
International Paper Co.+ 55,038 2,024,848
Praxair, Inc. 34,788 1,664,954
Alcoa, Inc. 49,714 1,510,808
EI Du Pont de Nemours & Co. 28,809 1,476,173
International Flavors & Fragrances,
Inc. 34,725 1,371,637
Air Products & Chemicals, Inc. 21,445 1,357,254
Valspar Corp.+ 28,095 1,307,541
Monsanto Co. 19,679 1,269,295
Louisiana-Pacific Corp.+ 50,416 1,267,458
Lubrizol Corp. 29,795 1,210,869
Phelps Dodge Corp.+ 11,628 1,182,916
Worthington Industries, Inc.+ 59,240 1,142,147
Nucor Corp.+ 19,528 1,124,032
Newmont Mining Corp.+ 26,584 1,123,174
OM Group, Inc.*+ 36,340 1,105,463
Ecolab, Inc.+ 32,111 1,061,269
International Steel Group, Inc.* 26,220 1,035,690
Packaging Corporation of America+ 40,100 974,029
Ball Corp.+ 22,394 928,903
Hercules, Inc.* 63,495 919,408
Lyondell Chemical Co.+ 30,046 838,884
Georgia-Pacific Corp. 22,785 808,640
United States Steel Corp.+ 15,552 790,819
Smurfit-Stone Container Corp.*+ 51,090 790,362
Peabody Energy Corp. 17,038 789,882
Rohm & Haas Co.+ 15,904 763,392
Owens-Illinois, Inc.* 29,313 736,929
Cleveland-Cliffs, Inc.+ 10,040 731,615
Cytec Industries, Inc.+ 12,740 691,145
Eastman Chemical Co.+ 11,686 689,474
Vulcan Materials Co.+ 12,049 684,745
FMC Corp.* 12,604 673,684
Pactiv Corp.* 26,789 625,523
Inco Ltd.*+ 15,327 610,015
Steel Dynamics, Inc.+ 17,285 595,468
Bowater, Inc.+ 14,920 562,036
Cemex SA de CV -- SP ADR+ 14,475 524,719
Freeport-McMoRan Copper & Gold,
Inc. -- Class B+ 13,051 516,950
Arch Chemicals, Inc. 17,841 507,933
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Weyerhaeuser Co. 7,211 $ 493,953
Nalco Holding Co.* 26,066 490,823
Massey Energy Co.+ 11,661 466,906
Southern Peru Copper Corp.+ 8,300 460,318
Quanex Corp.+ 8,110 432,425
Great Lakes Chemical Corp. 13,343 428,577
Eagle Materials, Inc.+ 5,257 425,502
Silgan Holdings, Inc. 6,519 423,605
Agrium, Inc. 21,460 391,645
Consol Energy, Inc. 8,301 390,313
PolyOne Corp.* 43,240 383,971
PPG Industries, Inc.+ 5,346 382,346
AptarGroup, Inc. 7,241 376,387
Headwaters, Inc.* 11,435 375,297
Texas Industries, Inc. 6,675 358,781
Florida Rock Industries, Inc.+ 6,060 356,449
Sonoco Products Co. 12,070 348,219
Minerals Technologies, Inc. 5,101 335,544
Lafarge SA -- SP ADR+ 13,469 327,297
Allegheny Technologies, Inc. 13,500 325,485
Crompton Corp.+ 20,870 304,702
Carpenter Technology Corp. 5,110 303,585
Aracruz Celulose SA 8,380 300,004
Georgia Gulf Corp. 6,491 298,456
Sensient Technologies Corp. 13,717 295,739
Chesapeake Corp. 13,761 289,256
Rock-Tenn Co. -- Class A 20,027 266,359
Neenah Paper, Inc.+ 7,817 262,808
Deltic Timber Corp. 6,713 262,478
Commercial Metals Co. 7,420 251,464
Longview Fibre Co. 13,195 247,538
Votorantim Celulose e Papel
SA -- SP ADR 19,030 247,390
Aleris International, Inc.* 9,885 246,631
BHP Billiton Ltd. -- SP ADR+ 8,505 237,970
Amcol International Corp. 11,697 219,436
Albemarle Corp. 5,883 213,906
Wausau-Mosinee Paper Corp. 15,080 213,231
Agnico-Eagle Mines Ltd.+ 14,601 212,445
Caraustar Industries, Inc.* 14,964 193,036
RTI International Metals, Inc.* 8,192 191,693
A. Schulman, Inc. 9,120 158,870
Omnova Solutions, Inc.* 24,079 129,304
Penford Corp. 7,625 123,906
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 27
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Pope & Talbot, Inc. 6,791 $ 119,386
Syngenta AG -- SP ADR* 5,370 112,770
Novelis, Inc. 4,480 98,202
Gerdau SA -- SP ADR 5,545 91,492
A.M. Castle & Co.* 7,101 89,473
Greif, Inc. -- Class A 1,215 84,661
IPSCO, Inc. 1,340 68,340
Nova Chemicals Corp. 1,540 66,143
Kinross Gold Corp.* 10,055 60,330
Mittal Steel NV Co. -- Class A*+ 1,825 59,039
Terra Industries, Inc.*+ 5,855 45,435
Braskem SA -- SP ADR 935 37,867
Westlake Chemical Corp. 100 3,235
------------
TOTAL COMMON STOCKS
(Cost $48,584,351) 54,442,621
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.5%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 263,505 263,505
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $263,505) 263,505
------------
SECURITIES LENDING COLLATERAL 20.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 11,151,732 11,151,732
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $11,151,732) 11,151,732
------------
TOTAL INVESTMENTS 120.5%
(Cost $59,999,588) $ 65,857,858
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (20.5)% $(11,200,436)
============
NET ASSETS - 100.0% $ 54,657,422
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
ADR--AMERICAN DEPOSITORY RECEIPT.
28 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
BIOTECHNOLOGY FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Amgen, Inc.* 163,997 $ 9,546,265
Genentech, Inc.*+ 136,917 7,750,871
Gilead Sciences, Inc.* 139,581 4,997,000
Genzyme Corp.* 84,025 4,809,591
Biogen Idec, Inc.*+ 119,148 4,111,798
Medimmune, Inc.*+ 143,900 3,426,259
Applera Corp. - Applied Biosystems
Group+ 145,632 2,874,776
Invitrogen Corp.*+ 40,723 2,818,032
Charles River Laboratories International,
Inc.*+ 58,604 2,756,732
Affymetrix, Inc.*+ 60,906 2,609,213
Millennium Pharmaceuticals, Inc.*+ 306,812 2,583,357
Cephalon, Inc.*+ 53,632 2,511,587
Angiotech Pharmaceuticals, Inc.* 125,209 1,921,958
Serologicals Corp.*+ 77,194 1,886,621
Celgene Corp.*+ 54,751 1,864,272
ImClone Systems, Inc.*+ 53,150 1,833,675
Nabi Biopharmeceuticals* 143,482 1,790,655
Pharmion Corp.* 59,950 1,738,550
Chiron Corp.*+ 49,465 1,734,243
CV Therapeutics, Inc.* 83,301 1,696,008
Vertex Pharmaceuticals, Inc.* 166,592 1,559,301
Cubist Pharmaceuticals, Inc.* 145,987 1,550,382
United Therapeutics Corp.*+ 32,490 1,484,631
Myriad Genetics, Inc.*+ 78,011 1,434,622
Medarex, Inc.* 193,400 1,378,942
Enzon Pharmaceuticals, Inc.* 134,342 1,368,945
InterMune, Inc.*+ 112,108 1,233,188
ID Biomedical Corp.*+ 74,100 1,130,766
QLT, Inc.* 83,904 1,079,005
Ligand Pharmaceuticals, Inc.
-- Class B*+ 177,964 1,019,734
Abgenix, Inc.* 142,721 999,047
Transkaryotic Therapies, Inc.* 38,902 971,188
Alkermes, Inc.* 91,611 950,922
ICOS Corp.* 37,445 841,015
Gen-Probe, Inc.* 14,858 662,072
OSI Pharmaceuticals, Inc.* 15,161 626,756
Amylin Pharmaceuticals, Inc.* 29,482 515,640
Martek Biosciences Corp.*+ 8,328 484,606
Techne Corp.* 10,430 419,077
Incyte Corp.* 53,826 367,632
Protein Design Labs, Inc.* 22,249 355,762
Neurocrine Biosciences, Inc.*+ 8,908 339,038
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Human Genome Sciences, Inc.* 29,210 $ 269,316
Eyetech Pharmaceuticals, Inc.* 8,445 232,238
Vicuron Pharmaceuticals, Inc.* 9,385 147,908
Onyx Pharmaceuticals, Inc.*+ 4,666 146,279
NPS Pharmaceuticals, Inc.* 9,811 123,815
Dendreon Corp.* 22,000 119,900
Northfield Laboratories, Inc.* 9,700 109,125
Telik, Inc.* 5,600 84,448
Applera Corp. - Celera Genomics
Group* 8,133 83,363
Alexion Pharmaceuticals, Inc.*+ 18 390
Dov Pharmaceutical, Inc.* 13 178
Cell Therapeutics, Inc.*+ 25 90
------------
TOTAL COMMON STOCKS
(Cost $60,040,386) 87,350,784
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.6%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 528,254 528,254
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $528,254) 528,254
------------
SECURITIES LENDING COLLATERAL 19.1%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 16,783,608 16,783,608
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $16,783,608) 16,783,608
------------
TOTAL INVESTMENTS 119.2%
(Cost $77,352,248) $104,662,646
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (19.2)% $(16,842,039)
============
NET ASSETS - 100.0% $ 87,820,607
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 29
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Altria Group, Inc.+ 52,714 $ 3,446,968
Procter & Gamble Co.+ 57,162 3,029,586
Coca-Cola Co. 70,170 2,923,984
PepsiCo, Inc. 46,667 2,474,751
Anheuser-Busch Cos., Inc.+ 41,361 1,960,098
Kimberly-Clark Corp. 28,130 1,848,985
Colgate-Palmolive Co. 34,644 1,807,377
Sysco Corp.+ 44,998 1,610,928
Archer-Daniels-Midland Co. 62,610 1,538,954
Avon Products, Inc. 35,748 1,535,019
Sara Lee Corp.+ 67,082 1,486,537
H.J. Heinz Co. 36,790 1,355,344
Kraft Foods, Inc. -- Class A 40,613 1,342,260
Estee Lauder Cos., Inc. -- Class A 29,166 1,311,887
Kroger Co.*+ 79,077 1,267,604
Coca-Cola Enterprises, Inc. 59,750 1,226,070
Dean Foods Co.* 31,030 1,064,329
Tyson Foods, Inc. -- Class A 61,620 1,027,822
Supervalu, Inc. 30,490 1,016,841
Hormel Foods Corp. 32,368 1,006,968
Alberto-Culver Co. -- Class B 20,350 973,951
Smithfield Foods, Inc.* 29,982 945,932
Molson Coors Brewing Co.
-- Class B 10,836 836,214
Pilgrim's Pride Corp.+ 22,880 817,274
7-Eleven, Inc.* 33,359 801,283
UST, Inc. 15,010 776,017
Church & Dwight Co., Inc. 21,090 748,062
Del Monte Foods Co.* 67,535 732,755
Loews Corp. - Carolina Group 21,890 724,559
Corn Products International, Inc. 25,428 660,874
General Mills, Inc.+ 13,200 648,780
NBTY, Inc.*+ 25,851 648,602
Ralcorp Holdings, Inc.+ 12,910 611,288
Kellogg Co. 12,349 534,341
Ruddick Corp. 21,832 505,411
Hershey Foods Corp.+ 8,280 500,609
Safeway, Inc.*+ 26,739 495,474
WM Wrigley Jr Co. 6,750 442,598
ConAgra Foods, Inc.+ 15,284 412,974
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Clorox Co.+ 6,462 $ 407,041
Hain Celestial Group, Inc.* 20,530 382,679
Reynolds American, Inc. 4,450 358,626
Campbell Soup Co. 11,941 346,528
Lance, Inc. 19,220 308,865
J&J Snack Foods Corp. 6,574 307,860
Natures Sunshine Products, Inc. 13,277 227,966
McCormick & Co., Inc. 6,010 206,924
Pepsi Bottling Group, Inc.+ 6,020 167,657
Brown-Forman Corp. -- Class B 2,470 135,233
Performance Food Group Co.* 4,840 133,971
Whole Foods Market, Inc.+ 1,290 131,748
Albertson's, Inc.+ 6,140 126,791
Constellation Brands, Inc.
-- Class A*+ 2,190 115,785
Energizer Holdings, Inc.* 1,070 63,986
PepsiAmericas, Inc. 2,180 49,399
------------
TOTAL COMMON STOCKS
(Cost $46,650,728) 50,570,369
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 1.1%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 587,342 587,342
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $587,342) 587,342
------------
SECURITIES LENDING COLLATERAL 13.7%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 6,950,324 6,950,324
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $6,950,324) 6,950,324
------------
TOTAL INVESTMENTS 114.3%
(Cost $54,188,394) $ 58,108,035
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (14.3)% $ (7,275,380)
============
NET ASSETS - 100.0% $ 50,832,655
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
30 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
ELECTRONICS FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 100.0%
Intel Corp. 219,709 $ 5,103,840
Texas Instruments, Inc. 110,388 2,813,790
Applied Materials, Inc.*+ 123,239 2,002,634
Analog Devices, Inc.+ 36,507 1,319,363
Broadcom Corp. -- Class A*+ 40,089 1,199,463
Maxim Integrated Products, Inc. 29,085 1,188,704
KLA-Tencor Corp.*+ 25,632 1,179,328
Xilinx, Inc.+ 38,866 1,136,053
National Semiconductor Corp. 53,620 1,105,108
Micron Technology, Inc.*+ 100,303 1,037,133
Linear Technology Corp.+ 25,887 991,731
Novellus Systems, Inc.*+ 35,009 935,791
Lam Research Corp.*+ 31,730 915,728
Microchip Technology, Inc. 34,914 908,113
Altera Corp.* 42,295 836,595
Advanced Micro Devices, Inc.*+ 51,784 834,758
Nvidia Corp.* 32,250 766,260
Freescale Semiconductor, Inc. --
Class B* 41,230 711,217
Intersil Corp. -- Class A+ 35,964 622,896
MEMC Electronic Materials, Inc.* 46,200 621,390
Teradyne, Inc.*+ 42,350 618,310
International Rectifier Corp.*+ 12,475 567,613
Fairchild Semiconductor International,
Inc.*+ 33,970 520,760
Varian Semiconductor Equipment
Associates, Inc.*+ 13,630 518,076
Cypress Semiconductor Corp.*+ 37,775 475,965
LSI Logic Corp.* 84,662 473,261
FEI Co.* 19,590 453,509
PMC - Sierra, Inc.*+ 51,040 449,152
Silicon Laboratories, Inc.*+ 15,043 446,928
Semtech Corp.* 24,058 429,916
Integrated Device Technology, Inc.* 34,947 420,412
Rudolph Technologies, Inc.*+ 27,350 411,891
Rambus, Inc.* 26,670 401,917
Microsemi Corp.* 23,618 384,737
Atmel Corp.* 127,957 377,473
Integrated Circuit Systems, Inc.* 19,275 368,538
Cymer, Inc.* 13,620 364,607
Cohu, Inc. 22,785 363,421
Axcelis Technologies, Inc.*+ 49,360 360,328
ATMI, Inc.* 14,092 352,864
Cree, Inc.*+ 15,948 346,869
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Brooks Automation, Inc.*+ 22,760 $ 345,497
Applied Micro Circuits Corp.* 101,822 334,994
Power Integrations, Inc.* 15,437 322,479
Credence Systems Corp.* 40,180 317,824
RF Micro Devices, Inc.* 60,586 316,259
Helix Technology Corp. 20,270 313,577
Micrel, Inc.*+ 32,900 303,338
Skyworks Solutions, Inc.* 47,117 299,193
Lattice Semiconductor Corp.* 55,593 298,534
DSP Group, Inc.* 11,380 293,149
Conexant Systems, Inc.* 184,040 276,060
Dupont Photomasks, Inc.* 10,010 266,967
Cabot Microelectronics Corp.*+ 8,368 262,588
Exar Corp.* 19,536 261,782
Photronics, Inc.* 13,856 250,794
Amkor Technology, Inc.* 61,590 237,737
Triquint Semiconductor, Inc.* 59,377 200,694
Standard Microsystems Corp.* 11,382 197,592
Supertex, Inc.* 10,250 187,678
Advanced Energy Industries, Inc.* 17,420 168,451
Actel Corp.* 10,862 167,058
Ultratech, Inc.* 11,300 164,980
Pericom Semiconductor Corp.* 17,483 149,829
ESS Technologies, Inc.* 25,660 135,228
LTX Corp.* 23,898 106,107
Alliance Semiconductor Corp.* 40,837 101,684
Kopin Corp.* 32,859 100,877
Kulicke & Soffa Industries, Inc.* 15,603 98,143
Tessera Technologies, Inc.*+ 1,130 48,850
------------
TOTAL COMMON STOCKS
(Cost $31,481,465) 41,864,385
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.5%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 201,024 201,024
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $201,024) 201,024
------------
SECURITIES LENDING COLLATERAL 15.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 6,465,824 6,465,824
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $6,465,824) 6,465,824
------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 31
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
ELECTRONICS FUND
MARKET
VALUE
(NOTE 1)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS 115.9%
(Cost $38,148,313) $ 48,531,233
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (15.9)% $ (6,647,275)
============
NET ASSETS - 100.0% $ 41,883,958
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
32 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
ENERGY FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.4%
Exxon Mobil Corp. 187,184 $ 11,156,166
BP PLC -- SP ADR 129,850 8,102,640
Total SA -- SP ADR+ 55,300 6,482,819
ChevronTexaco Corp. 101,258 5,904,354
Royal Dutch Petroleum Co. 95,350 5,724,814
ConocoPhillips 51,704 5,575,759
Shell Transport & Trading Co.
PLC -- SP ADR+ 95,300 5,180,508
Devon Energy Corp.+ 70,176 3,350,904
Amerada Hess Corp.+ 33,663 3,238,717
Occidental Petroleum Corp.+ 45,385 3,230,050
Halliburton Co. 73,749 3,189,644
Weatherford International Ltd.*+ 53,296 3,087,970
Valero Energy Corp. 40,610 2,975,495
Transocean, Inc.*+ 54,495 2,804,313
Anadarko Petroleum Corp. 36,810 2,801,241
Apache Corp. 42,758 2,618,072
Repsol YPF SA -- SP ADR+ 96,213 2,554,455
National-Oilwell Varco, Inc.*+ 53,414 2,494,434
Premcor, Inc. 41,300 2,464,784
Burlington Resources, Inc. 48,993 2,453,080
Marathon Oil Corp.+ 50,749 2,381,143
Kerr-McGee Corp. 28,210 2,209,689
Schlumberger Ltd. 30,850 2,174,308
Williams Cos., Inc.+ 112,650 2,118,947
Unocal Corp. 34,190 2,109,181
Stone Energy Corp.* 43,131 2,094,873
BJ Services Co.+ 40,347 2,093,202
Grant Prideco, Inc.* 86,408 2,087,617
Baker Hughes, Inc.+ 46,565 2,071,677
Unit Corp.* 43,696 1,973,748
EOG Resources, Inc.+ 39,540 1,927,180
Diamond Offshore Drilling, Inc.+ 38,149 1,903,635
Spinnaker Exploration Co.* 49,100 1,744,523
XTO Energy, Inc.+ 52,629 1,728,336
Murphy Oil Corp. 16,664 1,645,237
Chesapeake Energy Corp.+ 66,635 1,461,972
Nabors Industries Ltd.*+ 24,375 1,441,538
Hanover Compressor Co.*+ 115,034 1,388,460
Sunoco, Inc. 12,917 1,337,168
Helmerich & Payne, Inc. 32,844 1,303,578
Pogo Producing Co.+ 26,300 1,295,012
SEACOR Holdings, Inc.* 19,800 1,262,250
Oceaneering International, Inc.* 31,512 1,181,700
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Newfield Exploration Co.* 15,625 $ 1,160,313
Noble Corp. 20,500 1,152,305
Tidewater, Inc.+ 28,826 1,120,178
Forest Oil Corp.*+ 27,600 1,117,800
Cimarex Energy Co.*+ 27,921 1,088,919
Provident Energy Trust+ 109,900 1,086,911
Cooper Cameron Corp.* 18,064 1,033,441
Veritas DGC, Inc.*+ 34,260 1,026,430
Petro-Canada 17,458 1,010,120
Overseas Shipholding Group, Inc. 15,961 1,004,107
Vintage Petroleum, Inc.+ 31,237 982,716
Swift Energy Co.* 34,120 970,373
Kinder Morgan, Inc.+ 12,500 946,250
Pioneer Natural Resources Co.+ 21,100 901,392
Hydril*+ 14,500 846,945
Offshore Logistics, Inc.* 24,041 801,046
ENSCO International, Inc.+ 20,700 779,562
Southwestern Energy Co.*+ 13,672 776,023
Rowan Cos., Inc. 25,500 763,215
W-H Energy Services, Inc.* 30,697 734,579
Patina Oil & Gas Corp. 16,100 644,000
Remington Oil & Gas Corp.* 18,700 589,424
El Paso Corp.+ 54,049 571,838
Cabot Oil & Gas Corp. 10,000 551,500
Noble Energy, Inc.+ 8,000 544,160
CARBO Ceramics, Inc. 7,400 519,110
Lone Star Technologies, Inc.* 12,300 484,989
Houston Exploration Co.* 8,260 470,407
Patterson-UTI Energy, Inc. 17,700 442,854
Cal Dive International, Inc.*+ 9,716 440,135
Petroleum Development Corp.* 8,594 323,908
St. Mary Land & Exploration Co. 6,100 305,305
Petrofund Energy Trust+ 20,600 301,172
Tesoro Corp.*+ 7,800 288,756
Frontline, Ltd. 5,500 269,500
Atwood Oceanics, Inc.* 3,410 226,901
Plains Exploration &
Production Co.* 6,500 226,850
EnCana Corp. 3,200 225,344
ENI-Ente Nazionale
Idrocarburi -- SP ADR 1,500 195,240
Universal Compression Holdings,
Inc.* 5,027 190,372
Canadian Natural Resources Ltd. 3,130 177,847
Precision Drilling Corp.* 1,983 148,051
Smith International, Inc.+ 2,300 144,279
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 33
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
ENERGY FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Tetra Technologies, Inc.* 4,800 $ 136,512
Maverick Tube Corp.* 4,100 133,291
Western Gas Resources, Inc. 3,750 129,188
General Maritime Corp.* 2,200 106,568
Kinder Morgan Energy Partners-LP 2,100 94,500
Whiting Petroleum Corp.* 700 28,546
Ship Finance International Ltd.+ 630 12,789
------------
TOTAL COMMON STOCKS
(Cost $120,127,662) 154,551,154
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.8%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 1,205,123 1,205,123
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,205,123) 1,205,123
------------
SECURITIES LENDING COLLATERAL 16.9%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 26,286,854 26,286,854
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $26,286,854) 26,286,854
------------
TOTAL INVESTMENTS 117.1%
(Cost $147,619,639) $182,043,131
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (17.1)% $(26,544,737)
============
NET ASSETS - 100.0% $155,498,394
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
ADR--AMERICAN DEPOSITORY RECEIPT.
34 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
ENERGY SERVICES FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Schlumberger Ltd. 146,859 $ 10,350,622
Halliburton Co. 211,098 9,129,988
National-Oilwell Varco, Inc.*+ 173,586 8,106,466
Weatherford International Ltd.*+ 118,826 6,884,778
Baker Hughes, Inc.+ 148,580 6,610,324
Transocean, Inc.*+ 122,702 6,314,245
BJ Services Co.+ 116,901 6,064,824
Diamond Offshore Drilling, Inc.+ 103,541 5,166,696
Nabors Industries Ltd.*+ 85,952 5,083,201
Cooper Cameron Corp.*+ 85,894 4,913,996
Noble Corp.+ 85,360 4,798,086
Grant Prideco, Inc.* 178,812 4,320,098
ENSCO International, Inc.+ 108,757 4,095,789
Patterson-UTI Energy, Inc.+ 157,705 3,945,779
Tidewater, Inc.+ 89,719 3,486,480
Veritas DGC, Inc.*+ 115,767 3,468,379
Pride International, Inc.*+ 138,157 3,431,820
Helmerich & Payne, Inc.+ 86,010 3,413,737
Smith International, Inc.+ 52,964 3,322,432
Unit Corp.*+ 71,089 3,211,090
Rowan Cos., Inc. 106,130 3,176,471
SEACOR Holdings, Inc.*+ 44,955 2,865,881
Oceaneering International, Inc.*+ 68,997 2,587,388
Atwood Oceanics, Inc.* 35,323 2,350,392
Offshore Logistics, Inc.* 65,981 2,198,487
Cal Dive International, Inc.*+ 45,104 2,043,211
Lone Star Technologies, Inc.* 51,427 2,027,767
Hydril*+ 33,468 1,954,866
W-H Energy Services, Inc.* 75,918 1,816,718
Maverick Tube Corp.* 51,417 1,671,567
Universal Compression Holdings,
Inc.* 43,855 1,660,789
CARBO Ceramics, Inc. 20,143 1,413,031
FMC Technologies, Inc.* 34,825 1,155,494
Tetra Technologies, Inc.* 36,010 1,024,124
Grey Wolf, Inc.* 51,418 338,330
Todco -- Class A* 11,915 307,884
Input/Output, Inc.*+ 47,471 306,188
NS Group, Inc.* 6,380 200,396
Hanover Compressor Co.*+ 13,872 167,435
Superior Energy Services* 7,800 134,160
------------
TOTAL COMMON STOCKS
(Cost $109,604,911) 135,519,409
------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 0.1%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 228,525 $ 228,525
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $228,525) 228,525
------------
SECURITIES LENDING COLLATERAL 20.6%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 27,993,328 27,993,328
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $27,993,328) 27,993,328
------------
TOTAL INVESTMENTS 120.3%
(Cost $137,826,764) $163,741,262
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (20.3)% $(27,648,653)
============
NET ASSETS - 100.0% $136,092,609
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 35
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Citigroup, Inc. 28,032 $ 1,259,758
American International Group, Inc.+ 19,024 1,054,120
Wachovia Corp.+ 19,050 969,835
J.P. Morgan Chase & Co. 27,102 937,729
Fannie Mae+ 14,830 807,494
American Express Co. 14,196 729,249
Golden West Financial Corp.+ 11,920 721,160
National City Corp. 21,100 706,850
Countrywide Financial Corp.+ 21,190 687,827
Bank of New York Co., Inc. 22,829 663,182
XL Capital Ltd. 8,910 644,817
Principal Financial Group, Inc. 16,712 643,245
ACE Ltd.+ 15,290 631,018
Vornado Realty Trust+ 8,875 614,771
CNA Financial Corp.* 21,660 607,780
Plum Creek Timber (REIT) Co., Inc. 16,893 603,080
Annaly Mortgage Management, Inc.+ 30,850 578,746
Trizec Properties, Inc. 30,410 577,790
Genworth Financial, Inc.
-- Class A+ 20,630 567,738
American Financial Group,
Inc./OH+ 18,169 559,605
AMB Property Corp. 14,770 558,306
New Century Financial Corp. 11,750 550,135
SL Green Realty Corp. 9,692 544,884
AmerUs Group Co. 11,505 543,611
Reinsurance Group of America,
Inc.+ 12,760 543,321
First American Corp. 16,420 540,875
Crescent Real Estate EQT Co. 33,100 540,854
CBL & Associates Properties, Inc. 7,493 535,824
Nationwide Financial Services, Inc. 14,879 534,156
Ohio Casualty Corp.* 23,110 531,068
Entertainment Properties Trust 12,760 528,647
PrivateBancorp, Inc. 16,795 527,531
Commercial Federal Corp. 19,060 527,009
Irwin Financial Corp. 22,711 522,807
FirstFed Financial Corp.* 10,230 521,832
Republic Bancorp, Inc./MI 38,355 519,327
Student Loan Corp. 2,461 514,374
Greater Bay Bancorp 21,010 512,854
Community Bank System, Inc. 22,372 512,543
MBNA Corp. 20,620 506,221
Moody's Corp.+ 6,242 504,728
Bankunited Financial Corp.
-- Class A* 18,645 500,805
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Stewart Information Services Corp. 12,951 $ 485,922
CB Richard Ellis Group,
Inc. -- Class A* 13,797 482,757
First Bancorp Puerto Rico+ 11,413 482,199
W Holding Co., Inc. 47,690 480,238
Uniao de Bancos Brasileiros SA 13,510 464,474
Banco Itau Holding Financeira
SA -- SP ADR 5,720 464,178
Banco Bradesco SA -- SP ADR+ 15,950 462,550
UBS AG+ 5,353 451,793
RenaissanceRe Holdings Ltd.+ 9,570 446,919
Flagstar Bancorp, Inc.+ 22,470 439,289
Capital One Financial Corp.+ 5,765 431,049
Mellon Financial Corp. 14,507 414,030
Nara Bancorp, Inc. 28,510 400,566
Loews Corp. 4,961 364,832
Radian Group, Inc. 7,300 348,502
State Street Corp.+ 7,884 344,688
Doral Financial Corp.+ 15,010 328,569
Eaton Vance Corp. 13,551 317,635
Bank of America Corp.+ 6,396 282,064
Charles Schwab Corp.+ 22,502 236,496
Franklin Resources, Inc.+ 2,648 181,785
BankAtlantic Bancorp,
Inc. -- Class A 10,320 179,568
Morgan Stanley 3,130 179,193
Merrill Lynch & Co., Inc. 2,860 161,876
Axis Capital Holdings Ltd. 5,910 159,806
SLM Corp. 3,123 155,650
UICI 5,260 127,555
ING Groep NV -- SP ADR 3,362 101,633
General Growth Properties, Inc.+ 2,980 101,618
Riggs National Corp. 5,290 100,986
First Marblehead Corp.*+ 1,674 96,305
Chicago Mercantile Exchange Holdings,
Inc.+ 466 90,418
Wells Fargo & Co. 1,499 89,640
Bear Stearns Cos., Inc. 787 78,621
Legg Mason, Inc.+ 897 70,092
MoneyGram International, Inc. 3,541 66,889
Investors Financial Services Corp.+ 1,093 53,459
AmeriCredit Corp.*+ 1,906 44,677
American Capital Strategies, Ltd. 1,264 39,702
Piper Jaffray Cos., Inc.* 1,066 39,005
------------
TOTAL COMMON STOCKS
(Cost $36,310,815) 36,434,734
------------
36 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes To Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 0.4%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 144,512 $ 144,512
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $144,512) 144,512
------------
SECURITIES LENDING COLLATERAL 15.1%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 5,539,792 5,539,792
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $5,539,792) 5,539,792
------------
TOTAL INVESTMENTS 115.0%
(Cost $41,995,119) $ 42,119,038
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (15.0)% $ (5,502,495)
============
NET ASSETS - 100.0% $ 36,616,543
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
ADR--AMERICAN DEPOSITORY RECEIPT.
