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, 2006
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Date of reporting period: September 30, 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
SEPTEMBER 30, 2005
RYDEX SERIES FUNDS BENCHMARK FUNDS SEMI-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
STRENGTHENING DOLLAR FUND
WEAKENING DOLLAR 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
FUND PROFILES ............................................................ 10
SCHEDULES OF INVESTMENTS ................................................. 22
BENCHMARK FUNDS
STATEMENTS OF ASSETS AND LIABILITIES .................................. 86
STATEMENTS OF OPERATIONS .............................................. 90
STATEMENTS OF CHANGES IN NET ASSETS ................................... 94
FINANCIAL HIGHLIGHTS .................................................. 100
BENCHMARK PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES .................................. 110
STATEMENTS OF OPERATIONS .............................................. 111
STATEMENTS OF CHANGES IN NET ASSETS ................................... 112
FINANCIAL HIGHLIGHTS .................................................. 114
NOTES TO FINANCIAL STATEMENTS ............................................ 115
OTHER INFORMATION ........................................................ 126
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS ............................ 129
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 1
LETTER TO OUR SHAREHOLDERS
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DEAR SHAREHOLDER:
The six-month period from April through September 2005 was a tumultuous one for
the economy and the financial markets. Investors, consumers and businesses alike
were rocked by the twin hurricanes of Katrina and Rita and the unprecedented
rise in energy prices. Energy prices-particularly for refined products such as
gas, diesel, jet fuel and heating oil-skyrocketed, causing consumer confidence
to plummet and raising the prospect of a pullback in consumer spending.
Typically, developments like these would have a downward effect on equity prices
and interest rates, but that wasn't the case as stocks rallied and interest
rates finished the period largely where they began.
Surprisingly, U.S. equity markets navigated the storms remarkably well. While
the old economy Dow Jones Industrial Average(R) Index rose only 1.76%, the
broader S&P 500(R) Index gained 5.02% and the tech-laden Nasdaq 100(R) Index
rose 8.04% on the back of a mini-rally in technology stocks.
Two factors appear to have driven prices higher. The first is that earnings
growth remained strong, increasing at a double-digit pace in both the second and
third quarters, and investors appeared to be looking beyond the immediate impact
of the hurricanes to the anticipated "kick" to economic growth as reconstruction
efforts got underway.
As one might expect, energy stocks led the market higher. In fact, energy prices
were well on their way up prior to the arrival of Katrina as the price of a
barrel of crude oil rose from $49.69 in late May to a high of $69.74 by the end
of August. The Gulf storms exacerbated this rise. That energy prices were
already well on their way up is attributable to the rapid growth in the
powerhouse economies of China and India. China, in particular, continues to
import commodities of all kinds at a voracious rate. In fact, if one takes a
closer look at stock prices during this period, the effect of rising energy
prices and the impact of the storms becomes apparent.
Clearly, energy stocks were the big winners as the S&P Energy Index rose nearly
19.56%. In fact, the meteoric rise in energy stocks is responsible for much of
the stock market's positive performance this year. Utility stocks also fared
well as the S&P Utility Index shot up 15.24% in anticipation of a substantial
rise in home heating costs. Technology stocks rallied as valuations were
perceived to be attractive. On the flip side, health care stocks, which tend to
be perceived as defensive in nature, rose nearly 5.00% as investors looked for a
consumer driven economic slowdown in the wake of the devastation left by Katrina
and Rita.
Despite the uncertainty, the Federal Reserve ("Fed") remained vigilant against
any signs of increasing inflation. The shock to the economy of the storms and
the loss of some of the nation's critical energy infrastructure led many to
predict a pause in the Fed's rate hikes. This was not to be, as the Fed
implemented four 25 basis point rate hikes during the period. Longer rates, on
the other hand, actually declined from April to September, with the yield on the
benchmark 10-Year Treasury Note falling 15 basis points to 4.33%. Despite this
decline, interest rates are clearly on the upswing. Long-term rates bottomed on
June 1, as the yield on the 10-Year Note reached 3.89%. Since the beginning of
June, the trend has been up, with the 10-Year Note peaking at 4.42% in early
August.
2 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
LETTER TO OUR SHAREHOLDERS (CONCLUDED)
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With all of the crosscurrents in the economy and the financial markets, stock
price behavior is likely to remain choppy and erratic. Investment strategies
that do not depend on highly directional markets will likely fare well as we
move through the remainder of 2005.
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 SEMI-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 more results that are more in
line with expectations. In addition, periods of high volatility in an underlying
index will also cause the effects of compounding to be more pronounced, while
lower volatility will produce a more muted effect.
4 | THE RYDEX SERIES FUNDS SEMI-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 March 31, 2005 and
ending September 30, 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. The example is useful in making comparisons because the U.S.
Securities and Exchange Commission (the "SEC") requires all mutual funds
to calculate expenses based on the 5% return. You can assess your fund's
costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Certain retirement plans such as IRA, 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 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.
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.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 5
ABOUT SHAREHOLDERS' FUND EXPENSES (CONTINUED)
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BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2005 SEPTEMBER 30, 2005 PERIOD*
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TABLE 1. BASED ON ACTUAL FUND RETURN
NOVA FUND
Investor Class 1.20%++ $ 1,000.00 $ 1,067.40 $ 6.22
Advisor Class 1.71%++ 1,000.00 1,064.60 8.85
A-Class 1.46%++ 1,000.00 1,065.60 7.56
C-Class 2.22%++ 1,000.00 1,062.30 11.48
URSA FUND
Investor Class 1.35%++ 1,000.00 972.40 6.68
Advisor Class 1.85%++ 1,000.00 970.10 9.14
A-Class 1.61%++ 1,000.00 968.90 7.95
C-Class 2.36%++ 1,000.00 967.60 11.64
OTC FUND
Investor Class 1.18% 1,000.00 1,084.50 6.17
Advisor Class 1.68% 1,000.00 1,081.30 8.77
A-Class 1.43% 1,000.00 1,083.10 7.47
C-Class 2.19% 1,000.00 1,078.90 11.41
ARKTOS FUND
Investor Class 1.36%++ 1,000.00 938.90 6.61
Advisor Class 1.86%++ 1,000.00 937.10 9.03
A-Class 1.60%++ 1,000.00 938.10 7.77
C-Class 2.37%++ 1,000.00 934.40 11.49
MEDIUS FUND
A-Class 1.62% 1,000.00 1,116.40 8.59
C-Class 2.37% 1,000.00 1,112.50 12.55
H-Class 1.61% 1,000.00 1,117.10 8.54
INVERSE MID-CAP FUND
A-Class 1.70% 1,000.00 926.80 8.21
C-Class 2.43% 1,000.00 923.40 11.72
H-Class 1.59% 1,000.00 927.10 7.68
MEKROS FUND
A-Class 1.63% 1,000.00 1,120.60 8.67
C-Class 2.39% 1,000.00 1,116.90 12.68
H-Class 1.62% 1,000.00 1,121.00 8.61
INVERSE SMALL-CAP FUND
A-Class 1.59% 1,000.00 921.70 7.66
C-Class 2.40% 1,000.00 918.80 11.54
H-Class 1.62% 1,000.00 922.10 7.81
U.S. GOVERNMENT BOND FUND
Investor Class 0.90% 1,000.00 1,054.90 4.64
Advisor Class 1.40% 1,000.00 1,051.50 7.20
A-Class 1.15% 1,000.00 1,052.80 5.92
C-Class 1.91% 1,000.00 1,048.70 9.81
JUNO FUND
Investor Class 4.80%**++ 1,000.00 965.70 23.65
Advisor Class 5.31%**++ 1,000.00 963.30 26.13
A-Class 5.06%**++ 1,000.00 963.90 24.91
C-Class 5.81%**++ 1,000.00 961.10 28.56
6 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS' FUND EXPENSES (CONTINUED)
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BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2005 SEPTEMBER 30, 2005 PERIOD*
- -----------------------------------------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND
A-Class 1.65% $ 1,000.00 $ 1,079.30 $ 8.60
C-Class 2.39% 1,000.00 1,076.60 12.44
H-Class 1.63% 1,000.00 1,080.00 8.50
LARGE-CAP JAPAN FUND
A-Class 1.63% 1,000.00 1,158.90 8.82
C-Class 2.39% 1,000.00 1,153.80 12.90
H-Class 1.68% 1,000.00 1,158.80 9.09
SMALL-CAP VALUE FUND
A-Class 1.44% 1,000.00 1,069.80 7.47
C-Class 2.20% 1,000.00 1,065.00 11.39
H-Class 1.46% 1,000.00 1,069.10 7.57
MID-CAP VALUE FUND
A-Class 1.46% 1,000.00 1,096.40 7.67
C-Class 2.25% 1,000.00 1,091.60 11.80
H-Class 1.47% 1,000.00 1,096.40 7.73
LARGE-CAP VALUE FUND
A-Class 1.46% 1,000.00 1,049.30 7.50
C-Class 2.22% 1,000.00 1,044.70 11.38
H-Class 1.47% 1,000.00 1,048.90 7.55
SMALL-CAP GROWTH FUND
A-Class 1.46% 1,000.00 1,092.60 7.66
C-Class 2.30% 1,000.00 1,088.60 12.04
H-Class 1.49% 1,000.00 1,092.60 7.82
MID-CAP GROWTH FUND
A-Class 1.46% 1,000.00 1,069.60 7.57
C-Class 2.21% 1,000.00 1,066.00 11.45
H-Class 1.46% 1,000.00 1,070.00 7.58
LARGE-CAP GROWTH FUND
A-Class 1.44% 1,000.00 1,025.70 7.31
C-Class 2.19% 1,000.00 1,022.20 11.10
H-Class 1.46% 1,000.00 1,025.30 7.41
STRENGTHENING DOLLAR FUND
A-Class 1.71% 1,000.00 1,085.20 8.94
C-Class 2.43% 1,000.00 1,082.80 12.69
H-Class 1.65% 1,000.00 1,084.00 8.62
WEAKENING DOLLAR FUND
A-Class 1.72% 1,000.00 926.40 8.31
C-Class 2.44% 1,000.00 923.60 11.77
H-Class 1.69% 1,000.00 926.00 8.16
U.S.GOVERNMENT MONEY MARKET FUND
Investor Class 0.86% 1,000.00 1,011.70 4.34
Advisor Class 1.37% 1,000.00 1,009.20 6.90
A-Class 1.12% 1,000.00 1,010.40 5.64
C-Class 1.87% 1,000.00 1,006.70 9.41
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 7
ABOUT SHAREHOLDERS' FUND EXPENSES (CONTINUED)
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BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2005 SEPTEMBER 30, 2005 PERIOD*
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TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
NOVA FUND
Investor Class 1.20%++ $ 1,000.00 $ 1,018.91 $ 6.09
Advisor Class 1.71%++ 1,000.00 1,016.32 8.68
A-Class 1.46%++ 1,000.00 1,017.59 7.41
C-Class 2.22%++ 1,000.00 1,013.73 11.27
URSA FUND
Investor Class 1.35%++ 1,000.00 1,018.15 6.85
Advisor Class 1.85%++ 1,000.00 1,015.61 9.39
A-Class 1.61%++ 1,000.00 1,016.83 8.17
C-Class 2.36%++ 1,000.00 1,013.02 11.98
OTC FUND
Investor Class 1.18% 1,000.00 1,019.01 5.99
Advisor Class 1.68% 1,000.00 1,016.47 8.53
A-Class 1.43% 1,000.00 1,017.74 7.26
C-Class 2.19% 1,000.00 1,013.88 11.12
ARKTOS FUND
Investor Class 1.36%++ 1,000.00 1,018.10 6.90
Advisor Class 1.86%++ 1,000.00 1,015.56 9.44
A-Class 1.60%++ 1,000.00 1,016.88 8.12
C-Class 2.37%++ 1,000.00 1,012.97 12.03
MEDIUS FUND
A-Class 1.62% 1,000.00 1,016.78 8.22
C-Class 2.37% 1,000.00 1,012.97 12.03
H-Class 1.61% 1,000.00 1,016.83 8.17
INVERSE MID-CAP FUND
A-Class 1.70% 1,000.00 1,016.37 8.63
C-Class 2.43% 1,000.00 1,012.66 12.34
H-Class 1.59% 1,000.00 1,016.93 8.07
MEKROS FUND
A-Class 1.63% 1,000.00 1,016.73 8.27
C-Class 2.39% 1,000.00 1,012.87 12.13
H-Class 1.62% 1,000.00 1,016.78 8.22
INVERSE SMALL-CAP FUND
A-Class 1.59% 1,000.00 1,016.93 8.07
C-Class 2.40% 1,000.00 1,012.82 12.18
H-Class 1.62% 1,000.00 1,016.78 8.22
U.S. GOVERNMENT BOND FUND
Investor Class 0.90% 1,000.00 1,020.43 4.57
Advisor Class 1.40% 1,000.00 1,017.89 7.11
A-Class 1.15% 1,000.00 1,019.16 5.84
C-Class 1.91% 1,000.00 1,015.30 9.70
JUNO FUND
Investor Class 4.80%**++ 1,000.00 1,000.63 24.37
Advisor Class 5.31%**++ 1,000.00 998.04 26.96
A-Class 5.06%**++ 1,000.00 999.31 25.69
C-Class 5.81%**++ 1,000.00 995.51 29.49
LARGE-CAP EUROPE FUND
A-Class 1.65% 1,000.00 1,016.62 8.38
C-Class 2.39% 1,000.00 1,012.87 12.13
H-Class 1.63% 1,000.00 1,016.73 8.27
LARGE-CAP JAPAN FUND
A-Class 1.63% 1,000.00 1,016.73 8.27
C-Class 2.39% 1,000.00 1,012.87 12.13
H-Class 1.68% 1,000.00 1,016.47 8.53
8 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS' FUND EXPENSES (CONCLUDED)
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BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2005 SEPTEMBER 30, 2005 PERIOD*
- -----------------------------------------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
A-Class 1.44% $ 1,000.00 $ 1,017.69 $ 7.31
C-Class 2.20% 1,000.00 1,013.83 11.17
H-Class 1.46% 1,000.00 1,017.59 7.41
MID-CAP VALUE FUND
A-Class 1.46% 1,000.00 1,017.59 7.41
C-Class 2.25% 1,000.00 1,013.58 11.42
H-Class 1.47% 1,000.00 1,017.54 7.46
LARGE-CAP VALUE FUND
A-Class 1.46% 1,000.00 1,017.59 7.41
C-Class 2.22% 1,000.00 1,013.73 11.27
H-Class 1.47% 1,000.00 1,017.54 7.46
SMALL-CAP GROWTH FUND
A-Class 1.46% 1,000.00 1,017.59 7.41
C-Class 2.30% 1,000.00 1,013.32 11.68
H-Class 1.49% 1,000.00 1,017.44 7.56
MID-CAP GROWTH FUND
A-Class 1.46% 1,000.00 1,017.59 7.41
C-Class 2.21% 1,000.00 1,013.78 11.22
H-Class 1.46% 1,000.00 1,017.59 7.41
LARGE-CAP GROWTH FUND
A-Class 1.44% 1,000.00 1,017.69 7.31
C-Class 2.19% 1,000.00 1,013.88 11.12
H-Class 1.46% 1,000.00 1,017.59 7.41
STRENGTHENING DOLLAR FUND
A-Class 1.71% 1,000.00 1,016.39 8.68
C-Class 2.43% 1,000.00 1,012.73 12.34
H-Class 1.65% 1,000.00 1,016.69 8.38
WEAKENING DOLLAR FUND
A-Class 1.72% 1,000.00 1,016.34 8.73
C-Class 2.44% 1,000.00 1,012.68 12.39
H-Class 1.69% 1,000.00 1,016.49 8.58
U.S. GOVERNMENT MONEY MARKET FUND
Investor Class 0.86% 1,000.00 1,020.63 4.37
Advisor Class 1.37% 1,000.00 1,018.05 6.95
A-Class 1.12% 1,000.00 1,019.31 5.69
C-Class 1.87% 1,000.00 1,015.51 9.49
* 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 GROSS EXPENSES, WHICH INCLUDE INTEREST EXPENSE FROM
SECURITIES SOLD SHORT.
+ ANNUALIZED
++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 9
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
performance of the S&P 500 Index.
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 9.2% 9.4%
Information Technology 13.8% 15.7%
Consumer Discretionary 9.9% 11.0%
Health Care 12.0% 13.0%
Financials 17.9% 20.0%
Industrials 10.0% 11.1%
Consumer Staples 8.8% 9.7%
Energy 8.5% 10.1%
Futures Contracts 60.2%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- -------------------------------------------------------
Investor Class July 12, 1993
Advisor Class October 15, 1998
A-Class March 31, 2004
C-Class March 14, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -------------------------------------------------------
Exxon Mobil Corp. 3.1%
General Electric Co. 3.1%
Citigroup, Inc. 2.1%
Pfizer, Inc. 1.8%
Microsoft Corp. 1.7%
Intel Corp. 1.6%
Johnson & Johnson, Inc. 1.3%
Wal-Mart Stores, Inc. 1.2%
Cisco Systems, Inc. 1.2%
ConocoPhillips 1.2%
- -------------------------------------------------------
Top Ten Total 18.3%
- -------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
URSA FUND
OBJECTIVE: To provide investment results that will inversely correlate to the
performance of the S&P 500 Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
URSA FUND S&P 500 INDEX
--------- -------------
Other 9.4%
Information Technology 15.7%
Consumer Discretionary 11.0%
Health Care 13.0%
Financials 20.0%
Industrials 11.1%
Consumer Staples 9.7%
Energy 10.1%
Futures Contracts -42.2%
Equity Index Swap Agreements -58.0%
"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.
10 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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.
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 5.9% 7.3%
Information Technology 57.5% 61.4%
Consumer Discretionary 18.5% 15.8%
Health Care 14.5% 15.5%
Futures Contracts 3.4%
"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)
- -------------------------------------------------------
Qualcomm, Inc. 6.3%
Microsoft Corp. 6.1%
Apple Computer, Inc. 4.7%
Intel Corp. 4.5%
Cisco Systems, Inc. 4.0%
Amgen, Inc. 3.6%
Dell, Inc. 3.2%
eBay, Inc. 2.9%
Yahoo!, Inc. 2.3%
Starbucks Corp. 2.1%
- -------------------------------------------------------
Top Ten Total 39.7%
- -------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
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.
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 7.3%
Information Technology 61.4%
Consumer Discretionary 15.8%
Health Care 15.5%
Futures Contracts Short Sales -14.5%
Equity Index Swap Agreements Short Sales -86.4%
"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.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 11
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(R) Index.
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 6.5% 8.0%
Information Technology 11.4% 15.2%
Consumer Discretionary 12.7% 17.5%
Health Care 9.0% 12.3%
Industrials 9.7% 12.5%
Financials 13.6% 17.4%
Energy 6.6% 9.0%
Utilities 5.9% 8.1%
Futures Contracts 30.4%
Equity Index Swap Agreements 43.9%
"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)
- -------------------------------------------------------
Legg Mason, Inc. 1.1%
Omnicare, Inc. 0.9%
Microchip Technology, Inc. 0.8%
Radian Group, Inc. 0.8%
Dun & Bradstreet Corp. 0.8%
Lyondell Chemical Co. 0.8%
Pacificare Health Systems 0.8%
Lam Research Corp. 0.8%
Macerich Co. 0.8%
DST Systems, Inc. 0.8%
- -------------------------------------------------------
Top Ten Total 8.4%
- -------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
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.
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 8.0%
Consumer Discretionary 17.5%
Financials 17.4%
Information Technology 15.2%
Industrials 12.5%
Health Care 12.3%
Energy 9.0%
Utilities 8.1%
Futures Contracts -20.4%
Equity Index Swap Agreements -79.8%
"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.
12 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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(R) Index.
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 9.1% 9.2%
Information Technology 13.7% 17.5%
Consumer Discretionary 11.7% 18.3%
Health Care 9.7% 12.2%
Industrials 11.5% 14.1%
Financials 16.1% 17.0%
Energy 5.0% 6.1%
Materials 5.6%
Futures Contracts 33.7%
Equity Index Swap Agreements 39.4%
"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)
- ------------------------------------------------
York International Corp. 0.4%
Reliance Steel & Aluminum Co. 0.4%
United Therapeutics Corp. 0.3%
Champion Enterprises, Inc. 0.3%
Cimarex Energy Co. 0.3%
Resources Connection, Inc. 0.3%
Lennox International, Inc. 0.3%
Cal Dive International, Inc. 0.3%
Kilroy Realty Corp. 0.3%
Intergraph Corp. 0.3%
- ------------------------------------------------
Top Ten Total 3.2%
- ------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
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.
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 9.2%
Information Technology 17.5%
Consumer Discretionary 18.3%
Health Care 12.2%
Industrials 14.1%
Financials 17.0%
Energy 6.1%
Materials 5.6%
Futures Contracts Short Sales -2.1%
Equity Index Swap Agreements Short Sales -98.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- -------------------------------------------------
A-Class March 31, 2004
C-Class February 20, 2004
H-Class February 20, 2004
The Fund invests principally in derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 13
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. The Long Treasury Bond is the U.S. Treasury
bond with the longest maturity, which is currently 30 years.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
U.S. GOVERNMENT BOND FUND
-------------------------
U.S. Treasury Obligations 84.4%
Futures Contracts 36.4%
"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 derivative
instruments; such as futures and options contracts.
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. The Long Treasury Bond is
the U.S. Treasury bond with the longest maturity, which is currently 30 years.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
JUNO FUND
---------
U.S. Treasury Obligations Short Sales -56.9%
Futures Contracts Short Sales -43.5%
"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 options
contracts.
14 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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 (SM)
Index.
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 12.1% 11.5%
Financials 28.4% 33.8%
Energy 14.7% 18.0%
Consumer, Non-cyclical 21.5%
Health Care 11.8%
Telecommunication Services 9.1% 15.2%
Consumer Staples 5.8%
Equity Index Swap Agreements 43.7%
"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
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -------------------------------------------------------
BP PLC -- SP ADR 6.1%
HSBC Holdings PLC -- SP ADR 4.6%
Novartis AG -- SP ADR 4.2%
Total SA -- SP ADR 4.0%
GlaxoSmithKline PLC -- SP ADR 4.0%
Vodafone Group PLC -- SP ADR 4.0%
UBS AG 3.6%
Royal Dutch Shell PLC -- SP ADR 3.1%
Banco Santander Central Hispano SA --
SP ADR 2.7%
Banco Bilbao Vizcaya Argentaria SA --
SP ADR 2.6%
- -------------------------------------------------------
Top Ten Total 38.9%
- -------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
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.
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 5.2%
Consumer, Cyclical 26.9%
Financial 24.5%
Industrial 14.2%
Communications 11.1%
Consumer, Non-cyclical 7.4%
Utilities 5.4%
Technology 5.3%
Futures Contracts 39.2%
Equity Index Swap Agreements 85.6%
"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.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 15
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.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
S&P SMALLCAP 600/BARRA
SMALL-CAP VALUE FUND VALUE INDEX
-------------------- ----------------------
Other 4.6% 3.9%
Financials 21.4% 20.4%
Industrials 20.3% 21.0%
Information Technology 14.2% 15.0%
Consumer Discretionary 12.2% 12.2%
Materials 7.8% 7.1%
Utilities 7.1% 7.2%
Energy 6.2% 7.3%
Health Care 5.9% 5.9%
"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)
- -------------------------------------------------------
Cimarex Energy Co. 1.4%
Cooper Cos., Inc. 1.3%
Standard-Pacific Corp. 1.1%
MDC Holdings, Inc. 1.0%
Southern Union Co. 1.0%
Atmos Energy Corp. 0.9%
Hughes Supply, Inc. 0.8%
New Century Financial Corp. 0.8%
South Financial Group, Inc. 0.8%
Colonial Properties Trust 0.7%
- -------------------------------------------------------
Top Ten Total 9.8%
- -------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
MID-CAP VALUE FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for mid-cap securities. The Fund's current benchmark is the S&P MidCap
400/Barra Value Index.
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 4.0% 4.1%
Financials 24.0% 23.7%
Information Technology 13.6% 13.7%
Utilities 13.0% 13.1%
Consumer Discretionary 10.6% 11.1%
Energy 10.2% 10.3%
Industrials 9.3% 9.4%
Materials 7.9% 7.9%
Health Care 7.2% 6.7%
"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)
- -------------------------------------------------------
SanDisk Corp. 1.7%
Noble Energy, Inc. 1.6%
Lennar Corp. -- Class A 1.5%
Pioneer Natural Resources Co. 1.5%
Fidelity National Financial, Inc. 1.5%
ENSCO International, Inc. 1.4%
Pacificare Health Systems 1.3%
Newfield Exploration Co. 1.2%
Omnicare, Inc. 1.1%
Lyondell Chemical Co. 1.1%
- -------------------------------------------------------
Top Ten Total 13.9%
- -------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
16 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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.
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 6.7% 7.0%
Financials 35.9% 35.8%
Consumer Discretionary 11.8% 12.4%
Energy 9.9% 9.7%
Industrials 8.1% 8.2%
Health Care 7.7% 7.3%
Information Technology 7.3% 8.1%
Utilities 6.4% 6.5%
Telecommunication Services 5.9% 5.0%
"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)
- ------------------------------------------------------
Citigroup, Inc. 4.2%
Pfizer, Inc. 3.3%
Bank of America Corp. 3.0%
American International Group, Inc. 2.8%
Chevron Corp. 2.6%
J.P. Morgan Chase & Co. 2.1%
Wells Fargo & Co. 1.7%
ConocoPhillips 1.7%
Verizon Communications, Inc. 1.6%
Time Warner, Inc. 1.5%
- ------------------------------------------------------
Top Ten Total 24.5%
- ------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
SMALL-CAP GROWTH FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for small-cap growth securities. The Fund's current benchmark is the
S&P SmallCap 600/Barra Growth Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
S&P SMALLCAP 600/BARRA
SMALL-CAP GROWTH FUND GROWTH INDEX
--------------------- ----------------------
Other 8.3% 9.2%
Health Care 20.3% 21.3%
Consumer Discretionary 19.5% 19.3%
Industrials 15.6% 15.2%
Information Technology 15.3% 14.9%
Energy 12.8% 12.5%
Financials 7.9% 7.6%
"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)
- ------------------------------------------------
Southwestern Energy Co. 2.2%
NVR, Inc. 1.8%
Massey Energy Co. 1.4%
Roper Industries, Inc. 1.2%
Energen Corp. 1.2%
Oshkosh Truck Corp. 1.2%
Respironics, Inc. 1.1%
Florida Rock Industries, Inc. 1.1%
UGI Corp. 1.1%
Pharmaceutical Product Development, Inc. 1.1%
- ------------------------------------------------
Top Ten Total 13.4%
- ------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 17
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.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
S&P MIDCAP 400/BARRA
MID-CAP GROWTH FUND GROWTH INDEX
------------------- --------------------
Other 8.3% 7.6%
Consumer Discretionary 22.7% 23.4%
Health Care 16.9% 17.6%
Information Technology 16.4% 16.7%
Industrials 16.0% 15.4%
Financials 11.9% 11.5%
Energy 8.3% 7.8%
"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)
- -------------------------------------------------------
Legg Mason, Inc. 2.2%
Peabody Energy Corp. 2.0%
Whole Foods Market, Inc. 1.6%
Questar Corp. 1.4%
Smith International, Inc. 1.3%
Precision Castparts Corp. 1.3%
Harman International Industries, Inc. 1.2%
Chico's FAS, Inc. 1.2%
Cognizant Technology Solutions Corp. -- Class A 1.2%
Microchip Technology, Inc. 1.1%
- -------------------------------------------------------
Top Ten Total 14.5%
- -------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
LARGE-CAP GROWTH FUND
OBJECTIVE: To provide investment results that match the performance of a
benchmark for large-cap growth securities. The Fund's current benchmark is the
S&P 500/Barra Growth Index.
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 5.8% 5.7%
Information Technology 23.6% 23.8%
Health Care 19.0% 19.1%
Consumer Staples 17.3% 17.3%
Industrials 14.1% 14.1%
Energy 10.5% 10.5%
Consumer Discretionary 9.5% 9.5%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- ------------------------------------------------
A-Class September 1, 2004
C-Class February 20, 2004
H-Class February 20, 2004
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- -------------------------------------------------------
Exxon Mobil Corp. 7.4%
General Electric Co. 6.6%
Microsoft Corp. 4.4%
Johnson & Johnson, Inc. 3.5%
Procter & Gamble Co. 2.9%
Altria Group, Inc. 2.8%
Intel Corp. 2.8%
International Business Machines Corp. 2.4%
Cisco Systems, Inc. 2.1%
Wal-Mart Stores, Inc. 2.0%
- -------------------------------------------------------
Top Ten Total 36.9%
- -------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
18 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (CONTINUED)
- --------------------------------------------------------------------------------
STRENGTHENING DOLLAR FUND
OBJECTIVE: To provide investment results that will match the performance of a
specific benchmark on a daily basis. The Fund's current benchmark is 200% of the
performance of the U.S. Dollar Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
STRENGTHENING DOLLAR FUND U.S. DOLLAR INDEX
------------------------- -----------------
Other 7.8%
Euro 57.6%
Japanese Yen 13.6%
British Pound 11.9%
Canadian Dollar 9.1%
Futures Contracts 6.6%
Currency Index Swap Agreements 193.7% 0.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- -------------------------------------------
A-Class May 25, 2005
C-Class May 25, 2005
H-Class May 25, 2005
The Fund invests principally in derivative instruments; such as currency index
swap agreements, futures contracts, and options on index futures.
WEAKENING DOLLAR FUND
OBJECTIVE: To provide investment results that will match the performance of a
specific benchmark on a daily basis. The Fund's current benchmark is 200% of the
inverse (opposite) performance of the U.S. Dollar Index.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
WEAKENING DOLLAR FUND U.S. DOLLAR INDEX
--------------------- -----------------
Other 7.8%
Euro 57.6%
Japanese Yen 13.6%
British Pound 11.9%
Canadian Dollar 9.1%
Currency Index Swap Agreements -199.3%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- -------------------------------------------
A-Class May 25, 2005
C-Class May 25, 2005
H-Class May 25, 2005
The Fund invests principally in derivative instruments; such as currency index
swap agreements, futures contracts, and options on index futures.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 19
FUND PROFILES (CONCLUDED)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
OBJECTIVE: To provide security of principal, high current income and liquidity.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
U.S. GOVERNMENT MONEY MARKET FUND
---------------------------------
Federal Home Loan Bank FADN 32.8%
Freddie Mac FADN 24.5%
Farmer Mac FADN 23.4%
Federal Farm Credit Bank FADN 9.4%
Repurchase Agreements 8.7%
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.
20 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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 SEMI-ANNUAL REPORT | 21
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 89.9%
FINANCIALS 17.8%
BANKS 4.8%
Bank of America Corp.+ 72,170 $ 3,038,357
Wachovia Corp.+ 58,408 2,779,637
U.S. Bancorp+ 78,816 2,213,153
National City Corp. 43,710 1,461,662
Wells Fargo & Co.+ 23,170 1,357,067
North Fork Bancorporation, Inc.+ 52,893 1,348,771
Marshall & Ilsley Corp. 28,564 1,242,820
SunTrust Banks, Inc.+ 11,670 810,482
KeyCorp+ 3,080 99,330
---------------
TOTAL BANKS 14,351,279
---------------
INSURANCE 4.1%
American International Group, Inc.+ 45,160 2,798,114
MetLife, Inc.+ 39,337 1,960,163
St. Paul Travelers Cos., Inc. 41,150 1,846,400
Hartford Financial Services Group, Inc.+ 21,405 1,651,824
Chubb Corp.+ 16,670 1,492,798
UnumProvident Corp.+ 60,500 1,240,250
Allstate Corp. 21,090 1,166,066
---------------
TOTAL INSURANCE 12,155,615
---------------
DIVERSIFIED FINANCIALS 3.2%
Citigroup, Inc.+ 135,583 6,171,738
J.P. Morgan Chase & Co. 56,860 1,929,260
Principal Financial Group, Inc. 29,960 1,419,205
---------------
TOTAL DIVERSIFIED FINANCIALS 9,520,203
---------------
CAPITAL MARKETS 2.6%
Lehman Brothers Holdings, Inc.+ 16,240 1,891,635
Franklin Resources, Inc.+ 16,760 1,407,170
Mellon Financial Corp. 43,630 1,394,851
E*Trade Financial Corp.* 73,170 1,287,792
Charles Schwab Corp.+ 51,000 735,930
Merrill Lynch & Co., Inc. 9,570 587,120
Morgan Stanley 6,510 351,149
Goldman Sachs Group, Inc. 680 82,674
---------------
TOTAL CAPITAL MARKETS 7,738,321
---------------
THRIFTS & MORTGAGE FINANCE 1.3%
Washington Mutual, Inc.+ 46,932 1,840,673
Sovereign Bancorp, Inc.+ 54,840 1,208,674
Golden West Financial Corp.+ 15,116 897,739
Fannie Mae 990 44,372
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 3,991,458
---------------
CONSUMER FINANCE 1.1%
Capital One Financial Corp.+ 19,900 1,582,448
Providian Financial Corp.* 64,821 1,146,035
American Express Co. 12,540 720,298
---------------
TOTAL CONSUMER FINANCE 3,448,781
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
REAL ESTATE 0.7%
Vornado Realty Trust 15,100 $ 1,307,962
Simon Property Group, Inc.+ 10,130 750,835
---------------
TOTAL REAL ESTATE 2,058,797
---------------
TOTAL FINANCIALS 53,264,454
---------------
INFORMATION TECHNOLOGY 13.8%
COMPUTERS & PERIPHERALS 3.3%
Dell, Inc.* 86,687 2,964,696
International Business Machines Corp. 32,240 2,586,293
Apple Computer, Inc.* 41,340 2,216,237
NCR Corp.* 38,441 1,226,652
Hewlett-Packard Co. 31,370 916,004
Gateway, Inc.* 6,786 18,322
---------------
TOTAL COMPUTERS & PERIPHERALS 9,928,204
---------------
SOFTWARE 3.3%
Microsoft Corp.+ 199,170 5,124,644
Autodesk, Inc. 30,480 1,415,491
Intuit, Inc.*+ 28,371 1,271,304
Parametric Technology Corp.* 172,643 1,203,322
Oracle Corp.* 24,900 308,511
Citrix Systems, Inc.*+ 10,368 260,652
Compuware Corp.* 27,210 258,495
---------------
TOTAL SOFTWARE 9,842,419
---------------
SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 3.0%
Intel Corp. 192,810 4,752,766
Nvidia Corp.*+ 36,242 1,242,376
Novellus Systems, Inc.*+ 44,438 1,114,505
KLA-Tencor Corp.+ 18,450 899,622
Texas Instruments, Inc.+ 20,260 686,814
Applied Materials, Inc. 11,310 191,818
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 8,887,901
---------------
COMMUNICATIONS EQUIPMENT 2.5%
Cisco Systems, Inc.* 202,760 3,635,487
Motorola, Inc.+ 70,084 1,548,156
Corning, Inc.* 55,876 1,080,083
Qualcomm, Inc. 13,560 606,810
ADC Telecommunications, Inc.* 26,370 602,818
---------------
TOTAL COMMUNICATIONS EQUIPMENT 7,473,354
---------------
IT CONSULTING & SERVICES 1.0%
Fiserv, Inc.*+ 28,265 1,296,515
Paychex, Inc.+ 33,910 1,257,383
Affiliated Computer
Services, Inc. -- Class A*+ 4,616 252,034
---------------
TOTAL IT CONSULTING & SERVICES 2,805,932
---------------
INTERNET SOFTWARE & SERVICES 0.3%
Yahoo!, Inc.*+ 29,340 992,866
---------------
TOTAL INTERNET SOFTWARE & SERVICES 992,866
---------------
See Notes to Financial Statements.