REIT--REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 37
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
HEALTH CARE FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Pfizer, Inc. 165,923 $ 4,358,797
Johnson & Johnson, Inc.+ 55,949 3,757,535
Abbott Laboratories 50,353 2,347,457
Amgen, Inc.*+ 40,026 2,329,913
UnitedHealth Group, Inc.+ 21,028 2,005,651
Bristol-Myers Squibb Co.+ 69,078 1,758,726
Eli Lilly & Co. 29,053 1,513,661
Aetna, Inc.+ 17,978 1,347,451
Medtronic, Inc. 25,584 1,303,505
Merck & Co., Inc. 40,238 1,302,504
Boston Scientific Corp.* 42,403 1,241,984
Caremark Rx, Inc.*+ 30,025 1,194,395
Cardinal Health, Inc.+ 19,066 1,063,883
HCA, Inc.+ 19,326 1,035,294
Genzyme Corp.*+ 17,520 1,002,845
Zimmer Holdings, Inc.*+ 12,810 996,746
Wyeth 21,547 908,852
Genentech, Inc.*+ 15,606 883,456
Biogen Idec, Inc.*+ 22,440 774,404
Allergan, Inc.+ 10,820 751,665
WellPoint, Inc.* 5,860 734,551
St. Jude Medical, Inc.* 19,890 716,040
Forest Laboratories, Inc.*+ 19,166 708,184
Becton, Dickinson & Co. 10,950 639,699
Express Scripts, Inc.*+ 7,147 623,147
Quest Diagnostics, Inc.+ 5,830 612,908
Patterson Cos., Inc.*+ 12,110 604,895
Medimmune, Inc.*+ 22,520 536,201
C.R. Bard, Inc. 7,800 531,024
Schering AG -- SP ADR+ 7,861 525,115
IVAX Corp.*+ 25,920 512,438
IMS Health, Inc. 20,940 510,727
Pacificare Health Systems, Inc.*+ 8,348 475,168
DENTSPLY International, Inc. 8,170 444,530
Bausch & Lomb, Inc.+ 5,706 418,250
Fisher Scientific International, Inc.*+ 7,330 417,224
Waters Corp.* 11,500 411,585
Coventry Health Care, Inc.* 5,974 407,068
Laboratory Corporation of America
Holdings*+ 8,410 405,362
Thermo Electron Corp.* 15,720 397,559
Hillenbrand Industries, Inc. 6,685 370,817
Biomet, Inc. 9,920 360,096
Kinetic Concepts, Inc.* 5,893 351,517
Covance, Inc.* 7,200 342,792
Gilead Sciences, Inc.* 9,518 340,744
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Endo Pharmaceuticals Holdings,
Inc.* 14,910 $ 336,221
Charles River Laboratories International,
Inc.*+ 7,130 335,395
Henry Schein, Inc.*+ 9,320 334,029
Invitrogen Corp.*+ 4,816 333,267
Affymetrix, Inc.*+ 7,270 311,447
Cephalon, Inc.*+ 6,510 304,863
WebMD Corp.*+ 35,804 304,334
American Pharmaceutical Partners,
Inc.*+ 5,880 304,231
Edwards Lifesciences Corp.*+ 6,979 301,632
Hospira, Inc.* 9,299 300,079
PerkinElmer, Inc. 14,391 296,886
Dade Behring Holdings, Inc.* 4,910 289,346
Humana, Inc.*+ 8,897 284,170
Schering-Plough Corp. 15,525 281,779
Cytyc Corp.* 12,230 281,412
DaVita, Inc.* 6,540 273,699
Millennium Pharmaceuticals, Inc.*+ 32,220 271,292
Altana AG -- SP ADR+ 4,102 260,477
Omnicare, Inc.+ 7,256 257,225
Millipore Corp.* 5,768 250,331
WellChoice, Inc.* 4,580 244,160
Varian Medical Systems, Inc.*+ 7,100 243,388
Health Management Associates,
Inc. -- Class A+ 9,270 242,689
Pharmaceutical Product Development,
Inc.* 5,001 242,298
Beckman Coulter, Inc.+ 3,584 238,157
Cerner Corp.*+ 4,528 237,765
Manor Care, Inc.+ 6,410 233,068
Sierra Health Services, Inc.*+ 3,528 225,228
Andrx Corp.* 9,151 207,453
Universal Health Services,
Inc. -- Class B+ 3,890 203,836
Immucor, Inc.* 6,510 196,537
Novo-Nordisk A/S -- SP ADR 3,359 187,499
Invacare Corp. 3,944 176,021
Varian, Inc.* 4,600 174,294
Centene Corp.* 5,792 173,702
Baxter International, Inc. 4,844 164,599
Community Health Systems, Inc.* 4,599 160,551
American Healthways, Inc.*+ 4,821 159,189
Stryker Corp.+ 3,540 157,919
Haemonetics Corp./MA* 3,598 151,692
Chemed Corp. 1,897 145,083
Par Pharmaceutical Cos., Inc.*+ 4,318 144,394
38 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
HEALTH CARE FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Biosite, Inc.*+ 2,449 $ 127,421
Priority Healthcare Corp.
-- Class B* 5,550 120,047
Conmed Corp.* 3,982 119,938
LCA-Vision, Inc. 3,500 116,550
Vertex Pharmaceuticals, Inc.*+ 12,173 113,939
Hologic, Inc.* 3,520 112,200
ArthroCare Corp.* 3,520 100,320
Mentor Corp.+ 3,069 98,515
Analogic Corp. 2,220 96,015
SurModics, Inc.*+ 2,900 92,539
Amedisys, Inc.* 2,580 78,045
Serono SA -- SP ADR 3,025 54,904
Regeneron Pharmaceuticals, Inc.* 1,130 5,774
------------
TOTAL COMMON STOCKS
(Cost $47,301,106) 55,734,209
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.6%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 333,815 333,815
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $333,815) 333,815
------------
SECURITIES LENDING COLLATERAL 19.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 10,872,206 10,872,206
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $10,872,206) 10,872,206
------------
TOTAL INVESTMENTS 119.5%
(Cost $58,507,127) $ 66,940,230
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (19.5)% $(10,910,507)
============
NET ASSETS - 100.0% $ 56,029,723
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 39
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
INTERNET FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.8%
Cisco Systems, Inc.* 38,345 $ 685,992
Yahoo!, Inc.*+ 16,408 556,231
Time Warner, Inc.* 30,481 534,942
Qualcomm, Inc. 12,344 452,408
Research In Motion Ltd.* 4,626 353,519
eBay, Inc.* 8,920 332,359
Amazon.com, Inc.*+ 9,298 318,642
Juniper Networks, Inc.*+ 13,756 303,457
Qwest Communications International,
Inc.*+ 58,580 216,746
CheckFree Corp.*+ 5,290 215,620
Ask Jeeves, Inc.*+ 6,476 181,846
E*Trade Financial Corp.* 14,216 170,592
InterActiveCorp*+ 7,539 167,894
Symantec Corp.*+ 7,792 166,203
Sun Microsystems, Inc.*+ 40,094 161,980
PalmOne, Inc.*+ 6,234 158,219
Red Hat, Inc.* 14,063 153,427
EarthLink, Inc.* 16,627 149,643
WebMD Corp.*+ 17,386 147,781
DoubleClick, Inc.*+ 18,950 145,915
Netflix, Inc.*+ 12,953 140,540
United Online, Inc.*+ 12,511 130,990
Broadcom Corp. -- Class A*+ 4,338 129,793
Intuit, Inc.*+ 2,938 128,596
Internet Security Systems, Inc.* 6,949 127,167
TIBCO Software, Inc.* 16,491 122,858
McAfee, Inc.*+ 4,784 107,927
VeriSign, Inc.*+ 3,657 104,956
Akamai Technologies, Inc.* 6,980 88,855
Check Point Software Technologies
Ltd.* 4,048 88,004
InfoSpace, Inc.* 2,010 82,068
Digital River, Inc.* 2,515 78,367
NetBank, Inc. 8,629 73,174
Google, Inc. -- Class A* 404 72,926
ValueClick, Inc.* 6,719 71,289
Siebel Systems, Inc.* 7,287 66,530
Websense, Inc.* 1,160 62,408
CIENA Corp.* 34,029 58,530
BEA Systems, Inc.* 6,345 50,570
Monster Worldwide, Inc.* 1,699 47,657
Verity, Inc.* 4,632 43,772
Macromedia, Inc.*+ 1,299 43,516
F5 Networks, Inc.* 547 27,618
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Priceline.com, Inc.* 1,010 $ 25,452
Jupitermedia Corp.* 1,125 17,449
Overstock.com, Inc.* 404 17,368
CNET Networks, Inc.* 1,756 16,577
FindWhat.com* 1,540 15,970
Foundry Networks, Inc.*+ 1,415 14,009
------------
TOTAL COMMON STOCKS
(Cost $5,320,064) 7,628,352
------------
FACE
AMOUNT
-----------
SECURITIES LENDING COLLATERAL 14.7%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) $ 1,121,759 1,121,759
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,121,759) 1,121,759
------------
TOTAL INVESTMENTS 114.5%
(Cost $6,441,823) $ 8,750,111
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (14.5)% $ (1,110,300)
============
NET ASSETS - 100.0% $ 7,639,811
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
40 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
LEISURE FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.3%
News Corp. -- Class A+ 213,731 $ 3,616,324
Time Warner, Inc.*+ 166,154 2,916,003
Viacom, Inc. -- Class B 74,523 2,595,636
McDonald's Corp. 72,540 2,258,896
Walt Disney Co.+ 72,476 2,082,235
Starbucks Corp.* 33,074 1,708,603
Hilton Hotels Corp.+ 62,323 1,392,919
Darden Restaurants, Inc.+ 41,102 1,261,009
International Game Technology, Inc. 46,464 1,238,730
Marriott International, Inc.
-- Class A+ 18,416 1,231,294
Mandalay Resort Group 16,432 1,158,292
Brunswick Corp. 24,172 1,132,458
Hasbro, Inc.+ 53,006 1,083,973
Carnival Corp.+ 20,270 1,050,189
Electronic Arts, Inc.*+ 19,175 992,881
Marvel Enterprises, Inc.*+ 49,499 989,980
GTECH Holdings Corp.+ 41,656 980,166
Choice Hotels International, Inc. 15,786 977,943
Applebee's International, Inc.+ 34,497 950,737
Krispy Kreme Doughnuts, Inc.*+ 116,060 885,538
Ruby Tuesday, Inc.+ 36,354 883,039
Argosy Gaming Co.* 18,972 871,194
Rare Hospitality International, Inc.* 27,350 844,568
CEC Entertainment, Inc.*+ 22,373 818,852
Jakks Pacific, Inc.* 36,120 775,496
International Speedway Corp.
-- Class A 14,205 770,621
Harrah's Entertainment, Inc.+ 10,663 688,616
Activision, Inc.* 43,976 650,845
Jack in the Box, Inc.* 17,285 641,273
Napster, Inc.*+ 90,550 589,480
Yum! Brands, Inc.+ 11,268 583,795
Outback Steakhouse, Inc. 12,735 583,136
Polaris Industries, Inc. 7,898 554,676
Penn National Gaming, Inc.* 17,750 521,495
Royal Caribbean Cruises Ltd.+ 11,510 514,382
Starwood Hotels & Resorts Worldwide,
Inc.+ 7,598 456,108
Wendy's International, Inc.+ 10,851 423,623
MGM Mirage, Inc.* 5,230 370,389
Eastman Kodak Co.+ 10,713 348,708
Mattel, Inc. 15,393 328,641
Caesars Entertainment, Inc.*+ 15,814 312,959
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Aztar Corp.*+ 9,360 $ 267,322
Ryan's Restaurant Group, Inc.* 17,762 258,082
Arctic Cat, Inc. 8,484 229,577
Lone Star Steakhouse & Saloon, Inc. 7,930 229,217
Nautilus, Inc. 9,240 219,542
Wynn Resorts Ltd.*+ 2,849 192,991
Bally Total Fitness Holding Corp.* 46,410 161,507
Pixar* 1,327 129,449
Boyd Gaming Corp. 1,980 103,257
Station Casinos, Inc. 970 65,523
Multimedia Games, Inc.* 8,180 63,477
Meade Instruments Corp.* 21,724 63,217
------------
TOTAL COMMON STOCKS
(Cost $41,740,244) 45,018,863
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.3%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 163,202 163,202
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $163,202) 163,202
------------
SECURITIES LENDING COLLATERAL 21.1%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 9,561,992 9,561,992
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $9,561,992) 9,561,992
------------
TOTAL INVESTMENTS 120.7%
(Cost $51,465,438) $ 54,744,057
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (20.7)% $ (9,399,657)
============
NET ASSETS - 100.0% $ 45,344,400
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 41
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
PRECIOUS METALS FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.2%
Newmont Mining Corp.+ 521,496 $ 22,033,206
Freeport-McMoRan Copper & Gold,
Inc. -- Class B+ 375,965 14,891,974
Barrick Gold Corp.+ 439,622 10,533,343
Placer Dome, Inc. 536,623 8,704,025
AngloGold Ashanti Ltd. -- SP ADR+ 231,043 7,959,431
Gold Fields Ltd. -- SP ADR+ 665,214 7,643,309
Goldcorp, Inc.+ 518,500 7,367,885
Harmony Gold Mining Co. Ltd.
-- SP ADR+ 883,169 6,888,718
Wheaton River Minerals Ltd.*+ 1,771,827 6,289,986
Pan American Silver Corp.* 363,573 5,764,450
Coeur d'Alene Mines Corp.*+ 1,466,144 5,380,748
Glamis Gold Ltd. 344,245 5,373,664
Agnico-Eagle Mines Ltd.+ 358,115 5,210,573
Kinross Gold Corp.* 780,945 4,685,670
Meridian Gold, Inc.*+ 276,880 4,662,659
Bema Gold Corp.* 1,636,892 4,386,871
Hecla Mining Co.*+ 760,036 4,164,997
Silver Standard Resources, Inc.*+ 358,315 4,149,288
Apex Silver Mines Ltd.* 225,012 3,604,692
Stillwater Mining Co.* 344,310 3,391,454
Randgold Resources Ltd.
-- SP ADR*+ 262,174 3,240,471
Golden Star Resources Ltd.*+ 1,092,833 3,136,431
Novagold Resources, Inc.* 316,946 2,633,821
Crystallex International Corp.* 685,117 2,404,761
DRDGOLD Ltd. -- SP ADR*+ 2,400,414 2,184,377
Cambior, Inc.* 935,273 2,029,542
------------
TOTAL COMMON STOCKS
(Cost $116,722,471) 158,716,346
------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 0.5%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 777,697 $ 777,697
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $777,697) 777,697
------------
SECURITIES LENDING COLLATERAL 35.8%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 57,189,988 57,189,988
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $57,189,988) 57,189,988
------------
TOTAL INVESTMENTS 135.5%
(Cost $174,690,156) $216,684,031
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (35.5)% $(56,727,037)
============
NET ASSETS - 100.0% $159,956,994
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
ADR--AMERICAN DEPOSITORY RECEIPT.
42 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
REAL ESTATE FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Realty Income Corp. 14,440 $ 330,387
Equity Office Properties Trust 7,844 236,340
Simon Property Group, Inc. 3,739 226,509
Equity Residential+ 5,910 190,361
Vornado Realty Trust+ 2,636 182,596
Public Storage, Inc. 3,100 176,514
General Growth Properties, Inc.+ 5,073 172,989
Boston Properties, Inc. 2,750 165,632
Plum Creek Timber (REIT) Co., Inc. 4,637 165,541
Archstone-Smith Trust+ 4,568 155,814
ProLogis 4,199 155,783
KIMCO Realty Corp.+ 2,875 154,962
Host Marriott Corp.+ 9,170 151,855
St. Joe Co. 2,224 149,675
AvalonBay Communities, Inc. 2,030 135,787
iStar Financial, Inc. 3,240 133,423
Developers Diversified Realty Corp. 3,200 127,200
Duke Realty Corp. 4,170 124,474
Apartment Investment &
Management Co. -- Class A+ 3,260 121,272
Liberty Property Trust 2,900 113,245
AMB Property Corp. 2,945 111,321
Trizec Properties, Inc. 5,700 108,300
Macerich Co.+ 1,981 105,548
Weingarten Realty Investors+ 3,048 105,186
Health Care Property Investors, Inc. 4,480 105,146
United Dominion Realty Trust, Inc. 4,959 103,494
Regency Centers Corp.+ 2,150 102,404
Hospitality Properties Trust 2,536 102,404
Federal Realty Investment Trust 2,084 100,761
Catellus Development Corp. 3,740 99,671
Mills Corp.+ 1,880 99,452
Rayonier, Inc. 1,990 98,565
Reckson Associates Realty Corp. 3,210 98,547
Forest City Enterprises,
Inc. -- Class A 1,542 98,380
Thornburg Mortgage, Inc. 3,500 98,140
SL Green Realty Corp. 1,730 97,261
Mack-Cali Realty Corp. 2,262 95,796
Camden Property Trust 2,020 95,001
Pan Pacific Retail Properties, Inc. 1,670 94,772
HRPT Properties Trust 7,931 94,458
New Plan Excel Realty Trust 3,754 94,263
Arden Realty, Inc. 2,773 93,866
Annaly Mortgage Management, Inc.+ 4,970 93,237
CBL & Associates Properties, Inc. 1,303 93,178
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Friedman Billings Ramsey Group,
Inc. -- Class A+ 5,640 $ 89,507
CenterPoint Properties Trust 2,180 89,380
Ventas, Inc. 3,540 88,358
Crescent Real Estate EQT Co. 5,356 87,517
First Industrial Realty Trust, Inc. 2,287 86,517
Shurgard Storage Centers,
Inc. -- Class A 2,101 86,099
Highwoods Properties, Inc.+ 3,090 82,874
Healthcare Realty Trust, Inc. 2,260 82,354
Capital Automotive REIT+ 2,404 79,620
BRE Properties -- Class A 2,250 79,425
Essex Property Trust, Inc. 1,113 76,730
Brandywine Realty Trust 2,640 74,976
Health Care REIT, Inc. 2,310 73,920
Home Properties, Inc. 1,902 73,798
CarrAmerica Realty Corp. 2,330 73,511
Taubman Centers, Inc. 2,625 72,817
Nationwide Health Properties, Inc. 3,578 72,311
Cousins Properties, Inc. 2,767 71,582
Prentiss Properties Trust 2,080 71,053
Washington Real Estate
Investment Trust 2,450 70,438
Pennsylvania Real Estate
Investment Trust 1,746 70,399
Lexington Corporate
Properties Trust+ 3,196 70,120
Kilroy Realty Corp. 1,695 69,342
Heritage Property Investment Trust 2,332 69,214
Alexandria Real Estate Equities, Inc. 1,072 69,015
Entertainment Properties Trust 1,614 66,868
Commercial Net Lease Realty 3,568 65,830
Gables Residential Trust 1,969 65,568
Colonial Properties Trust 1,687 64,798
PS Business Parks, Inc. 1,585 63,876
Post Properties, Inc. 2,020 62,701
Senior Housing Properties Trust 3,740 62,383
LaSalle Hotel Properties 1,979 57,490
Corporate Office Properties Trust
SBI/MD 2,162 57,250
FelCor Lodging Trust, Inc.* 4,596 57,128
Equity Lifestyle Properties, Inc. 1,603 56,506
Eastgroup Properties 1,488 56,098
Sovran Self Storage, Inc. 1,397 55,363
Glimcher Realty Trust 2,302 54,557
Sun Communities, Inc. 1,511 54,094
Equity Inns, Inc. 4,700 51,841
National Health Investors, Inc. 1,956 50,817
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 43
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
REAL ESTATE FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Mid-America Apartment
Communities, Inc. 1,323 $ 48,290
Parkway Properties, Inc./MD 1,026 47,914
Kramont Realty Trust 2,030 47,502
CRT Properties, Inc. 2,149 46,805
AMLI Residential Properties Trust 1,700 46,563
Glenborough Realty Trust, Inc. 2,435 46,557
Tanger Factory Outlet Centers, Inc. 2,024 44,528
Cornerstone Realty Income Trust,
Inc. 4,481 44,452
Meristar Hospitality Corp.* 6,244 43,708
Innkeepers USA Trust 3,350 43,249
Saul Centers, Inc. 1,325 42,400
Ramco-Gershenson Properties 1,559 42,327
Town & Country Trust 1,590 42,056
Winston Hotels, Inc. 3,429 40,119
Trustreet Properties, Inc. 2,389 36,767
Correctional Properties Trust 1,351 34,113
Universal Health Realty Income Trust 1,133 32,007
Bedford Property Investors, Inc. 1,410 30,780
Urstadt Biddle Properties, Inc. 1,980 30,195
Associated Estates Realty Corp. 2,883 28,744
------------
TOTAL COMMON STOCKS
(Cost $8,127,744) 9,512,631
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 1.4%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 131,493 131,493
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $131,493) 131,493
------------
SECURITIES LENDING COLLATERAL 11.1%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 1,060,338 1,060,338
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,060,338) 1,060,338
------------
TOTAL INVESTMENTS 112.1%
(Cost $9,319,575) $ 10,704,462
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (12.1)% $ (1,153,990)
============
NET ASSETS - 100.0% $ 9,550,472
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
REIT - REAL ESTATE INVESTMENT TRUST.
44 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
RETAILING FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Wal-Mart Stores, Inc.+ 15,965 $ 800,006
Home Depot, Inc.+ 15,377 588,016
Target Corp. 11,753 587,885
Sears Holdings Corp.*+ 3,945 525,351
eBay, Inc.* 13,922 518,734
JC Penney Holding Co., Inc. 9,030 468,838
Lowe's Cos., Inc.+ 7,996 456,492
Kohl's Corp.*+ 8,571 442,521
Costco Wholesale Corp.+ 9,835 434,510
Staples, Inc. 13,093 411,513
The Gap, Inc.+ 18,148 396,352
Federated Department Stores, Inc.+ 6,124 389,731
Limited Brands, Inc. 15,343 372,835
Amazon.com, Inc.*+ 10,773 369,191
Nordstrom, Inc.+ 6,520 361,078
Walgreen Co. 7,380 327,820
Abercrombie & Fitch
Co. -- Class A+ 5,650 323,406
Chico's FAS, Inc.*+ 11,392 321,938
American Eagle Outfitters, Inc. 10,796 319,022
Neiman-Marcus Group,
Inc. -- Class A+ 3,410 312,049
Weight Watchers International, Inc.* 6,849 294,370
May Department Stores Co.+ 7,708 285,350
Urban Outfitters, Inc.* 5,936 284,750
OfficeMax, Inc. 8,363 280,160
Dollar Tree Stores, Inc.*+ 9,630 276,670
Movie Gallery, Inc.+ 9,514 272,861
Pacific Sunwear of California, Inc.*+ 9,440 264,131
Payless Shoesource, Inc.*+ 16,157 255,119
Aeropostale, Inc.*+ 7,540 246,935
Burlington Coat Factory
Warehouse Corp. 8,354 239,760
Zale Corp.* 8,010 238,057
Rent-A-Center, Inc.* 8,351 228,066
Cabela's, Inc. -- Class A* 10,840 223,629
Regis Corp. 5,428 222,168
Insight Enterprises, Inc.* 12,053 211,651
InterActiveCorp*+ 9,491 211,365
Too, Inc.*+ 8,080 199,334
Children's Place Retail Stores, Inc.*+ 4,150 198,162
Claire's Stores, Inc. 8,515 196,186
Building Material Holding Corp. 4,359 193,888
Select Comfort Corp.* 9,162 187,271
CVS Corp. 3,349 176,224
Bebe Stores, Inc. 4,790 162,620
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
United Auto Group, Inc. 5,558 154,679
NeighborCare, Inc.* 5,173 151,310
PETCO Animal Supplies, Inc.* 3,980 146,504
Tuesday Morning Corp.* 5,059 146,053
AutoNation, Inc.*+ 7,550 142,997
Best Buy Co., Inc. 1,941 104,833
Guitar Center, Inc.*+ 1,810 99,242
AutoZone, Inc.* 1,040 89,128
TJX Cos., Inc.+ 2,927 72,092
Advanced Marketing Services, Inc.* 11,571 69,426
Coldwater Creek, Inc.* 3,610 66,713
Bed Bath & Beyond, Inc.*+ 1,755 64,128
Longs Drug Stores Corp.+ 1,430 48,935
BJ's Wholesale Club, Inc.* 1,456 45,223
Big Lots, Inc.* 2,960 35,579
Genuine Parts Co. 714 31,052
Dollar General Corp. 1,351 29,600
Aaron Rents, Inc. 1,111 22,220
Office Depot, Inc.* 903 20,029
Toys "R" Us, Inc.* 670 17,259
Family Dollar Stores, Inc.+ 460 13,966
Sherwin-Williams Co. 309 13,593
RadioShack Corp. 550 13,475
------------
TOTAL COMMON STOCKS
(Cost $12,392,922) 15,674,051
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.5%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 87,347 87,347
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $87,347) 87,347
------------
SECURITIES LENDING COLLATERAL 16.6%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 2,608,768 2,608,768
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,608,768) 2,608,768
------------
TOTAL INVESTMENTS 116.6%
(Cost $15,089,037) $ 18,370,166
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (16.6)% $ (2,620,609)
============
NET ASSETS - 100.0% $ 15,749,557
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 45
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Microsoft Corp. 89,941 $ 2,173,874
Intel Corp. 64,821 1,505,792
Cisco Systems, Inc.* 77,750 1,390,947
Dell, Inc.* 27,122 1,042,027
Hewlett-Packard Co. 45,039 988,156
International Business Machines
Corp. 10,679 975,847
Motorola, Inc.+ 51,819 775,730
Oracle Corp.* 61,717 770,228
Texas Instruments, Inc. 23,997 611,684
Yahoo!, Inc.*+ 17,042 577,724
EMC Corp./MA* 43,904 540,897
Qualcomm, Inc. 14,493 531,168
Applied Materials, Inc.*+ 27,322 443,982
Corning, Inc.* 39,402 438,544
Apple Computer, Inc.* 9,834 409,783
Xerox Corp.* 24,440 370,266
Juniper Networks, Inc.*+ 15,580 343,695
First Data Corp. 7,611 299,188
Broadcom Corp. -- Class A*+ 8,890 265,989
Symantec Corp.*+ 10,008 213,471
Adobe Systems, Inc. 2,940 197,480
Network Appliance, Inc.*+ 6,146 169,998
Electronic Data Systems Corp.+ 8,180 169,081
Google, Inc. -- Class A*+ 920 166,069
Cadence Design Systems, Inc.*+ 11,005 164,525
Agilent Technologies, Inc.* 7,252 160,994
Micron Technology, Inc.*+ 15,373 158,957
Lam Research Corp.*+ 5,495 158,586
Computer Sciences Corp.*+ 3,411 156,394
Novellus Systems, Inc.*+ 5,653 151,105
Iron Mountain, Inc.*+ 5,166 148,987
Total System Services, Inc. 5,923 148,016
KLA-Tencor Corp.*+ 3,157 145,254
Fiserv, Inc.*+ 3,606 143,519
Veritas Software Corp.*+ 5,711 132,609
BMC Software, Inc.* 8,830 132,450
Xilinx, Inc.+ 4,506 131,710
Siebel Systems, Inc.*+ 14,180 129,463
Sabre Holdings Corp.+ 5,830 127,560
Sun Microsystems, Inc.*+ 31,441 127,022
Solectron Corp.*+ 36,427 126,402
Compuware Corp.* 17,468 125,770
Microchip Technology, Inc. 4,634 120,530
National Semiconductor Corp. 5,693 117,333
Global Payments, Inc.+ 1,770 114,147
VeriSign, Inc.*+ 3,976 114,111
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Ingram Micro, Inc. -- Class A* 6,784 $ 113,089
Advanced Micro Devices, Inc.*+ 6,997 112,792
Ceridian Corp.* 6,540 111,507
CheckFree Corp.*+ 2,650 108,014
Sanmina-SCI Corp.* 20,291 105,919
Citrix Systems, Inc.*+ 4,426 105,427
Autodesk, Inc. 3,530 105,053
Avnet, Inc.* 5,586 102,894
Electronic Arts, Inc.*+ 1,960 101,489
Novell, Inc.* 16,894 100,688
Certegy, Inc. 2,900 100,398
Fair Isaac Corp. 2,900 99,876
Mettler Toledo International, Inc.* 2,023 96,092
QLogic Corp.*+ 2,345 94,972
NCR Corp.*+ 2,760 93,122
Harris Corp. 2,842 92,791
Teradyne, Inc.*+ 6,334 92,476
Comverse Technology, Inc.*+ 3,656 92,204
Cognizant Technology Solutions
Corp.*+ 1,974 91,199
Unisys Corp.* 12,665 89,415
BearingPoint, Inc.* 10,010 87,788
Freescale Semiconductor,
Inc. -- Class B* 5,074 87,526
Trimble Navigation Ltd.* 2,558 86,486
International Rectifier Corp.*+ 1,898 86,359
Nvidia Corp.* 3,530 83,873
Hyperion Solutions Corp.*+ 1,882 83,015
BEA Systems, Inc.* 10,330 82,330
Ask Jeeves, Inc.*+ 2,927 82,190
McAfee, Inc.* 3,575 80,652
Akamai Technologies, Inc.* 6,321 80,466
Titan Corp.* 4,430 80,449
Paychex, Inc.+ 2,436 79,950
NAVTEQ Corp.*+ 1,830 79,330
Parametric Technology Corp.*+ 13,650 76,303
SunGard Data Systems, Inc.* 2,209 76,210
Western Digital Corp.* 5,969 76,105
Red Hat, Inc.* 6,961 75,945
PMC - Sierra, Inc.*+ 8,466 74,501
Varian Semiconductor Equipment
Associates, Inc.*+ 1,935 73,549
Flir Systems, Inc.*+ 2,410 73,023
Alliance Data Systems Corp.* 1,750 70,700
Anixter International, Inc.*+ 1,930 69,770
Integrated Circuit Systems, Inc.* 3,630 69,406
Wind River Systems, Inc.*+ 4,571 68,931
TIBCO Software, Inc.* 9,244 68,868
Zebra Technologies Corp. -- Class A* 1,450 68,861
46 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Benchmark Electronics, Inc.* 2,155 $ 68,594
Semtech Corp.* 3,683 65,815
Macromedia, Inc.*+ 1,830 61,305
Dionex Corp.* 1,120 61,040
Macrovision Corp.*+ 2,650 60,394
Andrew Corp.*+ 5,123 59,990
Avocent Corp.* 2,330 59,788
Take-Two Interactive Software, Inc.*+ 1,520 59,432
Factset Research Systems, Inc.+ 1,800 59,418
Cree, Inc.*+ 2,695 58,616
Coherent, Inc.* 1,730 58,405
Fairchild Semiconductor
International, Inc.*+ 3,801 58,269
MPS Group, Inc.* 5,480 57,595
Belden CDT, Inc.+ 2,590 57,524
Mentor Graphics Corp.* 4,120 56,444
Progress Software Corp.* 2,130 55,849
CACI International, Inc. -- Class A* 1,010 55,782
Kronos, Inc./MA* 1,080 55,199
Jack Henry & Associates, Inc. 3,060 55,049
Cymer, Inc.* 2,045 54,745
Microsemi Corp.* 3,340 54,409
Sybase, Inc.*+ 2,890 53,349
Transaction Systems Architects,
Inc. -- Class A* 2,300 53,245
Rambus, Inc.* 3,520 53,046
Activision, Inc.* 3,541 52,407
Filenet Corp.* 2,300 52,394
ADTRAN, Inc. 2,948 52,003
Hutchinson Technology, Inc.* 1,470 51,127
Skyworks Solutions, Inc.* 8,029 50,984
Paxar Corp.* 2,300 49,082
Global Imaging Systems, Inc.* 1,367 48,474
ATMI, Inc.* 1,930 48,327
Synopsys, Inc.*+ 2,650 47,965
Websense, Inc.* 889 47,828
FEI Co.* 2,055 47,573
Micrel, Inc.*+ 5,121 47,216
CSG Systems International, Inc.* 2,890 47,078
Cogent, Inc.* 1,850 46,583
Internet Security Systems, Inc.* 2,530 46,299
Retek, Inc.* 4,120 46,226
Harmonic, Inc.* 4,650 44,454
Cabot Microelectronics Corp.*+ 1,400 43,932
Utstarcom, Inc.*+ 3,984 43,625
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Axcelis Technologies, Inc.*+ 5,976 $ 43,625
Rogers Corp.* 1,040 41,600
Brooks Automation, Inc.*+ 2,660 40,379
Checkpoint Systems, Inc.* 2,360 39,837
Manhattan Associates, Inc.* 1,850 37,685
Altiris, Inc.*+ 1,580 37,683
MTS Systems Corp. 1,290 37,449
Advent Software, Inc.* 2,010 36,542
Synaptics, Inc.* 1,530 35,496
ViaSat, Inc.* 1,680 31,399
Talx Corp. 1,565 28,420
Helix Technology Corp. 1,770 27,382
Computer Associates
International, Inc.+ 746 20,217
Agilsys, Inc. 650 12,779
Scientific-Atlanta, Inc. 290 8,184
Avaya, Inc.* 469 5,478
------------
TOTAL COMMON STOCKS
(Cost $20,162,442) 25,230,101
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.9%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 216,968 216,968
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $216,968) 216,968
------------
SECURITIES LENDING COLLATERAL 15.3%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 3,883,668 3,883,668
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $3,883,668) 3,883,668
------------
TOTAL INVESTMENTS 115.8%
(Cost $24,263,078) $ 29,330,737
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (15.8)% $ (4,002,576)
============
NET ASSETS - 100.0% $ 25,328,161
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 47
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Cisco Systems, Inc.* 41,857 $ 748,822
Vodafone Group PLC -- SP ADR+ 24,039 638,476
SBC Communications, Inc.+ 23,248 550,745
Verizon Communications, Inc.+ 13,658 484,859
Nokia OYJ -- SP ADR*+ 31,374 484,101
Qualcomm, Inc. 11,814 432,983
Motorola, Inc.+ 27,659 414,055
Sprint Corp.+ 14,811 336,950
Juniper Networks, Inc.*+ 15,160 334,430
Telefonaktiebolaget LM Ericsson --
SP ADR*+ 11,541 325,456
Nextel Communications,
Inc. -- Class A*+ 10,791 306,680
BellSouth Corp.+ 11,410 299,969
Corning, Inc.*+ 26,501 294,956
AT&T Corp. 13,804 258,825
Alltel Corp.+ 4,411 241,943
Crown Castle International Corp.* 14,904 239,358
CenturyTel, Inc.+ 6,238 204,856
Telephone & Data Systems, Inc. 2,226 181,642
Alcatel SA -- SP ADR* 15,006 181,122
American Tower Corp. -- Class A*+ 6,853 124,930
Comverse Technology, Inc.*+ 4,948 124,789
U.S. Cellular Corp.* 2,709 123,612
Scientific-Atlanta, Inc. 4,295 121,205
Harris Corp. 3,566 116,430
Qwest Communications International,
Inc.*+ 31,059 114,918
Citizens Communications Co.+ 8,445 109,278
Nextel Partners, Inc. -- Class A* 4,898 107,560
Spectrasite, Inc.* 1,709 99,071
NII Holdings, Inc. -- Class B*+ 1,496 86,020
IDT Corp. -- Class B* 5,779 85,471
Andrew Corp.*+ 6,908 80,893
Harmonic, Inc.* 8,372 80,036
Boston Communications Group, Inc.* 10,760 76,611
ADTRAN, Inc.+ 4,210 74,264
Avaya, Inc.* 6,138 71,692
JDS Uniphase Corp.*+ 39,299 65,629
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
ADC Telecommunications, Inc.* 32,540 $ 64,755
Foundry Networks, Inc.*+ 6,341 62,776
Plantronics, Inc.+ 1,570 59,786
Commonwealth Telephone
Enterprises, Inc.* 1,206 56,851
3Com Corp.* 15,639 55,675
Utstarcom, Inc.*+ 5,030 55,079
Level 3 Communications, Inc.*+ 24,798 51,084
Symmetricom, Inc.* 4,510 50,016
Belden CDT, Inc.+ 2,043 45,375
Avocent Corp.* 1,739 44,623
CIENA Corp.* 25,549 43,944
Lucent Technologies, Inc.*+ 14,833 40,791
General Communication -- Class A* 4,146 37,853
Audiovox Corp. -- Class A* 2,749 35,022
Research In Motion Ltd.*+ 410 31,332
ViaSat, Inc.* 1,512 28,259
C-COR, Inc.* 4,401 26,758
Inter-Tel, Inc. 1,077 26,387
Powerwave Technologies, Inc.*+ 3,340 25,852
Black Box Corp. 609 22,783
Digi International, Inc.* 1,609 22,075
Sonus Networks, Inc.* 5,110 21,666
Brooktrout, Inc.* 1,859 20,914
F5 Networks, Inc.* 410 20,701
Extreme Networks, Inc.* 3,150 18,554
PC-Tel, Inc.* 2,493 18,348
CommScope, Inc.* 1,043 15,603
Interdigital Communications Corp.* 980 15,014
Network Equipment Technologies,
Inc.* 2,068 11,643
Tele Norte Leste Participacoes
SA -- ADR* 496 7,673
Freescale Semiconductor, Inc. --
Class B* 293 5,054
Tele Leste Celular Participacoes
SA -- SP ADR* 431 3,672
McData Corp. -- Class A* 942 3,551
Ixia* 100 1,779
------------
TOTAL COMMON STOCKS
(Cost $6,860,340) 9,673,885
------------
48 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 0.1%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 8,860 $ 8,860
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $8,860) 8,860
------------
SECURITIES LENDING COLLATERAL 28.8%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 2,794,613 2,794,613
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,794,613) 2,794,613
------------
TOTAL INVESTMENTS 128.5%
(Cost $9,663,813) $ 12,477,358
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (28.5)% $ (2,766,138)
============
NET ASSETS - 100.0% $ 9,711,220
* NON-INCOME PRODUCING SECURITIES.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 49
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
TRANSPORTATION FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.5%
United Parcel Service,
Inc. -- Class B+ 23,065 $ 1,677,748
FedEx Corp. 14,535 1,365,563
Burlington Northern Santa Fe Corp. 21,329 1,150,273
Norfolk Southern Corp. 29,648 1,098,458
CSX Corp.+ 19,725 821,546
Union Pacific Corp.+ 11,683 814,305
Southwest Airlines Co. 46,562 663,043
Yellow Roadway Corp.*+ 11,291 660,975
CNF, Inc. 12,575 588,384
Expeditors International Washington,
Inc.+ 7,333 392,682
Alaska Air Group, Inc.*+ 13,216 389,079
J.B. Hunt Transport Services, Inc. 8,715 381,455
Ryder System, Inc.+ 9,024 376,301
Landstar System, Inc.* 10,046 329,006
Arkansas Best Corp.+ 8,324 314,481
C.H. Robinson Worldwide, Inc.+ 5,452 280,942
SkyWest, Inc. 14,584 271,117
Alexander & Baldwin, Inc.+ 6,101 251,361
EGL, Inc.*+ 10,717 244,348
Swift Transportation Co., Inc.*+ 10,295 227,931
Florida East Coast Industries, Inc. 5,310 225,569
British Airways PLC -- SP ADR* 4,477 224,880
Forward Air Corp. 5,216 222,097
Heartland Express, Inc. 10,795 206,724
JetBlue Airways Corp.*+ 10,673 203,214
AirTran Holdings, Inc.*+ 20,910 189,235
Kirby Corp.* 4,416 185,604
AMR Corp.*+ 16,140 172,698
Frontier Airlines, Inc.* 14,984 157,032
Overnite Corp. 4,370 139,796
Knight Transportation, Inc. 5,514 136,030
Kansas City Southern*+ 6,062 116,754
Delta Air Lines, Inc.*+ 23,839 96,548
USF Corp. 1,890 91,211
Canadian Pacific Railway Ltd. 2,440 87,767
Pinnacle Airlines Corp.* 7,780 82,624
Canadian National Railway Co. 1,190 75,339
Werner Enterprises, Inc. 3,785 73,543
SCS Transportation, Inc.* 3,735 69,434
Sirva, Inc.* 8,588 61,061
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
U.S. Xpress Enterprises,
Inc. -- Class A* 3,654 $ 59,743
CP Ships Ltd.+ 4,120 58,422
Pacer International, Inc.* 2,354 56,237
Genesee & Wyoming, Inc. -- Class A* 1,605 41,586
Mesa Air Group, Inc.* 4,863 34,041
HUB Group, Inc. -- Class A* 465 29,142
FLYi, Inc.* 117 149
------------
TOTAL COMMON STOCKS
(Cost $11,768,226) 15,395,478
------------
FACE
AMOUNT
-----------
SECURITIES LENDING COLLATERAL 21.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) $ 3,246,736 3,246,736
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $3,246,736) 3,246,736
------------
TOTAL INVESTMENTS 120.5%
(Cost $15,014,962) $ 18,642,214
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (20.5)% $ (3,174,984)
============
NET ASSETS - 100.0% $ 15,467,230
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
ADR--AMERICAN DEPOSITORY RECEIPT.