22 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3%
Jabil Circuit, Inc.*+ 26,149 $ 808,527
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 808,527
---------------
OFFICE ELECTRONICS 0.1%
Xerox Corp.*+ 23,127 315,683
---------------
TOTAL OFFICE ELECTRONICS 315,683
---------------
TOTAL INFORMATION TECHNOLOGY 41,054,886
---------------
HEALTH CARE 12.0%
PHARMACEUTICALS 6.0%
Pfizer, Inc. 215,538 5,381,984
Johnson & Johnson, Inc. 63,520 4,019,546
Abbott Laboratories 61,934 2,626,002
Merck & Co., Inc. 65,090 1,771,099
Watson Pharmaceuticals, Inc.*+ 32,790 1,200,442
King Pharmaceuticals, Inc.* 73,740 1,134,121
Schering-Plough Corp. 37,190 782,849
Eli Lilly & Co.+ 7,880 421,738
Wyeth 8,550 395,608
Bristol-Myers Squibb Co.+ 3,720 89,503
---------------
TOTAL PHARMACEUTICALS 17,822,892
---------------
HEALTH CARE PROVIDERS & SERVICES 2.7%
WellPoint, Inc.* 29,257 2,218,266
Aetna, Inc.+ 20,208 1,740,717
UnitedHealth Group, Inc.+ 30,430 1,710,166
Humana, Inc.* 25,720 1,231,473
CIGNA Corp. 6,660 784,948
McKesson Corp. 5,640 267,618
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 7,953,188
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 2.0%
Baxter International, Inc. 41,100 1,638,657
Hospira, Inc.* 30,020 1,229,920
Waters Corp.* 26,843 1,116,669
C.R. Bard, Inc. 13,112 865,785
Medtronic, Inc. 10,220 547,996
Becton, Dickinson & Co. 8,680 455,092
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 5,854,119
---------------
BIOTECHNOLOGY 1.3%
Amgen, Inc.* 35,910 2,860,950
Applera Corp. - Applied
Biosystems Group 50,950 1,184,078
---------------
TOTAL BIOTECHNOLOGY 4,045,028
---------------
TOTAL HEALTH CARE 35,675,227
---------------
INDUSTRIALS 10.0%
INDUSTRIAL CONGLOMERATES 3.9%
General Electric Co. 277,911 9,357,263
Textron, Inc. 18,436 1,322,230
Tyco International Ltd.+ 23,570 656,425
3M Co.+ 3,980 291,973
---------------
TOTAL INDUSTRIAL CONGLOMERATES 11,627,891
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AEROSPACE & DEFENSE 2.0%
Lockheed Martin Corp.+ 25,920 $ 1,582,157
Raytheon Co. 38,906 1,479,206
Rockwell Collins, Inc.+ 26,540 1,282,413
Boeing Co. 18,642 1,266,724
United Technologies Corp. 4,658 241,470
L-3 Communications Holdings, Inc.+ 1,040 82,233
Northrop Grumman Corp. 320 17,392
---------------
TOTAL AEROSPACE & DEFENSE 5,951,595
---------------
MACHINERY 1.3%
Eaton Corp. 19,658 1,249,266
Parker Hannifin Corp. 19,034 1,224,076
Caterpillar, Inc. 15,320 900,050
Cummins, Inc. 4,903 431,415
---------------
TOTAL MACHINERY 3,804,807
---------------
AIR FREIGHT & COURIERS 0.9%
FedEx Corp.+ 18,998 1,655,296
United Parcel Service, Inc. --
Class B 14,032 970,032
---------------
TOTAL AIR FREIGHT & COURIERS 2,625,328
---------------
COMMERCIAL SERVICES & SUPPLIES 0.6%
Robert Half International, Inc. 32,340 1,150,981
Monster Worldwide, Inc.*+ 26,195 804,448
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,955,429
---------------
ROAD & RAIL 0.6%
Norfolk Southern Corp. 39,000 1,581,840
Burlington Northern Santa Fe Corp. 1,550 92,690
---------------
TOTAL ROAD & RAIL 1,674,530
---------------
ELECTRICAL EQUIPMENT 0.4%
Rockwell Automation, Inc. 21,230 1,123,067
---------------
TOTAL ELECTRICAL EQUIPMENT 1,123,067
---------------
BUILDING PRODUCTS 0.2%
Masco Corp.+ 9,770 299,744
American Standard Cos., Inc. 3,910 182,010
---------------
TOTAL BUILDING PRODUCTS 481,754
---------------
AIRLINES 0.1%
Southwest Airlines Co. 16,480 244,728
---------------
TOTAL AIRLINES 244,728
---------------
CONSTRUCTION & ENGINEERING 0.0%
Fluor Corp. 2,050 131,979
---------------
TOTAL CONSTRUCTION & ENGINEERING 131,979
---------------
TRADING COMPANIES & DISTRIBUTORS 0.0%
W.W. Grainger, Inc. 1,800 113,256
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 113,256
---------------
TOTAL INDUSTRIALS 29,734,364
---------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 23
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONSUMER DISCRETIONARY 9.9%
MEDIA 3.2%
The Walt Disney Co.+ 93,900 $ 2,265,807
News Corp. -- Class A 127,120 1,981,801
McGraw-Hill Cos., Inc.+ 31,370 1,507,015
Omnicom Group, Inc. 16,841 1,408,413
Time Warner, Inc. 55,430 1,003,837
Comcast Corp. -- Class A*+ 29,850 876,993
Viacom, Inc. -- Class B+ 7,780 256,818
Gannett Co., Inc. 3,610 248,476
Tribune Co. 210 7,117
---------------
TOTAL MEDIA 9,556,277
---------------
SPECIALTY RETAIL 1.9%
Home Depot, Inc.+ 35,250 1,344,435
The Gap, Inc. 73,290 1,277,445
AutoZone, Inc.*+ 12,736 1,060,272
Sherwin-Williams Co. 18,395 810,667
Best Buy Co., Inc.+ 13,785 600,061
Lowe's Cos., Inc.+ 3,440 221,536
Office Depot, Inc.*+ 7,194 213,662
AutoNation, Inc.*+ 7,900 157,763
---------------
TOTAL SPECIALTY RETAIL 5,685,841
---------------
HOTELS, RESTAURANTS & LEISURE 1.3%
McDonald's Corp. 57,650 1,930,699
Darden Restaurants, Inc.+ 34,903 1,060,004
Starbucks Corp.* 18,551 929,405
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 3,920,108
---------------
MULTILINE RETAIL 1.0%
Federated Department Stores, Inc. 22,700 1,517,949
Nordstrom, Inc. 29,200 1,002,144
Sears Holdings Corp.* 1,830 227,689
Target Corp. 2,260 117,362
J.C. Penney Holding Co., Inc. 2,160 102,427
---------------
TOTAL MULTILINE RETAIL 2,967,571
---------------
HOUSEHOLD DURABLES 0.6%
Black & Decker Corp. 13,498 1,108,051
Newell Rubbermaid, Inc.+ 22,505 509,738
KB Home 2,580 188,856
---------------
TOTAL HOUSEHOLD DURABLES 1,806,645
---------------
COMMERCIAL SERVICES & SUPPLIES 0.4%
H&R Block, Inc.+ 51,580 1,236,888
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,236,888
---------------
AUTOMOBILES 0.4%
Harley-Davidson, Inc.+ 24,050 1,164,982
---------------
TOTAL AUTOMOBILES 1,164,982
---------------
TEXTILES & APPAREL 0.4%
Nike, Inc. -- Class B+ 13,220 1,079,810
---------------
TOTAL TEXTILES & APPAREL 1,079,810
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL 0.4%
eBay, Inc.* 26,070 $ 1,074,084
---------------
TOTAL INTERNET & CATALOG RETAIL 1,074,084
---------------
AUTO COMPONENTS 0.1%
Goodyear Tire & Rubber Co.*+ 30,501 475,511
---------------
TOTAL AUTO COMPONENTS 475,511
---------------
LEISURE EQUIPMENT & PRODUCTS 0.1%
Brunswick Corp. 12,341 465,626
Mattel, Inc.+ 220 3,669
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 469,295
---------------
DISTRIBUTORS 0.1%
Genuine Parts Co. 4,187 179,622
---------------
TOTAL DISTRIBUTORS 179,622
---------------
TOTAL CONSUMER DISCRETIONARY 29,616,634
---------------
CONSUMER STAPLES 8.8%
FOOD & DRUG RETAILING 2.1%
Wal-Mart Stores, Inc.+ 84,780 3,715,060
Supervalu, Inc. 37,713 1,173,629
Sysco Corp. 33,925 1,064,227
Costco Wholesale Corp.+ 4,680 201,661
Walgreen Co.+ 1,810 78,644
---------------
TOTAL FOOD & DRUG RETAILING 6,233,221
---------------
BEVERAGES 1.9%
PepsiCo, Inc. 41,810 2,371,045
Coca-Cola Enterprises, Inc. 60,113 1,172,204
Coca-Cola Co. 26,090 1,126,827
Constellation Brands, Inc. --
Class A*+ 42,120 1,095,120
---------------
TOTAL BEVERAGES 5,765,196
---------------
HOUSEHOLD PRODUCTS 1.8%
Procter & Gamble Co.+ 54,741 3,254,900
Kimberly-Clark Corp. 27,674 1,647,433
Clorox Co.+ 8,600 477,644
---------------
TOTAL HOUSEHOLD PRODUCTS 5,379,977
---------------
TOBACCO 1.4%
Altria Group, Inc.+ 35,300 2,601,963
Reynolds American, Inc.+ 15,110 1,254,432
UST, Inc.+ 3,880 162,417
---------------
TOTAL TOBACCO 4,018,812
---------------
FOOD PRODUCTS 1.0%
General Mills, Inc. 31,029 1,495,598
Archer-Daniels-Midland Co. 60,450 1,490,697
Campbell Soup Co. 2,800 83,300
---------------
TOTAL FOOD PRODUCTS 3,069,595
---------------
PERSONAL PRODUCTS 0.6%
Alberto-Culver Co. -- Class B+ 25,302 1,132,264
Gillette Co. 11,723 682,279
---------------
TOTAL PERSONAL PRODUCTS 1,814,543
---------------
TOTAL CONSUMER STAPLES 26,281,344
---------------
See Notes to Financial Statements.
24 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ENERGY 8.5%
OIL & GAS 7.7%
Exxon Mobil Corp. 147,300 $ 9,359,442
ConocoPhillips 49,460 3,457,749
Chevron Corp. 37,620 2,435,143
Occidental Petroleum Corp. 22,020 1,881,169
Valero Energy Corp.+ 12,570 1,421,164
Kerr-McGee Corp. 14,190 1,377,991
Apache Corp. 14,170 1,065,867
Burlington Resources, Inc. 9,357 760,911
EOG Resources, Inc.+ 8,880 665,112
Murphy Oil Corp. 11,150 556,050
Marathon Oil Corp. 1,290 88,920
---------------
TOTAL OIL & GAS 23,069,518
---------------
ENERGY EQUIPMENT & SERVICES 0.8%
Schlumberger Ltd. 14,010 1,182,164
Transocean, Inc.*+ 16,511 1,012,289
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 2,194,453
---------------
TOTAL ENERGY 25,263,971
---------------
UTILITIES 3.7%
ELECTRIC UTILITIES 2.1%
TXU Corp.+ 14,730 1,662,722
American Electric Power Co., Inc.+ 36,922 1,465,803
Edison International 30,853 1,458,730
Entergy Corp. 12,014 892,881
Allegheny Energy, Inc.*+ 24,708 759,030
---------------
TOTAL ELECTRIC UTILITIES 6,239,166
---------------
MULTI-UTILITIES 1.6%
Duke Energy Corp.+ 54,850 1,599,975
TECO Energy, Inc.+ 64,543 1,163,065
CMS Energy Corp.*+ 69,620 1,145,249
CenterPoint Energy, Inc.+ 52,767 784,645
PG&E Corp.+ 2,960 116,180
---------------
TOTAL MULTI-UTILITIES 4,809,114
---------------
GAS UTILITIES 0.0%
Nicor, Inc.+ 1,975 83,009
---------------
TOTAL GAS UTILITIES 83,009
---------------
TOTAL UTILITIES 11,131,289
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES 2.8%
DIVERSIFIED TELECOMMUNICATION SERVICES 2.0%
Verizon Communications, Inc. 84,987 $ 2,778,225
Qwest Communications International, Inc.* 291,380 1,194,658
CenturyTel, Inc.+ 33,720 1,179,526
SBC Communications, Inc.+ 35,090 841,107
BellSouth Corp.+ 4,230 111,249
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 6,104,765
---------------
WIRELESS TELECOMMUNICATION SERVICES 0.8%
Sprint Nextel Corp.+ 94,000 2,235,320
---------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 2,235,320
---------------
TOTAL TELECOMMUNICATION SERVICES 8,340,085
---------------
MATERIALS 2.6%
CHEMICALS 1.3%
Dow Chemical Co. 45,304 1,887,818
Ashland, Inc. 19,730 1,089,885
Eastman Chemical Co. 20,530 964,294
Hercules, Inc.* 1,100 13,442
---------------
TOTAL CHEMICALS 3,955,439
---------------
METALS & MINING 0.7%
Phelps Dodge Corp. 10,532 1,368,423
Nucor Corp.+ 12,354 728,762
---------------
TOTAL METALS & MINING 2,097,185
---------------
PAPER & FOREST PRODUCTS 0.4%
Weyerhaeuser Co.+ 16,047 1,103,231
Louisiana-Pacific Corp.+ 2,968 82,184
Georgia-Pacific Corp. 770 26,226
---------------
TOTAL PAPER & FOREST PRODUCTS 1,211,641
---------------
CONTAINERS & PACKAGING 0.1%
Sealed Air Corp.*+ 8,650 410,529
Temple-Inland, Inc. 480 19,608
---------------
TOTAL CONTAINERS & PACKAGING 430,137
---------------
CONSTRUCTION MATERIALS 0.1%
Vulcan Materials Co.+ 2,440 181,073
---------------
TOTAL CONSTRUCTION MATERIALS 181,073
---------------
TOTAL MATERIALS 7,875,475
---------------
TOTAL COMMON STOCKS
(Cost $232,781,503) 268,237,729
---------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 25
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 7.3%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $12,337,543 $ 12,337,543
3.24% due 10/03/05 9,396,521 9,396,521
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $21,734,064) 21,734,064
---------------
SECURITIES LENDING COLLATERAL 19.6%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 58,369,738 58,369,738
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $58,369,738) 58,369,738
---------------
TOTAL INVESTMENTS 116.8%
(Cost $312,885,305) $ 348,341,531
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (16.8)% $ (50,041,878)
===============
NET ASSETS - 100.0% $ 298,299,653
- --------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2005 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $179,670,400) 2,912 $ (260,355)
===============
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 9.
See Notes to Financial Statements.
26 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
URSA MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 54.5%
Federal Home Loan Bank*
3.39% due 10/07/05 $ 50,000,000 $ 49,981,166
3.55% due 11/09/05 50,000,000 49,817,569
3.57% due 11/09/05 40,323,000 40,175,048
3.58% due 10/12/05 25,000,000 24,977,625
3.43% due 10/19/05 25,000,000 24,961,889
Freddie Mac*
3.70% due 12/12/05 50,000,000 49,640,278
3.53% due 11/01/05 25,000,000 24,928,910
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $264,482,485) 264,482,485
---------------
REPURCHASE AGREEMENTS 43.4%
Repurchase Agreement (Note 6)
3.25% due 10/03/05+ 131,594,484 131,594,484
3.24% due 10/03/05 78,786,258 78,786,258
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $210,380,742) 210,380,742
---------------
TOTAL INVESTMENTS 97.9%
(Cost $474,863,227) $ 474,863,227
===============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 2.1% $ 10,012,199
===============
NET ASSETS - 100.0% $ 484,875,426
- ------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
December 2005 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $204,535,500) 3,315 $ 859,043
===============
UNITS
-----
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
December 2005 S&P 500 Index
Swap, Maturing 12/14/05**
(Notional Market Value
$281,165,467) 228,811 $ 3,025,435
===============
* 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 SEPTEMBER 30, 2005.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 27
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
OTC FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 96.4%
INFORMATION TECHNOLOGY 57.5%
SOFTWARE 16.7%
Microsoft Corp. 2,193,950 $ 56,450,333
Symantec Corp.*+ 835,750 18,938,095
Oracle Corp.* 1,372,070 16,999,947
Intuit, Inc.*+ 315,776 14,149,923
Adobe Systems, Inc.+ 338,269 10,097,330
Electronic Arts, Inc.*+ 170,290 9,687,798
Autodesk, Inc. 152,870 7,099,283
Check Point Software Technologies Ltd.*+ 290,665 7,068,973
BEA Systems, Inc.* 613,838 5,512,265
Citrix Systems, Inc.* 159,150 4,001,031
Mercury Interactive Corp.*+ 99,591 3,943,804
---------------
TOTAL SOFTWARE 153,948,782
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 13.3%
Intel Corp. 1,676,157 41,317,270
Applied Materials, Inc. 1,005,767 17,057,808
KLA-Tencor Corp.+ 310,772 15,153,243
Novellus Systems, Inc.*+ 496,482 12,451,769
Marvell Technology Group Ltd.*+ 197,090 9,087,820
Lam Research Corp.*+ 238,300 7,261,001
Linear Technology Corp.+ 180,860 6,798,527
Maxim Integrated Products, Inc. 137,210 5,852,007
Broadcom Corp. -- Class A* 118,740 5,570,093
Microchip Technology, Inc. 83,630 2,518,936
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 123,068,474
---------------
COMMUNICATIONS EQUIPMENT 12.5%
Qualcomm, Inc.+ 1,294,040 57,908,290
Cisco Systems, Inc.* 2,058,650 36,911,595
Research In Motion Ltd.*+ 124,030 8,483,652
Juniper Networks, Inc.*+ 233,780 5,561,626
Comverse Technology, Inc.*+ 171,560 4,506,881
JDS Uniphase Corp.*+ 761,170 1,689,797
---------------
TOTAL COMMUNICATIONS EQUIPMENT 115,061,841
---------------
COMPUTERS & PERIPHERALS 9.9%
Apple Computer, Inc.* 811,370 43,497,546
Dell, Inc.* 870,218 29,761,455
Sandisk Corp.*+ 157,500 7,599,375
Network Appliance, Inc.* 288,050 6,838,307
QLogic Corp.* 97,080 3,320,136
---------------
TOTAL COMPUTERS & PERIPHERALS 91,016,819
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES 2.9%
Yahoo!, Inc.*+ 621,120 $ 21,018,701
VeriSign, Inc.*+ 284,511 6,080,000
---------------
TOTAL INTERNET SOFTWARE & SERVICES 27,098,701
---------------
IT CONSULTING & SERVICES 1.9%
Paychex, Inc.+ 211,860 7,855,769
Fiserv, Inc.*+ 130,130 5,969,063
Cognizant Technology Solutions Corp.* 83,390 3,885,140
---------------
TOTAL IT CONSULTING & SERVICES 17,709,972
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3%
CDW Corp.+ 29,690 1,749,335
Sanmina-SCI Corp.* 277,440 1,190,217
---------------
TOTAL ELECTRONIC EQUIPMENT &
INSTRUMENTS 2,939,552
---------------
TOTAL INFORMATION TECHNOLOGY 530,844,141
---------------
CONSUMER DISCRETIONARY 18.5%
MEDIA 5.6%
Comcast Corp. -- Class A*+ 610,010 17,922,094
Lamar Advertising Co.*+ 179,580 8,145,749
XM Satellite Radio Holdings, Inc.*+ 197,627 7,096,785
Sirius Satellite Radio, Inc.*+ 972,350 6,368,892
NTL, Inc.* 75,680 5,055,424
Liberty Global, Inc. -- Class A*+ 144,020 3,900,062
EchoStar Communications Corp. 102,310 3,025,307
---------------
TOTAL MEDIA 51,514,313
---------------
INTERNET & CATALOG RETAIL 4.7%
eBay, Inc.* 652,780 26,894,536
IAC/InterActiveCorp*+ 499,860 12,671,451
Amazon.com, Inc.*+ 78,130 3,539,289
---------------
TOTAL INTERNET & CATALOG RETAIL 43,105,276
---------------
SPECIALTY RETAIL 2.5%
Staples, Inc. 442,750 9,439,430
Bed Bath & Beyond, Inc.*+ 224,160 9,006,749
Ross Stores, Inc. 135,260 3,205,662
Petsmart, Inc. 68,650 1,495,197
---------------
TOTAL SPECIALTY RETAIL 23,147,038
---------------
HOTELS, RESTAURANTS & LEISURE 2.4%
Starbucks Corp.* 386,980 19,387,698
Wynn Resorts Ltd.*+ 67,890 3,065,233
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 22,452,931
---------------
See Notes to Financial Statements.
28 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
OTC FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MULTILINE RETAIL 1.7%
Sears Holdings Corp.*+ 119,845 $ 14,911,115
Dollar Tree Stores, Inc.*+ 49,000 1,060,850
---------------
TOTAL MULTILINE RETAIL 15,971,965
---------------
COMMERCIAL SERVICES & SUPPLIES 1.1%
Apollo Group, Inc. -- Class A*+ 83,080 5,515,681
Career Education Corp.*+ 143,847 5,115,200
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 10,630,881
---------------
HOUSEHOLD DURABLES 0.5%
Garmin Ltd.+ 61,740 4,187,824
---------------
TOTAL HOUSEHOLD DURABLES 4,187,824
---------------
TOTAL CONSUMER DISCRETIONARY 171,010,228
---------------
HEALTH CARE 14.5%
BIOTECHNOLOGY 10.4%
Amgen, Inc.* 420,960 33,537,883
Gilead Sciences, Inc.*+ 332,620 16,218,551
Genzyme Corp.* 209,390 15,000,700
Biogen Idec, Inc.* 233,470 9,217,396
Medimmune, Inc.* 191,790 6,453,733
Chiron Corp.* 131,290 5,726,870
Celgene Corp.*+ 96,400 5,236,448
Invitrogen Corp.*+ 62,290 4,686,077
---------------
TOTAL BIOTECHNOLOGY 96,077,658
---------------
PHARMACEUTICALS 1.6%
Teva Pharmaceutical
Industries Ltd. -- SP ADR+ 309,930 10,357,861
Sepracor, Inc.*+ 71,104 4,194,425
---------------
TOTAL PHARMACEUTICALS 14,552,286
---------------
HEALTH CARE PROVIDERS & SERVICES 1.3%
Express Scripts, Inc.*+ 97,035 6,035,577
Patterson Cos., Inc.*+ 95,900 3,838,877
Lincare Holdings, Inc.*+ 56,430 2,316,451
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 12,190,905
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.2%
Biomet, Inc.+ 223,759 7,766,675
DENTSPLY International, Inc. 55,150 2,979,203
---------------
TOTAL HEALTH CARE EQUIPMENT
& SUPPLIES 10,745,878
---------------
TOTAL HEALTH CARE 133,566,727
---------------
INDUSTRIALS 3.1%
MACHINERY 0.9%
Paccar, Inc. 128,070 8,694,672
---------------
TOTAL MACHINERY 8,694,672
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AIR FREIGHT & COURIERS 0.8%
Expeditors International Washington, Inc.+ 72,210 $ 4,100,084
C.H. Robinson Worldwide, Inc.+ 54,030 3,464,403
---------------
TOTAL AIR FREIGHT & COURIERS 7,564,487
---------------
COMMERCIAL SERVICES & SUPPLIES 0.6%
Cintas Corp.+ 134,460 5,519,583
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 5,519,583
---------------
TRADING COMPANIES & DISTRIBUTORS 0.4%
Fastenal Co.+ 56,074 3,425,561
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 3,425,561
---------------
ELECTRICAL EQUIPMENT 0.4%
American Power Conversion Corp. 130,210 3,372,439
---------------
TOTAL ELECTRICAL EQUIPMENT 3,372,439
---------------
TOTAL INDUSTRIALS 28,576,742
---------------
CONSUMER STAPLES 1.5%
FOOD & DRUG RETAILING 1.5%
Costco Wholesale Corp.+ 195,300 8,415,477
Whole Foods Market, Inc.+ 40,420 5,434,469
---------------
TOTAL FOOD & DRUG RETAILING 13,849,946
---------------
TOTAL CONSUMER STAPLES 13,849,946
---------------
TELECOMMUNICATION SERVICES 0.8%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.8%
MCI, Inc. 240,980 6,113,663
Level 3 Communications, Inc.*+ 510,336 1,183,979
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 7,297,642
---------------
TOTAL TELECOMMUNICATION SERVICES 7,297,642
---------------
MATERIALS 0.5%
CHEMICALS 0.3%
Sigma-Aldrich Corp. 40,210 2,575,853
---------------
TOTAL CHEMICALS 2,575,853
---------------
CONTAINERS & PACKAGING 0.2%
Smurfit-Stone Container Corp.*+ 205,650 2,130,534
---------------
TOTAL CONTAINERS & PACKAGING 2,130,534
---------------
TOTAL MATERIALS 4,706,387
---------------
TOTAL COMMON STOCKS
(Cost $544,577,673) 889,851,813
---------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 29
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
OTC FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 3.4%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $17,637,008 $ 17,637,008
3.24% due 10/03/05 13,432,700 13,432,700
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $31,069,708) 31,069,708
---------------
SECURITIES LENDING COLLATERAL 22.7%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 209,194,920 209,194,920
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $209,194,920) 209,194,920
---------------
TOTAL INVESTMENTS 122.5%
(Cost $784,842,301) $ 1,130,116,441
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (22.5)% $ (207,449,947)
===============
NET ASSETS - 100.0% $ 922,666,494
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2005 Nasdaq 100 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $31,272,800) 970 $ 56,557
===============
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 9.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
30 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
ARKTOS MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 102.5%
Repurchase Agreement (Note 6)
3.25% due 10/03/05+ $129,078,042 $ 129,078,042
3.24% due 10/03/05 84,049,015 84,049,015
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $213,127,057) 213,127,057
---------------
TOTAL INVESTMENTS 102.5%
(Cost $213,127,057) $ 213,127,057
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (2.5)% $ (5,126,618)
===============
NET ASSETS - 100.0% $ 208,000,439
- ------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
December 2005 Nasdaq 100 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $30,144,400) 935 $ 153,297
===============
UNITS
-------
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
December 2005 Nasdaq 100 Index
Swap, Maturing 12/14/05*
(Notional Market Value
$179,701,350) 112,197 $ 517,438
===============
* 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 SEPTEMBER 30, 2005.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 31
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 75.4%
FINANCIALS 13.6%
INSURANCE 3.2%
Unitrin, Inc.+ 8,850 $ 420,021
American Financial Group, Inc./OH 11,300 383,409
W.R. Berkley Corp.+ 9,070 358,083
First American Corp. 6,910 315,580
Fidelity National Financial, Inc. 5,550 247,086
Horace Mann Educators Corp. 9,930 196,415
HCC Insurance Holdings, Inc.+ 4,798 136,887
Ohio Casualty Corp. 1,350 36,612
Allmerica Financial Corp.* 90 3,703
---------------
TOTAL INSURANCE 2,097,796
---------------
REAL ESTATE 2.9%
Macerich Co. 7,815 507,506
Weingarten Realty Investors 11,870 449,279
Liberty Property Trust+ 10,380 441,565
Regency Centers Corp.+ 4,920 282,654
Highwoods Properties, Inc.+ 7,350 216,899
AMB Property Corp. 280 12,572
---------------
TOTAL REAL ESTATE 1,910,475
---------------
THRIFTS & MORTGAGE FINANCE 2.6%
Radian Group, Inc.+ 10,160 539,496
PMI Group, Inc.+ 12,600 502,362
Astoria Financial Corp. 11,630 307,265
IndyMac Bancorp, Inc.+ 7,750 306,745
New York Community
Bancorp, Inc.+ 3,980 65,272
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 1,721,140
---------------
BANKS 2.0%
Associated Banc-Corp.+ 15,415 469,849
SVB Financial Group*+ 6,980 339,507
Commerce Bancorp, Inc./NJ+ 10,260 314,879
Bank of Hawaii Corp. 3,934 193,632
---------------
TOTAL BANKS 1,317,867
---------------
CAPITAL MARKETS 1.6%
Legg Mason, Inc.+ 6,490 711,888
SEI Investments Co. 4,583 172,229
Raymond James Financial, Inc. 4,460 143,256
Investors Financial Services Corp.+ 460 15,134
---------------
TOTAL CAPITAL MARKETS 1,042,507
---------------
CONSUMER FINANCE 0.7%
AmeriCredit Corp.*+ 19,114 456,251
---------------
TOTAL CONSUMER FINANCE 456,251
---------------
DIVERSIFIED FINANCIALS 0.6%
Leucadia National Corp. 8,648 372,729
---------------
TOTAL DIVERSIFIED FINANCIALS 372,729
---------------
TOTAL FINANCIALS 8,918,765
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONSUMER DISCRETIONARY 12.7%
SPECIALTY RETAIL 4.1%
Pacific Sunwear of California, Inc.*+ 17,800 $ 381,632
Chico's FAS, Inc.*+ 9,054 333,187
Petsmart, Inc. 14,071 306,466
American Eagle Outfitters, Inc. 11,529 271,277
Ross Stores, Inc. 9,667 229,108
Abercrombie & Fitch Co. --
Class A 3,903 194,565
Advance Auto Parts, Inc.*+ 4,645 179,669
Barnes & Noble, Inc. 4,400 165,880
CarMax, Inc.*+ 4,770 149,158
Michaels Stores, Inc.+ 4,090 135,216
Urban Outfitters, Inc.*+ 4,270 125,538
O'Reilly Automotive, Inc.* 2,840 80,031
Payless Shoesource, Inc.*+ 4,460 77,604
Claire's Stores, Inc. 1,280 30,886
---------------
TOTAL SPECIALTY RETAIL 2,660,217
---------------
HOUSEHOLD DURABLES 2.9%
American Greetings Corp. --
Class A+ 14,868 407,383
Lennar Corp. -- Class A+ 6,370 380,671
Toll Brothers, Inc.*+ 6,580 293,929
Ryland Group, Inc.+ 3,002 205,397
Harman International
Industries, Inc. 1,630 166,700
Blyth, Inc. 6,300 140,427
Mohawk Industries, Inc.*+ 1,680 134,820
Hovnanian Enterprises, Inc. --
Class A*+ 2,040 104,448
Tupperware Corp.+ 2,030 46,243
---------------
TOTAL HOUSEHOLD DURABLES 1,880,018
---------------
MEDIA 1.9%
Scholastic Corp.*+ 9,844 363,834
Catalina Marketing Corp.+ 15,880 361,111
Media General, Inc. 5,980 346,900
Harte-Hanks, Inc. 3,087 81,590
Entercom Communications Corp.* 1,810 57,178
Valassis Communications, Inc.* 830 32,353
Westwood One, Inc. 290 5,768
---------------
TOTAL MEDIA 1,248,734
---------------
HOTELS, RESTAURANTS & LEISURE 1.3%
CBRL Group, Inc.+ 8,240 277,358
Applebee's International, Inc. 7,650 158,279
Boyd Gaming Corp. 3,490 150,489
International Speedway Corp. --
Class A 2,240 117,533
Brinker International, Inc.* 2,800 105,168
Cheesecake Factory, Inc.*+ 1,880 58,731
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 867,558
---------------
See Notes to Financial Statements.