50 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
UTILITIES FUND
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Exelon Corp.+ 21,545 $ 988,712
TXU Corp.+ 12,110 964,319
Duke Energy Corp.+ 34,427 964,300
American Electric Power Co., Inc.+ 25,644 873,435
PG&E Corp.+ 24,194 825,015
Southern Co.+ 23,734 755,453
Progress Energy, Inc.+ 17,449 731,986
Entergy Corp. 10,243 723,770
Dominion Resources, Inc./VA+ 8,882 661,087
NiSource, Inc.+ 28,683 653,686
FPL Group, Inc. 16,144 648,182
AES Corp.*+ 39,151 641,293
Edison International 18,199 631,869
Xcel Energy, Inc.+ 35,347 607,261
Public Service Enterprise Group,
Inc.+ 11,091 603,239
FirstEnergy Corp.+ 13,487 565,780
Sempra Energy+ 14,052 559,832
Energy East Corp.+ 21,157 554,737
Consolidated Edison, Inc.+ 13,032 549,690
OGE Energy Corp.+ 20,375 549,106
Constellation Energy Group, Inc. 10,485 542,074
DTE Energy Co.+ 11,779 535,709
PPL Corp.+ 9,513 513,607
Northeast Utilities 24,137 465,120
Atmos Energy Corp. 17,121 462,267
Peoples Energy Corp. 11,025 462,168
Ameren Corp.+ 9,315 456,528
SCANA Corp. 11,930 455,965
Alliant Energy Corp. 16,612 444,869
KeySpan Corp.+ 11,280 439,582
Questar Corp. 7,121 421,919
Pepco Holdings, Inc.+ 19,616 411,740
Oneok, Inc.+ 13,083 403,218
Allegheny Energy, Inc.*+ 18,170 375,392
MDU Resources Group, Inc. 13,237 365,606
CH Energy Group, Inc. 7,962 363,863
NSTAR 6,645 360,824
NRG Energy, Inc.* 10,181 347,681
DPL, Inc.+ 12,759 318,975
Westar Energy, Inc. 14,332 310,144
IDACORP, Inc.+ 10,828 307,190
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
CMS Energy Corp.*+ 23,020 $ 300,181
Equitable Resources, Inc. 5,124 294,323
Reliant Energy, Inc.*+ 25,842 294,082
Hawaiian Electric Industries, Inc. 11,374 290,264
Puget Energy, Inc. 13,105 288,834
Energen Corp. 4,320 287,712
AGL Resources, Inc. 8,149 284,645
New Jersey Resources Corp. 6,530 284,251
Nicor, Inc.+ 7,381 273,761
National Fuel Gas Co.+ 9,120 260,741
Cinergy Corp.+ 6,417 260,017
Unisource Energy Corp. 8,281 256,463
TECO Energy, Inc.+ 15,872 248,873
UGI Corp. 5,436 246,903
PNM Resources, Inc.+ 9,217 245,910
Pinnacle West Capital Corp. 5,601 238,099
Sierra Pacific Resources*+ 22,004 236,543
WPS Resources Corp. 4,380 231,790
Vectren Corp. 8,678 231,182
Wisconsin Energy Corp. 6,440 228,620
Southern Union Co.*+ 8,526 214,075
Aqua America, Inc. 8,775 213,671
Avista Corp. 10,963 191,853
Calpine Corp.*+ 65,389 183,089
Aquila, Inc.*+ 47,298 181,151
Dynegy, Inc. -- Class A*+ 44,743 174,945
Southwest Gas Corp. 6,860 165,738
Laclede Group, Inc. 5,523 161,272
El Paso Electric Co.*+ 8,240 156,560
Allete, Inc. 3,740 156,519
UIL Holding Corp. 2,519 127,587
Northwest Natural Gas Co. 3,510 126,957
Great Plains Energy, Inc.+ 3,761 115,011
Central Vermont Public Service Corp. 4,093 92,011
Green Mountain Power Corp. 2,390 70,027
Cleco Corp. 2,898 61,727
CenterPoint Energy, Inc.+ 4,662 56,084
Piedmont Natural Gas Co. 2,360 54,374
Cascade Natural Gas Corp. 2,298 45,868
American States Water Co. 1,753 44,351
Black Hills Corp. 455 15,047
------------
TOTAL COMMON STOCKS
(Cost $27,409,918) 30,708,304
------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 51
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
UTILITIES FUND
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 0.7%
Repurchase Agreement (Note 4)
2.55% due 04/01/05 $ 203,704 $ 203,704
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $203,704) 203,704
------------
SECURITIES LENDING COLLATERAL 26.5%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 7) 8,189,817 8,189,817
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $8,189,817) 8,189,817
------------
TOTAL INVESTMENTS 126.8%
(Cost $35,803,439) $ 39,101,825
============
LIABILITIES IN EXCESS OF OTHER
ASSETS - (26.8)% $ (8,260,543)
============
NET ASSETS - 100.0% $ 30,841,282
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
7.
52 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
- --------------------------------------------------------------------------------
This page intentionally left blank.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 53
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 4, and 7) $ 9,760,783 $ 65,857,858 $ 104,662,646 $ 58,108,035
Cash in Custodian Bank -- -- -- --
Receivable for Securities Sold (Note 1) 2,274,591 -- 2,040,540 --
Receivable for Shares Purchased 1,078,890 838,006 2,260,436 4,060,878
Investment Income Receivable (Note 1) 18,901 86,861 6,448 110,042
Receivable for Securities Lending 53 1,463 4,737 357
Other Assets -- -- -- 604
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 13,133,218 66,784,188 108,974,807 62,279,916
==================================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 7) 1,009,928 11,151,732 16,783,608 6,950,324
Payable for Securities Purchased (Note 1) -- 698,978 -- 1,676,444
Liability for Shares Redeemed 3,370,045 193,104 4,251,045 2,764,304
Investment Advisory Fee Payable (Note 2) 7,962 50,640 66,140 31,337
Transfer Agent and Administrative Fee Payable (Note 2) 2,342 14,894 19,453 9,217
Distribution and Service Fee Payable (Note 2) 943 3,112 1,490 3,985
Portfolio Accounting Fee Payable (Note 2) 937 5,958 7,781 3,687
Custody Fees Payable 245 1,463 1,944 924
Cash Payable to Custodian Bank (Note 1) -- -- -- --
Other Liabilities 4,029 6,885 22,739 7,039
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 4,396,431 12,126,766 21,154,200 11,447,261
==================================================================================================================================
NET ASSETS $ 8,736,787 $ 54,657,422 $ 87,820,607 $ 50,832,655
==================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 52,441,835 $ 71,223,514 $ 265,314,892 $ 64,745,831
Undistributed Net Investment Income 169,776 141,284 -- 159,297
Accumulated Net Realized Loss on Investments (44,436,549) (22,565,646) (204,804,683) (17,992,114)
Net Unrealized Appreciation (Depreciation) on Investments 561,725 5,858,270 27,310,398 3,919,641
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 8,736,787 $ 54,657,422 $ 87,820,607 $ 50,832,655
==================================================================================================================================
Investor Class $ 4,899,031 $ 34,039,427 $ 74,889,628 $ 15,470,238
Advisor Class 2,955,383 12,986,889 10,231,099 26,851,493
A-Class 15,201 210,022 74,450 463,202
C-Class 867,172 7,421,084 2,625,430 8,047,722
SHARES OUTSTANDING
Investor Class 481,898 1,110,121 4,258,156 507,274
Advisor Class 304,087 436,038 604,947 905,318
A-Class 1,563 7,039 4,399 15,600
C-Class 89,730 252,062 155,582 272,534
NET ASSET VALUES
Investor Class $ 10.17 $ 30.66 $ 17.59 $ 30.50
Advisor Class 9.72 29.78 16.91 29.66
A-Class 9.72 29.84 16.93 29.69
A-Class Maximum Offering Price Per Share** 10.20 31.33 17.77 31.17
C-Class 9.66 29.44 16.87 29.53
* THE COST OF SECURITIES AT VALUE IS $9,199,058, $59,999,588, $77,352,248,
$54,188,394, $38,148,313, $147,619,639, $137,826,764, $41,995,119,
$58,507,127, $6,441,823, $51,465,438, AND $174,690,156, RESPECTIVELY.
** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
54 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
March 31, 2005
- --------------------------------------------------------------------------------
ENERGY FINANCIAL
ELECTRONICS ENERGY SERVICES SERVICES
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 4, and 7) $ 48,531,233 $ 182,043,131 $ 163,741,262 $ 42,119,038
Cash in Custodian Bank 974 -- -- --
Receivable for Securities Sold (Note 1) -- -- -- 1,405,653
Receivable for Shares Purchased 3,233,834 5,316,593 2,037,481 75,437
Investment Income Receivable (Note 1) 1,790 77,438 48,974 88,190
Receivable for Securities Lending 385 3,474 1,813 1,734
Other Assets -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 51,768,216 187,440,636 165,829,530 43,690,052
==================================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 7) 6,465,824 26,286,854 27,993,328 5,539,792
Payable for Securities Purchased (Note 1) -- 3,522,459 723,006 --
Liability for Shares Redeemed 3,364,632 1,906,604 849,850 1,482,319
Investment Advisory Fee Payable (Note 2) 28,696 129,278 105,091 26,195
Transfer Agent and Administrative Fee Payable (Note 2) 8,440 38,023 30,909 7,704
Distribution and Service Fee Payable (Note 2) 1,852 6,745 5,936 3,382
Portfolio Accounting Fee Payable (Note 2) 3,376 15,209 12,364 3,082
Custody Fees Payable 810 3,650 2,968 739
Cash Payable to Custodian Bank (Note 1) -- -- -- --
Other Liabilities 10,628 33,420 13,469 10,296
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 9,884,258 31,942,242 29,736,921 7,073,509
==================================================================================================================================
NET ASSETS $ 41,883,958 $ 155,498,394 $ 136,092,609 $ 36,616,543
==================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 202,374,345 $ 133,901,847 $ 191,158,187 $ 82,798,580
Undistributed Net Investment Income -- 271,239 -- 228,012
Accumulated Net Realized Loss on Investments (170,873,307) (13,098,184) (80,980,076) (46,533,968)
Net Unrealized Appreciation (Depreciation) on Investments 10,382,920 34,423,492 25,914,498 123,919
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 41,883,958 $ 155,498,394 $ 136,092,609 $ 36,616,543
==================================================================================================================================
Investor Class $ 27,150,457 $ 111,762,048 $ 99,602,918 $ 7,740,789
Advisor Class 12,613,482 24,999,926 24,647,173 27,181,212
A-Class 1,080 743,689 313,086 5,235
C-Class 2,118,939 17,992,731 11,529,432 1,689,307
SHARES OUTSTANDING
Investor Class 2,633,105 6,527,456 3,307,144 679,300
Advisor Class 1,267,482 1,501,104 843,875 2,443,144
A-Class 108 44,582 10,704 470
C-Class 214,001 1,092,377 397,796 153,421
NET ASSET VALUES
Investor Class $ 10.31 $ 17.12 $ 30.12 $ 11.40
Advisor Class 9.95 16.65 29.21 11.13
A-Class 9.96 16.68 29.25 11.13
A-Class Maximum Offering Price Per Share** 10.46 17.51 30.71 11.69
C-Class 9.90 16.47 28.98 11.01
HEALTH PRECIOUS
CARE INTERNET LEISURE METALS
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 4, and 7) $ 66,940,230 $ 8,750,111 $ 54,744,057 $ 216,684,031
Cash in Custodian Bank -- -- -- --
Receivable for Securities Sold (Note 1) 762,922 -- -- 8,135,024
Receivable for Shares Purchased 5,169,285 1,016,923 7,493,716 4,543,115
Investment Income Receivable (Note 1) 38,070 -- 9,312 34,251
Receivable for Securities Lending 762 617 7,400 29,865
Other Assets -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 72,911,269 9,767,651 62,254,485 229,426,286
==================================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 7) 10,872,206 1,121,759 9,561,992 57,189,988
Payable for Securities Purchased (Note 1) -- 412,845 6,403,951 --
Liability for Shares Redeemed 5,937,203 569,669 889,799 12,034,473
Investment Advisory Fee Payable (Note 2) 40,148 5,124 30,380 134,540
Transfer Agent and Administrative Fee Payable (Note 2) 11,808 1,507 8,935 44,847
Distribution and Service Fee Payable (Note 2) 2,374 447 3,781 5,581
Portfolio Accounting Fee Payable (Note 2) 4,723 603 3,574 17,939
Custody Fees Payable 1,140 178 907 9,009
Cash Payable to Custodian Bank (Note 1) -- 13,354 -- --
Other Liabilities 11,944 2,354 6,766 32,915
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 16,881,546 2,127,840 16,910,085 69,469,292
==================================================================================================================================
NET ASSETS $ 56,029,723 $ 7,639,811 $ 45,344,400 $ 159,956,994
==================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 86,624,087 $ 44,606,664 $ 62,375,443 $ 214,941,564
Undistributed Net Investment Income -- -- -- --
Accumulated Net Realized Loss on Investments (39,027,467) (39,275,141) (20,309,662) (96,978,445)
Net Unrealized Appreciation (Depreciation) on Investments 8,433,103 2,308,288 3,278,619 41,993,875
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 56,029,723 $ 7,639,811 $ 45,344,400 $ 159,956,994
==================================================================================================================================
Investor Class $ 35,500,497 $ 5,210,443 $ 15,080,061 $ 130,717,902
Advisor Class 16,511,104 829,400 27,749,790 8,596,119
A-Class 1,052 3,929 12,224 217,254
C-Class 4,017,070 1,596,039 2,502,325 20,425,719
SHARES OUTSTANDING
Investor Class 2,793,860 161,368 494,416 3,667,448
Advisor Class 1,348,020 26,410 945,782 243,015
A-Class 86 125 417 6,135
C-Class 329,665 51,379 85,149 594,308
NET ASSET VALUES $ 12.71 $ 32.29 $ 30.50 $ 35.64
Investor Class 12.25 31.41 29.34 35.37
Advisor Class 12.25 31.45 29.34 35.41
A-Class 12.86 33.02 30.80 37.18
A-Class Maximum Offering Price Per Share** 12.19 31.06 29.39 34.37
THE RYDEX SERIES FUNDS ANNUAL REPORT | 55
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
- --------------------------------------------------------------------------------
REAL TELECOM-
ESTATE RETAILING TECHNOLOGY MUNICATIONS
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 4 and 7) $ 10,704,462 $ 18,370,166 $ 29,330,737 $ 12,477,358
Receivable for Securities Sold (Note 1) 2,414,278 627,939 12,218,264 2,113,602
Receivable for Shares Purchased 1,995,682 2,302,625 40,175 5,027
Investment Income Receivable (Note 1) 50,211 9,447 10,955 10,134
Receivable for Securities Lending 445 400 247 440
Other Assets 11 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 15,165,089 21,310,577 41,600,378 14,606,561
==================================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 7) 1,060,338 2,608,768 3,883,668 2,794,613
Payable for Securities Purchased (Note 1) -- -- -- --
Liability for Shares Redeemed 4,534,008 2,932,059 12,336,784 2,078,895
Investment Advisory Fee Payable (Note 2) 9,545 10,603 27,494 8,655
Transfer Agent and Administrative Fee Payable (Note 2) 2,807 3,119 8,087 2,546
Distribution and Service Fee Payable (Note 2) 828 1,063 1,929 641
Portfolio Accounting Fee Payable (Note 2) 1,123 1,247 3,235 1,018
Custody Fees Payable 300 306 903 280
Cash Payable to Custodian Bank (Note 1) -- -- -- --
Other Liabilities 5,668 3,855 10,117 8,693
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 5,614,617 5,561,020 16,272,217 4,895,341
==================================================================================================================================
NET ASSETS $ 9,550,472 $ 15,749,557 $ 25,328,161 $ 9,711,220
==================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 10,985,710 $ 50,005,342 $ 104,788,915 $ 49,437,890
Undistributed Net Investment Income -- -- 132,662 72,364
Accumulated Net Realized Loss on Investments (2,820,125) (37,536,914) (84,661,075) (42,612,579)
Net Unrealized Appreciation (Depreciation) on Investments 1,384,887 3,281,129 5,067,659 2,813,545
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 9,550,472 $ 15,749,557 $ 25,328,161 $ 9,711,220
==================================================================================================================================
Investor Class N/A $ 7,529,293 $ 13,345,946 $ 6,002,695
Advisor Class N/A 6,445,016 10,692,745 1,921,529
A-Class $ 70,963 1,149 5,966 2,646
C-Class 1,293,142 1,774,099 1,283,504 1,784,350
H-Class 8,186,367 N/A N/A N/A
SHARES OUTSTANDING
Investor Class N/A 612,329 1,289,116 419,002
Advisor Class N/A 537,350 1,062,944 138,439
A-Class 2,549 96 593 190
C-Class 46,788 150,327 128,251 129,253
H-Class 293,965 N/A N/A N/A
NET ASSET VALUES
Investor Class N/A $ 12.30 $ 10.35 $ 14.33
Advisor Class N/A 11.99 10.06 13.88
A-Class $ 27.84 12.01 10.07 13.90
A-Class Maximum Offering Price Per Share** 29.23 12.61 10.57 14.59
C-Class 27.64 11.80 10.01 13.81
H-Class 27.85 N/A N/A N/A
* THE COST OF SECURITIES AT VALUE IS $9,319,575, $15,089,037, $24,263,078,
$9,663,813, $15,014,962 AND $35,803,439, RESPECTIVELY.
** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
56 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
March 31, 2005
- --------------------------------------------------------------------------------
TRANSPORTATION UTILITIES
FUND FUND
- ------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 4 and 7) $ 18,642,214 $ 39,101,825
Receivable for Securities Sold (Note 1) 150,770 --
Receivable for Shares Purchased 52,848 3,090,123
Investment Income Receivable (Note 1) 12,527 80,229
Receivable for Securities Lending 1,292 571
Other Assets -- --
- ------------------------------------------------------------------------------------------
TOTAL ASSETS 18,859,651 42,272,748
==========================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 7) 3,246,736 8,189,817
Payable for Securities Purchased (Note 1) -- 3,013,793
Liability for Shares Redeemed 90,970 185,926
Investment Advisory Fee Payable (Note 2) 13,114 23,455
Transfer Agent and Administrative Fee Payable (Note 2) 3,857 6,898
Distribution and Service Fee Payable (Note 2) 1,054 1,831
Portfolio Accounting Fee Payable (Note 2) 1,543 2,759
Custody Fees Payable 381 677
Cash Payable to Custodian Bank (Note 1) 29,808 --
Other Liabilities 4,958 6,310
- ------------------------------------------------------------------------------------------
TOTAL LIABILITIES 3,392,421 11,431,466
==========================================================================================
NET ASSETS $ 15,467,230 $ 30,841,282
==========================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 33,628,814 $ 38,525,654
Undistributed Net Investment Income -- 185,017
Accumulated Net Realized Loss on Investments (21,788,836) (11,167,775)
Net Unrealized Appreciation (Depreciation) on Investments 3,627,252 3,298,386
- ------------------------------------------------------------------------------------------
NET ASSETS $ 15,467,230 $ 30,841,282
==========================================================================================
Investor Class $ 7,889,561 $ 17,861,487
Advisor Class 5,747,870 8,044,983
A-Class 22,323 127,510
C-Class 1,807,476 4,807,302
H-Class N/A N/A
SHARES OUTSTANDING
Investor Class 351,841 756,093
Advisor Class 269,749 350,385
A-Class 1,046 5,543
C-Class 83,254 213,985
H-Class N/A N/A
NET ASSET VALUES
Investor Class $ 22.42 $ 23.62
Advisor Class 21.31 22.96
A-Class 21.34 23.00
A-Class Maximum Offering Price Per Share** 22.40 24.15
C-Class 21.71 22.47
H-Class N/A N/A
THE RYDEX SERIES FUNDS ANNUAL REPORT | 57
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
BASIC BIO- CONSUMER
BANKING MATERIALS TECHNOLOGY PRODUCTS
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 2,385 $ 5,877 $ 18,095 $ 4,779
Interest from Securities Lending, net (Note 7) 668 4,564 35,198 3,151
Dividends, Net of Foreign Tax Withheld* (Note 1) 444,537 854,754 57,211 886,978
Other Income -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Income 447,590 865,195 110,504 894,908
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 2) 148,382 398,276 1,129,588 386,508
Transfer Agent and Administrative Fees (Note 2) 43,642 117,140 332,232 113,679
Distribution and Service Fees (Note 2):
Advisor Class 30,598 46,324 64,785 97,564
A-Class 32 393 88 47
C-Class 11,400 58,302 42,903 33,788
Portfolio Accounting Fees (Note 2) 17,457 46,856 132,893 45,472
Trustees' Fees** 666 1,451 4,605 1,544
Custody Fees 4,538 11,939 30,809 10,863
Miscellaneous 21,028 46,342 141,123 46,144
- ----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 277,743 727,023 1,879,026 735,609
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 169,847 138,172 (1,768,522) 159,299
==================================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 2,175,903 1,098,535 (1,123,615) (2,351,007)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 2,175,903 1,098,535 (1,123,615) (2,351,007)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (1,571,784) 2,081,456 (21,683,061) 215,950
- ----------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (1,571,784) 2,081,456 (21,683,061) 215,950
- ----------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 604,119 3,179,991 (22,806,676) (2,135,057)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 773,966 $ 3,318,163 $ (24,575,198) $ (1,975,758)
==================================================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $1,852, $1,415, $7,232, $0, $385, $109,899,
$0, $516, $842, $0, $72, AND $96,166, RESPECTIVELY.
** RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(A)(19) OF THE 1940 ACT.
58 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
Year Ended March 31, 2005
- --------------------------------------------------------------------------------
ENERGY FINANCIAL
ELECTRONICS ENERGY SERVICES SERVICES
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 5,413 $ 15,043 $ 10,468 $ 4,621
Interest from Securities Lending, net (Note 7) 5,082 18,253 9,111 5,132
Dividends, Net of Foreign Tax Withheld* (Note 1) 106,870 2,260,223 304,919 922,252
Other Income 123,383 2,133 -- 6,149
- ----------------------------------------------------------------------------------------------------------------------------------
Total Income 240,748 2,295,652 324,498 938,154
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 2) 364,895 1,129,087 598,570 352,666
Transfer Agent and Administrative Fees (Note 2) 107,322 332,084 176,050 103,725
Distribution and Service Fees (Note 2):
Advisor Class 36,518 89,513 77,359 133,834
A-Class 4 390 137 24
C-Class 16,459 116,106 62,686 22,083
Portfolio Accounting Fees (Note 2) 42,929 132,834 70,420 41,490
Trustees' Fees** 1,414 4,129 2,072 1,409
Custody Fees 10,015 31,206 17,257 10,187
Miscellaneous 45,857 142,559 64,131 44,711
- ----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 625,413 1,977,908 1,068,682 710,129
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (384,665) 317,744 (744,184) 228,025
==================================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (3,257,590) 9,188,986 3,128,884 4,973,109
- ----------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (3,257,590) 9,188,986 3,128,884 4,973,109
- ----------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (7,619,836) 25,563,323 14,572,251 (6,409,510)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (7,619,836) 25,563,323 14,572,251 (6,409,510)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (10,877,426) 34,752,309 17,701,135 (1,436,401)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (11,262,091) $ 35,070,053 $ 16,956,951 $ (1,208,376)
==================================================================================================================================
HEALTH PRECIOUS
CARE INTERNET LEISURE METALS
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 6,457 $ 3,369 $ 5,207 $ 23,139
Interest from Securities Lending, net (Note 7) 7,855 9,138 25,432 192,260
Dividends, Net of Foreign Tax Withheld* (Note 1) 492,649 11,578 251,836 1,948,101
Other Income -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Income 506,961 24,085 282,475 2,163,500
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 2) 449,221 184,568 323,122 1,439,490
Transfer Agent and Administrative Fees (Note 2) 132,124 54,285 95,036 479,830
Distribution and Service Fees (Note 2):
Advisor Class 105,434 29,732 92,072 28,306
A-Class 18 425 8 180
C-Class 42,729 19,946 25,215 180,758
Portfolio Accounting Fees (Note 2) 52,849 21,714 38,014 191,417
Trustees' Fees** 1,759 766 1,040 6,199
Custody Fees 15,210 7,175 9,907 52,591
Miscellaneous 56,443 21,809 34,452 193,383
- ----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 855,787 340,420 618,866 2,572,154
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (348,826) (316,335) (336,391) (408,654)
==================================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (3,249,304) (2,195,060) (1,226,024) (19,196,131)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (3,249,304) (2,195,060) (1,226,024) (19,196,131)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 730,774 (3,701,725) (431,887) (41,721,258)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 730,774 (3,701,725) (431,887) (41,721,258)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (2,518,530) (5,896,785) (1,657,911) (60,917,389)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (2,867,356) $ (6,213,120) $ (1,994,302) $ (61,326,043)
==================================================================================================================================
THE RYDEX SERIES FUNDS ANNUAL REPORT | 59
STATEMENTS OF OPERATIONS (CONCLUDED)
- --------------------------------------------------------------------------------
REAL TELECOM-
ESTATE RETAILING TECHNOLOGY MUNICATIONS
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 4,429 $ 2,214 $ 5,110 $ 2,261
Interest from Securities Lending, net (Note 7) 5,835 4,268 3,912 4,507
Dividends, Net of Foreign Tax Withheld* (Note 1) 1,490,732 116,761 792,895 268,685
Other Income -- -- 108,783 80,242
- ----------------------------------------------------------------------------------------------------------------------------------
Total Income 1,500,996 123,243 910,700 355,695
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 2) 346,730 134,814 422,999 153,471
Transfer Agent and Administrative Fees (Note 2) 101,979 39,651 124,412 45,139
Distribution and Service Fees (Note 2):
Advisor Class -- 32,700 102,321 20,169
A-Class 145 2 18 9
C-Class 15,088 15,028 17,405 17,675
H-Class 98,063 -- -- --
Portfolio Accounting Fees (Note 2) 40,792 15,861 49,765 18,055
Trustees' Fees** 1,373 563 1,362 643
Custody Fees 10,961 4,046 13,107 4,351
Miscellaneous 43,519 17,107 46,649 23,948
- ----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 658,650 259,772 778,038 283,460
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 842,346 (136,529) 132,662 72,235
==================================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (286,860) 3,617,578 (4,711,370) 367,392
- ----------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (286,860) 3,617,578 (4,711,370) 367,392
- ----------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (195,704) (3,842,246) (3,517,771) (2,754,260)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (195,704) (3,842,246) (3,517,771) (2,754,260)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (482,564) (224,668) (8,229,141) (2,386,868)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 359,782 $ (361,197) $ (8,096,479) $ (2,314,633)
==================================================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $0, $17,573, $1,298, AND $0,
RESPECTIVELY.
** RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(A)(19) OF THE 1940 ACT.
60 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
Year Ended March 31, 2005
- --------------------------------------------------------------------------------
TRANSPORTATION UTILITIES
FUND FUND
- -------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 3,853 $ 2,788
Interest from Securities Lending, net (Note 7) 31,922 4,711
Dividends, Net of Foreign Tax Withheld* (Note 1) 235,034 1,095,557
Other Income -- 15,662
- -------------------------------------------------------------------------------------
Total Income 270,809 1,118,718
- -------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 2) 288,747 250,823
Transfer Agent and Administrative Fees (Note 2) 84,926 73,771
Distribution and Service Fees (Note 2):
Advisor Class 57,847 26,342
A-Class 68 238
C-Class 17,154 35,585
H-Class -- --
Portfolio Accounting Fees (Note 2) 33,970 29,509
Trustees' Fees** 1,027 927
Custody Fees 8,203 8,470
Miscellaneous 32,771 30,372
- -------------------------------------------------------------------------------------
Total Expenses 524,713 456,037
- -------------------------------------------------------------------------------------
Net Investment Income (Loss) (253,904) 662,681
=====================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (1,759,210) 3,105,892
- -------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (1,759,210) 3,105,892
- -------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 2,986,695 292,684
- -------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 2,986,695 292,684
- -------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 1,227,485 3,398,576
- -------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 973,581 $ 4,061,257
=====================================================================================
THE RYDEX SERIES FUNDS ANNUAL REPORT | 61
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
BASIC
BANKING FUND MATERIALS FUND
-------------------------------- -------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 169,847 $ 294,395 $ 138,172 $ 41,945
Net Realized Gain (Loss) on Investments 2,175,903 5,208,481 1,098,535 970,658
Net Change in Unrealized Appreciation (Depreciation)
on Investments (1,571,784) 1,372,506 2,081,456 3,001,762
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 773,966 6,875,382 3,318,163 4,014,365
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class (154,276) (209,950) -- (49,324)
Advisor Class (119,014) (89,392) -- (31,401)
A-Class (753) -- -- --
C-Class (20,423) (54,513) -- (5,139)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (294,466) (353,855) -- (85,864)
==================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 241,217,426 263,796,205 418,066,714 473,178,311
Advisor Class 75,431,191 72,237,973 92,089,560 92,130,121
A-Class* 35,445 -- 606,462 --
C-Class 20,785,926 50,411,033 43,781,179 47,893,683
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class 143,776 203,266 -- 44,847
Advisor Class 115,466 88,307 -- 31,221
A-Class* 753 -- -- --
C-Class 19,988 54,225 -- 5,100
COST OF SHARES REDEEMED
Investor Class (249,711,598) (263,744,420) (415,397,485) (449,151,836)
Advisor Class (76,041,820) (70,212,037) (93,440,891) (82,034,028)
A-Class* (20,464) -- (422,793) --
C-Class (21,764,204) (49,129,264) (42,485,938) (43,555,515)
==================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (9,788,115) 3,705,288 2,796,808 38,541,904
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (9,308,615) 10,226,815 6,114,971 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 $ 8,736,787 $ 18,045,402 $ 54,657,422 $ 48,542,451
==================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 169,776 $ 294,395 $ 141,284 $ --
==================================================================================================================================
BIOTECHNOLOGY
FUND
---------------------------------
PERIOD YEAR
ENDED ENDED
MARCH 31, MARCH 31,
2005 2004
- -----------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (1,768,522) $ (2,385,128)
Net Realized Gain (Loss) on Investments (1,123,615) 37,486,079
Net Change in Unrealized Appreciation (Depreciation)
on Investments (21,683,061) 16,876,861
- -----------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (24,575,198) 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 939,296,748 1,031,631,184
Advisor Class 56,552,141 94,623,436
A-Class* 103,417 --
C-Class 30,771,978 47,745,758
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- --
Advisor Class -- --
A-Class* -- --
C-Class -- --
COST OF SHARES REDEEMED
Investor Class (980,867,566) (1,051,806,619)
Advisor Class (54,810,712) (113,174,050)
A-Class* (22,836) --
C-Class (30,522,525) (46,052,318)
=========================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (39,499,355) (37,032,609)
- -----------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (64,074,553) 14,945,203
NET ASSETS--BEGINNING OF PERIOD 151,895,160 136,949,957
- -----------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 87,820,607 $ 151,895,160
=========================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ --
=========================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
62 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
CONSUMER ELECTRONICS
PRODUCTS FUND FUND
-------------------------------- -------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 159,299 $ 13,315 $ (384,665) $ (1,012,716)
Net Realized Gain (Loss) on Investments (2,351,007) 2,045,572 (3,257,590) 9,964,058
Net Change in Unrealized Appreciation (Depreciation)
on Investments 215,950 3,169,653 (7,619,836) 12,806,032
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (1,975,758) 5,228,540 (11,262,091) 21,757,374
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class (3,974) (7,352) -- --
Advisor Class (6,521) (33,486) -- --
A-Class (12) -- -- --
C-Class (2,810) (722) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (13,317) (41,560) -- --
==================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 345,364,944 196,708,966 789,501,056 1,182,685,864
Advisor Class 124,365,818 70,622,826 57,354,167 118,356,865
A-Class* 479,054 -- 2,522 --
C-Class 57,863,269 36,489,048 18,919,451 59,217,693
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class 3,756 7,015 -- --
Advisor Class 6,407 33,452 -- --
A-Class* 12 -- -- --
C-Class 2,134 712 -- --
COST OF SHARES REDEEMED
Investor Class (351,675,844) (175,988,859) (799,089,161) (1,185,302,845)
Advisor Class (110,487,986) (64,068,113) (46,786,342) (126,081,528)
A-Class* (18,752) -- (1,672) --
C-Class (54,257,308) (32,771,945) (17,405,528) (59,966,230)
==================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 11,645,504 31,033,102 2,494,493 (11,090,181)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 9,656,429 36,220,082 (8,767,598) 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 $ 50,832,655 $ 41,176,226 $ 41,883,958 $ 50,651,556
==================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 159,297 $ 13,315 $ -- $ --
==================================================================================================================================
ENERGY ENERGY SERVICES
FUND FUND
-------------------------------- -------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 317,744 $ (41,288) $ (744,184) $ (431,254)
Net Realized Gain (Loss) on Investments 9,188,986 (23,811) 3,128,884 (7,151,198)
Net Change in Unrealized Appreciation (Depreciation)
on Investments 25,563,323 7,642,139 14,572,251 7,523,532
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 35,070,053 7,577,040 16,956,951 (58,920)
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class (34,949) (65,462) -- --
Advisor Class (7,337) (3,224) -- --
A-Class (35) -- -- --
C-Class (4,183) (8,487) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (46,504) (77,173) -- --
==================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 849,279,981 461,186,112 492,223,751 512,981,517
Advisor Class 116,768,117 62,110,100 116,589,502 79,146,593
A-Class* 1,228,359 -- 832,467 --
C-Class 73,091,678 40,063,775 49,949,687 35,220,082
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class 32,874 63,093 -- --
Advisor Class 7,117 2,956 -- --
A-Class* 35 -- -- --
C-Class 3,676 7,225 -- --
COST OF SHARES REDEEMED
Investor Class (825,695,467) (408,781,015) (451,801,558) (478,723,101)
Advisor Class (101,748,850) (65,939,874) (120,388,840) (57,562,377)
A-Class* (550,655) -- (517,996) --
C-Class (65,208,344) (36,159,264) (43,230,251) (33,279,811)
==================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 47,208,521 52,553,108 43,656,762 57,782,903
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 82,232,070 60,052,975 60,613,713 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 $ 155,498,394 $ 73,266,324 $ 136,092,609 $ 75,478,896
==================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 271,239 $ -- $ -- $ --
==================================================================================================================================
THE RYDEX SERIES FUNDS ANNUAL REPORT | 63
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES HEALTH CARE
FUND FUND
-------------------------------- -------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 228,025 $ 281,199 $ (348,826) $ (387,621)
Net Realized Gain (Loss) on Investments 4,973,109 9,599,350 (3,249,304) 5,293,825
Net Change in Unrealized Appreciation (Depreciation)
on Investments (6,409,510) 4,142,729 730,774 3,382,303
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (1,208,376) 14,023,278 (2,867,356) 8,288,507
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class (62,675) (70,122) -- --
Advisor Class (191,382) (132,732) -- --
A-Class (150) -- -- --
C-Class (13,028) (4,995) -- --
H-Class -- -- -- --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (267,235) (207,849) -- --
==================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 252,572,863 594,476,418 395,058,540 461,247,376
Advisor Class 84,180,268 92,754,854 78,074,909 109,155,775
A-Class** 36,285 -- 28,151 --
C-Class 30,017,238 32,748,098 26,311,496 59,658,401
H-Class -- -- -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class 53,649 64,634 -- --
Advisor Class 188,379 131,474 -- --
A-Class** 150 -- -- --
C-Class 12,484 4,814 -- --
H-Class -- -- -- --
COST OF SHARES REDEEMED
Investor Class (278,559,637) (571,461,138) (377,619,512) (457,266,075)
Advisor Class (97,329,407) (75,838,329) (87,657,299) (110,591,221)
A-Class** (32,298) -- (27,800) --
C-Class (30,597,571) (31,113,073) (25,039,882) (57,672,536)
H-Class -- -- -- --
==================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (39,457,597) 41,767,752 9,128,603 4,531,720
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (40,933,208) 55,583,181 6,261,247 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 $ 36,616,543 $ 77,549,751 $ 56,029,723 $ 49,768,476
==================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 228,012 $ 267,224 $ -- $ --
==================================================================================================================================
INTERNET
FUND
--------------------------------
PERIOD YEAR
ENDED ENDED
MARCH 31, MARCH 31,
2005 2004
- -------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (316,335) $ (310,606)
Net Realized Gain (Loss) on Investments (2,195,060) 1,363,068
Net Change in Unrealized Appreciation (Depreciation)
on Investments (3,701,725) 5,188,786
- -------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (6,213,120) 6,241,248
- -------------------------------------------------------------------------------------------------
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 491,707,297 307,483,479
Advisor Class 42,003,577 52,850,390
A-Class** 792,552 --
C-Class 16,336,597 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 (497,370,417) (300,417,421)
Advisor Class (51,859,911) (42,633,764)
A-Class** (845,031) --
C-Class (15,849,814) (24,193,100)
H-Class -- --
=================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (15,085,150) 18,410,971
- -------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (21,298,270) 24,652,219
NET ASSETS--BEGINNING OF PERIOD 28,938,081 4,285,862
- -------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 7,639,811 $ 28,938,081
=================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ --
=================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004 -- C-CLASS AND
H-CLASS.
** SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
64 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
LEISURE PRECIOUS
FUND METALS FUND
-------------------------------- -------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (336,391) $ (109,457) $ (408,654) $ (721,423)
Net Realized Gain (Loss) on Investments (1,226,024) (805,028) (19,196,131) 4,801,309
Net Change in Unrealized Appreciation (Depreciation)
on Investments (431,887) 3,278,299 (41,721,258) 66,036,897
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (1,994,302) 2,363,814 (61,326,043) 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 -- -- -- --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- -- (53,404)
==================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 332,169,247 316,109,325 1,403,091,432 2,222,457,741
Advisor Class 134,713,068 112,989,606 112,779,045 114,284,635
A-Class** 448,675 -- 377,850 --
C-Class 47,880,936 26,328,135 69,663,093 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 (341,874,154) (293,974,669) (1,453,961,718) (2,126,062,885)
Advisor Class (144,792,594) (78,428,491) (104,957,896) (113,643,013)
A-Class** (431,485) -- (136,955) --
C-Class (47,759,570) (24,356,804) (62,643,258) (62,325,519)
H-Class -- -- -- --
==================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (19,645,877) 58,667,102 (35,788,407) 109,672,975
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (21,640,179) 61,030,916 (97,114,450) 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 $ 45,344,400 $ 66,984,579 $ 159,956,994 $ 257,071,444
==================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ -- $ -- $ --
==================================================================================================================================
REAL ESTATE RETAILING
FUND FUND
-------------------------------- -------------------------------
PERIOD PERIOD PERIOD YEAR
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004* 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 842,346 $ 100,970 $ (136,529) $ (356,962)
Net Realized Gain (Loss) on Investments (286,860) (185,854) 3,617,578 2,049,891
Net Change in Unrealized Appreciation (Depreciation)
on Investments (195,704) 1,580,591 (3,842,246) 4,958,442
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 359,782 1,495,707 (361,197) 6,651,371
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class (83) -- -- --
C-Class (2,226) -- -- --
H-Class (45,426) -- -- --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class (317) -- -- --
C-Class (8,473) -- -- --
H-Class (172,890) -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (229,415) -- -- --
==================================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- 278,778,445 638,371,020
Advisor Class -- -- 56,431,348 116,765,742
A-Class** 535,354 -- 1,000 --
C-Class 46,910,839 13,513,589 16,601,681 29,035,589
H-Class 989,759,317 118,721,497 -- --
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class** 57 -- -- --
C-Class 10,629 -- -- --
H-Class 188,915 -- -- --
COST OF SHARES REDEEMED
Investor Class -- -- (282,642,489) (630,825,978)
Advisor Class -- -- (65,873,104) (120,895,914)
A-Class** (450,080) -- -- --
C-Class (53,068,353) (6,081,457) (17,149,592) (27,151,949)
H-Class (1,057,944,178) (44,171,731) -- --
==================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (74,057,500) 81,981,898 (13,852,711) 5,298,510
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (73,927,133) 83,477,605 (14,213,908) 11,949,881
NET ASSETS--BEGINNING OF PERIOD 83,477,605 -- 29,963,465 18,013,584
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 9,550,472 $ 83,477,605 $ 15,749,557 $ 29,963,465
==================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ 47,735 $ -- $ --
==================================================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004 -- C-CLASS AND
H-CLASS.
** SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 65
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
TECHNOLOGY TELECOMMUNICATIONS
FUND FUND
-------------------------------- -------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 132,662 $ (747,504) $ 72,235 $ (46,317)
Net Realized Gain (Loss) on Investments (4,711,370) 11,535,322 367,392 69,736
Net Change in Unrealized Appreciation (Depreciation)
on Investments (3,517,771) 6,235,635 (2,754,260) 4,287,270
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (8,096,479) 17,023,453 (2,314,633) 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 570,657,640 633,656,147 212,586,902 389,067,784
Advisor Class 83,646,308 92,267,160 27,053,362 32,832,108
A-Class* 34,891 -- 10,943 --
C-Class 65,412,312 252,095,654 18,111,398 41,389,566
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- -- -- 25,451
Advisor Class -- -- -- 11,021
A-Class* -- -- -- --
C-Class -- -- -- 3,392
NET COST OF SHARES REDEEMED
Investor Class (568,286,341) (631,881,342) (219,368,950) (386,492,605)
Advisor Class (89,332,490) (99,609,652) (32,141,180) (27,160,685)
A-Class* (27,955) -- (8,718) --
C-Class (64,866,870) (252,863,523) (19,634,453) (39,352,247)
==================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (2,762,505) (6,335,556) (13,390,696) 10,323,785
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (10,858,984) 10,687,897 (15,705,329) 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 $ 25,328,161 $ 36,187,145 $ 9,711,220 $ 25,416,549
==================================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 132,662 $ -- $ 72,364 $ --
==================================================================================================================================
TRANSPORTATION
FUND
--------------------------------
PERIOD YEAR
ENDED ENDED
MARCH 31, MARCH 31,
2005 2004
- -------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (253,904) $ (63,343)
Net Realized Gain (Loss) on Investments (1,759,210) 593,120
Net Change in Unrealized Appreciation (Depreciation)
on Investments 2,986,695 496,983
- -------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 973,581 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 308,076,952 145,359,648
Advisor Class 100,497,315 61,633,336
A-Class* 124,382 --
C-Class 15,606,807 14,099,458
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class -- --
Advisor Class -- --
A-Class* -- --
C-Class -- --
NET COST OF SHARES REDEEMED
Investor Class (303,670,749) (142,810,388)
Advisor Class (100,250,537) (61,674,390)
A-Class* (103,024) --
C-Class (14,519,697) (13,937,471)
=================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 5,761,449 2,670,193
- -------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 6,735,030 3,696,953
NET ASSETS--BEGINNING OF PERIOD 8,732,200 5,035,247
- -------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 15,467,230 $ 8,732,200
=================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ --
=================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
66 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
- --------------------------------------------------------------------------------
UTILITIES
FUND
--------------------------------
PERIOD YEAR
ENDED ENDED
MARCH 31, MARCH 31,
2005 2004
- -------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 662,681 $ 583,712
Net Realized Gain (Loss) on Investments 3,105,892 3,826,082
Net Change in Unrealized Appreciation (Depreciation)
on Investments 292,684 1,455,557
- -------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 4,061,257 5,865,351
- -------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class (295,855) (535,780)
Advisor Class (195,078) (76,028)
A-Class (939) --
C-Class (58,131) (69,982)
- -------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (550,003) (681,790)
=================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 311,376,615 362,548,312
Advisor Class 82,899,027 94,834,457
A-Class* 1,075,906 --
C-Class 39,229,707 46,841,485
VALUE OF SHARES PURCHASED THROUGH DIVIDEND
REINVESTMENT
Investor Class 252,599 437,425
Advisor Class 192,671 75,949
A-Class* 543 --
C-Class 47,970 65,998
NET COST OF SHARES REDEEMED
Investor Class (315,309,228) (356,854,893)
Advisor Class (76,634,420) (97,729,716)
A-Class* (949,299) --
C-Class (39,041,149) (44,369,736)
=================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 3,140,942 5,849,281
- -------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 6,652,196 11,032,842
NET ASSETS--BEGINNING OF PERIOD 24,189,086 13,156,244
- -------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 30,841,282 $ 24,189,086
=================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 185,017 $ 72,339
=================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 67
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
MARCH 31, 2005 $ 10.25 $ .13 $ .05 $ .18 $ (.26) $ --
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 -- --
BANKING FUND ADVISOR CLASS
MARCH 31, 2005 9.85 .06 .07 .13 (.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 -- --
BANKING FUND A-CLASS
MARCH 31, 2005* 10.06 .06 (.14) (.08) (.26) --
BANKING FUND C-CLASS
MARCH 31, 2005 9.87 .04 .01 .05 (.26) --
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
MARCH 31, 2005 25.46 .14 5.06 5.20 -- --
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) -- --
BASIC MATERIALS FUND ADVISOR CLASS
MARCH 31, 2005 24.85 .01 4.92 4.93 -- --
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) -- --
BASIC MATERIALS FUND A-CLASS
MARCH 31, 2005* 25.80 .07 3.97 4.04 -- --
BASIC MATERIALS FUND C-CLASS
MARCH 31, 2005 24.68 (.12) 4.88 4.76 -- --
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
MARCH 31, 2005 $ (.26) $ (.08) $ 10.17 1.61%
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%
BANKING FUND ADVISOR CLASS
MARCH 31, 2005 (.26) (.13) 9.72 1.17%
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%
BANKING FUND A-CLASS
MARCH 31, 2005* (.26) (.34) 9.72 (0.95)%
BANKING FUND C-CLASS
MARCH 31, 2005 (.26) (.21) 9.66 0.35%
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
MARCH 31, 2005 -- 5.20 30.66 20.42%
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)%
BASIC MATERIALS FUND ADVISOR CLASS
MARCH 31, 2005 -- 4.93 29.78 19.84%
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)%
BASIC MATERIALS FUND A-CLASS
MARCH 31, 2005* -- 4.04 29.84 15.66%
BASIC MATERIALS FUND C-CLASS
MARCH 31, 2005 -- 4.76 29.44 19.29%
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%
RATIO 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
MARCH 31, 2005 1.34% 1.34% 1.26% 1,692% $ 4,899
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
BANKING FUND ADVISOR CLASS
MARCH 31, 2005 1.86% 1.86% 0.60% 1,692% 2,955
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
BANKING FUND A-CLASS
MARCH 31, 2005* 1.57%** 1.57%** 1.03%** 1,692% 15
BANKING FUND C-CLASS
MARCH 31, 2005 2.34% 2.34% 0.43% 1,692% 867
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
MARCH 31, 2005 1.33% 1.33% 0.51% 891% 34,039
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
BASIC MATERIALS FUND ADVISOR CLASS
MARCH 31, 2005 1.82% 1.82% 0.03% 891% 12,987
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
BASIC MATERIALS FUND A-CLASS
MARCH 31, 2005* 1.55%** 1.55%** 0.44%** 891% 210
BASIC MATERIALS FUND C-CLASS
MARCH 31, 2005 2.32% 2.32% (0.43)% 891% 7,421
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 PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE
APRIL 21, 2003.
(@) EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2001 ARE CALCULATED FOR ONE
DAY AND NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
68 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
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
MARCH 31, 2005 $ 20.56 $ (.24) $ (2.73) $ (2.97) $ -- $ --
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) -- --
BIOTECHNOLOGY FUND ADVISOR CLASS
MARCH 31, 2005 19.86 (.32) (2.63) (2.95) -- --
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) -- --
BIOTECHNOLOGY FUND A-CLASS
MARCH 31, 2005* 17.89 (.16) (.80) (.96) -- --
BIOTECHNOLOGY FUND C-CLASS
MARCH 31, 2005 19.92 (.42) (2.63) (3.05) -- --
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
MARCH 31, 2005 28.68 .18 1.65 1.83 (.01) --
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) -- --
CONSUMER PRODUCTS FUND ADVISOR CLASS
MARCH 31, 2005 27.99 .05 1.63 1.68 (.01) --
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) -- --
CONSUMER PRODUCTS FUND A-CLASS
MARCH 31, 2005* 27.42 .06 2.22 2.28 (.01) --
CONSUMER PRODUCTS FUND C-CLASS
MARCH 31, 2005 27.92 (.13) 1.75 1.62 (.01) --
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
MARCH 31, 2005 $ -- $ (2.97) $17.59 (14.45)%
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)%
BIOTECHNOLOGY FUND ADVISOR CLASS
MARCH 31, 2005 -- (2.95) 16.91 (14.85)%
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)%
BIOTECHNOLOGY FUND A-CLASS
MARCH 31, 2005* -- (.96) 16.93 (5.37)%
BIOTECHNOLOGY FUND C-CLASS
MARCH 31, 2005 -- (3.05) 16.87 (15.31)%
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
MARCH 31, 2005 (.01) 1.82 30.50 6.40%
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)%
CONSUMER PRODUCTS FUND ADVISOR CLASS
MARCH 31, 2005 (.01) 1.67 29.66 6.02%
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)%
CONSUMER PRODUCTS FUND A-CLASS
MARCH 31, 2005* (.01) 2.27 29.69 8.33%
CONSUMER PRODUCTS FUND C-CLASS
MARCH 31, 2005 (.01) 1.61 29.53 5.82%
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%
RATIO 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
MARCH 31, 2005 1.33% 1.33% (1.25)% 585% $ 74,890
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
BIOTECHNOLOGY FUND ADVISOR CLASS
MARCH 31, 2005 1.83% 1.83% (1.75)% 585% 10,231
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
BIOTECHNOLOGY FUND A-CLASS
MARCH 31, 2005* 1.53%** 1.53%** (1.47)%** 585% 74
BIOTECHNOLOGY FUND C-CLASS
MARCH 31, 2005 2.33% 2.33% (2.23)% 585% 2,625
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
MARCH 31, 2005 1.33% 1.33% 0.60% 907% 15,470
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
CONSUMER PRODUCTS FUND ADVISOR CLASS
MARCH 31, 2005 1.82% 1.82% 0.19% 907% 26,851
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
CONSUMER PRODUCTS FUND A-CLASS
MARCH 31, 2005* 1.56%** 1.56%** 0.42%** 907% 463
CONSUMER PRODUCTS FUND C-CLASS
MARCH 31, 2005 2.31% 2.31% (0.44)% 907% 8,048
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 PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE
APRIL 21, 2003.
(@) 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 ANNUAL REPORT | 69
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
MARCH 31, 2005 $ 13.43 $ (.08) $ (3.04) $ (3.12) $ -- $ --
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)
ELECTRONICS FUND ADVISOR CLASS
MARCH 31, 2005 13.02 (.14) (2.93) (3.07) -- --
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)
ELECTRONICS FUND A-CLASS
MARCH 31, 2005* 9.22 (.07) .81 .74 -- --
ELECTRONICS FUND C-CLASS
MARCH 31, 2005 13.00 (.20) (2.90) (3.10) -- --
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
MARCH 31, 2005 11.94 .05 5.14 5.19 (.01) --
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 -- --
ENERGY FUND ADVISOR CLASS
MARCH 31, 2005 11.68 (.02) 5.00 4.98 (.01) --
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 -- --
ENERGY FUND A-CLASS
MARCH 31, 2005* 12.79 .02 3.88 3.90 (.01) --
ENERGY FUND C-CLASS
MARCH 31, 2005 11.60 (.08) 4.96 4.88 (.01) --
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
MARCH 31, 2005 $ -- $ (3.12) $ 10.31 (23.23)%
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)%
ELECTRONICS FUND ADVISOR CLASS
MARCH 31, 2005 -- (3.07) 9.95 (23.58)%
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)%
ELECTRONICS FUND A-CLASS
MARCH 31, 2005* -- .74 9.96 8.03%
ELECTRONICS FUND C-CLASS
MARCH 31, 2005 -- (3.10) 9.90 (23.85)%
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
MARCH 31, 2005 (.01) 5.18 17.12 43.43%
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%
ENERGY FUND ADVISOR CLASS
MARCH 31, 2005 (.01) 4.97 16.65 42.60%
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%
ENERGY FUND A-CLASS
MARCH 31, 2005* (.01) 3.89 16.68 30.46%
ENERGY FUND C-CLASS
MARCH 31, 2005 (.01) 4.87 16.47 42.03%
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)%
RATIO 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
MARCH 31, 2005 1.33% 1.33% (0.76)% 1,106% $ 27,150
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
ELECTRONICS FUND ADVISOR CLASS
MARCH 31, 2005 1.83% 1.83% (1.32)% 1,106% 12,613
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
ELECTRONICS FUND A-CLASS
MARCH 31, 2005* 1.59%** 1.59%** (1.21)%** 1,106% 1
ELECTRONICS FUND C-CLASS
MARCH 31, 2005 2.33% 2.33% (1.86)% 1,106% 2,119
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
MARCH 31, 2005 1.33% 1.33% 0.40% 546% 111,762
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
ENERGY FUND ADVISOR CLASS
MARCH 31, 2005 1.82% 1.82% (0.11)% 546% 25,000
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
ENERGY FUND A-CLASS
MARCH 31, 2005* 1.45%** 1.45%** 0.19%** 546% 744
ENERGY FUND C-CLASS
MARCH 31, 2005 2.33% 2.33% (0.61)% 546% 17,993
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.
70 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
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
MARCH 31, 2005 $ 21.74 $ (.22) $ 8.60 $ 8.38 $ -- $ --
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) -- --
ENERGY SERVICES FUND ADVISOR CLASS
MARCH 31, 2005 21.18 (.33) 8.36 8.03 -- --
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) -- --
ENERGY SERVICES FUND A-CLASS
MARCH 31, 2005* 23.18 (.18) 6.25 6.07 -- --
ENERGY SERVICES FUND C-CLASS
MARCH 31, 2005 21.12 (.45) 8.31 7.86 -- --
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
MARCH 31, 2005 11.09 .10 .29 .39 (.08) --
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 -- --
FINANCIAL SERVICES FUND ADVISOR CLASS
MARCH 31, 2005 10.89 .05 .27 .32 (.08) --
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 -- --
FINANCIAL SERVICES FUND A-CLASS
MARCH 31, 2005* 10.75 .05 .41 .46 (.08) --
FINANCIAL SERVICES FUND C-CLASS
MARCH 31, 2005 10.84 (.01) .26 .25 (.08) --
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
MARCH 31, 2005 $ -- $ 8.38 $ 30.12 38.55%
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)%
ENERGY SERVICES FUND ADVISOR CLASS
MARCH 31, 2005 -- 8.03 29.21 37.91%
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)%
ENERGY SERVICES FUND A-CLASS
MARCH 31, 2005* -- 6.07 29.25 26.19%
ENERGY SERVICES FUND C-CLASS
MARCH 31, 2005 -- 7.86 28.98 37.22%
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
MARCH 31, 2005 (.08) .31 11.40 3.46%
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%
FINANCIAL SERVICES FUND ADVISOR CLASS
MARCH 31, 2005 (.08) .24 11.13 2.88%
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%
FINANCIAL SERVICES FUND A-CLASS
MARCH 31, 2005* (.08) .38 11.13 4.22%
FINANCIAL SERVICES FUND C-CLASS
MARCH 31, 2005 (.08) .17 11.01 2.24%
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)%
RATIO 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
MARCH 31, 2005 1.31% 1.31% (0.85)% 501% $ 99,603
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
ENERGY SERVICES FUND ADVISOR CLASS
MARCH 31, 2005 1.82% 1.82% (1.37)% 501% 24,647
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
ENERGY SERVICES FUND A-CLASS
MARCH 31, 2005* 1.53%** 1.53%** (1.13)%** 501% 313
ENERGY SERVICES FUND C-CLASS
MARCH 31, 2005 2.31% 2.31% (1.84)% 501% 11,529
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
MARCH 31, 2005 1.33% 1.33% 0.91% 1,005% 7,741
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
FINANCIAL SERVICES FUND ADVISOR CLASS
MARCH 31, 2005 1.83% 1.83% 0.43% 1,005% 27,181
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
FINANCIAL SERVICES FUND A-CLASS
MARCH 31, 2005* 1.55%** 1.55%** 0.70%** 1,005% 5
FINANCIAL SERVICES FUND C-CLASS
MARCH 31, 2005 2.33% 2.33% (0.10)% 1,005% 1,689
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 PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE
APRIL 21, 2003.
(@) 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 ANNUAL REPORT | 71
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
MARCH 31, 2005 $ 12.50 $ (.05) $ .26 $ .21 $ -- $ --
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 -- --
HEALTH CARE FUND ADVISOR CLASS
MARCH 31, 2005 12.11 (.10) .24 .14 -- --
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 -- --
HEALTH CARE FUND A-CLASS
MARCH 31, 2005* 11.65 (.05) .65 .60 -- --
HEALTH CARE FUND C-CLASS
MARCH 31, 2005 12.11 (.16) .24 .08 -- --
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
MARCH 31, 2005 35.66 (.43) (2.94) (3.37) -- --
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
MARCH 31, 2005 34.85 (.60) (2.84) (3.44) -- --
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
MARCH 31, 2005* 30.65 (.31) 1.11 .80 -- --
INTERNET FUND C-CLASS
MARCH 31, 2005 34.64 (.73) (2.85) (3.58) -- --
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
MARCH 31, 2005 $ -- $ .21 $ 12.71 1.68%
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%
HEALTH CARE FUND ADVISOR CLASS
MARCH 31, 2005 -- .14 12.25 1.16%
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%
HEALTH CARE FUND A-CLASS
MARCH 31, 2005* -- .60 12.25 5.15%
HEALTH CARE FUND C-CLASS
MARCH 31, 2005 -- .08 12.19 0.66%
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
MARCH 31, 2005 -- (3.37) 32.29 (9.45)%
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
MARCH 31, 2005 -- (3.44) 31.41 (9.87)%
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
MARCH 31, 2005* -- .80 31.45 2.61%
INTERNET FUND C-CLASS
MARCH 31, 2005 -- (3.58) 31.06 (10.33)%
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)%
RATIO 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
MARCH 31, 2005 1.34% 1.34% (0.42)% 610% $ 35,500
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
HEALTH CARE FUND ADVISOR CLASS
MARCH 31, 2005 1.84% 1.84% (0.83)% 610% 16,511
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
HEALTH CARE FUND A-CLASS
MARCH 31, 2005* 1.56%** 1.56%** (0.65)%** 610% 1
HEALTH CARE FUND C-CLASS
MARCH 31, 2005 2.33% 2.33% (1.36)% 610% 4,017
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
MARCH 31, 2005 1.34% 1.34% (1.23)% 1,947% 5,210
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
MARCH 31, 2005 1.83% 1.83% (1.72)% 1,947% 829
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
MARCH 31, 2005* 1.55%** 1.55%** (1.46)%** 1,947% 4
INTERNET FUND C-CLASS
MARCH 31, 2005 2.33% 2.33% (2.19)% 1,947% 1,596
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 PERIODS ENDED MARCH 31, 2001 HAVE BEEN RESTATED
TO REFLECT A 1:20 REVERSE STOCK SPLIT EFFECTIVE APRIL 20, 2001.