32 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
TEXTILES & APPAREL 1.0%
Timberland Co. -- Class A* 12,150 $ 410,427
Polo Ralph Lauren Corp. 5,100 256,530
---------------
TOTAL TEXTILES & APPAREL 666,957
---------------
AUTO COMPONENTS 0.6%
Modine Manufacturing Co. 7,690 282,069
ArvinMeritor, Inc. 5,150 86,108
Lear Corp.+ 860 29,214
---------------
TOTAL AUTO COMPONENTS 397,391
---------------
MULTILINE RETAIL 0.5%
Neiman-Marcus Group, Inc. --
Class A 2,482 248,076
Saks, Inc.* 5,560 102,860
---------------
TOTAL MULTILINE RETAIL 350,936
---------------
COMMERCIAL SERVICES & SUPPLIES 0.4%
Career Education Corp.*+ 5,373 191,064
Education Management Corp.* 2,130 68,671
ITT Educational Services, Inc.* 520 25,662
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 285,397
---------------
TOTAL CONSUMER DISCRETIONARY 8,357,208
---------------
INFORMATION TECHNOLOGY 11.4%
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.8%
Microchip Technology, Inc. 17,930 540,052
Lam Research Corp.*+ 16,860 513,724
Integrated Device Technology, Inc.* 20,440 219,526
International Rectifier Corp.*+ 3,540 159,583
MEMC Electronic Materials, Inc.*+ 6,150 140,159
Cree, Inc.*+ 3,670 91,823
Semtech Corp.*+ 5,100 83,997
Credence Systems Corp.*+ 6,480 51,710
Triquint Semiconductor, Inc.* 4,910 17,283
Intersil Corp. -- Class A+ 620 13,504
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 1,831,361
---------------
IT CONSULTING & SERVICES 2.8%
DST Systems, Inc.*+ 9,230 506,081
Ceridian Corp.* 16,030 332,623
CSG Systems International, Inc.* 14,820 321,742
Cognizant Technology
Solutions Corp.* 4,422 206,021
CheckFree Corp.*+ 3,720 140,690
Acxiom Corp.+ 7,320 137,030
MPS Group, Inc.* 10,404 122,767
Anteon International Corp.* 1,080 46,181
BISYS Group, Inc.* 1,200 16,116
---------------
TOTAL IT CONSULTING & SERVICES 1,829,251
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
SOFTWARE 1.8%
McAfee, Inc.*+ 9,843 $ 309,267
Sybase, Inc.*+ 9,940 232,795
Wind River Systems, Inc.*+ 14,779 191,092
Activision, Inc.*+ 7,740 158,283
Macromedia, Inc.* 3,710 150,886
Fair Isaac Corp.+ 2,340 104,832
Cadence Design Systems, Inc.* 2,960 47,834
---------------
TOTAL SOFTWARE 1,194,989
---------------
COMPUTERS & PERIPHERALS 1.6%
Sandisk Corp.*+ 8,110 391,308
Western Digital Corp.*+ 23,590 305,019
Imation Corp. 5,504 235,956
Diebold, Inc. 3,740 128,880
---------------
TOTAL COMPUTERS & PERIPHERALS 1,061,163
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.5%
Arrow Electronics, Inc.* 11,260 353,114
Avnet, Inc.*+ 12,690 310,270
CDW Corp.+ 3,940 232,145
Amphenol Corp. -- Class A 2,080 83,907
National Instruments Corp.+ 1,395 34,373
---------------
TOTAL ELECTRONIC EQUIPMENT
& INSTRUMENTS 1,013,809
---------------
COMMUNICATIONS EQUIPMENT 0.8%
Harris Corp. 5,524 230,903
Powerwave Technologies, Inc.*+ 11,580 150,424
Avocent Corp.*+ 2,590 81,948
F5 Networks, Inc.*+ 1,660 72,160
ADTRAN, Inc. 396 12,474
---------------
TOTAL COMMUNICATIONS EQUIPMENT 547,909
---------------
OFFICE ELECTRONICS 0.1%
Zebra Technologies Corp. --
Class A*+ 784 30,647
---------------
TOTAL OFFICE ELECTRONICS 30,647
---------------
TOTAL INFORMATION TECHNOLOGY 7,509,129
---------------
INDUSTRIALS 9.7%
COMMERCIAL SERVICES & SUPPLIES 3.3%
Dun & Bradstreet Corp.* 8,160 537,499
Herman Miller, Inc. 13,315 403,444
Republic Services, Inc. 10,778 380,356
HNI Corp. 3,534 212,817
Korn/Ferry International, Inc.* 9,140 149,805
Adesa, Inc. 6,760 149,396
Corporate Executive Board Co. 1,765 137,635
Stericycle, Inc.*+ 2,170 124,016
Copart, Inc.* 2,206 52,657
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 2,147,625
---------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 33
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MACHINERY 1.8%
Harsco Corp. 4,277 $ 280,443
Federal Signal Corp. 13,750 234,987
Joy Global, Inc. 4,340 218,996
Trinity Industries, Inc.+ 3,450 139,690
Pentair, Inc. 3,816 139,284
Timken Co. 4,150 122,965
Donaldson Co., Inc.+ 1,430 43,658
Flowserve Corp.*+ 799 29,044
---------------
TOTAL MACHINERY 1,209,067
---------------
ROAD & RAIL 1.3%
Yellow Roadway Corp.*+ 10,460 433,253
CNF, Inc. 7,470 392,175
---------------
TOTAL ROAD & RAIL 825,428
---------------
AEROSPACE & DEFENSE 1.1%
Alliant Techsystems, Inc.*+ 5,950 444,167
Precision Castparts Corp. 5,320 282,492
---------------
TOTAL AEROSPACE & DEFENSE 726,659
---------------
ELECTRICAL EQUIPMENT 0.5%
Thomas & Betts Corp.* 8,160 280,785
AMETEK, Inc.+ 1,640 70,471
---------------
TOTAL ELECTRICAL EQUIPMENT 351,256
---------------
AIR FREIGHT & COURIERS 0.5%
C.H. Robinson Worldwide, Inc.+ 5,430 348,172
---------------
TOTAL AIR FREIGHT & COURIERS 348,172
---------------
TRADING COMPANIES & DISTRIBUTORS 0.4%
GATX Corp.+ 6,250 247,187
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 247,187
---------------
CONSTRUCTION & ENGINEERING 0.3%
Jacobs Engineering Group, Inc.*+ 3,430 231,182
---------------
TOTAL CONSTRUCTION & ENGINEERING 231,182
---------------
MARINE 0.2%
Alexander & Baldwin, Inc. 2,490 132,568
---------------
TOTAL MARINE 132,568
---------------
INDUSTRIAL CONGLOMERATES 0.2%
Teleflex, Inc.+ 1,467 103,424
---------------
TOTAL INDUSTRIAL CONGLOMERATES 103,424
---------------
AIRLINES 0.1%
Alaska Air Group, Inc.*+ 2,380 69,163
---------------
TOTAL AIRLINES 69,163
---------------
TOTAL INDUSTRIALS 6,391,731
---------------
HEALTH CARE 8.9%
HEALTH CARE PROVIDERS & SERVICES 3.6%
Omnicare, Inc.+ 10,640 598,287
Pacificare Health Systems, Inc.*+ 6,520 520,166
Lincare Holdings, Inc.*+ 11,031 452,823
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Patterson Cos., Inc.*+ 8,707 $ 348,541
Apria Healthcare Group, Inc.* 5,068 161,720
Triad Hospitals, Inc.*+ 3,520 159,350
Health Net, Inc.* 1,548 73,251
Community Health Systems, Inc.* 1,323 51,346
LifePoint Hospitals, Inc.*+ 1,000 43,730
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,409,214
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 2.4%
Hillenbrand Industries, Inc.+ 8,520 400,866
Varian Medical Systems, Inc.*+ 7,147 282,378
Varian, Inc.*+ 7,560 259,459
Inamed Corp.*+ 2,655 200,931
DENTSPLY International, Inc. 3,206 173,188
Edwards Lifesciences Corp.* 3,452 153,303
Intuitive Surgical, Inc.*+ 790 57,899
Gen-Probe, Inc.* 1,030 50,934
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,578,958
---------------
BIOTECHNOLOGY 1.5%
Invitrogen Corp.*+ 4,396 330,711
Protein Design Labs, Inc.* 10,080 282,240
Charles River Laboratories
International, Inc.*+ 5,840 254,741
Millennium Pharmaceuticals, Inc.*+ 4,894 45,661
Techne Corp.*+ 600 34,188
Cephalon, Inc.*+ 500 23,210
---------------
TOTAL BIOTECHNOLOGY 970,751
---------------
PHARMACEUTICALS 1.4%
IVAX Corp.* 15,040 396,454
Barr Pharmaceuticals, Inc.* 6,430 353,136
Sepracor, Inc.*+ 3,080 181,689
---------------
TOTAL PHARMACEUTICALS 931,279
---------------
TOTAL HEALTH CARE 5,890,202
---------------
ENERGY 6.6%
OIL & GAS 3.5%
Peabody Energy Corp. 5,130 432,716
Overseas Shipholding Group, Inc.+ 6,860 400,144
Newfield Exploration Co.*+ 6,435 315,959
Pioneer Natural Resources Co.+ 5,020 275,698
Noble Energy, Inc.+ 5,000 234,500
Forest Oil Corp.* 3,580 186,518
Arch Coal, Inc.+ 2,530 170,775
Denbury Resources, Inc.* 3,187 160,752
Plains Exploration & Production Co.* 1,870 80,073
Western Gas Resources, Inc.+ 560 28,689
---------------
TOTAL OIL & GAS 2,285,824
---------------
See Notes to Financial Statements.
34 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES 3.1%
Patterson-UTI Energy, Inc.+ 12,004 $ 433,104
Cooper Cameron Corp.*+ 4,760 351,907
ENSCO International, Inc.+ 7,230 336,846
Pride International, Inc.*+ 10,950 312,184
Grant Prideco, Inc.*+ 6,060 246,339
Helmerich & Payne, Inc.+ 3,333 201,280
Smith International, Inc.+ 5,310 176,876
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 2,058,536
---------------
TOTAL ENERGY 4,344,360
---------------
UTILITIES 5.9%
MULTI-UTILITIES 2.9%
Vectren Corp. 14,890 422,131
NSTAR+ 14,315 413,990
WPS Resources Corp.+ 7,158 413,732
Aquila, Inc.* 52,168 206,585
Wisconsin Energy Corp. 4,790 191,217
MDU Resources Group, Inc. 5,210 185,737
OGE Energy Corp.+ 2,040 57,324
---------------
TOTAL MULTI-UTILITIES 1,890,716
---------------
GAS UTILITIES 1.8%
Oneok, Inc.+ 12,815 435,966
Questar Corp. 4,724 416,279
AGL Resources, Inc. 9,423 349,688
---------------
TOTAL GAS UTILITIES 1,201,933
---------------
ELECTRIC UTILITIES 1.0%
Sierra Pacific Resources*+ 18,630 276,656
Black Hills Corp.+ 4,382 190,047
Pepco Holdings, Inc. 5,560 129,381
Westar Energy, Inc.+ 2,040 49,225
---------------
TOTAL ELECTRIC UTILITIES 645,309
---------------
WATER UTILITIES 0.2%
Aqua America, Inc. 4,020 152,841
---------------
TOTAL WATER UTILITIES 152,841
---------------
TOTAL UTILITIES 3,890,799
---------------
MATERIALS 3.6%
CHEMICALS 2.5%
Lyondell Chemical Co.+ 18,280 523,174
Lubrizol Corp. 10,859 470,520
Olin Corp.+ 11,220 213,068
Airgas, Inc. 4,970 147,261
FMC Corp.* 2,550 145,911
Chemtura Corp. 9,100 113,022
Albemarle Corp. 1,097 41,357
---------------
TOTAL CHEMICALS 1,654,313
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONTAINERS & PACKAGING 0.6%
Packaging Corporation of America 18,070 $ 350,739
Longview Fibre Co. 670 13,058
---------------
TOTAL CONTAINERS & PACKAGING 363,797
---------------
CONSTRUCTION MATERIALS 0.4%
Martin Marietta Materials, Inc. 3,636 285,281
---------------
TOTAL CONSTRUCTION MATERIALS 285,281
---------------
METALS & MINING 0.1%
Steel Dynamics, Inc.+ 1,290 43,808
---------------
TOTAL METALS & MINING 43,808
---------------
TOTAL MATERIALS 2,347,199
---------------
CONSUMER STAPLES 2.6%
HOUSEHOLD PRODUCTS 0.9%
Energizer Holdings, Inc.*+ 8,633 489,491
Church & Dwight Co., Inc. 2,060 76,096
---------------
TOTAL HOUSEHOLD PRODUCTS 565,587
---------------
FOOD PRODUCTS 0.7%
Dean Foods Co.* 11,929 463,561
---------------
TOTAL FOOD PRODUCTS 463,561
---------------
FOOD & DRUG RETAILING 0.6%
Whole Foods Market, Inc.+ 2,894 389,098
---------------
TOTAL FOOD & DRUG RETAILING 389,098
---------------
BEVERAGES 0.4%
PepsiAmericas, Inc. 12,016 273,124
---------------
TOTAL BEVERAGES 273,124
---------------
TOTAL CONSUMER STAPLES 1,691,370
---------------
TELECOMMUNICATION SERVICES 0.4%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.3%
Cincinnati Bell, Inc.*+ 44,930 198,141
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 198,141
---------------
WIRELESS TELECOMMUNICATION SERVICES 0.1%
Telephone & Data Systems, Inc.+ 1,160 45,240
---------------
TOTAL WIRELESS
TELECOMMUNICATION SERVICES 45,240
---------------
TOTAL TELECOMMUNICATION SERVICES 243,381
---------------
TOTAL COMMON STOCKS
(Cost $44,836,202) 49,584,144
---------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 35
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
MEDIUS FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 19.2%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $ 7,171,938 $ 7,171,938
3.24% due 10/03/05 5,462,291 5,462,291
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $12,634,229) 12,634,229
---------------
SECURITIES LENDING COLLATERAL 19.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 12,774,694 12,774,694
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $12,774,694) 12,774,694
---------------
TOTAL INVESTMENTS 114.0%
(Cost $70,245,125) $ 74,993,067
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (14.0)% $ (9,234,101)
===============
NET ASSETS - 100.0% $ 65,758,966
- ------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2005 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $20,021,560) 278 $ 194,738
===============
UNITS
------
EQUITY INDEX SWAP AGREEMENT
November 2005 S&P MidCap 400 Index
Swap, Maturing 11/25/05**
(Notional Market Value
$ 28,862,249) 40,292 $ 147,540
===============
* 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 SEPTEMBER 30, 2005 - SEE
NOTE 9.
See Notes to Financial Statements.
36 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
INVERSE MID-CAP FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 106.4%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $ 4,897,927 $ 4,897,927
3.24% due 10/03/05 3,730,359 3,730,359
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $8,628,286) 8,628,286
---------------
TOTAL INVESTMENTS 106.4%
(Cost $8,628,286) $ 8,628,286
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (6.4)% $ (519,374)
===============
NET ASSETS - 100.0% $ 8,108,912
- ------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
December 2005 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $1,656,460) 23 $ (6,467)
===============
UNITS
-----
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
November 2005 S&P MidCap 400 Index
Swap, Maturing 11/25/05*
(Notional Market Value $6,467,777) 9,029 $ (63,589)
===============
* PRICE RETURN BASED ON S&P MIDCAP 400 INDEX +/- FINANCING AT A VARIABLE
RATE.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 37
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 76.7%
FINANCIALS 16.1%
REAL ESTATE 5.5%
Kilroy Realty Corp. 8,421 $ 471,829
Corporate Office Properties Trust SBI/MD 12,000 419,400
Jones Lang LaSalle, Inc. 8,704 400,906
LaSalle Hotel Properties 11,062 381,086
Eastgroup Properties, Inc. 8,511 372,356
Entertainment Properties Trust 8,258 368,555
Sovran Self Storage, Inc. 7,503 367,272
Commercial Net Lease Realty 18,110 362,200
Equity One, Inc. 15,333 356,492
Taubman Centers, Inc. 10,982 348,129
Spirit Finance Corp. 29,872 336,060
American Home Mortgage Investment Corp. 11,085 335,876
National Health Investors, Inc. 11,022 304,317
Parkway Properties, Inc./MD 6,454 302,822
Trammell Crow Co.* 11,122 274,491
Fieldstone Investment Corp. 22,942 267,504
MFA Mortgage Investments, Inc.+ 38,682 237,121
Impac Mortgage Holdings, Inc.+ 19,232 235,784
Meristar Hospitality Corp.* 24,434 223,082
Pennsylvania Real Estate Investment Trust 5,046 212,840
Arbor Realty Trust, Inc. 6,023 169,246
Bedford Property Investors, Inc. 6,841 163,090
Capital Automotive REIT 3,712 143,692
BioMed Realty Trust, Inc. 5,534 137,243
Luminent Mortgage Capital, Inc. 17,931 135,379
Essex Property Trust, Inc.+ 1,274 114,660
Realty Income Corp. 4,247 101,546
CB Richard Ellis Group, Inc. -- Class A* 1,766 86,887
Saxon Capital, Inc. 6,911 81,895
Capstead Mortgage Corp.+ 9,084 62,770
Equity Inns, Inc. 4,287 57,875
Equity Lifestyle Properties, Inc. 1,074 48,330
Newcastle Investment Corp.+ 1,714 47,821
HomeBanc Corp./Atlanta GA 5,843 45,108
New Century Financial Corp. 938 34,021
---------------
TOTAL REAL ESTATE 8,007,685
---------------
BANKS 5.2%
SVB Financial Group*+ 8,812 428,616
Provident Bankshares Corp. 11,551 401,744
Pacific Capital Bancorp 11,684 388,960
Umpqua Holding Corp.+ 15,591 379,173
Central Pacific Financial Corp. Co. 10,418 366,505
Hancock Holding Co. 10,493 358,231
Cathay General Bancorp 9,898 350,983
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MB Financial Corp. 8,754 $ 341,231
Greater Bay Bancorp 13,845 341,141
TrustCo Bank Corp./NY+ 27,090 339,438
First Republic Bank+ 9,443 332,677
First Bancorp Puerto Rico 19,626 332,072
Sterling Financial Corp./WA 14,149 319,060
FNB Corp. 18,312 316,431
First Financial Bancorp 16,553 307,886
Community Bank System, Inc. 12,299 277,957
PrivateBancorp, Inc. 7,719 264,607
Hanmi Financial Corp. 14,188 254,675
United Bankshares, Inc. 6,568 229,552
Citizens Banking Corp./MI 6,552 186,077
First Midwest Bancorp, Inc./IL+ 4,861 181,024
UCBH Holdings, Inc.+ 9,489 173,838
First Community Bancorp/CA 2,724 130,289
Nara Bancorp, Inc. 8,661 129,482
Center Financial Corp. 5,198 122,153
Oriental Financial Group 8,960 109,670
East-West Bancorp, Inc. 3,203 109,030
Prosperity Bancshares, Inc.+ 2,848 86,152
---------------
TOTAL BANKS 7,558,654
---------------
THRIFTS & MORTGAGE FINANCE 2.1%
Corus Bankshares, Inc. 6,592 361,439
Commercial Capital Bancorp, Inc. 20,078 341,326
Harbor Florida Bancshares, Inc. 9,289 336,912
FirstFed Financial Corp.*+ 6,113 328,941
Provident Financial Services, Inc. 18,068 317,997
Flagstar Bancorp, Inc.+ 16,260 261,786
NetBank, Inc. 21,702 180,344
MAF Bancorp, Inc. 4,041 165,681
Dime Community Bancshares 9,949 146,449
Kearny Financial Corp.+ 10,204 127,550
Federal Agricultural Mortgage Corp. 4,063 98,893
R&G Financial Corp. -- Class B 6,695 92,056
Downey Financial Corp.+ 1,437 87,513
Franklin Bank Corp./Houston TX* 5,095 82,284
Doral Financial Corp.+ 6,266 81,897
BankAtlantic Bancorp, Inc. -- Class A 4,357 74,025
W Holding Co., Inc. 1,074 10,268
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 3,095,361
---------------
INSURANCE 1.9%
ProAssurance Corp.* 9,060 422,830
LandAmerica Financial Group, Inc.+ 6,326 408,976
Covanta Holding Corp.* 25,585 343,607
Argonaut Group, Inc.* 11,332 306,077
Selective Insurance Group, Inc. 6,024 294,574
Zenith National Insurance Corp. 2,847 178,479
Safety Insurance Group, Inc. 4,892 174,106
UICI 4,776 171,936
See Notes to Financial Statements.
38 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Triad Guaranty, Inc.*+ 4,161 $ 163,194
RLI Corp. 2,561 118,472
Philadelphia Consolidated Holding Co.* 1,006 85,409
AmerUs Group Co.+ 1,010 57,944
---------------
TOTAL INSURANCE 2,725,604
---------------
CAPITAL MARKETS 0.7%
Investment Technology Group, Inc.* 11,644 344,662
MCG Capital Corp. 16,298 274,947
Calamos Asset Management, Inc. -- Class A 5,029 124,116
Affiliated Managers Group*+ 1,205 87,266
GAMCO Investors, Inc. -- Class A 1,414 64,832
MarketAxess Holdings, Inc.* 3,709 50,442
LaBranche & Co., Inc.*+ 4,866 42,286
optionsXpress Holdings, Inc. 1,194 22,734
---------------
TOTAL CAPITAL MARKETS 1,011,285
---------------
CONSUMER FINANCE 0.6%
CompuCredit Corp.*+ 9,685 430,208
World Acceptance Corp.* 5,089 129,311
Collegiate Funding Services LLC* 6,902 102,219
ACE Cash Express, Inc.*+ 4,378 85,415
Cash America International, Inc. 3,828 79,431
Advance America Cash Advance Centers, Inc. 5,614 74,385
Nelnet, Inc. -- Class A* 808 30,712
Asta Funding, Inc.+ 575 17,457
---------------
TOTAL CONSUMER FINANCE 949,138
---------------
DIVERSIFIED FINANCIALS 0.1%
Nasdaq Stock Market, Inc.*+ 7,513 190,454
Archipelago Holdings, Inc.* 495 19,726
---------------
TOTAL DIVERSIFIED FINANCIALS 210,180
---------------
TOTAL FINANCIALS 23,557,907
---------------
INFORMATION TECHNOLOGY 13.7%
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 3.3%
Varian Semiconductor Equipment
Associates, Inc.*+ 10,842 459,376
Cymer, Inc.*+ 13,350 418,122
Micrel, Inc.*+ 29,170 327,579
Sigmatel, Inc.* 15,484 313,396
OmniVision Technologies, Inc.*+ 23,967 302,464
ON Semiconductor Corp.*+ 52,134 269,533
MKS Instruments, Inc.*+ 15,332 264,170
Microsemi Corp.*+ 9,000 229,860
Photronics, Inc.*+ 10,657 206,746
Tessera Technologies, Inc.* 6,635 198,453
ATMI, Inc.* 5,777 179,087
Silicon Image, Inc.* 20,135 179,000
Diodes, Inc.* 3,712 134,597
MIPS Technology, Inc.* 17,910 122,325
IXYS Corp.* 11,551 121,979
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ADE Corp.* 4,720 $ 106,106
Cypress Semiconductor Corp.*+ 6,851 103,108
FEI Co.* 4,786 92,130
Power Integrations, Inc.* 4,127 89,762
Silicon Laboratories, Inc.*+ 2,644 80,351
Brooks Automation, Inc.*+ 5,719 76,234
RF Micro Devices, Inc.* 13,450 75,992
Skyworks Solutions, Inc.*+ 9,162 64,317
Rambus, Inc.*+ 5,198 62,896
Silicon Storage Technology, Inc.* 10,227 55,021
Axcelis Technologies, Inc.*+ 10,513 54,878
Credence Systems Corp.*+ 6,602 52,684
Amkor Technology, Inc.*+ 10,726 46,980
PMC - Sierra, Inc.*+ 5,198 45,794
Atmel Corp.*+ 20,378 41,979
LTX Corp.* 6,023 25,417
Conexant Systems, Inc.* 12,133 21,718
Lattice Semiconductor Corp.*+ 2,481 10,619
---------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 4,832,673
---------------
SOFTWARE 2.7%
Kronos, Inc./MA* 8,316 371,226
Transaction Systems
Architects, Inc. -- Class A*+ 12,362 344,282
Internet Security Systems, Inc.* 14,151 339,765
MicroStrategy, Inc. -- Class A* 4,574 321,506
Macrovision Corp.*+ 15,429 294,694
Epicor Software Corp.* 20,127 261,651
Ansys, Inc.*+ 5,464 210,309
Parametric Technology Corp.* 24,118 168,102
Verity, Inc.* 14,317 152,047
Altiris, Inc.* 9,941 151,998
Micros Systems, Inc.*+ 3,472 151,900
Borland Software Corp.* 23,188 134,954
TIBCO Software, Inc.* 15,272 127,674
Quest Software, Inc.*+ 8,223 123,921
Quality Systems, Inc.* 1,487 102,737
Take-Two Interactive Software, Inc.*+ 4,207 92,933
SS&C Technologies Co. 2,391 87,606
Salesforce.com, Inc.* 3,748 86,654
Advent Software, Inc.*+ 3,150 84,861
THQ, Inc.* 3,541 75,494
RSA Security, Inc.* 4,786 60,830
InterVoice, Inc.* 5,687 51,240
Filenet Corp.* 1,726 48,155
Intervideo, Inc.* 4,786 48,004
Vasco Data Security International* 4,786 43,409
Mentor Graphics Corp.*+ 4,287 36,868
Progress Software Corp.* 988 31,389
Serena Software, Inc.* 655 13,054
---------------
TOTAL SOFTWARE 4,017,263
---------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 39
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.0%
Anixter International, Inc.*+ 10,178 $ 410,479
Electro Scientific Industries, Inc.* 13,481 301,435
Coherent, Inc.* 10,227 299,446
Paxar Corp.* 15,236 256,727
Agilsys, Inc. 13,471 226,852
CTS Corp. 17,208 208,217
Littelfuse, Inc.* 5,594 157,359
Rofin-Sinar Technologies, Inc.* 4,127 156,785
TTM Technologies, Inc.* 19,322 138,152
Benchmark Electronics, Inc.*+ 4,127 124,305
Global Imaging Systems, Inc.* 3,379 115,055
MTS Systems Corp. 2,724 102,885
Metrologic Instruments, Inc.* 5,046 91,787
International DisplayWorks, Inc.*+ 12,133 72,070
Itron, Inc.* 1,317 60,134
Trimble Navigation Ltd.* 1,726 58,149
Lexar Media, Inc.* 5,937 37,997
Fargo Electronics, Inc.* 1,074 18,763
Scansource, Inc.* 249 12,136
Taser International, Inc.* 1,064 6,565
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 2,855,298
---------------
COMMUNICATIONS EQUIPMENT 1.8%
CommScope, Inc.*+ 18,612 322,732
Netgear, Inc.* 10,447 251,355
Sycamore Networks, Inc.* 64,843 244,458
Extreme Networks, Inc.*+ 52,343 232,926
Comtech Telecommunications Corp.*+ 5,444 225,763
Black Box Corp.+ 4,058 170,274
Symmetricom, Inc.* 21,728 168,175
Tekelec* 7,523 157,607
Harmonic, Inc.* 26,900 156,558
ADTRAN, Inc. 4,949 155,894
3Com Corp.*+ 32,102 130,976
Ixia*+ 7,759 114,135
Utstarcom, Inc.*+ 10,074 82,305
Avocent Corp.*+ 2,062 65,242
Westell Technologies, Inc. -- Class A* 12,788 46,548
Arris Group, Inc.* 3,798 45,044
F5 Networks, Inc.*+ 775 33,689
Ditech Communications Corp.* 1,902 12,819
EndWave Corp.*+ 908 11,713
---------------
TOTAL COMMUNICATIONS EQUIPMENT 2,628,213
---------------
INTERNET SOFTWARE & SERVICES 1.6%
EarthLink, Inc.* 43,044 460,571
United Online, Inc. 25,767 356,873
InfoSpace, Inc.* 11,391 271,903
Websense, Inc.* 5,198 266,189
Equinix, Inc.* 6,024 250,900
j2 Global Communications, Inc.*+ 5,198 210,103
Digital River, Inc.*+ 5,348 186,378
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Jupitermedia Corp.*+ 8,440 $ 149,472
Bankrate, Inc.*+ 4,367 119,787
Travelzoo, Inc.* 1,074 23,832
Online Resources Corp.* 908 9,607
Click Commerce, Inc.* 499 9,147
---------------
TOTAL INTERNET SOFTWARE & SERVICES 2,314,762
---------------
COMPUTERS & PERIPHERALS 1.2%
Intergraph Corp.* 10,513 470,036
Brocade Communications Systems, Inc.* 60,913 248,525
Hutchinson Technology, Inc.*+ 8,172 213,453
Komag, Inc.*+ 6,403 204,640
Emulex Corp.*+ 9,297 187,892
McData Corp. -- Class A* 34,404 180,277
Palm, Inc.*+ 5,248 148,676
Gateway, Inc.* 26,534 71,642
Synaptics, Inc.*+ 3,349 62,961
Adaptec, Inc.* 4,041 15,477
---------------
TOTAL COMPUTERS & PERIPHERALS 1,803,579
---------------
IT CONSULTING & SERVICES 1.1%
CSG Systems International, Inc.* 19,182 416,441
MAXIMUS, Inc. 9,000 321,750
Perot Systems Corp. -- Class A* 11,524 163,065
Talx Corp. 3,552 116,470
Mantech International Corp. -- Class A* 3,712 98,034
BISYS Group, Inc.* 7,214 96,884
Sapient Corp.*+ 12,901 80,631
Infocrossing, Inc.*+ 8,761 80,513
Acxiom Corp.+ 3,961 74,150
CACI International, Inc. -- Class A*+ 1,028 62,297
iPayment Holdings, Inc.* 1,147 43,402
infoUSA, Inc. -- Class B* 3,053 32,423
RightNow Technologies, Inc.* 1,237 18,209
Kanbay International, Inc.* 409 7,689
---------------
TOTAL IT CONSULTING & SERVICES 1,611,958
---------------
TOTAL INFORMATION TECHNOLOGY 20,063,746
---------------
CONSUMER DISCRETIONARY 11.7%
SPECIALTY RETAIL 3.1%
Charming Shoppes, Inc.*+ 40,026 427,078
Genesco, Inc.* 9,459 352,253
Aaron Rents, Inc. 14,717 311,265
United Auto Group, Inc. 9,277 306,512
Sonic Automotive, Inc. 13,406 297,881
Group 1 Automotive, Inc.* 9,794 270,314
Guitar Center, Inc.*+ 4,892 270,087
Pantry, Inc.* 6,767 252,883
Stein Mart, Inc. 11,946 242,504
Too, Inc.*+ 7,470 204,902
CSK Auto Corp.* 12,961 192,860
Cato Corp. -- Class A 9,316 185,668
See Notes to Financial Statements.
40 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Guess ?, Inc.* 7,574 $ 162,311
HOT Topic, Inc.* 10,317 158,469
Buckle, Inc. 3,632 123,379
Children's Place Retail Stores, Inc.* 3,379 120,428
Finish Line, Inc. -- Class A 7,307 106,609
Build-A-Bear Workshop, Inc.*+ 4,210 93,883
Electronics Boutique Holdings Corp.* 1,487 93,443
Hibbett Sporting Goods, Inc.* 3,791 84,339
Cache, Inc.* 4,554 69,357
Payless Shoesource, Inc.*+ 3,341 58,133
Movie Gallery, Inc.+ 5,448 56,605
Select Comfort Corp.*+ 2,481 49,570
GameStop Corp. -- Class B* 738 20,952
Burlington Coat Factory Warehouse Corp. 326 12,401
Regis Corp. 249 9,417
---------------
TOTAL SPECIALTY RETAIL 4,533,503
---------------
HOTELS, RESTAURANTS & LEISURE 2.4%
Shuffle Master, Inc.*+ 12,871 340,181
CEC Entertainment, Inc.* 9,948 315,948
Six Flags, Inc.*+ 43,756 314,606
CKE Restaurants, Inc.+ 21,475 283,040
Papa John's International, Inc.* 5,029 252,053
Jack in the Box, Inc.*+ 7,673 229,499
Landry's Restaurants, Inc.+ 7,643 223,940
Steak n Shake Co.* 11,797 214,116
Vail Resorts, Inc.* 6,911 198,691
P.F. Chang's China Bistro, Inc.*+ 4,211 188,779
Ameristar Casinos, Inc. 7,849 163,573
Argosy Gaming Co.* 2,724 128,001
Sunterra Corp.*+ 9,128 119,851
Bluegreen Corp.* 6,449 113,825
IHOP Corp. 2,644 107,717
Sonic Corp.* 2,960 80,956
Krispy Kreme Doughnuts, Inc.*+ 12,640 79,126
Domino's Pizza, Inc. 1,726 40,250
Multimedia Games, Inc.*+ 4,121 40,015
Monarch Casino & Resort, Inc.* 1,726 29,325
Gaylord Entertainment Co.*+ 575 27,399
Red Robin Gourmet Burgers, Inc.*+ 575 26,358
Penn National Gaming, Inc.* 419 13,035
Boyd Gaming Corp. 256 11,039
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 3,541,323
---------------
MEDIA 1.8%
Journal Register Co. 19,212 310,850
Emmis Communications Corp. -- Class A* 13,514 298,524
Cumulus Media, Inc. -- Class A* 22,626 282,599
Citadel Broadcasting Corp.* 20,554 282,206
Reader's Digest Association, Inc. 16,321 260,646
RCN Corp.*+ 10,726 227,606
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Entravision Communications Corp. -- Class A* 23,233 $ 182,844
Lin TV Corp. -- Class A* 12,728 177,556
Playboy Enterprises, Inc. -- Class B*+ 9,443 133,146
RH Donnelley Corp.*+ 1,746 110,452
Sinclair Broadcast Group, Inc. -- Class A 11,884 105,411
ProQuest Co.* 2,644 95,713
Cox Radio Inc. -- Class A*+ 4,540 69,008
Insight Communications Co., Inc.* 4,277 49,742
Primedia, Inc.* 10,852 44,385
Gemstar-TV Guide International, Inc.* 9,988 29,564
Catalina Marketing Corp. 908 20,648
---------------
TOTAL MEDIA 2,680,900
---------------
HOUSEHOLD DURABLES 1.5%
Champion Enterprises, Inc.* 34,412 508,610
Brookfield Homes Corp. 6,825 378,992
Yankee Candle Co., Inc. 12,708 311,346
WCI Communities, Inc.*+ 10,603 300,807
Levitt Corp. -- Class A 7,645 175,376
Interface, Inc. -- Class A* 20,704 171,015
Maytag Corp. 6,436 117,521
Blount International, Inc.* 4,792 84,531
Technical Olympic USA, Inc. 1,603 41,935
Beazer Homes USA, Inc.+ 599 35,143
William Lyon Homes, Inc.*+ 206 31,971
Meritage Homes Corp.* 130 9,966
---------------
TOTAL HOUSEHOLD DURABLES 2,167,213
---------------
TEXTILES & APPAREL 0.6%
K-Swiss, Inc. -- Class A 8,577 253,622
Phillips-Van Heusen Corp. 8,002 248,222
Oxford Industries, Inc.+ 2,571 116,003
Quiksilver, Inc.*+ 6,881 99,430
Wolverine World Wide, Inc. 3,961 83,379
Deckers Outdoor Corp.*+ 1,676 40,325
Charles & Colvard Ltd. 409 10,209
Carter's, Inc.* 166 9,429
---------------
TOTAL TEXTILES & APPAREL 860,619
---------------
INTERNET & CATALOG RETAIL 0.5%
Coldwater Creek, Inc.*+ 9,489 239,313
Nutri/System, Inc.*+ 6,023 150,695
Stamps.com, Inc.* 7,581 130,469
1-800-FLOWERS.com, Inc.* 10,738 75,273
Audible, Inc.*+ 5,278 64,867
Priceline.com, Inc.* 2,763 53,381
---------------
TOTAL INTERNET & CATALOG RETAIL 713,998
---------------
COMMERCIAL SERVICES & SUPPLIES 0.4%
Sotheby's Holdings, Inc. -- Class A* 17,174 287,149
Jackson Hewitt Tax Service, Inc. 6,102 145,899
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 41
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Corinthian Colleges, Inc.* 8,910 $ 118,236
DeVry, Inc.*+ 5,857 111,576
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 662,860
---------------
AUTO COMPONENTS 0.3%
Visteon Corp. 12,542 122,661
ArvinMeritor, Inc. 6,186 103,430
Goodyear Tire & Rubber Co.*+ 6,316 98,466
Exide Technologies*+ 9,689 49,220
LKQ Corp.* 1,317 39,773
---------------
TOTAL AUTO COMPONENTS 413,550
---------------
LEISURE EQUIPMENT & PRODUCTS 0.3%
Jakks Pacific, Inc.*+ 11,800 191,514
SCP Pool Corp. 3,090 107,934
Callaway Golf Co.+ 5,358 80,852
Nautilus, Inc.+ 828 18,274
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 398,574
---------------
AUTOMOBILES 0.3%
Winnebago Industries, Inc.+ 11,298 327,303
Thor Industries, Inc.+ 1,859 63,206
---------------
TOTAL AUTOMOBILES 390,509
---------------
DISTRIBUTORS 0.2%
Building Material Holding Corp. 3,269 304,638
---------------
TOTAL DISTRIBUTORS 304,638
---------------
HEALTH CARE PROVIDERS & SERVICES 0.2%
Alderwoods Group, Inc.* 18,492 302,899
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 302,899
---------------
MULTILINE RETAIL 0.1%
ShopKo Stores, Inc.* 2,784 71,048
Big Lots, Inc.* 3,878 42,619
99 Cents Only Stores* 3,961 36,639
---------------
TOTAL MULTILINE RETAIL 150,306
---------------
TOTAL CONSUMER DISCRETIONARY 17,120,892
---------------
INDUSTRIALS 11.5%
COMMERCIAL SERVICES & SUPPLIES 2.6%
Resources Connection, Inc.* 16,483 488,391
Brady Corp. -- Class A+ 11,777 364,380
Imagistics International, Inc.* 7,643 319,860
NCO Group, Inc.*+ 12,971 267,981
Kelly Services, Inc. 8,409 257,820
FTI Consulting, Inc.* 9,738 245,982
Korn/Ferry International, Inc.* 13,716 224,805
Navigant Consulting, Inc.* 10,147 194,416
Teletech Holdings, Inc.* 16,709 167,424
Heidrick & Struggles
International, Inc.* 5,145 166,595
Labor Ready, Inc.*+ 5,687 145,872
Portfolio Recovery
Associates, Inc.*+ 3,299 142,451
Mine Safety Appliances Co. 3,538 136,921
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
John H. Harland Co. 2,973 $ 132,001
DiamondCluster
International, Inc. -- Class A* 13,949 105,733
Rollins, Inc. 4,545 88,718
Healthcare Services Group 3,961 76,249
Duratek, Inc.* 3,492 63,834
Clean Harbors, Inc.* 1,726 58,598
Mobile Mini, Inc.*+ 1,279 55,445
CRA International, Inc.* 1,008 42,024
Waste Connections, Inc.*+ 828 29,046
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 3,774,546
---------------
MACHINERY 2.2%
Kennametal, Inc.+ 9,033 442,978
Gardner Denver, Inc.* 7,490 334,054
JLG Industries, Inc. 8,747 320,053
Watts Industries, Inc. -- Class A 10,306 297,328
Wabash National Corp.+ 13,922 273,707
Mueller Industries, Inc. 9,453 262,510
Barnes Group, Inc. 7,128 255,610
Actuant Corp. -- Class A 4,460 208,728
Terex Corp.* 2,684 132,670
Middleby Corp.* 1,714 124,265
Toro Co. 2,800 102,928
EnPro Industries, Inc.* 2,612 87,998
Tecumseh Products Co. -- Class A 3,930 84,574
Titan International, Inc. 6,113 83,931
Wabtec Corp. 2,644 72,128
ESCO Technologies, Inc.*+ 1,356 67,895
Dynamic Materials Corp. 1,074 47,149
Joy Global, Inc. 685 34,565
Bucyrus International, Inc. --
Class A 326 16,016
Sun Hydraulics Corp. 499 12,126
---------------
TOTAL MACHINERY 3,261,213
---------------
AEROSPACE & DEFENSE 1.5%
Armor Holdings, Inc.*+ 10,147 436,422
Triumph Group, Inc.* 7,420 275,801
DRS Technologies, Inc. 5,275 260,374
Aviall, Inc.* 7,164 242,000
Moog, Inc. -- Class A*+ 7,284 215,024
United Industrial Corp./NY 4,540 162,305
Cubic Corp.+ 7,274 124,531
Innovative Solutions &
Support, Inc.*+ 6,188 96,100
Esterline Technologies Corp.*+ 2,177 82,486
EDO Corp. 2,541 76,306
BE Aerospace, Inc.* 4,340 71,914
Teledyne Technologies, Inc.* 1,902 65,562
Ionatron, Inc.*+ 6,186 62,355
---------------
TOTAL AEROSPACE & DEFENSE 2,171,180
---------------
See Notes to Financial Statements.