(@) EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2001 ARE CALCULATED FOR ONE
DAY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
72 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
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
MARCH 31, 2005 $ 27.66 $ (.17) $ 3.01 $ 2.84 $ -- $ --
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) -- --
LEISURE FUND ADVISOR CLASS
MARCH 31, 2005 26.74 (.30) 2.90 2.60 -- --
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) -- --
LEISURE FUND A-CLASS
MARCH 31, 2005 * 24.59 (.08) 4.83 4.75 -- --
LEISURE FUND C-CLASS
MARCH 31, 2005 26.93 (.40) 2.86 2.46 -- --
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
MARCH 31, 2005 44.32 (.05) (8.63) (8.68) -- --
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) -- --
PRECIOUS METALS FUND ADVISOR CLASS
MARCH 31, 2005 44.17 (.03) (8.77) (8.80) -- --
March 31, 2004* 31.68 (.18) 12.68 12.50 (.01) --
PRECIOUS METALS FUND A-CLASS
MARCH 31, 2005 * 37.26 (.01) (1.84) (1.85) -- --
PRECIOUS METALS FUND C-CLASS
MARCH 31, 2005 43.16 (.39) (8.40) (8.79) -- --
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
MARCH 31, 2005 $ -- $ 2.84 $ 30.50 10.27%
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)%
LEISURE FUND ADVISOR CLASS
MARCH 31, 2005 -- 2.60 29.34 9.72%
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)%
LEISURE FUND A-CLASS
MARCH 31, 2005* -- 4.75 29.34 19.32%
LEISURE FUND C-CLASS
MARCH 31, 2005 -- 2.46 29.39 9.13%
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
MARCH 31, 2005 -- (8.68) 35.64 (19.58)%
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)%
PRECIOUS METALS FUND ADVISOR CLASS
MARCH 31, 2005 -- (8.80) 35.37 (19.92)%
March 31, 2004 * (.01) 12.49 44.17 39.46%
PRECIOUS METALS FUND A-CLASS
MARCH 31, 2005 * -- (1.85) 35.41 (4.97)%
PRECIOUS METALS FUND C-CLASS
MARCH 31, 2005 -- (8.79) 34.37 (20.37)%
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%
RATIO 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
MARCH 31, 2005 1.31% 1.31% (0.57)% 1,046% $ 15,080
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
LEISURE FUND ADVISOR CLASS
MARCH 31, 2005 1.82% 1.82% (1.10)% 1,046% 27,750
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
LEISURE FUND A-CLASS
MARCH 31, 2005* 1.55%** 1.55%** (1.02)%** 1,046% 12
LEISURE FUND C-CLASS
MARCH 31, 2005 2.31% 2.31% (1.44)% 1,046% 2,502
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
MARCH 31, 2005 1.23% 1.23% (0.12)% 358% 130,718
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
PRECIOUS METALS FUND ADVISOR CLASS
MARCH 31, 2005 1.72% 1.72% (0.09)% 358% 8,596
March 31, 2004 * 1.72%** 1.72%** (0.68)%** 550% 2,112
PRECIOUS METALS FUND A-CLASS
MARCH 31, 2005 * 1.45%** 1.45%** (0.02)%** 358% 217
PRECIOUS METALS FUND C-CLASS
MARCH 31, 2005 2.23% 2.23% (1.08)% 358% 20,426
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.
++ PER SHARE AMOUNTS FOR THE PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE
APRIL 21, 2003.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 73
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
MARCH 31, 2005 * $ 26.66 $ .09 $ 1.24 $ 1.33 $ (.03) $ (.12)
REAL ESTATE FUND C-CLASS
MARCH 31, 2005 26.63 .41 .75 1.16 (.03) (.12)
March 31, 2004 * 25.00 .02 1.61 1.63 -- --
REAL ESTATE FUND H-CLASS
MARCH 31, 2005 26.65 .58 .77 1.35 (.03) (.12)
March 31, 2004 * 25.00 .10 1.55 1.65 -- --
RETAILING FUND INVESTOR CLASS
MARCH 31, 2005 11.74 (.06) .62 .56 -- --
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) -- --
RETAILING FUND ADVISOR CLASS
MARCH 31, 2005 11.49 (.12) .62 .50 -- --
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) -- --
RETAILING FUND A-CLASS
MARCH 31, 2005 * 10.45 (.07) 1.63 1.56 -- --
RETAILING FUND C-CLASS
MARCH 31, 2005 11.37 (.17) .60 .43 -- --
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
MARCH 31, 2005 11.40 .03 (1.08) (1.05) -- --
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) -- --
TECHNOLOGY FUND ADVISOR CLASS
MARCH 31, 2005 11.13 .02 (1.09) (1.07) -- --
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) -- --
TECHNOLOGY FUND A-CLASS
MARCH 31, 2005 * 9.32 -- .75 .75 -- --
TECHNOLOGY FUND C-CLASS
MARCH 31, 2005 11.10 -- (1.09) (1.09) -- --
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
MARCH 31, 2005 * $ (.15) $ 1.18 $ 27.84 4.98%
REAL ESTATE FUND C-CLASS
MARCH 31, 2005 (.15) 1.01 27.64 4.35%
March 31, 2004 * -- 1.63 26.63 6.52%
REAL ESTATE FUND H-CLASS
MARCH 31, 2005 (.15) 1.20 27.85 5.06%
March 31, 2004 * -- 1.65 26.65 6.60%
RETAILING FUND INVESTOR CLASS
MARCH 31, 2005 -- .56 12.30 4.77%
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)%
RETAILING FUND ADVISOR CLASS
MARCH 31, 2005 -- .50 11.99 4.35%
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)%
RETAILING FUND A-CLASS
MARCH 31, 2005 * -- 1.56 12.01 14.93%
RETAILING FUND C-CLASS
MARCH 31, 2005 -- .43 11.80 3.78%
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
MARCH 31, 2005 -- (1.05) 10.35 (9.21)%
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)%
TECHNOLOGY FUND ADVISOR CLASS
MARCH 31, 2005 -- (1.07) 10.06 (9.61)%
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)%
TECHNOLOGY FUND A-CLASS
MARCH 31, 2005 * -- .75 10.07 8.05%
TECHNOLOGY FUND C-CLASS
MARCH 31, 2005 -- (1.09) 10.01 (9.82)%
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)%
RATIO 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
MARCH 31, 2005 * 1.54%** 1.54%** 0.52%** 1,773% $ 71
REAL ESTATE FUND C-CLASS
MARCH 31, 2005 2.32% 2.32% 1.52% 1,773% 1,293
March 31, 2004 * 2.36%** 2.36%** 0.72%** 102% 7,562
REAL ESTATE FUND H-CLASS
MARCH 31, 2005 1.58% 1.58% 2.08% 1,773% 8,186
March 31, 2004 * 1.61%** 1.61%** 3.83%** 102% 75,916
RETAILING FUND INVESTOR CLASS
MARCH 31, 2005 1.33% 1.33% (0.54)% 1,505% 7,529
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
RETAILING FUND ADVISOR CLASS
MARCH 31, 2005 1.83% 1.83% (1.09)% 1,505% 6,445
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
RETAILING FUND A-CLASS
MARCH 31, 2005 * 1.68%** 1.68%** (1.03)%** 1,505% 1
RETAILING FUND C-CLASS
MARCH 31, 2005 2.33% 2.33% (1.52)% 1,505% 1,774
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
MARCH 31, 2005 1.31% 1.31% 0.33% 1,304% 13,346
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
TECHNOLOGY FUND ADVISOR CLASS
MARCH 31, 2005 1.83% 1.83% 0.21% 1,304% 10,693
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
TECHNOLOGY FUND A-CLASS
MARCH 31, 2005 * 1.54%** 1.54%** 0.00%** 1,304% 6
TECHNOLOGY FUND C-CLASS
MARCH 31, 2005 2.32% 2.32% 0.00% 1,304% 1,284
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.
74 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
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
MARCH 31, 2005 $ 15.48 $ .09 $ (1.24) $ (1.15) $ -- $ --
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) -- --
TELECOMMUNICATIONS FUND ADVISOR CLASS
MARCH 31, 2005 15.07 .03 (1.22) (1.19) -- --
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) -- --
TELECOMMUNICATIONS FUND A-CLASS
MARCH 31, 2005* 13.55 .11 .24 .35 -- --
TELECOMMUNICATIONS FUND C-CLASS
MARCH 31, 2005 15.06 (.07) (1.18) (1.25) -- --
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
MARCH 31, 2005 18.84 (.11) 3.69 3.58 -- --
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 -- --
TRANSPORTATION FUND ADVISOR CLASS
MARCH 31, 2005 18.02 (.21) 3.50 3.29 -- --
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 -- --
TRANSPORTATION FUND A-CLASS
MARCH 31, 2005* 18.73 (.09) 2.70 2.61 -- --
TRANSPORTATION FUND C-CLASS
MARCH 31, 2005 18.43 (.32) 3.60 3.28 -- --
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
MARCH 31, 2005 $ -- $ (1.15) $ 14.33 (7.43)%
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)%
TELECOMMUNICATIONS FUND ADVISOR CLASS
MARCH 31, 2005 -- (1.19) 13.88 (7.90)%
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)%
TELECOMMUNICATIONS FUND A-CLASS
MARCH 31, 2005* -- .35 13.90 2.58%
TELECOMMUNICATIONS FUND C-CLASS
MARCH 31, 2005 -- (1.25) 13.81 (8.30)%
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
MARCH 31, 2005 -- 3.58 22.42 19.00%
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%
TRANSPORTATION FUND ADVISOR CLASS
MARCH 31, 2005 -- 3.29 21.31 18.26%
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%
TRANSPORTATION FUND A-CLASS
MARCH 31, 2005* -- 2.61 21.34 13.93%
TRANSPORTATION FUND C-CLASS
MARCH 31, 2005 -- 3.28 21.71 17.80%
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%
RATIO 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
MARCH 31, 2005 1.35% 1.35% 0.60% 1,142% $ 6,003
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
TELECOMMUNICATIONS FUND ADVISOR CLASS
MARCH 31, 2005 1.86% 1.86% 0.19% 1,142% 1,922
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
TELECOMMUNICATIONS FUND A-CLASS
MARCH 31, 2005* 1.54%** 1.54%** 1.25%** 1,142% 3
TELECOMMUNICATIONS FUND C-CLASS
MARCH 31, 2005 2.38% 2.38% (0.51)% 1,142% 1,784
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
MARCH 31, 2005 1.32% 1.32% (0.51)% 929% 7,890
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
TRANSPORTATION FUND ADVISOR CLASS
MARCH 31, 2005 1.82% 1.82% (1.05)% 929% 5,748
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
TRANSPORTATION FUND A-CLASS
MARCH 31, 2005* 1.54%** 1.54%** (0.71)%** 929% 22
TRANSPORTATION FUND C-CLASS
MARCH 31, 2005 2.32% 2.32% (1.51)% 929% 1,807
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 PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE
APRIL 21, 2003.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 75
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
MARCH 31, 2005 $ 20.57 $ .53 $ 2.82 $ 3.35 $ (.30) $ --
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
MARCH 31, 2005 20.10 .42 2.74 3.16 (.30) --
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
MARCH 31, 2005* 20.66 .40 2.24 2.64 (.30) --
UTILITIES FUND C-CLASS
MARCH 31, 2005 19.77 .29 2.71 3.00 (.30) --
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
MARCH 31, 2005 $ (.30) $ 3.05 $ 23.62 16.35%
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
MARCH 31, 2005 (.30) 2.86 22.96 15.78%
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
MARCH 31, 2005* (.30) 2.34 23.00 12.84%
UTILITIES FUND C-CLASS
MARCH 31, 2005 (.30) 2.70 22.47 15.23%
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)%
RATIO 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
MARCH 31, 2005 1.33% 1.33% 2.46% 1,124% $ 17,861
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
MARCH 31, 2005 1.83% 1.83% 1.95% 1,124% 8,045
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
MARCH 31, 2005* 1.54%** 1.54%** 2.98%** 1,124% 128
UTILITIES FUND C-CLASS
MARCH 31, 2005 2.32% 2.32% 1.39% 1,124% 4,807
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 PERIODS ENDED MARCH 31, 2001 THROUGH MARCH 31,
2003 HAVE BEEN RESTATED TO REFLECT A 1:3 REVERSE STOCK SPLIT EFFECTIVE
APRIL 21, 2003.
76 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 five separate classes
of shares, Investor Class Shares, Advisor Class Shares, A-Class Shares, C-Class
Shares, and H-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% 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%
$1,000,000 or greater 0.00% 0.00%
At March 31, 2005, 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.
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties, which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
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.
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. These methods include, but are not limited
to: (i) general information as to how these securities and assets trade and (ii)
other information and considerations, including current values in
related-markets.
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 and post-October losses. Net investment income and loss, net
realized gains and losses, and net assets were not affected by these
differences.
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"), U.S. Government securities,
and enter into repurchase agreements.
Short sales are transactions in which the Fund sells a security it does not own.
If the security the Fund sold short goes down in price between the time the Fund
sells the security and closes its short position, the Fund will realize a gain
on the transaction. Conversely, if the security goes up in price during the
period, the Fund will realize a loss on the transaction. The risk of such price
increases is the principal risk of engaging in short sales.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 77
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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.
G. The Fund may leave Cash in Custodian Bank overnight in its cash account with
the custodian, U.S. Bank. Periodically, the Fund may have Cash Payable to
Custodian Bank as an overdraft balance. A fee is incurred on this overdraft,
calculated by multiplying the overdraft by a rate based on the federal funds
rate.
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 the Advisor.
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
Sector Funds.
The Servicer also provides accounting services to the Trust calculated at an
annualized rate of 0.10% on the first $250 million of the average daily net
assets, 0.075% on the next $250 million of the average daily net assets, 0.05%
on the next $250 million of the average daily net assets, and 0.03% on the
average daily net assets over $750 million of each of the Sector Funds. Certain
officers and trustees of the Trust are also officers of the Servicer.
The Servicer also provides other necessary services to the Trust, such as
accounting and auditing services, legal services, printing and mailing, etc., on
a pass-through basis. Such expenses vary from Fund to Fund and are allocated to
the Funds based on relative net assets.
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 (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 to the
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 the 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.
78 | THE RYDEX SERIES FUNDS ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
Permanent book and tax basis differences, if any, relating to shareholder
distributions will result in reclassifications to paid-in capital. This includes
net operating losses not utilized during the current year, and the utilization
of earnings and profits distributed to the shareholders on redemption of shares
as part of the dividends paid deduction for income tax purposes. These
reclassifications have no effect on net assets or net asset values per share.
Any taxable gain remaining at fiscal year end is distributed in the following
year.
The tax character of distributions paid between April 1, 2004-March 31, 2005 was
as follows:
ORDINARY LONG-TERM TOTAL
FUND INCOME CAPITAL GAIN DISTRIBUTIONS
- ---------------------------------------------------------------------------
Banking Fund $ 294,466 $ -- $ 294,466
Basic Materials Fund -- -- --
Biotechnology Fund -- -- --
Consumer Products Fund 13,317 -- 13,317
Electronics Fund -- -- --
Energy Fund 46,504 -- 46,504
Energy Services Fund -- -- --
Financial Services Fund 267,235 -- 267,235
Health Care Fund -- -- --
Internet Fund -- -- --
Leisure Fund -- -- --
Precious Metals Fund -- -- --
Real Estate Fund 192,807 36,608 229,415
Retailing Fund -- -- --
Technology Fund -- -- --
Telecommunications Fund -- -- --
Transportation Fund -- -- --
Utilities Fund 550,003 -- 550,003
The tax character of distributions paid between April 1, 2003-March 31, 2004 was
as follows:
ORDINARY LONG-TERM TOTAL
FUND INCOME CAPITAL GAIN DISTRIBUTIONS
- ---------------------------------------------------------------------------
Banking Fund $ 353,855 $ -- $ 353,855
Basic Materials Fund 85,864 -- 85,864
Biotechnology Fund -- -- --
Consumer Products Fund 41,560 -- 41,560
Electronics Fund -- -- --
Energy Fund 77,173 -- 77,173
Energy Services Fund -- -- --
Financial Services Fund 207,849 -- 207,849
Health Care Fund -- -- --
Internet Fund -- -- --
Leisure Fund -- -- --
Precious Metals Fund 53,404 -- 53,404
Real Estate Fund -- -- --
Retailing Fund -- -- --
Technology Fund -- -- --
Telecommunications Fund 41,923 -- 41,923
Transportation Fund -- -- --
Utilities Fund 681,790 -- 681,790
THE RYDEX SERIES FUNDS ANNUAL REPORT | 79
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The tax character of distributable earnings/(accumulated losses) at March 31,
2005 was as follows:
UNDISTRIBUTED UNDISTRIBUTED NET UNREALIZED
ORDINARY REALIZED GAIN/ APPRECIATION/ CAPITAL LOSS
FUND INCOME (ACCUMULATED LOSS) (DEPRECIATION) CARRYFORWARD
- ----------------------------------------------------------------------------------------------------
Banking Fund $169,776 $ -- $(13,578,730) $ 30,296,094(1)
Basic Materials Fund 141,284 -- (2,546,202) 14,161,174(1)
Biotechnology Fund -- -- (14,750,910) 161,449,090(1)
Consumer Products Fund 159,297 -- (4,140,684) 9,931,789(1)
Electronics Fund -- -- (28,112,285) 130,828,550(1)
Energy Fund 271,239 -- 23,785,758 2,460,452(1)
Energy Services Fund -- -- (8,611,103) 46,454,476(1)
Financial Services Fund 228,012 -- (22,472,660) 23,937,388(1)
Health Care Fund -- -- (15,264,016) 15,056,183(1)
Internet Fund -- -- (1,230,545) 33,475,294(1)
Leisure Fund -- -- (3,538,755) 13,492,289(1)
Precious Metals Fund -- -- (4,837,775) 50,146,795(1)
Real Estate Fund -- -- (1,435,237) --
Retailing Fund -- -- (15,650,521) 18,605,265(1)
Technology Fund 132,662 -- (38,914,357) 39,776,650(1)
Telecommunications Fund 72,364 -- (11,028,111) 28,770,923(1)
Transportation Fund -- -- (2,649,266) 15,161,308(1)
Utilities Fund 185,017 -- 1,508,458 9,377,847(1)
All amounts expire on March 31st of the year indicated.
(1) BANKING FUND: $20,272,124 EXPIRES IN 2009, $7,330,166 EXPIRES IN 2010, AND
$2,693,804 EXPIRES IN 2011
BASIC MATERIALS FUND: $3,102,537 EXPIRES IN 2009, $1,922,768 EXPIRES IN
2010, $6,874,246 EXPIRES IN 2011, AND $2,261,623 EXPIRES IN 2013
BIOTECHNOLOGY FUND: $66,270,283 EXPIRES IN 2010, $41,827,211 EXPIRES IN
2011, AND $53,351,596 EXPIRES IN 2013
CONSUMER PRODUCTS FUND: $1,302,429 EXPIRES IN 2009, $6,932,751 EXPIRES IN
2010, $1,405,711 EXPIRES IN 2011, AND $290,898 EXPIRES IN 2013
ELECTRONICS FUND: $26,624,901 EXPIRES IN 2009, $71,114,792 EXPIRES IN
2010, $4,632,927 EXPIRES IN 2011, $21,975,263 EXPIRES IN 2012, AND
$6,480,667 EXPIRES IN 2013
ENERGY FUND: $2,460,452 EXPIRES IN 2011
ENERGY SERVICES FUND: $288,577 EXPIRES IN 2007, $7,012,158 EXPIRES IN
2008, $18,272,026 EXPIRES IN 2009, $8,605,776 EXPIRES IN 2010, $1,565,855
EXPIRES IN 2011, AND $10,710,084 EXPIRES IN 2012
FINANCIAL SERVICES FUND: $7,140,193 EXPIRES IN 2009 AND $16,797,195
EXPIRES IN 2010
HEALTH CARE FUND: $8,651,949 EXPIRES IN 2010, $4,204,016 EXPIRES IN 2011,
AND $2,200,218 EXPIRES IN 2013
INTERNET FUND: $9,065,533 EXPIRES IN 2009, $20,245,609 EXPIRES IN 2010,
$3,187,374 EXPIRES IN 2011, $201,036 EXPIRES IN 2012, AND $775,742 EXPIRES
IN 2013
LEISURE FUND: $189,716 EXPIRES IN 2008, $6,347,300 EXPIRES IN 2009,
$5,084,685 EXPIRES IN 2010, $1,440,998 EXPIRES IN 2011, $76,092 EXPIRES IN
2012, AND $353,498 EXPIRES IN 2013
PRECIOUS METALS FUND: $4,444,957 EXPIRES IN 2008, $17,957,165 EXPIRES IN
2009, $8,817,763 EXPIRES IN 2010, $6,125,781 EXPIRES IN 2011, AND
$12,801,129 EXPIRES IN 2013
RETAILING FUND: $7,650,688 EXPIRES IN 2009, $8,401,610 EXPIRES IN 2010,
$1,550,748 EXPIRES IN 2011, AND $1,002,219 EXPIRES IN 2013
TECHNOLOGY FUND: $1,134,585 EXPIRES IN 2009, $8,747,935 EXPIRES IN 2010,
$24,431,379 EXPIRES IN 2011, AND $5,462,751 EXPIRES IN 2013
TELECOMMUNICATIONS FUND: $21,523,697 EXPIRES IN 2010, $6,628,688 EXPIRES
IN 2011, AND $618,538 EXPIRES IN 2013
TRANSPORTATION FUND: $1,496,274 EXPIRES IN 2008, $7,534,993 EXPIRES IN
2009, $1,468,132 EXPIRES IN 2010, $2,503,694 EXPIRES IN 2011, $1,263,341
EXPIRES IN 2012, AND $894,874 EXPIRES IN 2013
UTILITIES FUND: $6,550,528 EXPIRES IN 2011 AND $2,827,319 EXPIRES IN 2012
The Funds' tax basis capital gains and losses are determined only at the end of
each fiscal year. Tax basis capital losses in excess of capital gains are
carried forward to offset future net capital gains. For the year ended March 31,
2005, the following Funds offset net realized capital gains with capital losses
from previous years:
FUND AMOUNT
- --------------------------------------------------------------------------------
Banking Fund $ 1,231,071
Energy Fund 9,491,065
Energy Services Fund 75,869
Financial Services Fund 3,871,165
Utilities Fund 2,025,062
80 | THE RYDEX SERIES FUNDS ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
TAX BASIS UNREALIZED GAIN (LOSS) ON INVESTMENTS AND DISTRIBUTIONS
At March 31, 2005, 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 $ 23,339,513 $ -- $ (13,578,730) $ (13,578,730)
Basic Materials Fund 68,404,060 -- (2,546,202) (2,546,202)
Biotechnology Fund 119,413,556 1,294,285 (16,045,195) (14,750,910)
Consumer Products Fund 62,248,719 -- (4,140,684) (4,140,684)
Electronics Fund 76,643,518 1,549,553 (29,661,838) (28,112,285)
Energy Fund 158,257,373 24,052,141 (266,383) 23,785,758
Energy Services Fund 172,352,365 -- (8,611,103) (8,611,103)
Financial Services Fund 64,591,698 -- (22,472,660) (22,472,660)
Health Care Fund 82,204,246 274,165 (15,538,181) (15,264,016)
Internet Fund 9,980,656 2,261,014 (3,491,559) (1,230,545)
Leisure Fund 58,282,812 -- (3,538,755) (3,538,755)
Precious Metals Fund 221,521,806 683,577 (5,521,352) (4,837,775)
Real Estate Fund 12,139,699 -- (1,435,237) (1,435,237)
Retailing Fund 34,020,687 -- (15,650,521) (15,650,521)
Technology Fund 68,245,094 902,409 (39,816,766) (38,914,357)
Telecommunications Fund 23,505,469 -- (11,028,111) (11,028,111)
Transportation Fund 21,291,480 351,009 (3,000,275) (2,649,266)
Utilities Fund 37,593,367 1,670,216 (161,758) 1,508,458
POST-OCTOBER LOSSES DEFERRED
Pursuant to federal income tax regulations applicable to investment companies,
the funds have elected to treat net capital losses realized between November 1
and March 31 of each year as occuring on the first day of the following tax
year. For the year ended March 31, 2005, $1,294,285, $1,549,553, $274,165,
$2,261,014, $902,409, and $351,009 of realized capital losses reflected in the
accompanying financial statements will not be recognized for federal income tax
purposes until 2006 for Biotechnology Fund, Electronics Fund, Health Care Fund,
Internet Fund, Technology Fund, and Transportation Fund, respectively.
4. REPURCHASE AGREEMENTS
The Trust transfers uninvested cash balances into a single joint account, along
with the uninvested cash balances of the OTC Fund, the Medius Fund, the Inverse
Mid-Cap Fund, the Mekros Fund, the Inverse Small-Cap 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 Nova Master Portfolio, the Ursa
Master Portfolio, the Arktos Master Portfolio, the Juno Master Portfolio (all
included in the Trust, but contained in a separate report), the Sector Rotation
Fund and the Core Equity Fund (also 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 by, at a minimum, 102% of the delivery
value of the repurchase agreements at maturity.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 81
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The repurchase agreements that were executed by the joint account and
outstanding as of March 31, 2005 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- ----------------------------------------------------------------------------------------------------------
Lehman Brothers, Inc. 2.55% due 04/01/05 $ 412,296,394 $ 412,296,394 $ 412,325,599
Bear Stearns Cos., Inc. 2.63% due 04/01/05 400,000,000 400,000,000 400,029,222
Citigroup, Inc. 2.60% due 04/01/05 300,000,000 300,000,000 300,021,667
Morgan Stanley 2.57% due 04/01/05 300,000,000 300,000,000 300,021,417
- ----------------------------------------------------------------------------------------------------------
$ 1,412,296,394 $ 1,412,397,905
==========================================================================================================
As of March 31, 2005, 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 2.375% - 10.375% $ 437,823,491 $ 598,097,915
U.S. Treasury Notes 2.000% - 5.750% 421,496,836 435,285,951
U.S. Treasury Bills 0.000% 415,061,000 412,102,321
- -------------------------------------------------------------------------------
$ 1,445,486,187
===============================================================================
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 year ended March 31, 2005, 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 $ 292,041,377 $ 439,121,167 $ 768,547,925 $ 413,611,687 $ 487,628,043 $ 778,559,947 $ 411,324,873 $ 412,264,330
Sales $ 301,799,512 $ 435,974,685 $ 808,664,225 $ 401,495,861 $ 485,547,260 $ 731,351,461 $ 368,476,461 $ 451,109,173
HEALTH PRECIOUS REAL TELECOMMU-
CARE INTERNET LEISURE METALS ESTATE RETAILING TECHNOLOGY NICATIONS
FUND FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
Purchases $ 329,448,865 $ 430,530,262 $ 409,551,321 $ 703,953,103 $ 737,257,273 $ 255,360,302 $ 650,130,044 $ 194,660,316
Sales $ 320,767,581 $ 445,765,878 $ 429,042,680 $ 737,701,586 $ 809,037,889 $ 269,137,783 $ 652,481,957 $ 207,772,426
TRANSPOR-
TATION UTILITIES
FUND FUND
- ----------------------------------------
Purchases $ 323,729,117 $ 333,117,896
Sales $ 318,215,877 $ 329,788,040
82 | THE RYDEX SERIES FUNDS ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
6. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of no par value
shares. Transactions in shares for the period ended March 31, 2005 were:
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT
- ------------------------------------------------------------------------------------------------------
Period Ended Year Ended Period Ended Year Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
- ------------------------------------------------------------------------------------------------------
BANKING FUND
Investor Class 23,295,878 29,305,567 13,430 21,240
Advisor Class 7,579,880 8,354,009 11,287 9,588
A-Class* 3,495 -- 74 --
C-Class 2,096,355 5,623,221 1,958 5,862
BASIC MATERIALS FUND
Investor Class 14,930,185 20,611,388 -- 1,998
Advisor Class 3,451,617 4,166,675 -- 1,426
A-Class* 21,600 -- -- --
C-Class 1,628,841 2,071,086 -- 234
BIOTECHNOLOGY FUND
Investor Class 48,992,037 55,501,925 -- --
Advisor Class 2,977,372 5,467,658 -- --
A-Class* 5,666 -- -- --
C-Class 1,611,589 2,625,351 -- --
CONSUMER PRODUCTS FUND
Investor Class 11,770,064 7,588,839 128 272
Advisor Class 4,310,299 3,619,311 225 1,325
A-Class* 16,232 -- -- --
C-Class 2,021,995 1,412,449 75 28
ELECTRONICS FUND
Investor Class 71,617,772 97,206,931 -- --
Advisor Class 5,499,673 10,258,033 -- --
A-Class* 271 -- -- --
C-Class 1,771,576 4,994,160 -- --
ENERGY FUND
Investor Class 60,798,285 43,036,804 2,191 6,458
Advisor Class 8,630,164 6,143,268 487 309
A-Class* 78,501 -- 2 --
C-Class 5,409,462 3,766,553 254 758
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
- ---------------------------------------------------------------------------------------------
Period Ended Year Ended Period Ended Year Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------
BANKING FUND
Investor Class (24,047,095) (29,114,241) (737,787) 212,566
Advisor Class (7,664,012) (8,041,937) (72,845) 321,660
A-Class* (2,006) -- 1,563 --
C-Class (2,193,967) (5,454,395) (95,654) 174,688
BASIC MATERIALS FUND
Investor Class (14,988,451) (20,030,089) (58,266) 583,297
Advisor Class (3,558,087) (4,054,982) (106,470) 113,119
A-Class* (14,561) -- 7,039 --
C-Class (1,591,918) (1,908,446) 36,923 162,874
BIOTECHNOLOGY FUND
Investor Class (51,331,712) (56,979,775) (2,339,675) (1,477,850)
Advisor Class (3,012,236) (6,646,230) (34,864) (1,178,572)
A-Class* (1,267) -- 4,399 --
C-Class (1,635,072) (2,570,067) (23,483) 55,284
CONSUMER PRODUCTS FUND
Investor Class (12,084,424) (7,003,713) (314,232) 585,398
Advisor Class (3,882,393) (3,601,289) 428,131 19,347
A-Class* (632) -- 15,600 --
C-Class (1,902,074) (1,288,543) 119,996 123,934
ELECTRONICS FUND
Investor Class (72,425,283) (97,683,758) (807,511) (476,827)
Advisor Class (4,488,866) (10,939,877) 1,010,807 (681,844)
A-Class* (163) -- 108 --
C-Class (1,642,995) (5,027,603) 128,581 (33,443)
ENERGY FUND
Investor Class (59,447,765) (38,402,713) 1,352,711 4,640,549
Advisor Class (7,548,827) (6,540,008) 1,081,824 (396,431)
A-Class* (33,921) -- 44,582 --
C-Class (4,883,626) (3,371,400) 526,090 395,911
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 83
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT
- ------------------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
- ------------------------------------------------------------------------------------------------------
ENERGY SERVICES FUND
Investor Class 19,417,507 27,532,018 -- --
Advisor Class 4,751,943 4,161,536 -- --
A-Class* 28,997 -- -- --
C-Class 2,047,670 1,831,031 -- --
FINANCIAL SERVICES FUND
Investor Class 22,725,546 62,655,161 4,601 6,535
Advisor Class 7,542,996 9,592,691 16,538 13,512
A-Class* 3,231 -- 13 --
C-Class 2,791,751 3,297,493 1,105 497
HEALTH CARE FUND
Investor Class 31,471,311 40,582,183 -- --
Advisor Class 6,443,013 9,867,577 -- --
A-Class* 2,372 -- -- --
C-Class 2,192,906 5,281,351 -- --
INTERNET FUND
Investor Class 14,172,147 10,328,468 -- --
Advisor Class 1,204,965 1,821,415 -- --
A-Class* 23,750 -- -- --
C-Class 478,480 809,388 -- --
LEISURE FUND
Investor Class 11,597,001 20,010,992 -- --
Advisor Class 4,833,064 5,685,748 -- --
A-Class* 14,935 -- -- --
C-Class 1,743,918 1,193,130 -- --
PRECIOUS METALS FUND
Investor Class 37,551,246 60,465,084 -- 1,027
Advisor Class 2,981,129 2,891,458*** -- 24***
A-Class* 9,905 -- -- --
C-Class 1,919,001 2,089,399 -- 69
REAL ESTATE FUND
A-Class* 18,469 -- 2 --
C-Class 1,813,344 518,598** 376 --
H-Class 37,395,591 4,553,101** 6,652 --
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
- ---------------------------------------------------------------------------------------------
Period Ended Period Ended Period Ended Period Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------
ENERGY SERVICES FUND
Investor Class (18,288,460) (27,969,595) 1,129,047 (437,577)
Advisor Class (5,102,424) (3,313,313) (350,481) 848,223
A-Class* (18,293) -- 10,704 --
C-Class (1,784,007) (1,811,384) 263,663 19,647
FINANCIAL SERVICES FUND
Investor Class (25,154,000) (60,428,933) (2,423,853) 2,232,763
Advisor Class (8,871,317) (7,843,675) (1,311,783) 1,762,528
A-Class* (2,774) -- 470 --
C-Class (2,846,263) (3,120,443) (53,407) 177,547
HEALTH CARE FUND
Investor Class (30,262,009) (40,452,245) 1,209,302 129,938
Advisor Class (7,332,507) (10,207,863) (889,494) (340,286)
A-Class* (2,286) -- 86 --
C-Class (2,099,736) (5,091,497) 93,170 189,854
INTERNET FUND
Investor Class (14,439,631) (10,062,830) (267,484) 265,638
Advisor Class (1,525,482) (1,510,255) (320,517) 311,160
A-Class* (23,625) -- 125 --
C-Class (472,026) (776,125) 6,454 33,263
LEISURE FUND
Investor Class (12,007,565) (19,496,218) (410,564) 514,774
Advisor Class (5,375,390) (4,818,501) (542,326) 867,247
A-Class* (14,518) -- 417 --
C-Class (1,739,165) (1,118,911) 4,753 74,219
PRECIOUS METALS FUND
Investor Class (39,230,930) (57,926,677) (1,679,684) 2,539,434
Advisor Class (2,785,939) (2,843,657)*** 195,190 47,825***
A-Class* (3,770) -- 6,135 --
C-Class (1,741,709) (1,754,060) 177,292 335,408
REAL ESTATE FUND
A-Class* (15,922) -- 2,549 --
C-Class (2,050,876) (234,654)** (237,156) 283,944**
H-Class (39,956,598) (1,704,781)** (2,554,355) 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.