42 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
BUILDING PRODUCTS 1.1%
York International Corp. 9,239 $ 518,031
Lennox International, Inc. 17,501 479,702
NCI Building Systems, Inc.*+ 9,738 397,213
ElkCorp 7,264 259,833
---------------
TOTAL BUILDING PRODUCTS 1,654,779
---------------
ELECTRICAL EQUIPMENT 1.1%
Genlyte Group, Inc.*+ 7,839 376,899
Woodward Governor Co. 4,091 347,940
A.O. Smith Corp. 7,839 223,411
Artesyn Technologies, Inc.*+ 16,665 154,985
General Cable Corp.* 8,503 142,850
II-Vi, Inc.* 7,350 130,389
Thomas & Betts Corp.* 3,738 128,625
Energy Conversion Devices, Inc.*+ 1,387 62,249
GrafTech International Ltd.* 7,759 42,131
---------------
TOTAL ELECTRICAL EQUIPMENT 1,609,479
---------------
CONSTRUCTION & ENGINEERING 0.7%
Washington Group
International, Inc.*+ 7,689 414,360
Shaw Group, Inc.*+ 13,869 342,009
EMCOR Group, Inc.*+ 3,812 226,052
URS Corp.* 1,653 66,765
---------------
TOTAL CONSTRUCTION & ENGINEERING 1,049,186
---------------
ROAD & RAIL 0.7%
Arkansas Best Corp.+ 9,609 335,066
Old Dominion Freight Line, Inc.* 6,905 231,248
Kansas City Southern* 7,613 177,459
Amerco, Inc.* 3,025 176,025
Swift Transportation Co., Inc.*+ 4,357 77,119
Laidlaw International, Inc. 1,523 36,811
---------------
TOTAL ROAD & RAIL 1,033,728
---------------
TRADING COMPANIES & DISTRIBUTORS 0.7%
Applied Industrial
Technologies, Inc. 8,182 293,570
Watsco, Inc.+ 5,471 290,565
GATX Corp.+ 7,328 289,822
WESCO International, Inc.*+ 4,210 142,593
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 1,016,550
---------------
AIRLINES 0.3%
Alaska Air Group, Inc.*+ 6,602 191,854
Mesa Air Group, Inc.*+ 14,085 116,201
AirTran Holdings, Inc.*+ 7,101 89,899
Northwest Airlines Corp.*+ 4,287 2,851
---------------
TOTAL AIRLINES 400,805
---------------
AIR FREIGHT & COURIERS 0.2%
Pacer International, Inc. 9,014 237,609
HUB Group, Inc. -- Class A* 3,472 127,457
---------------
TOTAL AIR FREIGHT & COURIERS 365,066
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES 0.2%
Walter Industries, Inc. 4,410 $ 215,737
Tredegar Corp. 8,545 111,171
---------------
TOTAL INDUSTRIAL CONGLOMERATES 326,908
---------------
MARINE 0.2%
Kirby Corp.* 5,457 269,740
---------------
TOTAL MARINE 269,740
---------------
TOTAL INDUSTRIALS 16,933,180
---------------
HEALTH CARE 9.7%
HEALTH CARE EQUIPMENT & SUPPLIES 3.6%
Sybron Dental Specialties, Inc.* 11,135 462,993
Intuitive Surgical, Inc.*+ 6,063 444,357
Advanced Neuromodulation
Systems, Inc.*+ 8,747 415,133
Steris Corp. 16,889 401,789
Haemonetics Corp./MA* 7,755 368,595
Hologic, Inc.* 5,977 345,172
West Pharmaceutical Services, Inc. 11,082 328,803
Intermagnetics General Corp.* 11,484 320,863
Conmed Corp.* 11,021 307,265
Mentor Corp.+ 5,115 281,376
Varian, Inc.*+ 6,471 222,085
Immucor, Inc.*+ 7,237 198,583
Palomar Medical
Technologies, Inc.*+ 6,225 163,282
Ventana Medical Systems, Inc.* 3,798 144,590
Molecular Devices Corp.* 6,422 134,156
Thoratec Corp.* 7,432 131,992
Biosite, Inc.* 1,816 112,338
Cantel Medical Corp.*+ 5,278 111,049
Laserscope*+ 3,499 98,602
SonoSite, Inc.* 3,279 97,321
Align Technology, Inc.*+ 14,232 95,639
Aspect Medical Systems, Inc.* 2,481 73,512
DJ Orthopedics, Inc.*+ 1,397 40,429
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 5,299,924
---------------
BIOTECHNOLOGY 2.9%
United Therapeutics Corp.*+ 7,340 512,332
Cubist Pharmaceuticals, Inc.*+ 17,727 381,840
Serologicals Corp.*+ 16,056 362,223
Myriad Genetics, Inc.* 13,420 293,361
Vertex Pharmaceuticals, Inc.*+ 12,728 284,471
Exelixis, Inc.* 32,266 247,480
Medarex, Inc.*+ 25,349 241,322
Rigel Pharmaceuticals, Inc.* 8,002 190,208
Keryx Biopharmaceuticals, Inc.*+ 11,135 175,488
Enzo Biochem, Inc.* 10,816 166,134
Pharmion Corp.*+ 7,078 154,371
Geron Corp.* 14,902 153,044
Zymogenetics, Inc.* 9,266 152,889
Enzon Pharmaceuticals, Inc.* 20,564 136,339
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 43
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Senomyx, Inc.* 6,765 $ 115,208
Ligand Pharmaceuticals, Inc. --
Class B* 8,827 89,475
Renovis, Inc.* 6,602 89,325
Eyetech Pharmaceuticals, Inc.*+ 4,866 87,393
Neurocrine Biosciences, Inc.* 1,653 81,311
Genitope Corp.*+ 11,135 77,277
Albany Molecular Research, Inc.* 5,198 63,312
Northfield Laboratories, Inc.*+ 4,127 53,238
Martek Biosciences Corp.*+ 1,487 52,238
Progenics Pharmaceuticals, Inc.* 1,836 43,532
Digene Corp.* 1,487 42,380
Onyx Pharmaceuticals, Inc.* 828 20,683
Alkermes, Inc.*+ 1,074 18,043
---------------
TOTAL BIOTECHNOLOGY 4,284,917
---------------
HEALTH CARE PROVIDERS & SERVICES 2.3%
Chemed Corp. 8,930 387,026
Magellan Health Services, Inc.* 10,094 354,804
Kindred Healthcare, Inc.* 9,445 281,461
Ventiv Health, Inc.* 9,596 251,511
Apria Healthcare Group, Inc.* 7,458 237,985
Genesis HealthCare Corp.* 5,354 215,873
Per-Se Technologies, Inc.*+ 10,124 209,162
Pediatrix Medical Group, Inc.*+ 2,636 202,497
WellCare Health Plans, Inc.* 4,638 171,838
American Retirement Corp.* 6,602 124,316
Owens & Minor, Inc. 3,961 116,255
The Trizetto Group, Inc.* 8,002 112,988
Centene Corp.* 4,343 108,705
American Healthways, Inc.* 1,905 80,772
Hanger Orthopedic Group, Inc.* 10,394 80,034
Sierra Health Services, Inc.* 1,124 77,410
Parexel International Corp.* 3,712 74,574
Odyssey HealthCare, Inc.* 4,247 72,072
Beverly Enterprises, Inc.*+ 3,299 40,413
AMN Healthcare Services, Inc.* 2,225 34,421
Allscripts Healthcare
Solutions, Inc.*+ 1,653 29,787
Computer Programs &
Systems, Inc. 828 28,599
LCA-Vision, Inc. 166 6,162
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 3,298,665
---------------
PHARMACEUTICALS 0.9%
Connetics Corp.*+ 16,312 275,836
Par Pharmaceutical Cos., Inc.* 9,941 264,630
KV Pharmaceutical Co.* 14,151 251,463
Andrx Corp.* 14,767 227,855
First Horizon
Pharmaceutical Corp.*+ 7,297 144,991
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MGI Pharma, Inc.* 3,552 $ 82,797
Hi-Tech Pharmacal Co., Inc.* 2,391 71,921
CNS, Inc. 2,724 71,015
---------------
TOTAL PHARMACEUTICALS 1,390,508
---------------
TOTAL HEALTH CARE 14,274,014
---------------
ENERGY 5.0%
OIL & GAS 2.6%
Cimarex Energy Co.*+ 10,863 492,420
Frontier Oil Corp. 7,673 340,298
Cheniere Energy, Inc.*+ 6,532 270,163
Berry Petroleum Co. -- Class A 3,253 216,943
Petroleum Development Corp.* 5,438 208,493
Swift Energy Co.*+ 4,492 205,509
St. Mary Land & Exploration Co. 5,278 193,175
Whiting Petroleum Corp.* 4,357 191,011
Harvest Natural Resources, Inc.* 17,337 186,026
Holly Corp. 2,654 169,803
USEC, Inc. 13,037 145,493
TransMontaigne, Inc.* 17,172 137,204
KFX, Inc.*+ 7,653 131,019
Forest Oil Corp.* 2,501 130,302
Meridian Resource Corp.* 29,372 122,481
Atlas America, Inc.* 2,353 114,944
Comstock Resources, Inc.* 3,472 113,916
ATP Oil & Gas Corp.*+ 3,223 105,843
Energy Partners Ltd.* 2,622 81,859
Denbury Resources, Inc.* 1,512 76,265
Resource America, Inc. -- Class A 3,963 70,264
Tesoro Corp. 878 59,037
Vintage Petroleum, Inc. 1,094 49,952
---------------
TOTAL OIL & GAS 3,812,420
---------------
ENERGY EQUIPMENT & SERVICES 2.4%
Cal Dive International, Inc.*+ 7,520 476,843
Global Industries, Ltd.*+ 25,708 378,936
Grey Wolf, Inc.* 43,332 365,289
Lone Star Technologies, Inc.*+ 6,386 354,998
Atwood Oceanics, Inc.*+ 3,840 323,366
NS Group, Inc.* 7,494 294,139
Veritas DGC, Inc.*+ 7,430 272,087
Todco -- Class A* 5,471 228,195
Hydril*+ 2,818 193,428
Superior Energy Services* 6,266 144,682
Offshore Logistics, Inc.* 3,747 138,639
Pioneer Drilling Co.* 5,777 112,767
Maverick Tube Corp.*+ 3,549 106,470
Unit Corp.* 1,271 70,261
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 3,460,100
---------------
TOTAL ENERGY 7,272,520
---------------
See Notes to Financial Statements.