84 | THE RYDEX SERIES FUNDS ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT
- ------------------------------------------------------------------------------------------------------
Period Ended Year Ended Period Ended Year Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
- ------------------------------------------------------------------------------------------------------
RETAILING FUND
Investor Class 24,112,068 64,015,398 -- --
Advisor Class 4,981,461 11,383,651 -- --
A-Class* 96 -- -- --
C-Class 1,480,794 2,829,150 -- --
TECHNOLOGY FUND
Investor Class 53,167,975 62,209,751 -- --
Advisor Class 7,944,053 9,285,597 -- --
A-Class* 3,268 -- -- --
C-Class 6,359,429 26,695,477 -- --
TELECOMMUNICATIONS FUND
Investor Class 14,402,016 30,293,759 -- 1,906
Advisor Class 1,854,348 2,417,651 -- 846
A-Class* 783 -- -- --
C-Class 1,276,715 3,064,162 -- 260
TRANSPORTATION FUND
Investor Class 14,576,766 11,392,455 -- --
Advisor Class 4,999,213 4,599,067 -- --
A-Class* 5,861 -- -- --
C-Class 776,235 822,636 -- --
UTILITIES FUND
Investor Class 14,371,241 21,344,704 11,222 23,492
Advisor Class 3,892,652 7,048,391 8,794 4,166
A-Class* 47,744 -- 25 --
C-Class 1,880,613 2,580,705 2,233 3,675
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
- ---------------------------------------------------------------------------------------------
Period Ended Year Ended Period Ended Year Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------
RETAILING FUND
Investor Class (24,499,236) (63,386,483) (387,168) 628,915
Advisor Class (5,825,294) (11,909,168) (843,833) (525,517)
A-Class* -- -- 96 --
C-Class (1,538,273) (2,632,277) (57,479) 196,873
TECHNOLOGY FUND
Investor Class (53,380,615) (61,881,539) (212,640) 328,212
Advisor Class (8,496,228) (10,069,987) (552,175) (784,390)
A-Class* (2,675) -- 593 --
C-Class (6,330,391) (26,658,185) 29,038 37,292
TELECOMMUNICATIONS FUND
Investor Class (14,913,660) (32,100,045) (511,644) (1,804,380)
Advisor Class (2,205,346) (2,203,474) (350,998) 215,023
A-Class* (593) -- 190 --
C-Class (1,388,824) (3,058,981) (112,109) 5,441
TRANSPORTATION FUND
Investor Class (14,426,142) (11,382,778) 150,624 9,677
Advisor Class (4,967,264) (5,103,040) 31,949 (503,973)
A-Class* (4,815) -- 1,046 --
C-Class (728,572) (890,806) 47,663 (68,170)
UTILITIES FUND
Investor Class (14,558,513) (22,263,408) (176,050) (895,212)
Advisor Class (3,604,386) (7,416,205) 297,060 (363,648)
A-Class* (42,226) -- 5,543 --
C-Class (1,868,584) (2,561,542) 14,262 22,838
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 85
NOTES TO FINANCIAL STATEMENTS (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 100% of the value of the securities on
loan, which is initially held in a segregated account at U.S. Bank. As agent,
U.S. Bank may, for investment purposes, pool the Trust's collateral in joint
accounts with cash collateral from one or more other securities lending
customers of U.S. Bank. Under the terms of the Trust's securities lending
agreement with U.S. Bank, cash collateral may be invested by U.S. Bank in
certain high quality, liquid investments. At March 31, 2005, the pooled cash
collateral investments consisted of repurchase agreements (36.31%), commercial
paper (38.00%), corporate bonds (25.08%), and mutual funds (0.61%). 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 March 31, 2005 the following funds participated in securities lending and
received cash collateral:
VALUE OF
CASH SECURITIES
FUND COLLATERAL LOANED
- ------ ------------ -------------
Banking Fund $ 1,009,928 $ 981,370
Basic Materials Fund 11,151,732 10,891,648
Biotechnology Fund 16,783,608 15,918,922
Consumer Products Fund 6,950,324 6,700,073
Electronics Fund 6,465,824 6,184,150
Energy Fund 26,286,854 26,171,291
Energy Services Fund 27,993,328 28,147,169*
Financial Services Fund 5,539,792 5,325,814
Health Care Fund 10,872,206 10,442,386
Internet Fund 1,121,759 1,051,490
Leisure Fund 9,561,992 9,134,272
Precious Metals Fund 57,189,988 53,818,802
Real Estate Fund 1,060,338 1,017,349
Retailing Fund 2,608,768 2,544,076
Technology Fund 3,883,668 3,675,935
Telecommunications Fund 2,794,613 2,632,066
Transportation Fund 3,246,736 3,100,181
Utilities Fund 8,189,817 7,949,814
* FUNDS BELOW 100% THRESHOLD WERE REMEDIED THE FOLLOWING DAY AND STILL
CONSIDERED FULLY COLLATERALIZED.
86 | THE RYDEX SERIES FUNDS ANNUAL REPORT
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of the Rydex Series Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of 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, and Utilities Fund
(constituting eighteen of the forty-three Funds and Portfolios of the Rydex
Series Funds, hereafter referred to as the "Funds") at March 31, 2005, the
results of each of their operations and the changes in each of their net assets
and the financial highlights for each of the periods presented, in conformity
with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 2005 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion. The financial highlights for the periods presented on and prior to
March 31, 2003, except for Real Estate Fund which commenced on February 20,
2004, were audited by other auditors whose report dated May 16, 2003 expressed
an unqualified opinion on those statements.
PricewaterhouseCoopers LLP
Baltimore, Maryland
May 23, 2005
THE RYDEX SERIES FUNDS ANNUAL REPORT | 87
OTHER INFORMATION
- --------------------------------------------------------------------------------
UNAUDITED TAX INFORMATION
This information is being provided as required by the Internal Revenue Code.
Amounts shown may differ from those elsewhere in the report because of
differences in tax and financial reporting practices.
Of the ordinary income distributions paid during the year for the Banking Fund,
the Consumer Products Fund,the Energy Fund, the Financial Services Fund, and the
Utilities Fund, 100%, 100%, 100%, 100%, and 100%, respectively, qualifies for
the dividends received deductions for corporations. In addition, 100%, 100%,
100%, 100%, 0%, and 72.60% of the ordinary income distributions paid during the
year by the Banking Fund, the Consumer Products Fund, the Energy Fund, the
Financial Services Fund, the Real Estate Fund, and the Utilities Fund
respectively, is considered Qualified Dividend Income for tax purposes.
The Fund's distributions to shareholders included:
REAL ESTATE
FUND
- --------------------------------------------------------------------------------
From short-term capital gains: $ 145,072
From long-term capital gains,
subject to the 15% rate gains category: $ 36,608
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.
QUARTERLY PORTFOLIO SCHEDULES INFORMATION
The Trust files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q; which are available on
the SEC's website at http://www.sec.gov. The Fund's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request by calling 1-800-820-0888.
88 | THE RYDEX SERIES FUNDS ANNUAL REPORT
- --------------------------------------------------------------------------------
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THE RYDEX SERIES FUNDS ANNUAL REPORT | 89
UNAUDITED INFORMATION
ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
Each Trust is served by a separate Board of Trustees with 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 101
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 101
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 101
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 102
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 101
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.
===========================
90 | THE RYDEX SERIES FUNDS 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 101
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,
Vice President and Secretary (1970) Rydex 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
Assistant Secretary (1967) Rydex 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 ANNUAL REPORT | 91
- --------------------------------------------------------------------------------
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[RydexInvestments LOGO]
Essential for modern markets(TM)
9601 Blackwell Road o Suite 500 o Rockville, MD 20850
www.rydexinvestments.com o 800.820.0888
RSECF-ANN-2-0305 x0306
[GRAPHIC OMITTED]
MARCH 31, 2005
RYDEX SERIES FUNDS STRATEGIC FUNDS ANNUAL REPORT
CORE EQUITY FUND
SECTOR ROTATION FUND
[LOGO]RYDEXINVESTMENTS
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 EXPENSES .......................................... 3
PERFORMANCE REPORTS AND 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
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM .................... 29
OTHER INFORMATION .......................................................... 30
UNAUDITED INFORMATION ON BOARD OF TRUSTEES AND OFFICERS .................... 31
THE RYDEX SERIES FUNDS ANNUAL REPORT | 1
LETTER TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
The year ended March 31, 2005 was a difficult one for investors in almost all
asset classes. Markets were--for the most part--range-bound as investors
struggled with concerns driven by widening deficits, record energy prices,
inflation worries, slowing earnings growth, rising interest rates and the
specter of continuing geopolitical dangers such as weapons proliferation and
terrorism. Balancing these concerns were some powerful positives, however.
Consumer sentiment and spending remained buoyant throughout the 12-month period,
both interest rates and inflation remained low and equity valuations were in
line with historical averages. To this it should be added that, although the
U.S. economy's ability to generate meaningful job growth was somewhat of a
disappointment, unemployment remained quite low by historical standards.
Finally, the evident progress in the war in Iraq served to bolster investor
confidence.
Investment returns during this 12-month period reflected this tug-of-war. The
Dow Jones Industrial Average was able to eke out only a 3.56% gain, while the
broader S&P 500(R) Index rose 6.69%. Equity investors remained wary of highly
valued tech stocks as demonstrated by a 0.83% gain in the tech-heavy Nasdaq
Composite. Investors' four-year-long love affair with smaller stocks also began
to wane during this period. The small-cap Russell 2000(R) Index returned 5.41%,
trailing the S&P 500 Index by nearly 1.30%.
For investors in international stocks, one additional macroeconomic trend--the
continuing decline in the exchange value of the U.S. dollar--represented a
significant boost to investment returns. The MSCI EAFE Index, which is the
broadest proxy for international stocks in the developed world, returned 11.04%.
Likewise, stocks in the developing markets were strong performers as the MSCI EM
Index returned 13.05% when translated back into U.S. dollars.
The challenge for stock investors during this 12-month period was a distinct
lack of market direction. Markets look forward and, although the earnings
environment can be described as positive, it can also be described as slowing.
S&P earnings for 2004 were up 20%, but by the first quarter, the year-over-year
pace had slowed to 7.5%. Valuations did not represent a head wind, but higher
energy prices certainly did. As oil prices rose to a record $57/barrel, stocks
pulled back. In fact, throughout much of the year, the relationship between oil
prices and stocks was inverse and predictable. If you knew where oil was going,
you knew where stocks were going.
After being the most widely anticipated bond market development that didn't
happen in 2004, long-term interest rates finally rose. The 10-year Treasury Note
finished the first quarter yielding 4.48% from a starting point near 3.84% a
year earlier. Certainly the seven consecutive increases in the federal funds
rate beginning in the second quarter of 2004 played a role; however, other
factors were at work. Primary among these were concerns over the exchange value
of the greenback. Record federal budget and current account deficits prompted
concern that foreign central banks would cease or curtail purchases of U.S.
Treasury securities, necessitating a substantial increase in interest rates in
order to attract overseas capital. Inflation worries also rose to the fore
during this period. In addition to rising energy prices, commodity prices rose
across the board as the voracious Chinese economy sucked up raw materials at a
tremendous rate. The adage that China inflates what it imports and deflates what
it exports was certainly true during this period. So while inflation remained in
check, it was an uneasy balancing act.
Thus it was a good year for investment strategies that were not dependent on a
highly directional market. Sector rotation strategies were profitable for
investors. Rising interest rates at both ends of the yield curve hurt the
financial services and banking sectors, while technology, telecommunications and
transportation were hurt by high valuations and energy costs. Overseas demand
for products boosted the basic materials sector, decreased tax rates on
dividends benefited the utilities sector and the energy and energy services
sectors got a helping hand from rising crude oil prices.
The upcoming year could be more of the same. A substantial reacceleration in
corporate earnings growth, a precipitous decline in interest rates and/or energy
prices and a rapid improvement in the federal budget and trade deficits could
bring upside potential. Downside risks include a freefall in the exchange value
of the U.S. dollar and a dramatic spike in inflation and interest rates (though
this seems remote). Going into the year, economic growth remains sound,
inflation is tame and interest rates are at historical lows. The year will
undoubtedly be a challenge, but, as always, opportunities will exist for savvy
investors.
We appreciate the trust you have placed in our firm by investing with us.
Sincerely,
/s/ Carl G. Verboncoeur
Carl G. Verboncoeur
President
2 | THE RYDEX SERIES FUNDS ANNUAL REPORT
ABOUT SHAREHOLDERS' FUND 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 incur two types of costs: (i) transaction costs,
including sales charges (loads) on purchase payments, reinvested dividends, or
other distributions; redemption fees; and exchange fees; and (ii) ongoing costs,
including management fees, administrative services, and shareholder reports,
among others. These ongoing costs, or operating expenses, are deducted from a
fund's gross income and reduce the investment return of the fund.
A fund's expenses are expressed as a percentage of its average net assets, which
is known as the expense ratio. The following examples are intended to help 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 September 30, 2004 and
ending March 31, 2005.
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 and 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 ANNUAL REPORT | 3
ABOUT SHAREHOLDERS' FUND 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 + SEPTEMBER 30, 2004 MARCH 31, 2005 PERIOD*
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
CORE EQUITY
A-Class 1.57% $1,000.00 $1,094.50 $ 8.24
C-Class 2.32% 1,000.00 1,090.97 12.15
H-Class 1.56% 1,000.00 1,094.50 8.21
SECTOR ROTATION
A-Class 1.62% 1,000.00 1,104.48 8.54
C-Class 2.37% 1,000.00 1,101.32 12.47
H-Class 1.62% 1,000.00 1,105.37 8.55
- --------------------------------------------------------------------------------
HYPOTHETICAL 5% RETURN
CORE EQUITY
A-Class 1.57% 1,000.00 1,017.02 7.98
C-Class 2.32% 1,000.00 1,013.23 11.77
H-Class 1.56% 1,000.00 1,017.09 7.91
SECTOR ROTATION
A-Class 1.62% 1,000.00 1,016.76 8.24
C-Class 2.37% 1,000.00 1,012.96 12.04
H-Class 1.62% 1,000.00 1,016.76 8.24
* 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
4 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
PERFORMANCE REPORTS AND FUND PROFILES
- --------------------------------------------------------------------------------
CORE EQUITY FUND
OBJECTIVE: To provide long-term capital appreciation. The investment objective
of the Core Equity Fund is non-fundamental and may be changed without
shareholder approval.
Inception: September 23, 2002
Rydex Core Equity Fund allocates its assets across the large-, mid-, and
small-cap markets in generally equal proportions. As a result, the Fund has
greater exposure to small- and mid-cap stocks than a purely capitalization-based
approach would yield. During the one-year period ended March 31, 2005, the Fund
benefited from this strategy. While small stocks performed relatively in line
with large, it was another good year for mid-caps.
Rydex Core Equity Fund's investment team uses a quantitative investment model
that selects stocks that exhibit attractive growth prospects, yet still have
reasonable valuations (or growth at a reasonable price). This approach, combined
with the bias toward small-and medium-sized stocks, helped the Fund beat its
benchmark for the one-year period. The Fund's A-Class & H-Class each produced a
total return of 8.16%, compared to 6.69% for the S&P 500(R) Index, and 7.10% for
the Russell 3000(R) Index.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
CORE EQUITY FUND
DATE C-CLASS RUSSELL 3000 INDEX
---------- ---------------- ------------------
9/23/2002 10,000 10,000
9/30/2002 9,880 9,820
10/31/2002 10,460 10,601
11/30/2002 11,090 11,243
12/31/2002 10,510 10,607
1/31/2003 10,260 10,348
2/28/2003 10,050 10,178
3/31/2003 10,110 10,285
4/30/2003 10,870 11,124
5/31/2003 11,610 11,796
6/30/2003 11,730 11,955
7/31/2003 12,100 12,229
8/31/2003 12,340 12,500
9/30/2003 12,260 12,365
10/31/2003 13,030 13,113
11/30/2003 13,440 13,294
12/31/2003 13,811 13,902
1/31/2004 14,255 14,192
2/29/2004 14,456 14,383
3/31/2004 14,386 14,212
4/30/2004 13,821 13,918
5/31/2004 14,033 14,120
6/30/2004 14,456 14,401
7/31/2004 13,771 13,857
8/31/2004 13,761 13,914
9/30/2004 14,154 14,127
10/31/2004 14,335 14,360
11/30/2004 15,232 15,027
12/31/2004 15,735 15,562
1/31/2005 15,357 15,148
2/28/2005 15,714 15,481
3/31/2005 15,441 15,220
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
CORE EQUITY FUND
DATE H-CLASS RUSSELL 3000 INDEX
---------- ---------------- ------------------
09/23/02 10,000 10,000
09/30/02 9,880 9,820
10/31/02 10,460 10,601
11/30/02 11,100 11,243
12/31/02 10,530 10,607
01/31/03 10,290 10,348
02/28/03 10,080 10,178
03/31/03 10,150 10,285
04/30/03 10,920 11,124
05/31/03 11,670 11,796
06/30/03 11,800 11,955
07/31/03 12,190 12,229
08/31/03 12,440 12,500
09/30/03 12,360 12,365
10/31/03 13,140 13,113
11/30/03 13,570 13,294
12/31/03 13,951 13,902
01/31/04 14,415 14,192
02/29/04 14,626 14,383
03/31/04 14,556 14,212
04/30/04 13,991 13,918
05/31/04 14,223 14,120
06/30/04 14,657 14,401
07/31/04 13,971 13,857
08/31/04 13,971 13,914
09/30/04 14,384 14,127
10/31/04 14,576 14,360
11/30/04 15,493 15,027
12/31/04 16,016 15,562
01/31/05 15,649 15,148
02/28/05 16,006 15,481
03/31/05 15,744 15,220
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(03/31/04) (09/23/02) (09/23/02)
- --------------------------------------------------------------------------------
ONE SINCE ONE SINCE ONE SINCE
YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------
CORE EQUITY FUND 8.16% 8.16% 7.34% 18.83% 8.16% 19.75%
RUSSELL 3000 INDEX 7.10% 7.10% 7.10% 18.15% 7.10% 18.15%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE RUSSELL 3000 INDEX IS AN
UNMANAGED STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER
OPERATING EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE
GRAPHS ARE BASED ON C-CLASS AND H-CLASS SHARES ONLY; PERFORMANCE FOR A-CLASS
SHARES WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
CORE EQUITY FUND
Consumer Staples 5.3%
Energy 7.6%
Industrials 12.1%
Health Care 12.7%
Consumer Discretionary 15.1%
Information Technology 15.1%
Financials 19.7%
Other 11.3%
"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)
- --------------------------------------------------------------------------------
Exxon Mobil Corp. 1.4%
General Electric Co. 1.3%
Pfizer, Inc. 1.0%
Johnson & Johnson 1.0%
Bank of America Corp. 0.9%
Citigroup, Inc. 0.8%
International Business Machines Corp. 0.8%
Microsoft Corp. 0.7%
Altria Group, Inc. 0.7%
Intel Corp. 0.7%
- --------------------------------------------------------------------------------
Top Ten Total 9.3%
================================================================================
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 5
PERFORMANCE REPORTS AND FUND PROFILES (CONCLUDED)
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
OBJECTIVE: Seeks long-term capital appreciation. The investment objective of the
Sector Rotation Fund is non-fundamental and may be changed without shareholder
approval.
Inception: March 22, 2002
Rydex Sector Rotation Fund uses price momentum as a guide in rotating through
different industries. Momentum strategies tend to be robust over time but do
suffer from periods of underperformance. The first half of the year ended March
31, 2005, was one of these periods, as the fund struggled to keep up with
broader indices. The second half of the year proved much better for the fund,
and it was able to close much of the performance gap.
The Fund benefited from positions in Internet software and services, energy
equipment and services, building products and hotels and restaurants and
leisure--all with double-digit returns during the period. In some instances,
however, the fund's momentum strategy gave us false positive signals. Tobacco,
personal products, machinery and metals and mining all had good years but
suffered poor returns during the periods when the fund actually held stocks in
those industries.
For the entire year, Rydex Sector Rotation Fund H-Class returned 6.41%--slightly
below the S&P 500's total return of 6.69%. For the first time in the fund's
three-year history, it failed to outperform the S&P's total return.
CUMULATIVE FUND PERFORMANCE
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
SECTOR ROTATION FUND
DATE C-CLASS S&P 500 Index
---------- -------------------- -------------
3/22/2002 10,000 10,000
3/31/2002 9,990 9,991
4/30/2002 10,020 9,385
5/31/2002 9,910 9,316
6/30/2002 9,470 8,652
7/31/2002 8,550 7,978
8/31/2002 8,450 8,030
9/30/2002 7,760 7,157
10/31/2002 7,800 7,787
11/30/2002 8,250 8,246
12/31/2002 7,740 7,761
1/31/2003 7,510 7,558
2/28/2003 7,380 7,445
3/31/2003 7,530 7,517
4/30/2003 7,990 8,136
5/31/2003 8,750 8,565
6/30/2003 8,710 8,674
7/31/2003 8,970 8,827
8/31/2003 9,390 8,999
9/30/2003 9,130 8,903
10/31/2003 9,850 9,407
11/30/2003 9,940 9,490
12/31/2003 10,060 9,988
1/31/2004 10,370 10,171
2/29/2004 10,540 10,312
3/31/2004 10,300 10,157
4/30/2004 9,660 9,997
5/31/2004 9,750 10,134
6/30/2004 10,060 10,332
7/31/2004 9,580 9,990
8/31/2004 9,460 10,030
9/30/2004 9,870 10,139
10/31/2004 10,070 10,293
11/30/2004 10,650 10,710
12/31/2004 11,010 11,074
1/31/2005 10,570 10,804
2/28/2005 11,110 11,032
3/31/2005 10,870 10,837
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
SECTOR ROTATION FUND
DATE H-CLASS S&P 500 Index
---------- -------------------- -------------
3/22/2002 10,000 10,000
3/31/2002 9,990 9,991
4/30/2002 10,030 9,385
5/31/2002 9,920 9,316
6/30/2002 9,490 8,652
7/31/2002 8,570 7,978
8/31/2002 8,470 8,030
9/30/2002 7,780 7,157
10/31/2002 7,840 7,787
11/30/2002 8,290 8,246
12/31/2002 7,780 7,761
1/31/2003 7,550 7,558
2/28/2003 7,430 7,445
3/31/2003 7,580 7,517
4/30/2003 8,060 8,136
5/31/2003 8,820 8,565
6/30/2003 8,790 8,674
7/31/2003 9,050 8,827
8/31/2003 9,490 8,999
9/30/2003 9,240 8,903
10/31/2003 9,970 9,407
11/30/2003 10,060 9,490
12/31/2003 10,190 9,988
1/31/2004 10,510 10,171
2/29/2004 10,680 10,312
3/31/2004 10,450 10,157
4/30/2004 9,810 9,997
5/31/2004 9,910 10,134
6/30/2004 10,230 10,332
7/31/2004 9,750 9,990
8/31/2004 9,630 10,030
9/30/2004 10,060 10,139
10/31/2004 10,270 10,293
11/30/2004 10,870 10,710
12/31/2004 11,240 11,074
1/31/2005 10,800 10,804
2/28/2005 11,350 11,032
3/31/2005 11,120 10,837
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 03/31/05
- --------------------------------------------------------------------------------
A-CLASS C-CLASS H-CLASS
(03/31/04) (03/22/02) (03/22/02)
- --------------------------------------------------------------------------------
ONE SINCE ONE SINCE ONE SINCE
YEAR INCEPTION YEAR INCEPTION YEAR INCEPTION
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND 6.22% 6.22% 5.53% 2.80% 6.41% 3.57%
S&P 500 INDEX 6.69% 6.69% 6.69% 2.69% 6.69% 2.69%
- --------------------------------------------------------------------------------
THE RETURNS PRESENTED ABOVE DO NOT REFLECT THE EFFECTS OF TAXES. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS AN UNMANAGED
STOCK INDEX AND, UNLIKE THE FUND, HAS NO MANAGEMENT FEES OR OTHER OPERATING
EXPENSES TO REDUCE ITS REPORTED RETURNS. RETURNS ARE HISTORICAL AND INCLUDE
CHANGES IN PRINCIPAL AND REINVESTED DIVIDENDS AND CAPITAL GAINS. THE GRAPHS ARE
BASED ON C-CLASS SHARES AND H-CLASS SHARES ONLY; PERFORMANCE FOR A-CLASS SHARES
WILL VARY DUE TO DIFFERENCES IN FEE STRUCTURES.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
SECTOR ROTATION FUND
Consumer Discretionary 14.6%
Utilities 15.5%
Energy 18.2%
Materials 23.7%
Industrials 24.1%
Other 3.4%
"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)
- --------------------------------------------------------------------------------
Altria Group, Inc. 4.4%
Masco Corp. 2.4%
American Standard Cos., Inc. 2.0%
Cemex SA de CV -- SP ADR 1.8%
Reynolds American, Inc. 1.3%
Vulcan Materials Co. 1.3%
Exxon Mobil Corp. 1.3%
Schlumberger Ltd. 1.2%
Fluor Corp. 1.2%
Lafarge North America, Inc. 1.1%
- --------------------------------------------------------------------------------
Top Ten Total 18.0%
================================================================================
"Ten Largest Holdings" excludes any temporary cash investments and equity index
products.
6 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.1%
FINANCIALS 19.6%
INSURANCE 8.2%
American International Group, Inc. 10,083 $ 558,699
Allstate Corp.+ 5,100 275,706
Loews Corp. 3,570 262,538
Prudential Financial, Inc. 4,494 257,956
Progressive Corp. 2,366 217,104
SAFECO Corp. 4,404 214,519
Lincoln National Corp.+ 4,745 214,189
Hartford Financial Services Group,
Inc.+ 3,013 206,571
Chubb Corp.+ 2,588 205,151
MetLife, Inc. 4,889 191,160
Genworth Financial, Inc. -- Class A+ 6,760 186,035
Torchmark Corp. 3,560 185,832
W.R. Berkley Corp. 3,706 183,818
Markel Corp.*+ 530 182,961
AmerUs Group Co. 3,767 177,991
Protective Life Corp. 4,500 176,850
Allmerica Financial Corp.* 4,835 173,818
HCC Insurance Holdings, Inc.+ 4,755 171,941
Stancorp Financial Group, Inc. 1,991 168,797
American Financial Group, Inc./OH+ 5,420 166,936
Selective Insurance Group, Inc. 3,517 162,591
Ohio Casualty Corp.* 7,053 162,078
Fidelity National Financial, Inc. 4,861 160,121
American National Insurance Co. 1,500 158,850
Mercury General Corp.+ 2,832 156,496
National Western Life Insurance Co. --
Class A* 914 156,239
Reinsurance Group of America, Inc.+ 3,640 154,991
United Fire & Casualty Co. 4,570 154,603
Zenith National Insurance Corp. 2,940 152,468
Delphi Financial Group, Inc. --
Class A 3,537 152,091
Horace Mann Educators Corp. 8,176 145,042
Crawford & Co. -- Class B 20,028 143,200
Donegal Group, Inc. -- Class A 7,695 139,812
CNA Surety Corp.* 10,263 139,577
Midland Co. 4,263 134,327
Independence Holding Co. 7,140 128,734
Safety Insurance Group, Inc. 3,666 113,499
UICI 4,520 109,610
Enstar Group, Inc.* 1,075 64,500
Harleysville Group, Inc. 1,630 32,372
Alfa Corp. 1,730 24,999
Affirmative Insurance Holdings, Inc. 1,690 24,928
Bristol West Holdings, Inc. 741 11,486
-----------
TOTAL INSURANCE 7,161,186
-----------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
REAL ESTATE 2.7%
ProLogis 5,300 $ 196,630
Catellus Development Corp. 6,649 177,196
Trizec Properties, Inc. 9,200 174,800
Annaly Mortgage Management, Inc.+ 9,220 172,967
New Century Financial Corp. 3,425 160,358
Trammell Crow Co.* 7,755 159,520
Glenborough Realty Trust, Inc. 7,740 147,989
Cousins Properties, Inc. 5,680 146,942
Winston Hotels, Inc. 12,240 143,208
Senior Housing Properties Trust 8,221 137,126
Innkeepers USA Trust 10,356 133,696
CBL & Associates Properties, Inc. 1,866 133,438
Urstadt Biddle Properties, Inc. 8,580 130,845
Archstone-Smith Trust+ 3,605 122,967
LTC Properties, Inc. 6,994 121,346
American Home Mortgage Investment
Corp. 2,513 71,972
Arbor Realty Trust, Inc. 670 16,583
Global Signal, Inc. 300 8,988
MortgageIT Holdings, Inc.+ 400 6,380
------------
TOTAL REAL ESTATE 2,362,951
------------
BANKS 2.6%
Bank of America Corp. 17,278 761,960
Wachovia Corp.+ 8,402 427,746
BB&T Corp.+ 5,620 219,630
National City Corp. 6,110 204,685
Wells Fargo & Co. 3,364 201,167
KeyCorp 5,614 182,174
Peoples Bancorp, Inc. 5,290 142,301
U.S. Bancorp 1,836 52,913
Signature Bank/New York NY* 1,816 48,142
ABC Bancorp 1,312 22,153
------------
TOTAL BANKS 2,262,871
------------
THRIFTS & MORTGAGE FINANCE 1.7%
MGIC Investment Corp. 3,330 205,361
Golden West Financial Corp.+ 3,046 184,283
Fremont General Corp. 6,900 151,731
Ocwen Financial Corp.*+ 17,565 141,749
R&G Financial Corp. -- Class B 4,369 136,182
Capital Crossing Bank* 4,114 135,351
NetBank, Inc. 12,291 104,228
BankAtlantic Bancorp, Inc. -- Class A 5,488 95,491
Countrywide Financial Corp.+ 2,643 85,792
PMI Group, Inc.+ 2,094 79,593
Corus Bankshares, Inc. 1,510 72,012
Fannie Mae+ 871 47,426
Freddie Mac 82 5,182
------------
TOTAL THRIFTS & MORTGAGE FINANCE 1,444,381
------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 7
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS 1.5%
Citigroup, Inc. 14,770 $ 663,764
J.P. Morgan Chase & Co. 8,558 296,107
Principal Financial Group, Inc. 6,930 266,735
Archipelago Holdings, Inc.* 3,733 66,074
eSpeed, Inc. -- Class A* 3,959 36,423
------------
TOTAL DIVERSIFIED FINANCIALS 1,329,103
------------
CONSUMER FINANCE 1.5%
MBNA Corp. 9,063 222,497
Providian Financial Corp.*+ 11,630 199,571
Capital One Financial Corp.+ 2,645 197,767
AmeriCredit Corp.*+ 7,986 187,192
Student Loan Corp. 760 158,847
Metris Companies, Inc.* 11,776 136,484
QC Holdings, Inc.* 5,910 88,827
American Express Co. 1,315 67,551
World Acceptance Corp.* 1,680 42,874
------------
TOTAL CONSUMER FINANCE 1,301,610
------------
CAPITAL MARKETS 1.4%
Blackrock, Inc. 2,035 152,483
American Capital Strategies, Ltd.+ 4,830 151,710
Janus Capital Group, Inc.+ 10,150 141,592
Nuveen Investments,
Inc. -- Class A 4,072 139,751
Gabelli Asset Management,
Inc. -- Class A 2,960 132,164
Calamos Asset Management,
Inc. -- Class A 4,780 128,678
SWS Group, Inc. 7,785 124,794
Lehman Brothers Holdings, Inc.+ 727 68,454
Morgan Stanley 1,167 66,811
Merrill Lynch & Co., Inc. 863 48,846
Greenhill & Co., Inc. 1,103 39,487
------------
TOTAL CAPITAL MARKETS 1,194,770
------------
TOTAL FINANCIALS 17,056,872
------------
INFORMATION TECHNOLOGY 15.7%
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 4.3%
Intel Corp. 26,161 607,720
Texas Instruments, Inc. 11,439 291,580
Applied Materials, Inc.* 14,369 233,496
Micron Technology, Inc.*+ 19,100 197,494
National Semiconductor Corp. 8,774 180,832
Lam Research Corp.*+ 6,169 178,037
Broadcom Corp. -- Class A*+ 5,540 165,757
Cree, Inc.*+ 7,430 161,602
Varian Semiconductor Equipment
Associates, Inc.*+ 4,248 161,466
MEMC Electronic Materials, Inc.* 11,900 160,055
Mykrolis Corp.* 10,722 153,325
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
IXYS Corp.* 13,017 $ 148,914
Skyworks Solutions, Inc.* 22,710 144,208
OmniVision Technologies, Inc.*+ 9,278 140,562
MKS Instruments, Inc.* 8,261 131,185
ADE Corp.* 5,848 129,826
Freescale Semiconductor, Inc. --
Class B* 6,062 104,570
Monolithic System Technology, Inc.* 14,328 83,819
Teradyne, Inc.*+ 5,702 83,249
Photronics, Inc.* 3,370 60,997
Entegris, Inc.*+ 5,423 53,633
Atmel Corp.* 13,071 38,559
KLA-Tencor Corp.*+ 800 36,808
Novellus Systems, Inc.*+ 1,142 30,526
Pixelworks, Inc.* 3,112 25,363
Fairchild Semiconductor International,
Inc.*+ 875 13,414
Lattice Semiconductor Corp.* 1,548 8,313
------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 3,725,310
------------
COMPUTERS & PERIPHERALS 2.7%
International Business Machines Corp. 7,258 663,236
Hewlett-Packard Co. 17,558 385,223
EMC Corp./MA* 18,266 225,037
Apple Computer, Inc.* 4,740 197,516
Dell, Inc.* 5,131 197,133
Sun Microsystems, Inc.*+ 47,280 191,011
Storage Technology Corp.* 5,748 177,038
Sandisk Corp.*+ 4,771 132,634
PalmOne, Inc.*+ 2,750 69,795
NCR Corp.*+ 1,378 46,494
Brocade Communications Systems,
Inc.*+ 3,959 23,437
------------
TOTAL COMPUTERS & PERIPHERALS 2,308,554
------------
SOFTWARE 2.6%
Microsoft Corp. 25,840 624,553
Symantec Corp.*+ 9,224 196,748
Compuware Corp.* 26,758 192,658
McAfee, Inc.* 8,048 181,563
BMC Software, Inc.* 10,989 164,835
Activision, Inc.* 10,913 161,512
Internet Security Systems, Inc.* 7,640 139,812
Catapult Communications Corp.* 5,800 123,830
Verity, Inc.* 10,958 103,553
Captaris, Inc.* 19,550 79,178
Nash Finch Co. 1,680 63,823
Veritas Software Corp.*+ 1,765 40,983
Blackbaud, Inc. 2,810 35,406
MicroStrategy, Inc. -- Class A*+ 652 35,384
NAVTEQ Corp.*+ 800 34,680
8 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Netscout Systems, Inc.* 6,681 $ 29,731
Oracle Corp.* 1,731 21,603
Ulticom, Inc.* 1,448 16,116
Cadence Design Systems, Inc.* 1,012 15,129
------------
TOTAL SOFTWARE 2,261,097
------------
COMMUNICATIONS EQUIPMENT 1.8%
Cisco Systems, Inc.* 15,901 284,469
Motorola, Inc.+ 17,630 263,921
Comverse Technology, Inc.*+ 7,829 197,447
Tellabs, Inc.* 26,400 192,720
CommScope, Inc.* 10,442 156,212
Extreme Networks, Inc.* 25,450 149,901
Ditech Communications Corp.* 10,940 136,422
Seachange International, Inc.* 8,930 115,644
Qualcomm, Inc. 1,497 54,865
Andrew Corp.*+ 810 9,485
------------
TOTAL COMMUNICATIONS EQUIPMENT 1,561,086
------------
IT CONSULTING & SERVICES 1.6%
First Data Corp. 6,350 249,619
Computer Sciences Corp.*+ 5,090 233,377
Sabre Holdings Corp.+ 8,554 187,162
Acxiom Corp. 7,780 162,835
Alliance Data Systems Corp.*+ 3,660 147,864
Mantech International Corp. --
Class A* 6,033 139,181
Forrester Research, Inc.* 8,530 120,102
Perot Systems Corp. -- Class A* 5,710 76,742
Pegasus Solutions, Inc.* 3,688 43,592
Ness Technologies, Inc.* 610 7,308
------------
TOTAL IT CONSULTING & SERVICES 1,367,782
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.5%
Coherent, Inc.* 5,147 173,763
Arrow Electronics, Inc.* 6,768 171,569
Molex, Inc. 5,695 150,120
Vishay Intertechnology, Inc.* 11,590 144,064
Aeroflex, Inc.* 15,170 141,536
MTS Systems Corp. 4,832 140,273
Park Electrochemical Corp. 5,950 120,547
Global Imaging Systems, Inc.* 3,234 114,678
Cyberoptics Corp.* 7,980 99,590
TTM Technologies, Inc.* 3,874 40,522
Cogent, Inc.* 1,220 30,719
Multi-Fineline Electronix, Inc.* 382 6,742
------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,334,123
------------
INTERNET SOFTWARE & SERVICES 0.9%
InfoSpace, Inc.* 3,986 162,748
EarthLink, Inc.* 14,945 134,505
AsiaInfo Holdings, Inc.* 25,448 127,749
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ValueClick, Inc.* 11,255 $ 119,416
Keynote Systems, Inc.* 9,195 109,145
Sonicwall, Inc.* 9,180 46,726
NIC, Inc.* 8,960 42,739
United Online, Inc.*+ 891 9,329
------------
TOTAL INTERNET SOFTWARE & SERVICES 752,357
------------
OFFICE ELECTRONICS 0.3%
Xerox Corp.* 18,780 284,517
------------
TOTAL OFFICE ELECTRONICS 284,517
------------
TOTAL INFORMATION TECHNOLOGY 13,594,826
------------
CONSUMER DISCRETIONARY 14.5%
MEDIA 5.1%
Comcast Corp. -- Class A*+ 11,843 400,057
Walt Disney Co.+ 12,000 344,760
McGraw-Hill Cos., Inc.+ 2,210 192,822
News Corp. 10,188 179,406
Pixar* 1,830 178,516
John Wiley & Sons, Inc. -- Class A 4,880 172,020
Lamar Advertising Co.* 4,231 170,467
RH Donnelley Corp.*+ 2,835 164,685
Media General, Inc. 2,640 163,284
Emmis Communications Corp. --
Class A*+ 8,408 161,602
Citadel Broadcasting Corp.* 11,544 158,499
Hearst-Argyle Television, Inc. 6,085 155,167
Entravision Communications Corp. --
Class A* 17,310 153,540
Cumulus Media, Inc. -- Class A* 10,694 152,390
Gray Television, Inc. 10,430 150,922
McClatchy Co. -- Class A 2,007 148,839
Journal Communications, Inc. --
Class A 8,702 144,018
Meredith Corp. 3,030 141,653
Getty Images, Inc.* 1,987 141,296
Lin TV Corp. -- Class A*+ 8,322 140,891
Pulitzer, Inc. 2,163 137,848
Time Warner, Inc.*+ 7,521 131,994
Washington Post Co. -- Class B 130 116,220
Beasley Broadcasting Group, Inc. --
Class A* 5,330 94,767
Liberty Media International, Inc. --
Class A*+ 2,010 87,917
Sinclair Broadcast Group, Inc. --
Class A 9,520 76,446
Harris Interactive, Inc.* 10,277 47,377
Viacom, Inc. -- Class B 965 33,611
4Kids Entertainment, Inc.* 1,390 30,733
Dex Media, Inc. 670 13,836
------------
TOTAL MEDIA 4,385,583
------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 9
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
SPECIALTY RETAIL 3.1%
Limited Brands, Inc.+ 9,640 $ 234,252
Best Buy Co., Inc.+ 3,630 196,056
Circuit City Stores, Inc. 11,901 191,011
Movie Gallery, Inc.+ 6,464 185,388
TJX Cos., Inc.+ 7,483 184,306
Payless Shoesource, Inc.*+ 11,444 180,701
Abercrombie & Fitch Co. -- Class A+ 3,140 179,734
Barnes & Noble, Inc.* 4,519 155,860
Home Depot, Inc.+ 4,051 154,910
Toys `R' Us, Inc.* 5,872 151,263
Stage Stores, Inc.* 3,855 147,993
Rent-Way, Inc.* 17,820 146,124
Hollywood Entertainment Corp.* 10,371 136,586
HOT Topic, Inc.*+ 5,367 117,269
Claire's Stores, Inc.+ 4,060 93,542
Too, Inc.*+ 3,440 84,865
Build-A-Bear Workshop, Inc.* 1,420 43,523
GameStop Corp. -- Class B* 1,551 34,587
Select Comfort Corp.* 1,210 24,732
Lowe's Cos., Inc.+ 150 8,564
Charming Shoppes, Inc.* 613 4,984
------------
TOTAL SPECIALTY RETAIL 2,656,250
------------
HOTELS RESTAURANTS & LEISURE 1.7%
Marriott International, Inc. --
Class A+ 4,120 275,463
Starwood Hotels & Resorts Worldwide,
Inc.+ 4,583 275,118
McDonald's Corp. 8,825 274,811
Caesars Entertainment, Inc.*+ 9,032 178,743
International Speedway Corp. --
Class A 3,070 166,548
Six Flags, Inc.* 21,225 87,447
Mandalay Resort Group 1,060 74,719
Krispy Kreme Doughnuts, Inc.*+ 7,868 60,033
Bluegreen Corp.* 3,304 42,456
International Game Technology, Inc. 534 14,236
------------
TOTAL HOTELS RESTAURANTS & LEISURE 1,449,574
------------
TEXTILES & APPAREL 1.3%
Nike, Inc. -- Class B+ 2,280 189,947
K-Swiss, Inc. -- Class A 5,025 165,976
Polo Ralph Lauren Corp. 4,274 165,831
Jones Apparel Group, Inc.+ 4,686 156,934
Unifirst Corp./MA 3,600 143,640
Deckers Outdoor Corp.*+ 3,609 128,986
VF Corp. 1,954 115,559
Perry Ellis International, Inc.* 2,050 46,002
------------
TOTAL TEXTILES & APPAREL 1,112,875
------------
HOUSEHOLD DURABLES 1.1%
NVR, Inc.* 313 245,705
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Black & Decker Corp. 2,348 $ 185,468
Mohawk Industries, Inc.*+ 2,110 177,873
Stanley Works 3,710 167,952
Kimball International, Inc. -- Class B 9,472 137,344
Harman International Industries, Inc. 472 41,753
------------
TOTAL HOUSEHOLD DURABLES 956,095
------------
AUTO COMPONENTS 0.6%
Autoliv, Inc.+ 4,127 196,652
BorgWarner, Inc. 3,334 162,299
Bandag, Inc. 2,974 139,719
Exide Technologies*+ 3,738 48,220
------------
TOTAL AUTO COMPONENTS 546,890
------------
MULTILINE RETAIL 0.5%
Sears Holdings Corp.*+ 1,899 252,890
Dillard's, Inc. -- Class A 7,310 196,639
Target Corp. 270 13,505
------------
TOTAL MULTILINE RETAIL 463,034
------------
AUTOMOBILES 0.5%
Harley-Davidson, Inc. 3,390 195,806
General Motors Corp.+ 5,776 169,757
Monaco Coach Corp. 4,838 78,134
------------
TOTAL AUTOMOBILES 443,697
------------
LEISURE EQUIPMENT & PRODUCTS 0.4%
Brunswick Corp. 3,800 178,030
Jakks Pacific, Inc.* 7,060 151,578
Arctic Cat, Inc. 1,216 32,905
Leapfrog Enterprises, Inc.*+ 1,216 13,802
------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 376,315
------------
INTERNET & CATALOG RETAIL 0.2%
1-800-FLOWERS.com, Inc.* 16,051 121,506
eBay, Inc.* 1,016 37,856
------------
TOTAL INTERNET & CATALOG RETAIL 159,362
------------
TOTAL CONSUMER DISCRETIONARY 12,549,675
------------
HEALTH CARE 12.7%
HEALTH CARE PROVIDERS & SERVICES 5.5%
UnitedHealth Group, Inc.+ 3,971 378,754
CIGNA Corp. 3,027 270,311
Quest Diagnostics, Inc.+ 2,363 248,422
HCA, Inc. 4,515 241,869
Coventry Health Care, Inc.* 3,372 229,768
Aetna, Inc.+ 2,996 224,550
Cardinal Health, Inc.+ 4,024 224,539
Laboratory Corporation of America
Holdings*+ 4,580 220,756
Caremark Rx, Inc.*+ 5,428 215,926
Triad Hospitals, Inc.*+ 4,270 213,927
Humana, Inc.*+ 6,210 198,347
Pacificare Health Systems, Inc.* 3,304 188,064
WellPoint, Inc.* 1,438 180,253
10 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
DaVita, Inc.* 4,202 $ 175,854
Service Corporation
International/US* 23,367 174,785
Lincare Holdings, Inc.*+ 3,640 160,997
Chemed Corp. 2,074 158,620
Magellan Health Services, Inc.* 4,640 157,992
Molina Healthcare, Inc.* 2,900 133,661
Stewart Enterprises, Inc. -- Class A* 17,390 106,949
Centene Corp.*+ 3,519 105,535
PDI, Inc.* 5,034 103,197
Option Care, Inc.+ 4,172 85,901
WellChoice, Inc.* 1,449 77,246
Cerner Corp.*+ 1,400 73,514
eResearch Technology, Inc.* 5,649 66,545
Priority Healthcare Corp. --
Class B* 2,920 63,160
Sierra Health Services, Inc.*+ 691 44,113
Per-Se Technologies, Inc.* 1,280 19,648
LifePoint Hospitals, Inc.*+ 170 7,453
Odyssey HealthCare, Inc.* 570 6,703
------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 4,757,359
------------
PHARMACEUTICALS 3.4%
Pfizer, Inc. 31,967 839,773
Johnson & Johnson, Inc.+ 12,447 835,940
Wyeth 8,249 347,943
Forest Laboratories, Inc.* 3,986 147,283
Merck & Co., Inc. 4,489 145,309
Medicis Pharmaceutical Corp. --
Class A 4,730 141,805
First Horizon Pharmaceutical Corp.* 8,378 141,421
Bradley Pharmaceuticals, Inc.*+ 12,020 114,911
Abbott Laboratories 2,276 106,107
Eli Lilly & Co. 778 40,534
Kos Pharmaceuticals, Inc.* 866 36,095
Bristol-Myers Squibb Co.+ 887 22,583
Par Pharmaceutical Cos., Inc.*+ 280 9,363
------------
TOTAL PHARMACEUTICALS 2,929,067
------------
HEALTH CARE EQUIPMENT & SUPPLIES 3.1%
Becton, Dickinson & Co. 3,421 199,855
Bausch & Lomb, Inc.+ 2,632 192,926
Thermo Electron Corp.* 7,290 184,364
PerkinElmer, Inc. 8,350 172,260
Respironics, Inc.*+ 2,921 170,207
CTI Molecluar Imaging, Inc.* 7,940 160,944
Haemonetics Corp./MA* 3,710 156,414
Analogic Corp. 3,480 150,510
Matthews International Corp. --
Class A 4,231 138,608
Hologic, Inc.* 4,190 133,556
Visx, Inc.* 5,085 119,192
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
SonoSite, Inc.*+ 4,460 $ 115,871
Varian, Inc.* 2,974 112,685
Cooper Cos., Inc. 1,230 89,667
Hospira, Inc.* 2,770 89,388
Align Technology, Inc.* 12,930 80,683
Sonic Innovations, Inc.* 13,208 73,701
Medtronic, Inc. 1,442 73,470
DJ Orthopedics, Inc.* 2,810 70,390
Urologix, Inc.* 13,470 61,827
Arrow International, Inc. 1,200 41,220
ICU Medical, Inc.*+ 1,000 35,500
Laserscope* 1,065 33,803
Kensey Nash Corp.*+ 1,158 31,359
SurModics, Inc.* 810 25,847
Possis Medical, Inc.* 2,477 20,732
Nutraceutical International Corp.* 533 8,453
Medical Action Industries, Inc.* 94 1,777
------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,745,209
------------
BIOTECHNOLOGY 0.7%
Invitrogen Corp.*+ 2,770 191,684
United Therapeutics Corp.*+ 3,472 158,653
Amgen, Inc.* 2,046 119,098
Enzo Biochem, Inc.* 8,160 117,667
ImClone Systems, Inc.* 1,060 36,570
Regeneron Pharmaceuticals, Inc.* 270 1,380
------------
TOTAL BIOTECHNOLOGY 625,052
------------
TOTAL HEALTH CARE 11,056,687
------------
INDUSTRIALS 11.9%
AEROSPACE & DEFENSE 2.5%
Boeing Co.+ 5,667 331,293
Lockheed Martin Corp.+ 3,792 231,540
General Dynamics Corp.+ 2,090 223,734
Northrop Grumman Corp. 3,947 213,059
Raytheon Co. 5,480 212,076
L-3 Communications Holdings, Inc. 2,980 211,640
Precision Castparts Corp. 2,437 187,673
Curtiss-Wright Corp. 2,970 169,290
Heico Corp. 6,591 132,479
Moog, Inc. -- Class A* 1,980 89,496
Aviall, Inc.* 2,380 66,640
DRS Technologies, Inc.* 1,060 45,050
United Technologies Corp. 306 31,108
Innovative Solutions & Support, Inc.* 410 13,017
Armor Holdings, Inc.* 201 7,455
------------
TOTAL AEROSPACE & DEFENSE 2,165,550
------------
MACHINERY 2.4%
Eaton Corp. 3,450 225,630
Oshkosh Truck Corp. 2,436 199,728
Deere & Co.+ 2,860 191,992
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 11
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Pentair, Inc. 4,377 $ 170,703
Cummins, Inc.+ 2,347 165,111
Kennametal, Inc. 3,398 161,371
Paccar, Inc. 2,110 152,743
Mueller Industries, Inc. 5,132 144,466
Parker Hannifin Corp.+ 2,357 143,588
EnPro Industries, Inc.* 5,176 142,340
Terex Corp.*+ 2,680 116,044
Cascade Corp. 3,245 113,575
Toro Co. 1,065 94,253
Dover Corp. 1,500 56,685
------------
TOTAL MACHINERY 2,078,229
------------
INDUSTRIAL CONGLOMERATES 2.1%
General Electric Co. 32,370 1,167,262
Textron, Inc. 3,150 235,053
Alleghany Corp.* 683 189,302
Walter Industries, Inc. 3,377 143,691
3M Co.+ 917 78,578
------------
TOTAL INDUSTRIAL CONGLOMERATES 1,813,886
------------
COMMERCIAL SERVICES & SUPPLIES 1.5%
Republic Services, Inc.+ 5,950 199,206
Cendant Corp. 9,290 190,816
Corrections Corporation of America* 4,025 155,365
Insurance Auto Auctions, Inc.* 5,068 141,144
Compx International, Inc. 7,988 135,636
Consolidated Graphics, Inc.* 2,030 106,778
West Corp.* 2,840 90,880
Heidrick & Struggles International,
Inc.* 1,800 66,186
Pico Holdings, Inc.* 2,360 61,148
Resources Connection, Inc.*+ 2,734 57,223
Jackson Hewitt Tax Service, Inc.+ 1,510 31,589
Huron Consulting Group, Inc.* 1,020 21,124
Career Education Corp.*+ 281 9,627
Educate, Inc.* 510 7,074
------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,273,796
------------
ROAD & RAIL 1.3%
Burlington Northern Santa Fe Corp.+ 6,462 348,496
CNF, Inc. 3,783 177,007
Kansas City Southern*+ 8,466 163,055
Genesee & Wyoming, Inc. --
Class A* 5,791 150,045
Laidlaw International, Inc.* 6,338 131,830
Overnite Corp. 2,682 85,797
Arkansas Best Corp.+ 1,320 49,870
SCS Transportation, Inc.* 1,548 28,777
------------
TOTAL ROAD & RAIL 1,134,877
------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
BUILDING PRODUCTS 0.6%
Masco Corp.+ 5,874 $ 203,652
NCI Building Systems, Inc.*+ 2,790 107,694
USG Corp.*+ 3,209 106,410
Water Pik Technologies, Inc.* 5,000 98,500
------------
TOTAL BUILDING PRODUCTS 516,256
------------
ELECTRICAL EQUIPMENT 0.6%
AMETEK, Inc. 4,655 187,364
Woodward Governor Co. 2,142 153,581
Global Power Equipment Group, Inc.* 8,904 85,300
Thomas & Betts Corp.* 1,367 44,154
II-Vi, Inc.* 1,820 31,741
------------
TOTAL ELECTRICAL EQUIPMENT 502,140
------------
TRADING COMPANIES & DISTRIBUTORS 0.4%
W.W. Grainger, Inc. 3,030 188,678
MSC Industrial Direct Co. -- Class A 4,512 137,887
Watsco, Inc. 530 22,313
Applied Industrial Technologies, Inc. 300 8,160
------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 357,038
------------
AIR FREIGHT & COURIERS 0.3%
FedEx Corp. 2,540 238,633
HUB Group, Inc. -- Class A* 674 42,240
EGL, Inc.*+ 1,548 35,294
------------
TOTAL AIR FREIGHT & COURIERS 316,167
------------
CONSTRUCTION & ENGINEERING 0.2%
Insituform Technologies, Inc. --
Class A* 6,920 100,409
Comfort Systerms USA, Inc.* 8,622 66,821
------------
TOTAL CONSTRUCTION & ENGINEERING 167,230
------------
TOTAL INDUSTRIALS 10,325,169
------------
ENERGY 7.5%
OIL & GAS 6.4%
Exxon Mobil Corp. 20,268 1,207,973
ConocoPhillips 3,735 402,782
Valero Energy Corp. 4,575 335,210
Unocal Corp.+ 5,306 327,327
ChevronTexaco Corp. 5,000 291,550
Occidental Petroleum Corp.+ 3,413 242,903
Sunoco, Inc. 2,253 233,231
Devon Energy Corp.+ 4,836 230,919
Amerada Hess Corp.+ 2,272 218,589
Burlington Resources, Inc. 4,250 212,798
Ashland, Inc. 3,007 202,882
Noble Energy, Inc.+ 2,960 201,339
Overseas Shipholding Group, Inc. 2,734 171,996
Premcor, Inc. 2,427 144,843
Tesoro Corp.*+ 3,859 142,860
12 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Remington Oil & Gas Corp.* 4,527 $ 142,691
Resource America, Inc. -- Class A 3,970 139,129
Frontier Oil Corp. 3,695 133,981
Southwestern Energy Co.*+ 2,197 124,702
Swift Energy Co.*+ 3,959 112,594
Newfield Exploration Co.* 1,470 109,162
Petroleum Development Corp.* 1,922 72,440
Cimarex Energy Co.*+ 1,540 60,060
Harvest Natural Resources, Inc.* 4,655 55,348
Giant Industries, Inc.* 590 15,163
------------
TOTAL OIL & GAS 5,532,472
------------
ENERGY EQUIPMENT & SERVICES 1.1%
BJ Services Co.+ 3,795 196,884
Veritas DGC, Inc.* 6,110 183,056
Maverick Tube Corp.* 4,927 160,177
Offshore Logistics, Inc.* 4,230 140,944
Cal Dive International, Inc.*+ 2,430 110,079
Hydril*+ 1,820 106,306
Baker Hughes, Inc.+ 1,010 44,935
National-Oilwell Varco, Inc.*+ 494 23,070
NS Group, Inc.* 279 8,763
------------
TOTAL ENERGY EQUIPMENT & SERVICES 974,214
------------
TOTAL ENERGY 6,506,686
------------
CONSUMER STAPLES 6.3%
FOOD PRODUCTS 1.7%
Archer-Daniels-Midland Co. 9,852 242,162
Sara Lee Corp.+ 9,360 207,418
General Mills, Inc.+ 3,860 189,719
H.J. Heinz Co. 4,723 173,995
Kraft Foods, Inc. -- Class A 5,210 172,191
Pilgrim's Pride Corp. 4,284 153,024
Seaboard Corp. 101 108,373
Tyson Foods, Inc. -- Class A 5,376 89,672
Darling International, Inc.* 20,980 83,710
Gold Kist, Inc.* 2,960 47,064
------------
TOTAL FOOD PRODUCTS 1,467,328
------------
BEVERAGES 1.1%
Molson Coors Brewing Co. --
Class B+ 2,820 217,619
Brown-Forman Corp. -- Class B 3,560 194,910
PepsiCo, Inc. 3,260 172,878
PepsiAmericas, Inc. 7,510 170,177
Coca-Cola Co. 3,893 162,221
Constellation Brands, Inc. --
Class A* 256 13,535
------------
TOTAL BEVERAGES 931,340
------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS 1.0%
Procter & Gamble Co.+ 8,134 $ 431,102
Kimberly-Clark Corp. 3,956 260,028
Energizer Holdings, Inc.* 3,254 194,589
------------
TOTAL HOUSEHOLD PRODUCTS 885,719
------------
FOOD & DRUG RETAILING 1.0%
Wal-Mart Stores, Inc.+ 6,094 305,370
Costco Wholesale Corp.+ 4,846 214,096
Smart & Final, Inc.* 10,470 127,315
Arden Group, Inc. 1,517 107,677
BJ's Wholesale Club, Inc.* 2,950 91,627
NeighborCare, Inc.* 1,020 29,835
Walgreen Co. 95 4,220
------------
TOTAL FOOD & DRUG RETAILING 880,140
------------
TOBACCO 0.9%
Altria Group, Inc.+ 9,395 614,339
DIMON, Inc.+ 22,710 141,938
------------
TOTAL TOBACCO 756,277
------------
PERSONAL PRODUCTS 0.6%
Gillette Co. 6,346 320,346
Avon Products, Inc. 4,617 198,254
------------
TOTAL PERSONAL PRODUCTS 518,600
------------
TOTAL CONSUMER STAPLES 5,439,404
------------
MATERIALS 4.4%
METALS & MINING 1.9%
Phelps Dodge Corp.+ 2,370 241,100
Nucor Corp.+ 4,025 231,679
Alcoa, Inc. 6,947 211,119
United States Steel Corp.+ 3,611 183,620
Southern Peru Copper Corp.+ 2,833 157,118
Carpenter Technology Corp. 2,622 155,773
Steel Dynamics, Inc.+ 4,093 141,004
Metal Management, Inc. 5,026 129,068
Reliance Steel & Aluminum Co. 2,321 92,863
International Steel Group, Inc.* 1,220 48,190
Oregon Steel Mills, Inc.* 1,557 35,811
Commercial Metals Co. 465 15,759
Titanium Metals Corp.* 220 7,920
------------
TOTAL METALS & MINING 1,651,024
------------
PAPER & FOREST PRODUCTS 1.1%
MeadWestvaco Corp.+ 6,689 212,844
Weyerhaeuser Co. 2,963 202,965
Georgia-Pacific Corp. 5,695 202,116
Louisiana-Pacific Corp.+ 7,021 176,508
Potlatch Corp. 3,558 167,475
Neenah Paper, Inc.+ 125 4,202
------------
TOTAL PAPER & FOREST PRODUCTS 966,110
------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 13
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CHEMICALS 1.0%
Monsanto Co. 5,105 $ 329,272
OM Group, Inc.* 4,982 151,552
Terra Industries, Inc.*+ 17,775 137,934
FMC Corp.* 2,250 120,263
Kronos Worldwide, Inc. 1,276 54,243
EI Du Pont de Nemours & Co. 678 34,741
Dow Chemical Co.+ 559 27,866
Sensient Technologies Corp. 810 17,464
------------
TOTAL CHEMICALS 873,335
------------
CONSTRUCTION MATERIALS 0.2%
Texas Industries, Inc. 2,452 131,795
Lafarge North America, Inc. 619 36,180
------------
TOTAL CONSTRUCTION MATERIALS 167,975
------------
CONTAINERS & PACKAGING 0.2%
Greif, Inc. -- Class A 2,350 163,748
------------
TOTAL CONTAINERS & PACKAGING 163,748
------------
TOTAL MATERIALS 3,822,192
------------
UTILITIES 4.1%
ELECTRIC UTILITIES 2.9%
PG&E Corp. 7,820 266,662
Progress Energy, Inc.+ 5,201 218,182
FirstEnergy Corp.+ 4,660 195,487
American Electric Power Co., Inc.+ 5,670 193,120
Pinnacle West Capital Corp. 4,531 192,613
Allegheny Energy, Inc.*+ 9,150 189,039
TECO Energy, Inc.+ 11,490 180,163
Sierra Pacific Resources*+ 16,550 177,913
PNM Resources, Inc.+ 6,580 175,554
Reliant Energy, Inc.*+ 15,371 174,922
El Paso Electric Co.*+ 7,945 150,955
UIL Holding Corp. 2,950 149,418
IDACORP, Inc.+ 5,085 144,261
TXU Corp.+ 787 62,669
PPL Corp.+ 284 15,333
DTE Energy Co.+ 189 8,596
------------
TOTAL ELECTRIC UTILITIES 2,494,887
------------
MULTI-UTILITIES 1.0%
Constellation Energy Group, Inc. 4,525 233,942
Energy East Corp.+ 7,500 196,650
National Fuel Gas Co.+ 5,832 166,737
Dynegy, Inc. -- Class A*+ 41,700 163,047
NRG Energy, Inc.* 4,747 162,110
------------
TOTAL MULTI-UTILITIES 922,486
------------
GAS UTILITIES 0.2%
WGL Holdings, Inc. 5,600 173,376
------------
TOTAL GAS UTILITIES 173,376
------------
TOTAL UTILITIES 3,590,749
------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES 2.4%
DIVERSIFIED TELECOMMUNICATION SERVICES 1.6%
Verizon Communications, Inc. 12,839 $ 455,784
SBC Communications, Inc.+ 16,980 402,256
Alltel Corp.+ 3,550 194,718
AT&T Corp. 6,781 127,144
North Pittsburgh Systems, Inc. 5,218 103,134
Premiere Global Services, Inc.*+ 2,814 31,854
BellSouth Corp.+ 683 17,956
Commonwealth Telephone Enterprises,
Inc.* 270 12,728
------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 1,345,574
------------
WIRELESS TELECOMMUNICATION SERVICES 0.8%
Crown Castle International Corp.* 11,460 184,048
Spectrasite, Inc.* 2,930 169,852
Western Wireless Corp.* 4,229 160,533
USA Mobility, Inc.* 4,054 131,350
Price Communications Corp.* 5,005 87,587
------------
TOTAL WIRELESS
TELECOMMUNICATION SERVICES 733,370
------------
TOTAL TELECOMMUNICATION SERVICES 2,078,944
------------
TOTAL COMMON STOCKS
(Cost $78,881,785) 86,021,204
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.9%
Repurchase Agreement (Note 5)
2.63% due 04/01/05 $ 243,183 243,183
2.60% due 04/01/05 182,388 182,388
2.57% due 04/01/05 182,388 182,388
2.55% due 04/01/05 203,811 203,811
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $811,770) 811,770
------------
SECURITIES LENDING COLLATERAL 16.6%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 14,411,861 14,411,861
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $14,411,861) 14,411,861
------------
TOTAL INVESTMENTS 116.6%
(Cost $94,105,416) $101,244,835
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (16.6)% $(14,406,376)
============
NET ASSETS - 100.0% $ 86,838,459
- --------------------------------------------------------------------------------
14 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACT PURCHASED
June 2005 Russell 2000 Index Mini
Futures Contracts
(Aggregate Market Value of
Contracts $ 122,880) 2 $ (2,914)
June 2005 S&P MidCap 400 Index Mini
Futures Contracts
(Aggregate Market Value of
Contracts $198,120) 3 (4,175)
June 2005 S&P 500 Index Mini
Futures Contracts
(Aggregate Market Value of
Contracts $295,750) 5 (4,919)
------------
(TOTAL AGGREGATE MARKET VALUE OF
CONTRACTS $616,750) $ (12,008)
============
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
8.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 15
SCHEDULE OF INVESTMENTS March 31, 2005
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.4%
INDUSTRIALS 24.4%
BUILDING PRODUCTS 8.5%
Masco Corp.+ 79,800 $ 2,766,666
American Standard Cos., Inc. 48,200 2,240,336
USG Corp.*+ 31,000 1,027,960
Lennox International, Inc. 38,299 839,514
Simpson Manufacturing Co., Inc. 27,000 834,300
York International Corp.+ 20,999 822,741
NCI Building Systems, Inc.* 15,900 613,740
Griffon Corp.*+ 24,200 518,122
------------
TOTAL BUILDING PRODUCTS 9,663,379
------------
ROAD & RAIL 8.1%
Burlington Northern Santa Fe Corp. 23,900 1,288,927
Canadian National Railway Co. 19,200 1,215,552
Union Pacific Corp.+ 16,100 1,122,170
Norfolk Southern Corp. 27,700 1,026,285
CSX Corp.+ 19,600 816,340
Canadian Pacific Railway Ltd. 19,000 683,430
J.B. Hunt Transport Services, Inc. 11,800 516,486
Yellow Roadway Corp.*+ 8,600 503,444
Laidlaw International, Inc.* 19,700 409,760
Landstar System, Inc.* 11,500 376,625
Swift Transportation Co., Inc.*+ 16,200 358,668
Werner Enterprises, Inc.+ 16,500 320,595
Heartland Express, Inc. 16,400 314,060
Knight Transportation, Inc. 12,600 310,842
------------
TOTAL ROAD & RAIL 9,263,184
------------
CONSTRUCTION & ENGINEERING 7.8%
Fluor Corp.+ 24,200 1,341,406
Jacobs Engineering Group, Inc.*+ 20,900 1,085,128
Chicago Bridge & Iron NV Co. 21,799 959,810
Shaw Group, Inc.* 37,600 819,680
McDermott International, Inc.* 38,400 726,912
Washington Group International,
Inc.* 15,700 706,343
URS Corp.* 23,500 675,625
Granite Construction, Inc. 24,100 633,107
Quanta Services, Inc.* 74,500 568,435
EMCOR Group, Inc.* 12,000 561,840
Dycom Industries, Inc.*+ 24,000 551,760
Insituform Technologies, Inc. --
Class A* 20,100 291,651
------------
TOTAL CONSTRUCTION & ENGINEERING 8,921,697
------------
TOTAL INDUSTRIALS 27,848,260
------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MATERIALS 23.7%
CHEMICALS 8.2%
EI Du Pont de Nemours & Co. 22,600 $ 1,158,024
Dow Chemical Co.+ 20,600 1,026,910
BASF AG -- SP ADR 13,900 980,645
Monsanto Co. 12,000 774,000
Air Products & Chemicals, Inc. 10,200 645,558
Praxair, Inc. 13,200 631,752
Akzo Nobel NV -- SP ADR 12,700 583,946
PPG Industries, Inc.+ 8,100 579,312
Rohm & Haas Co.+ 11,000 528,000
Potash Corp. Of Saskatchewan+ 5,900 516,309
Syngenta AG -- SP ADR* 23,200 487,200
Ecolab, Inc.+ 13,400 442,870
Eastman Chemical Co.+ 6,100 359,900
Sigma-Aldrich Corp.+ 5,500 336,875
Lyondell Chemical Co.+ 12,000 335,040
------------
TOTAL CHEMICALS 9,386,341
------------
CONSTRUCTION MATERIALS 7.9%
Cemex SA de CV -- SP ADR 58,300 2,113,375
Vulcan Materials Co.+ 25,700 1,460,531
Lafarge North America, Inc.+ 22,300 1,303,435
Martin Marietta Materials, Inc. 18,700 1,045,704
Florida Rock Industries, Inc.+ 17,700 1,041,114
Eagle Materials, Inc.+ 9,300 752,742
Headwaters, Inc.*+ 19,600 643,272
Texas Industries, Inc. 11,400 612,750
------------
TOTAL CONSTRUCTION MATERIALS 8,972,923
------------
METALS & MINING 7.6%
BHP Billiton Ltd. -- SP ADR+ 44,000 1,231,120
Rio Tinto PLC -- SP ADR 6,500 843,375
Anglo American PLC -- ADR+ 32,100 767,190
Cia Vale do Rio Doce -- SP ADR+ 24,100 761,801
Alcoa, Inc. 23,000 698,970
Newmont Mining Corp.+ 13,800 583,050
POSCO -- SP ADR+ 11,100 547,896
Alcan, Inc. 14,300 542,256
Barrick Gold Corp.+ 19,900 476,804
Nucor Corp.+ 7,300 420,188
Phelps Dodge Corp.+ 4,100 417,093
AngloGold Ashanti Ltd. -- SP ADR+ 12,100 416,845
Inco Ltd.*+ 10,300 409,940
Placer Dome, Inc. 19,700 319,534
Freeport-McMoRan Copper & Gold,
Inc. -- Class B+ 6,800 269,348
------------
TOTAL METALS & MINING 8,705,410
------------
TOTAL MATERIALS 27,064,674
------------
16 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (CONTINUED) March 31, 2005
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ENERGY 18.2%
ENERGY EQUIPMENT & SERVICES 9.2%
Schlumberger Ltd. 19,900 $ 1,402,552
Transocean, Inc.*+ 20,700 1,065,222
Halliburton Co. 23,900 1,033,675
Baker Hughes, Inc.+ 18,900 840,861
Tenaris SA -- SP ADR+ 12,400 762,724
Diamond Offshore Drilling, Inc.+ 14,500 723,550
GlobalSantaFe Corp.+ 18,400 681,536
Weatherford International Ltd.*+ 11,000 637,340
BJ Services Co.+ 12,000 622,560
ENSCO International, Inc.+ 14,400 542,304
Smith International, Inc.+ 8,400 526,932
Precision Drilling Corp.* 6,500 485,290
Patterson-UTI Energy, Inc. 19,000 475,380
Nabors Industries Ltd.*+ 6,700 396,238
Noble Corp. 6,600 370,986
------------
TOTAL ENERGY EQUIPMENT & SERVICES 10,567,150
------------
OIL & GAS 9.0%
Exxon Mobil Corp. 24,500 1,460,200
BP PLC -- SP ADR 16,600 1,035,840
Total SA -- SP ADR+ 7,200 844,056
ChevronTexaco Corp. 13,500 787,185
Royal Dutch Petroleum Co. 13,100 786,524
PetroChina Co. Ltd. -- SP ADR+ 12,100 764,962
Shell Transport & Trading Co. PLC --
SP ADR+ 12,800 695,808
ENI-Ente Nazionale Idrocarburi --
SP ADR+ 5,300 689,848
ConocoPhillips 6,000 647,040
Petroleo Brasiliero SA -- Petrobras+ 12,200 538,996
EnCana Corp. 6,500 457,730
Imperial Oil Ltd. 5,500 418,770
Repsol YPF SA -- SP ADR+ 14,900 395,595
Occidental Petroleum Corp.+ 5,500 391,435
China Petroleum & Chemical Corp. --
SP ADR 9,200 375,084
------------
TOTAL OIL & GAS 10,289,073
------------
TOTAL ENERGY 20,856,223
------------
UTILITIES 15.4%
ELECTRIC UTILITIES 8.0%
E.ON AG -- SP ADR+ 35,400 1,017,750
Exelon Corp.+ 17,500 803,075
TXU Corp.+ 9,200 732,596
Southern Co.+ 21,000 668,430
Korea Electric Power Corp. --
SP ADR 44,800 602,112
Entergy Corp. 7,900 558,214
FPL Group, Inc. 13,800 554,070
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
PG&E Corp. 15,200 $ 518,320
Scottish Power PLC -- SP ADR+ 16,300 508,560
American Electric Power Co., Inc.+ 14,900 507,494
FirstEnergy Corp.+ 11,900 499,205
Edison International 14,300 496,496
PPL Corp. 8,700 469,713
Progress Energy, Inc.+ 10,200 427,890
Consolidated Edison, Inc.+ 9,900 417,582
Reliant Energy, Inc.*+ 30,800 350,504
------------
TOTAL ELECTRIC UTILITIES 9,132,011
------------
MULTI-UTILITIES 7.4%
Dominion Resources, Inc./VA+ 14,200 1,056,906
National Grid Transco PLC --
SP ADR 22,600 1,056,550
Duke Energy Corp.+ 37,100 1,039,171
Public Service Enterprise Group,
Inc.+ 13,600 739,704
AES Corp.*+ 39,900 653,562
Sempra Energy+ 15,600 621,504
Constellation Energy Group, Inc. 11,400 589,380
Questar Corp. 8,000 474,000
Equitable Resources, Inc. 7,000 402,080
Energy East Corp. 15,300 401,166
SCANA Corp. 10,400 397,488
MDU Resources Group, Inc. 13,700 378,394
Oneok, Inc.+ 12,200 376,004
NRG Energy, Inc.* 10,300 351,745
------------
TOTAL MULTI-UTILITIES 8,537,654
------------
TOTAL UTILITIES 17,669,665
------------
CONSUMER DISCRETIONARY 9.9%
HOTELS RESTAURANTS & LEISURE 9.8%
Carnival Corp.+ 23,810 1,233,596
McDonald's Corp. 39,020 1,215,083
Starbucks Corp.* 22,600 1,167,516
Marriott International, Inc. --
Class A+ 13,890 928,686
Yum! Brands, Inc.+ 17,540 908,747
Starwood Hotels & Resorts Worldwide,
Inc.+ 14,800 888,444
MGM Mirage, Inc.* 10,650 754,233
Hilton Hotels Corp.+ 31,820 711,177
Royal Caribbean Cruises Ltd.+ 15,510 693,142
Harrah's Entertainment, Inc.+ 9,130 589,615
Darden Restaurants, Inc.+ 17,240 528,923
International Game Technology, Inc. 19,160 510,806
Wendy's International, Inc.+ 11,260 439,590
Outback Steakhouse, Inc. 8,110 371,357
Brinker International, Inc.* 9,130 330,689
------------
TOTAL HOTELS RESTAURANTS & LEISURE 11,271,604
------------
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 17
SCHEDULE OF INVESTMENTS (CONCLUDED) March 31, 2005
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MEDIA 0.1%
Sirva, Inc.* 13,664 $ 97,151
------------
TOTAL MEDIA 97,151
------------
TOTAL CONSUMER DISCRETIONARY 11,368,755
------------
CONSUMER STAPLES 7.8%
TOBACCO 7.8%
Altria Group, Inc.+ 77,000 5,035,030
Reynolds American, Inc. 18,800 1,515,092
UST, Inc. 24,000 1,240,800
Loews Corp. - Carolina Group 18,700 618,970
Universal Corp./Richmond VA 10,300 471,431
------------
TOTAL TOBACCO 8,881,323
------------
TOTAL CONSUMER STAPLES 8,881,323
------------
TOTAL COMMON STOCKS
(Cost $98,441,360) 113,688,900
------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.6%
Repurchase Agreement (Note 5)
2.55% due 04/01/05 $ 649,679 649,679
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $649,679) 649,679
------------
SECURITIES LENDING COLLATERAL 22.6%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 25,804,330 25,804,330
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $25,804,330) 25,804,330
------------
TOTAL INVESTMENTS 122.6%
(Cost $124,895,369) $140,142,909
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (22.6)% $(25,825,144)
============
NET ASSETS - 100.0% $114,317,765
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT MARCH 31, 2005 - SEE NOTE
8.
ADR--AMERICAN DEPOSITORY RECEIPT.
18 | THE RYDEX SERIES FUNDS ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES March 31, 2005
- --------------------------------------------------------------------------------
CORE SECTOR
EQUITY ROTATION
FUND FUND
- ---------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 101,244,835 $ 140,142,909
Segregated Cash with Broker 29,250 --
Cash in Custodian Bank -- 9,096
Receivable for Shares Purchased 138,642 190,243
Investment Income Receivable (Note 1) 89,491 142,404
Receivable for Securities Lending 2,236 2,435
- ---------------------------------------------------------------------------------------------
TOTAL ASSETS 101,504,454 140,487,087
=============================================================================================
LIABILITIES
Payable for Futures Contracts Settlement (Note 1) 550 --
Payable upon Return of Securities Loaned (Note 8) 14,411,861 25,804,330
Liability for Shares Redeemed 130,148 190,092
Investment Advisory Fee Payable (Note 3) 65,033 90,404
Transfer Agent and Administrative Fee Payable (Note 3) 19,067 25,112
Distribution and Service Fee Payable (Note 3) 10,432 15,197
Portfolio Accounting Fee Payable (Note 3) 7,627 10,045
Custody Fees Payable 1,830 2,836
Other Liabilities 19,447 31,306
- ---------------------------------------------------------------------------------------------
TOTAL LIABILITIES 14,665,995 26,169,322
=============================================================================================
NET ASSETS $ 86,838,459 $ 114,317,765
=============================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 76,932,041 $ 108,990,985
Undistributed Net Investment Income -- --
Accumulated Net Realized Gain (Loss) on Investments
and Futures Contracts 2,779,007 (9,920,760)
Net Unrealized Appreciation (Depreciation) on Investments
and Futures Contracts 7,127,411 15,247,540
- ---------------------------------------------------------------------------------------------
NET ASSETS $ 86,838,459 $ 114,317,765
=============================================================================================
A-Class $ 905,629 $ 2,988,775
C-Class 34,793,397 54,604,085
H-Class 51,139,433 56,724,905
SHARES OUTSTANDING
A-Class 60,316 269,212
C-Class 2,365,024 5,021,985
H-Class 3,406,252 5,101,605
NET ASSET VALUES
A-Class $ 15.01 $ 11.10
A-Class Maximum Offering Price Per Share** 15.76 11.65
C-Class 14.71 10.87
H-Class 15.01 11.12
* THE COST OF SECURITIES AT VALUE IS $94,105,416 AND $124,895,369,
RESPECTIVELY.
** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS ANNUAL REPORT | 19
STATEMENTS OF OPERATIONS Year Ended March 31, 2005
- --------------------------------------------------------------------------------
CORE SECTOR
EQUITY ROTATION
FUND FUND
- ---------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 107,142 $ 24,247
Interest from Securities Lending, net (Note 8) 11,893 21,158
Dividends, Net of Foreign Tax Withheld* (Note 1) 1,113,655 1,601,119
- ---------------------------------------------------------------------------------------------
Total Income 1,232,690 1,646,524
=============================================================================================
EXPENSES
Investment Advisory Fees (Note 3) 642,796 1,102,581
Transfer Agent and Administrative Fees (Note 3) 193,112 306,273
Distribution and Service Fees (Note 3):
A-Class 1,250 4,210
C-Class 287,982 538,432
H-Class 119,867 167,454
Portfolio Accounting Fees (Note 3) 77,245 122,509
Trustees' Fees** 2,230 3,973
Custody Fees 18,888 32,333
Miscellaneous 78,484 134,198
- ---------------------------------------------------------------------------------------------
Total Expenses 1,421,854 2,411,963
- ---------------------------------------------------------------------------------------------
Net Investment Loss (189,164) (765,439)
=============================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain on:
Investment Securities 4,977,636 3,648,637
Futures Contracts 38,832 --
- ---------------------------------------------------------------------------------------------
Total Net Realized Gain 5,016,468 3,648,637
- ---------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 297,422 2,085,377
Futures Contracts (61,911) --
- ---------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 235,511 2,085,377
- ---------------------------------------------------------------------------------------------
Net Gain on Investments 5,251,979 5,734,014
- ---------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 5,062,815 $ 4,968,575
=============================================================================================
* NET OF FOREIGN TAX WITHHELD OF $121 AND $40,077, RESPECTIVELY.
** RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(A)(19) OF THE 1940 ACT.
20 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
CORE EQUITY FUND SECTOR ROTATION FUND
- -------------------------------------------------------------------------------------------------------------------------------
YEAR PERIOD YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2005 2004 2005 2004
- -------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Loss $ (189,164) $ (180,888) $ (765,439) $ (1,091,423)
Net Realized Gain on Investments and Futures Contracts 5,016,468 8,570,734 3,648,637 10,606,545
Net Change in Unrealized Appreciation on Investments
and Futures Contracts 235,511 6,754,941 2,085,377 13,042,404
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations 5,062,815 15,144,787 4,968,575 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 (29,799) -- -- --
C-Class (1,290,813) (156,031) -- --
H-Class (2,321,494) (340,409) -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders (3,642,106) (499,806) -- --
===============================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
A-Class* 1,854,516 1,000 4,692,623 4,838
C-Class 24,157,214 19,137,844 25,139,982 48,453,171
H-Class 84,248,891 92,881,600 65,844,727 100,363,947
VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT
A-Class* 29,797 -- -- --
C-Class 1,221,401 149,346 -- --
H-Class 2,225,710 288,340 -- --
COST OF SHARES REDEEMED
A-Class* (984,731) -- (1,881,322) --
C-Class (15,319,518) (5,848,388) (32,396,269) (14,627,510)
H-Class (78,395,806) (79,161,454) (97,924,054) (63,262,000)
===============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 19,037,474 27,448,288 (36,524,313) 70,932,446
- -------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 20,458,183 42,093,269 (31,555,738) 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 $ 86,838,459 $ 66,380,276 $ 114,317,765 $ 145,873,503
===============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ -- $ -- $ --
===============================================================================================================================
* Since the commencement of operations: March 31, 2004.
See Notes to Financial Statements. THE RYDEX SERIES FUNDS 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 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
- ------------------------------------------------------------------------------------------------------------------------------------
CORE EQUITY FUND A-CLASS
MARCH 31, 2005 $14.44 $ .02 $ 1.16 $ 1.18 $ -- $ (.61) $ (.61)
March 31, 2004 * 14.44 -- -- -- -- -- --
CORE EQUITY FUND C-CLASS
MARCH 31, 2005 14.27 (.10) 1.15 1.05 -- (.61) (.61)
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
MARCH 31, 2005 14.44 -- 1.18 1.18 -- (.61) (.61)
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
MARCH 31, 2005 10.45 (.02) .67 .65 -- -- --
March 31, 2004 * 10.45 -- -- -- -- -- --
SECTOR ROTATION FUND C-CLASS
MARCH 31, 2005 10.30 (.10) .67 .57 -- -- --
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
MARCH 31, 2005 10.45 (.03) .70 .67 -- -- --
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
MARCH 31, 2005 $ .57 $ 15.01 8.16% 1.57% 0.16% 159% $ 906
March 31, 2004 * -- 14.44 0.00% 0.00%**@ 0.00%** 226% 1
CORE EQUITY FUND C-CLASS
MARCH 31, 2005 .44 14.71 7.34% 2.31% (0.71)% 159% 34,793
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
MARCH 31, 2005 .57 15.01 8.16% 1.56% 0.03% 159% 51,139
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
MARCH 31, 2005 .65 11.10 6.22% 1.63% (0.19)% 262% 2,989
March 31, 2004 * -- 10.45 0.00% 0.00%**@ 0.00%** 253% 5
SECTOR ROTATION FUND C-CLASS
MARCH 31, 2005 .57 10.87 5.53% 2.38% (1.03)% 262% 54,604
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
MARCH 31, 2005 .67 11.12 6.41% 1.64% (0.31)% 262% 56,725
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.
22 | THE RYDEX SERIES FUNDS ANNUAL REPORT See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 five separate classes
of shares, Investor Class Shares, Advisor Class Shares, A-Class Shares, C-Class
Shares, and H-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% 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%
$1,000,000 or greater 0.00% 0.00%
At March 31, 2005, 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 March 31, 2005, only A-Class, C-Class and H-Class Shares
had been issued in the Strategic Funds.
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties, which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
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. 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. These methods include, but are not limited
to: (i) general information as to how these securities and assets trade; (ii) in
connection with futures contracts thereupon, and other derivative investments,
information as to how (a) these contracts and other derivative investments trade
in the futures or other derivative markets, respectively, and (b) the securities
underlying these contracts and other derivative investments trade in the cash
market; and (iii) other information and considerations, including current values
in related-markets.
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, post-October losses and regulated futures contracts. Net
investment income and loss, net realized gains and losses, and net assets were
not affected by these differences.
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 American Depository Receipts
("ADR") 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
THE RYDEX SERIES FUNDS ANNUAL REPORT | 23
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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.
G. The Fund may leave Cash in Custodian Bank overnight in its cash account with
the custodian, U.S. Bank. Periodically, the Fund may have Cash Payable to
Custodian Bank as an overdraft balance. A fee is incurred on this overdraft,
calculated by multiplying the overdraft by a rate based on the federal funds
rate.
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.
Short sales are transactions in which the Fund sells a security it does not own.
If the security the Fund sold short goes down in price between the time the Fund
sells the security and closes its short position, the Fund will realize a gain
on the transaction. Conversely, if the security goes up in price during the
period, the Fund will realize a loss on the transaction. The risk of such price
increases is the principal risk of engaging in short sales.
The risks inherent in the use of options, futures contracts, options on futures
contracts, and swap agreements include 1) adverse changes in the value of such
instruments; 2) imperfect correlation between the price of the instruments and
movements in the price of the underlying securities, indices, or futures
contracts; 3) the possible absence of a liquid secondary market for any
particular instrument at any time; and 4) the potential of counterparty default.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory contract, the Trust pays Rydex Global
Advisors (the "Advisor"), an affiliated entity, investment advisory fees
calculated at an annualized rate of 0.90% of the average daily net assets of 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 year ending March 31, 2005,
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 the Advisor.
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.
24 | THE RYDEX SERIES FUNDS ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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 the Servicer.
The Servicer also provides other necessary services to the Trust, such as
accounting and auditing services, legal services, printing and mailing, etc., on
a pass-through basis. Such expenses vary from Fund to Fund and are allocated to
the Funds based on relative net assets.
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.
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 the
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 the Distributor.
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
net operating losses not utilized during the current year, and the utilization
of earnings and profits distributed to the shareholders on redemption of shares
as part of the dividends paid deduction for income tax purposes. These
reclassifications have no effect on net assets or net asset values per share.
Any taxable gain remaining at fiscal year end is distributed in the following
year.
The Funds' tax basis capital gains and losses are determined only at the end of
each fiscal year. Tax basis capital losses in excess of capital gains are
carried forward to offset future net capital gains. For the year ended March 31,
2005, the Sector Rotation Fund offset net realized capital gains with capital
losses from previous years:
FUND AMOUNT
- -----------------------------------------------------------------------------------------------------
Sector Rotation Fund $3,554,806
The tax character of distributions paid between April 1, 2004 - March 31, 2005
was as follows:
ORDINARY LONG-TERM TOTAL
FUND INCOME CAPITAL GAIN DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------------
Core Equity Fund $ 2,083,766 $ 1,558,340 $ 3,642,106
Sector Rotation Fund -- -- --
The tax character of distributions paid between April 1, 2003 - March 31, 2004
was as follows:
ORDINARY LONG-TERM TOTAL
FUND INCOME CAPITAL GAIN DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------------
Core Equity Fund $ 444,236 $ 55,570 $ 499,806
Sector Rotation Fund -- -- --
The tax character of distributable earnings/(accumulated losses) at March 31,
2005 was as follows:
UNDISTRIBUTED UNDISTRIBUTED NET UNREALIZED
ORDINARY REALIZED GAIN/ APPRCIATION/ CAPITAL LOSS
FUND INCOME (ACCUMULATED LOSS) (DEPRECIATION) CARRYFORWARD
- -----------------------------------------------------------------------------------------------------
Core Equity Fund $ 2,340,259 $ 551,915 $ 7,014,244 $ --
Sector Rotation Fund -- -- 15,050,207 9,723,427(1)
ALL AMOUNTS EXPIRE ON MARCH 31ST OF THE YEAR INDICATED.
(1) EXPIRES IN 2011
THE RYDEX SERIES FUNDS ANNUAL REPORT | 25
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
TAX BASIS UNREALIZED GAIN (LOSS) ON INVESTMENTS AND DISTRIBUTIONS
At March 31, 2005, 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 NET NET
TAX UNREALIZED UNREALIZED UNREALIZED
FUND COST GAIN (LOSS) GAIN (LOSS)
- -------------------------------------------------------------------------------------------------
Core Equity Fund $ 94,218,583 $ 9,795,726 $ (2,781,482) $ 7,014,244
Sector Rotation Fund 125,092,702 16,141,693 (1,091,486) 15,050,207
5. REPURCHASE AGREEMENTS
The Core Equity Fund transfers uninvested cash balances into a single joint
account, along with uninvested cash balances of the OTC Fund, the Medius Fund,
the Inverse Mid-Cap Fund, the Mekros Fund, the Inverse Small-Cap 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 Nova Master Portfolio, the
Ursa Master Portfolio, the Arktos Master Portfolio, and the Juno Master
Portfolio. The Sector Rotation Fund transfers uninvested cash balances into a
single joint account, along with uninvested cash balances of 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 Financial
Services Fund, the Health Care Fund, the Leisure Fund, the Precious Metals Fund,
the Real Estate Fund, the Retailing Fund, the Technology Fund, the
Telecommunications Fund, and the Utilities Fund (all included in the Trust, but
contained in separate reports). 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 by, at a minimum, 102%
of the delivery value of the repurchase agreements at maturity.
The repurchase agreements that were executed by the joint accounts and
outstanding as of March 31, 2005 are as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- -------------------------------------------------------------------------------------------------------
Lehman Brothers, Inc. 2.55% due 04/01/05 $ 412,296,394 $ 412,296,394 $ 412,325,599
Bear Stearns Cos., Inc. 2.63% due 04/01/05 400,000,000 400,000,000 400,029,222
Citigroup, Inc. 2.60% due 04/01/05 300,000,000 300,000,000 300,021,667
Morgan Stanley 2.57% due 04/01/05 300,000,000 300,000,000 300,021,417
- -------------------------------------------------------------------------------------------------------
$1,412,296,394 $1,412,397,905
=======================================================================================================
As of March 31, 2005, the collateral for the repurchase agreements in the joint
accounts was as follows:
SECURITY TYPE RANGE OF RATES PAR VALUE MARKET VALUE
- ------------------------------------------------------------------------------
U. S. Treasury Bonds 2.375% - 10.375% $ 437,823,491 $ 598,097,915
U. S. Treasury Notes 2.000% - 5.750% 421,496,836 435,285,951
U. S. Treasury Bills 0.000% 415,061,000 412,102,321
- ------------------------------------------------------------------------------
$1,445,486,187
==============================================================================
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 year ended March 31, 2005, 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 $131,199,260 $319,946,930
Sales $113,455,814 $351,413,117
26 | THE RYDEX SERIES FUNDS ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
7. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of no par value
shares. Transactions in shares for the period ended March 31, 2005 were:
PURCHASED THROUGH NET SHARES
SHARES PURCHASED DIVIDEND REINVESTMENT SHARES REDEEMED PURCHASED (REDEEMED)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended Period Ended
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2005 2004 2005 2004 2005 2004 2005 2004
- -----------------------------------------------------------------------------------------------------------------------------------
CORE EQUITY FUND
A-Class* 130,742 69 1,988 -- (72,483) -- 60,247 69
C-Class 1,678,393 1,529,068 82,976 11,280 (1,064,952) (442,457) 696,417 1,097,891
H-Class 5,720,952 7,204,234 148,480 21,566 (5,410,493) (6,102,086) 458,939 1,123,714
SECTOR ROTATION FUND
A-Class* 457,712 463 -- -- (188,963) -- 268,749 463
C-Class 2,473,160 4,929,373 -- -- (3,196,124) (1,513,725) (722,964) 3,415,648
H-Class 6,351,321 10,299,134 -- -- (9,541,682) (6,602,667) (3,190,361) 3,696,467
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 31, 2004.
THE RYDEX SERIES FUNDS ANNUAL REPORT | 27
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
8. PORTFOLIO SECURITIES LOANED
The Trust lends its securities to approved brokers to earn additional income.
Within this arrangement, the Trust acts as the lender, U.S. Bank acts as the
agent, and other approved registered broker dealers act as the borrowers. The
Trust receives cash collateral, valued at 100% of the value of the securities on
loan, which is initially held in a segregated account at U.S. Bank. As agent,
U.S. Bank may, for investment purposes, pool the Trust's collateral in joint
accounts with cash collateral from one or more other securities lending
customers of U.S. Bank. Under the terms of the Trust's securities lending
agreement with U.S. Bank, cash collateral may be invested by U.S. Bank in
certain high quality, liquid investments. At March 31, 2005, the pooled cash
collateral investments consisted of repurchase agreements (36.31%), commercial
paper (38.00%), corporate bonds (25.08%), and mutual funds (0.61%). 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 March 31, 2005 the following funds participated in securities lending and
received cash collateral:
VALUE OF
CASH SECURITIES
FUND COLLATERAL LOANED
- ------ ------------ ------------
Core Equity Fund $ 14,411,861 $ 13,958,995
Sector Rotation Fund 25,804,330 25,180,472
28 | THE RYDEX SERIES FUNDS ANNUAL REPORT
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of the Rydex Series Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Sector Rotation Fund and Core
Equity Fund (constituting two of the forty-three Funds and Portfolios of the
Rydex Series Funds, hereafter referred to as the "Funds") at March 31, 2005, the
results of each of their operations and the changes in each of their net assets
and the financial highlights for the periods presented, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 2005 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion. The financial highlights for the periods presented on and prior to
March 31, 2003 were audited by other auditors whose report dated May 16, 2003
expressed an unqualified opinion on those statements.
PricewaterhouseCoopers LLP
Baltimore, Maryland
May 23, 2005
THE RYDEX SERIES FUNDS ANNUAL REPORT | 29
OTHER INFORMATION
- --------------------------------------------------------------------------------
UNAUDITED TAX INFORMATION
This information is being provided as required by the Internal Revenue Code.
Amounts shown may differ from those elsewhere in the report because of
differences in tax and financial reporting practices.
No portion of the ordinary income distribution paid during the year by Core
Equity Fund qualifies for the dividends received deduction for corporations.
The Fund's distributions to shareholders included:
CORE EQUITY
FUND
-----------
From short-term capital gains: $2,083,766
From long-term capital gains,
subject to the 15% rate gains category: $1,558,340
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.
QUARTERLY PORTFOLIO SCHEDULES INFORMATION
The Trust files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q; which are available on
the SEC's website at http://www.sec.gov. The Fund's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request by calling 1-800-820-0888.
30 | THE RYDEX SERIES FUNDS ANNUAL REPORT
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 1-800-820-0888.
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 101
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 101
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 101
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 102
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 101
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.
-----------------------------
THE RYDEX SERIES FUNDS ANNUAL REPORT | 31
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 101
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 Dynamic Funds,
Vice President and Secretary (1970) 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.
32 | THE RYDEX SERIES FUNDS ANNUAL REPORT
[RydexInvestments LOGO]
Essential for modern markets(TM)
9601 Blackwell Road o Suite 500 o Rockville, MD 20850
www.rydexinvestments.com o 800.820.0888
RSTF-ANN-2-0305 x0306
ITEM 2. CODE OF ETHICS.
The Board of Trustees of the Trust has adopted a Combined Code of Ethics (the
"Code") pursuant to Rule 17j-1 under the 1940 Act. The Advisor and Distributor
are also covered by the Code. The Code applies to the personal investing
activities of trustees, directors, officers, and certain employees ("access
persons"). Rule 17j-1 and the Code are designed to prevent unlawful practices in
connection with the purchase or sale of securities by access persons. Under the
Code, access persons are permitted to engage in personal securities
transactions, but are required to report their personal securities transactions
for monitoring purposes. In addition, certain access persons are required to
obtain approval before investing in initial public offerings or private
placements. No substantive amendments were approved or waivers were granted to
the Code during the period covered by this report. The Code is filed as an
exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
While the members of the audit committee have many years of experience in
business and finance, including working with fund financial statements and
auditors, they do not feel that the background and experience of any single
member would meet the qualifications necessary to be a "financial expert" as
that term is defined by the Securities and Exchange Commission. Nonetheless, the
committee has determined that, together, its collective financial experience and
expertise makes an individual financial expert unnecessary at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a)-(d) The aggregate Audit Fees billed by PricewaterhouseCoopers LLP ("PWC"),
the Trust's principal accountant, for the audit of the annual financial
statements in connection with statutory and regulatory filings for the fiscal
years ended March 31, 2005 and March 31, 2004 were $510,900 and $429,000,
respectively. The aggregate Tax Fees billed by PWC for professional services
rendered for tax compliance, tax advice, and tax planning, including preparation
of tax returns and distribution assistance, for the fiscal years ended March 31,
2005 and March 31, 2004 were $194,000 and $182,950, respectively.
(e) The audit committee has adopted a policy whereby audit and non-audit
services performed by the registrant's principal accountant for the registrant,
its investment advisor, and any entity controlling, controlled by, or under
common control with the investment advisor that provides ongoing services to the
registrant require pre-approval in advance at regularly scheduled audit
committee meetings. If such service is required between regularly scheduled
audit committee meetings, the chairman of the audit committee, J. Kenneth
Dalton, is authorized to pre-approve the service with full committee approval at
the next scheduled meeting. There shall be no waivers of the pre-approval
process. No services described in (b)-(d) above were approved pursuant to
paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the registrant's accountant for the
most recent fiscal year and the preceding fiscal year for services rendered to
the registrant, the investment advisor, and any entity controlling, controlled
by, or under common control with the advisor that provides ongoing services to
the registrant were $18,000 and $16,000, respectively. These aggregate fees were
less than the aggregate fees billed for the same periods by the registrant's
principal accountant for audit services rendered to the registrant, the
investment advisor, and any entity controlling, controlled by, or under common
control with the advisor that provides ongoing services to the registrant.
(h) All non-audit services rendered in (g) above were pre-approved by the
registrant's audit committee. As such, the audit committee has considered these
services in maintaining the principal accountant's independence.
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. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based on their evaluation on June 7, 2005, 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-3(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-3(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
over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) that occurred during the second fiscal quarter of the
period covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a)(1) The registrant's code of ethics pursuant to Item 2 of Form N-CSR is
attached.
(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, President
Date JUNE 7, 2005
----------------------------------------------------------------------------
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, President
Date JUNE 7, 2005
----------------------------------------------------------------------------
By (Signature and Title)* /S/ NICK BONOS
----------------------------------------------
Nick Bonos, Vice President & Treasurer
Date JUNE 7, 2005
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.