44 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MATERIALS 3.5%
METALS & MINING 1.7%
Reliance Steel & Aluminum Co. 9,784 $ 517,867
Quanex Corp. 5,029 333,020
AK Steel Holding Corp.* 37,823 324,143
Commercial Metals Co.+ 9,265 312,601
Cleveland-Cliffs, Inc.+ 2,870 250,006
Carpenter Technology Corp. 3,516 206,073
Century Aluminum Co.*+ 5,194 116,761
Oregon Steel Mills, Inc.* 3,802 106,076
Aleris International, Inc.* 3,798 104,255
Allegheny Technologies, Inc.+ 2,365 73,268
Wheeling-Pittsburgh Corp.* 4,051 67,773
Hecla Mining Co.*+ 12,195 53,414
Coeur d'Alene Mines Corp.* 2,973 12,576
---------------
TOTAL METALS & MINING 2,477,833
---------------
CHEMICALS 0.7%
Georgia Gulf Corp. 6,113 147,201
Westlake Chemical Corp.+ 4,845 131,203
Airgas, Inc. 4,337 128,505
Cytec Industries, Inc. 2,654 115,131
W.R. Grace & Co.*+ 12,638 113,110
FMC Corp.* 1,926 110,206
Ferro Corp. 4,866 89,145
Minerals Technologies, Inc.+ 1,096 62,702
Olin Corp.+ 1,726 32,777
Spartech Corp. 1,573 30,736
Wellman, Inc. 4,786 30,295
Terra Industries, Inc.* 2,644 17,583
---------------
TOTAL CHEMICALS 1,008,594
---------------
CONTAINERS & PACKAGING 0.5%
Silgan Holdings, Inc. 10,040 333,930
Crown Holdings, Inc.* 7,543 120,235
Greif, Inc. -- Class A 1,902 114,310
AptarGroup, Inc. 2,102 104,701
---------------
TOTAL CONTAINERS & PACKAGING 673,176
---------------
PAPER & FOREST PRODUCTS 0.3%
Potlatch Corp.+ 7,829 408,048
Bowater, Inc.+ 3,712 104,938
---------------
TOTAL PAPER & FOREST PRODUCTS 512,986
---------------
CONSTRUCTION MATERIALS 0.3%
Eagle Materials, Inc.+ 3,798 460,963
---------------
TOTAL CONSTRUCTION MATERIALS 460,963
---------------
TOTAL MATERIALS 5,133,552
---------------
UTILITIES 2.4%
GAS UTILITIES 0.9%
Southwest Gas Corp. 13,983 382,994
Northwest Natural Gas Co. 9,738 362,448
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Laclede Group, Inc. 9,778 $ 317,687
South Jersey Industries, Inc. 3,858 112,422
Atmos Energy Corp. 3,798 107,294
Southern Union Co.* 2,086 53,749
Energen Corp. 296 12,805
---------------
TOTAL GAS UTILITIES 1,349,399
---------------
ELECTRIC UTILITIES 0.9%
Cleco Corp. 16,611 391,687
IDACORP, Inc.+ 12,960 390,485
Sierra Pacific Resources*+ 15,136 224,770
Otter Tail Power Co. 4,608 142,571
Duquesne Light Holdings, Inc.+ 2,874 49,462
El Paso Electric Co.* 1,726 35,987
---------------
TOTAL ELECTRIC UTILITIES 1,234,962
---------------
MULTI-UTILITIES 0.4%
NorthWestern Corp. 12,788 386,070
Calpine Corp.*+ 46,132 119,482
PNM Resources, Inc.+ 2,884 82,684
CMS Energy Corp.*+ 2,451 40,319
---------------
TOTAL MULTI-UTILITIES 628,555
---------------
WATER UTILITIES 0.2%
American States Water Co. 7,921 265,036
---------------
TOTAL WATER UTILITIES 265,036
---------------
TOTAL UTILITIES 3,477,952
---------------
CONSUMER STAPLES 1.9%
FOOD PRODUCTS 0.9%
Chiquita Brands International, Inc.+ 13,808 385,934
Ralcorp Holdings, Inc. 5,893 247,034
Gold Kist, Inc.* 10,227 199,938
Delta & Pine Land Co. 6,522 172,246
Seaboard Corp. 78 107,094
Lance, Inc. 5,178 90,408
Hain Celestial Group, Inc.*+ 4,367 84,720
---------------
TOTAL FOOD PRODUCTS 1,287,374
---------------
FOOD & DRUG RETAILING 0.5%
Longs Drug Stores Corp. 6,745 289,293
Nash Finch Co.+ 2,973 125,431
United Natural Foods, Inc.*+ 2,724 96,321
Smart & Final, Inc.* 6,034 78,080
Great Atlantic & Pacific Tea Co.* 2,391 67,809
Spartan Stores, Inc.* 5,448 56,114
---------------
TOTAL FOOD & DRUG RETAILING 713,048
---------------
PERSONAL PRODUCTS 0.3%
Playtex Products, Inc.* 16,830 185,130
Nu Skin Enterprises, Inc. 9,567 182,251
Chattem, Inc.* 3,552 126,096
---------------
TOTAL PERSONAL PRODUCTS 493,477
---------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 45
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
MEKROS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS 0.1%
Central Garden and Pet Co.* 5,205 $ 235,526
---------------
TOTAL HOUSEHOLD PRODUCTS 235,526
---------------
BEVERAGES 0.1%
Hansen Natural Corp.*+ 2,594 122,126
---------------
TOTAL BEVERAGES 122,126
---------------
TOTAL CONSUMER STAPLES 2,851,551
---------------
TELECOMMUNICATION SERVICES 1.2%
WIRELESS TELECOMMUNICATION SERVICES 0.6%
USA Mobility, Inc.* 9,030 243,629
UbiquiTel, Inc.* 24,615 215,135
Dobson Communications Corp. --
Class A*+ 27,628 212,183
SBA Communications Corp.* 8,910 137,660
Alamosa Holdings, Inc.*+ 7,819 133,783
---------------
TOTAL WIRELESS
TELECOMMUNICATION SERVICES 942,390
---------------
DIVERSIFIED TELECOMMUNICATION SERVICES 0.6%
Commonwealth Telephone
Enterprises, Inc. 8,501 320,488
Iowa Telecommunications
Services, Inc. 10,563 177,670
Golden Telecom, Inc.+ 5,095 160,849
Premiere Global Services, Inc.* 18,562 151,837
Level 3 Communications, Inc.*+ 21,372 49,583
Broadwing Corp.*+ 6,023 30,055
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 890,482
---------------
TOTAL TELECOMMUNICATION SERVICES 1,832,872
---------------
TOTAL COMMON STOCKS
(Cost $98,644,218) 112,518,186
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 17.2%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $14,325,390 $ 14,325,390
3.24% due 10/03/05 10,910,504 10,910,504
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $25,235,894) 25,235,894
---------------
SECURITIES LENDING COLLATERAL 11.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 16,702,851 16,702,851
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $16,702,851) 16,702,851
---------------
TOTAL INVESTMENTS 105.3%
(Cost $140,582,963) $ 154,456,931
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (5.3)% $ (7,827,482)
===============
NET ASSETS - 100.0% $ 146,629,449
- ------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2005 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $49,371,630) 737 $ 286,746
===============
UNITS
------
EQUITY INDEX SWAP AGREEMENT
November 2005 Russell 2000 Index
Swap, Maturing 11/25/05**
(Notional Market Value
$57,770,919) 86,509 $ 916,494
===============
* 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 SEPTEMBER 30, 2005 - SEE
NOTE 9.
REIT--REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
46 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
INVERSE SMALL-CAP FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 104.7%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $29,041,813 $ 29,041,813
3.24% due 10/03/05 22,118,828 22,118,828
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $51,160,641) 51,160,641
---------------
TOTAL INVESTMENTS 104.7%
(Cost $51,160,641) $ 51,160,641
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (4.7)% $ (2,296,680)
===============
NET ASSETS - 100.0% $ 48,863,961
- ------------------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
December 2005 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $1,004,850) 15 $ 9,865
===============
UNITS
------
EQUITY INDEX SWAP AGREEMENT SOLD SHORT
November 2005 Russell 2000 Index
Swap, Maturing 11/25/05*
(Notional Market Value
$47,895,844) 71,722 $ (590,382)
===============
* PRICE RETURN BASED ON RUSSELL 2000 INDEX +/- FINANCING AT A VARIABLE RATE.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 47
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 94.6%
U.S. Treasury Bond
5.38% due 02/15/31 $ 64,806,000 $ 72,633,350
---------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $66,146,879) 72,633,350
---------------
REPURCHASE AGREEMENTS 5.9%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 2,564,638 2,564,638
3.24% due 10/03/05 1,953,280 1,953,280
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $4,517,918) 4,517,918
---------------
TOTAL INVESTMENTS 100.5%
(Cost $70,664,797) $ 77,151,268
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (0.5)% $ (404,025)
===============
NET ASSETS - 100.0% $ 76,747,243
- ------------------------------------------------------------------------------
UNREALIZED
LOSS
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2005 U.S. Treasury
Bond Futures Contracts
(Aggregate Market Value of
Contracts $27,922,750) 244 $ (318,864)
===============
See Notes to Financial Statements.
48 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
JUNO MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 64.0%
Fannie Mae*
3.45% due 10/19/05 $50,000,000 $ 49,923,333
Farmer Mac*
3.35% due 10/06/05 50,000,000 49,986,042
3.51% due 10/28/05 50,000,000 49,878,125
3.64% due 11/28/05 25,000,000 24,858,444
3.76% due 12/30/05 25,000,000 24,770,222
Federal Farm Credit Bank*
3.72% due 12/06/05 25,000,000 24,834,667
Federal Home Loan Bank*
3.58% due 10/12/05 50,000,000 49,955,250
3.46% due 10/21/05 50,000,000 49,913,500
3.48% due 10/26/05 50,000,000 49,888,833
3.50% due 10/26/05 50,000,000 49,888,195
3.58% due 11/17/05 50,000,000 49,776,250
3.59% due 11/18/05 50,000,000 49,770,639
3.73% due 12/23/05 50,000,000 49,580,375
3.76% due 01/18/06 50,000,000 49,441,222
3.72% due 11/25/05 40,000,000 39,780,933
3.50% due 10/12/05 25,000,000 24,978,125
3.58% due 11/14/05 25,000,000 24,895,583
3.67% due 11/25/05 25,000,000 24,864,924
3.79% due 12/23/05 25,000,000 24,786,813
Freddie Mac*
3.42% due 10/11/05 50,000,000 49,962,000
3.64% due 10/18/05 50,000,000 49,924,167
3.42% due 11/01/05 50,000,000 49,862,250
3.49% due 11/02/05 50,000,000 49,854,583
3.51% due 11/15/05 50,000,000 49,790,375
3.59% due 11/15/05 50,000,000 49,785,597
3.62% due 11/22/05 50,000,000 49,748,611
3.75% due 12/20/05 50,000,000 49,593,750
3.63% due 12/30/05 50,000,000 49,556,333
3.42% due 10/03/05 25,000,000 25,000,000
3.52% due 11/01/05 25,000,000 24,929,111
3.53% due 11/01/05 25,000,000 24,928,910
3.42% due 11/28/05 25,000,000 24,867,000
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $1,309,574,162) 1,309,574,162
---------------
MARKET
VALUE
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
OPTIONS PURCHASED 0.0%
Call Options on:
December 2005 U.S. Treasury Bond Futures
Contracts Expiring November 2005 with
strike price of 1300 7,890 $ --
December 2005 U.S. Treasury Bond Futures
Contracts Expiring November 2005 with
strike price of 1240 219 --
December 2005 U.S. Treasury Bond Futures
Contracts Expiring November 2005 with
strike price of 1290 200 --
---------------
TOTAL OPTIONS PURCHASED
(Cost $165,141) --
---------------
FACE
AMOUNT
--------------
REPURCHASE AGREEMENTS 103.3%
Joint Repurchase Agreement (Note 6)
3.25% due 10/03/05 $ 423,801,260 423,801,260
3.24% due 10/03/05 322,775,543 322,775,543
Individual Repurchase Agreement
Citigroup Global Market at
2.35% due 10/03/05 (Secured
by U.S. Treasury Bonds, at rate
of 5.38% and maturing
02/15/31 as collateral, with a
Market Value of $907,000,000)
and a Maturity Value of $889,389,824 889,215,686 889,215,686
Individual Repurchase Agreement
Lehman Brothers, Inc. at 2.30%
due 10/03/05 (Secured by U.S.
Treasury Bonds, at a rate of 5.38% and
maturing 02/15/31 as collateral,
with a Market Value of $489,677,963)
and a Maturity Value of $480,157,012 480,065,000 480,065,000
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,115,857,489) 2,115,857,489
---------------
TOTAL INVESTMENTS 167.3%
(Cost $3,425,596,792) $ 3,425,431,651
===============
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 49
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
JUNO MASTER PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS SOLD SHORT (68.1)%
U.S. Treasury Bond at 5.38% due 02/15/31 $1,244,310,000 $(1,394,599,317)
---------------
TOTAL U.S. TREASURY OBLIGATIONS
SOLD SHORT
(Cost $1,413,731,318) (1,394,599,317)
---------------
LIABILITIES IN EXCESS OF
OTHER ASSETS - (0.8)% $ 16,735,620
===============
NET ASSETS - 100.0% $ 2,047,567,954
- ------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
December 2005 U.S. Treasury Bond
Futures Contracts (Aggregate Market
Value of Contracts $ 950,861,188) 8,309 $ 19,009,021
===============
* 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.
50 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 81.8%
FINANCIALS 28.4%
BANKS 16.3%
HSBC Holdings PLC -- SP ADR 52,370 $ 4,254,015
Banco Santander Central
Hispano SA -- SP ADR 192,270 2,532,196
Banco Bilbao Vizcaya
Argentaria SA -- SP ADR 138,650 2,431,921
Barclays PLC -- SP ADR 54,820 2,235,560
Lloyds TSB Group PLC -- SP ADR 59,180 1,966,551
ABN AMRO Holding NV -- SP ADR 76,410 1,833,840
---------------
TOTAL BANKS 15,254,083
---------------
CAPITAL MARKETS 7.1%
UBS AG 39,700 3,394,350
Credit Suisse Group -- SP ADR 37,530 1,669,334
Deutsche Bank AG 16,190 1,514,089
---------------
TOTAL CAPITAL MARKETS 6,577,773
---------------
INSURANCE 2.9%
AXA -- SP ADR 55,960 1,540,579
Allianz AG -- SP ADR 87,350 1,180,098
---------------
TOTAL INSURANCE 2,720,677
---------------
DIVERSIFIED FINANCIALS 2.1%
ING Groep NV -- SP ADR 66,320 1,975,673
---------------
TOTAL DIVERSIFIED FINANCIALS 1,975,673
---------------
TOTAL FINANCIALS 26,528,206
---------------
ENERGY 14.7%
OIL & GAS 14.7%
BP PLC -- SP ADR 79,840 5,656,664
Total SA -- SP ADR 27,760 3,770,363
Royal Dutch Shell PLC -- SP ADR 44,440 2,917,042
ENI-Ente Nazionale Idrocarburi --
SP ADR 9,220 1,365,482
---------------
TOTAL OIL & GAS 13,709,551
---------------
TOTAL ENERGY 13,709,551
---------------
HEALTH CARE 11.8%
PHARMACEUTICALS 11.6%
Novartis AG -- SP ADR 76,760 3,914,760
GlaxoSmithKline PLC -- SP ADR 73,240 3,755,747
AstraZeneca PLC -- SP ADR 44,120 2,078,052
Schering AG -- SP ADR 7,940 503,396
Teva Pharmaceutical Industries
Ltd. -- SP ADR 5,620 187,820
Shire Pharmaceuticals PLC -- SP ADR 5,050 186,800
Sanofi-Aventis SA -- ADR 4,160 172,848
---------------
TOTAL PHARMACEUTICALS 10,799,423
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.2%
Alcon, Inc. 1,610 $ 205,887
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 205,887
---------------
TOTAL HEALTH CARE 11,005,310
---------------
TELECOMMUNICATION SERVICES 9.1%
DIVERSIFIED TELECOMMUNICATION SERVICES 5.1%
Telefonica SA 33,870 1,670,468
Deutsche Telekom AG -- SP ADR 56,040 1,022,170
France Telecom SA -- SP ADR 31,960 918,850
Telecom Italia -- SP ADR 19,070 621,682
BT Group PLC -- SP ADR 12,570 498,275
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 4,731,445
---------------
WIRELESS TELECOMMUNICATION SERVICES 4.0%
Vodafone Group PLC -- SP ADR 143,660 3,730,850
---------------
TOTAL WIRELESS
TELECOMMUNICATION SERVICES 3,730,850
---------------
TOTAL TELECOMMUNICATION SERVICES 8,462,295
---------------
CONSUMER STAPLES 5.7%
FOOD PRODUCTS 3.4%
Unilever NV 27,750 1,982,738
Cadbury Schweppes PLC -- SP ADR 30,080 1,225,158
---------------
TOTAL FOOD PRODUCTS 3,207,896
---------------
BEVERAGES 2.3%
Diageo PLC -- SP ADR 37,340 2,166,093
---------------
TOTAL BEVERAGES 2,166,093
---------------
TOTAL CONSUMER STAPLES 5,373,989
---------------
INFORMATION TECHNOLOGY 3.9%
COMMUNICATIONS EQUIPMENT 3.0%
Nokia OYJ -- SP ADR 94,230 1,593,429
Telefonaktiebolaget LM
Ericsson -- SP ADR* 33,190 1,222,720
---------------
TOTAL COMMUNICATIONS EQUIPMENT 2,816,149
---------------
SOFTWARE 0.9%
SAP AG -- SP ADR 19,020 824,136
---------------
TOTAL SOFTWARE 824,136
---------------
TOTAL INFORMATION TECHNOLOGY 3,640,285
---------------
CONSUMER DISCRETIONARY 2.6%
AUTOMOBILES 1.1%
DaimlerChrysler AG 18,730 994,938
---------------
TOTAL AUTOMOBILES 994,938
---------------
TEXTILES & APPAREL 0.9%
Luxottica Group 35,040 872,846
---------------
TOTAL TEXTILES & APPAREL 872,846
---------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 51
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
LARGE-CAP EUROPE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
HOUSEHOLD DURABLES 0.6%
Koninklijke Philips Electronics NV 22,960 $ 612,573
---------------
TOTAL HOUSEHOLD DURABLES 612,573
---------------
TOTAL CONSUMER DISCRETIONARY 2,480,357
---------------
MATERIALS 2.3%
CHEMICALS 1.3%
BASF AG -- SP ADR 15,840 1,194,336
---------------
TOTAL CHEMICALS 1,194,336
---------------
METALS & MINING 1.0%
Anglo American PLC -- ADR 31,930 964,286
---------------
TOTAL METALS & MINING 964,286
---------------
TOTAL MATERIALS 2,158,622
---------------
UTILITIES 2.1%
ELECTRIC UTILITIES 1.6%
E.ON AG -- SP ADR 50,030 1,538,423
---------------
TOTAL ELECTRIC UTILITIES 1,538,423
---------------
MULTI-UTILITIES 0.5%
Suez SA -- SP ADR 14,420 418,468
---------------
TOTAL MULTI-UTILITIES 418,468
---------------
TOTAL UTILITIES 1,956,891
---------------
INDUSTRIALS 1.2%
INDUSTRIAL CONGLOMERATES 1.2%
Siemens AG -- SP ADR 14,290 1,105,046
---------------
TOTAL INDUSTRIAL CONGLOMERATES 1,105,046
---------------
TOTAL INDUSTRIALS 1,105,046
---------------
TOTAL COMMON STOCKS
(Cost $73,218,960) 76,420,552
---------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 17.5%
Repurchase Agreement (Note 6)
3.25% due 10/03/05+ $11,827,192 11,827,192
3.24% due 10/03/05 4,453,761 4,453,761
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $16,280,953) 16,280,953
---------------
TOTAL INVESTMENTS 99.3%
(Cost $89,499,913) $ 92,701,505
===============
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.7% $ 690,215
===============
NET ASSETS - 100.0% $ 93,391,720
- ------------------------------------------------------------------------------
UNREALIZED
GAIN
UNITS (NOTE 1)
- ------------------------------------------------------------------------------
EQUITY INDEX SWAP AGREEMENT
December 2005 Dow Jones
STOXX 50 Index Swap,
Maturing 12/14/05**
(Notional Market Value $40,831,183) 10,390 $ 295,636
===============
* NON-INCOME PRODUCING SECURITY.
** PRICE RETURN BASED ON DOW JONES STOXX 50 INDEX +/- FINANCING AT A VARIABLE
RATE.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS EQUITY INDEX SWAP COLLATERAL
AT SEPTEMBER 30, 2005.
ADR--AMERICAN DEPOSITORY RECEIPT.
See Notes to Financial Statements.
52 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
LARGE-CAP JAPAN FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 87.9%
Repurchase Agreement (Note 6)
3.25% due 10/03/05+ $77,052,680 $ 77,052,680
3.24% due 10/03/05 46,557,840 46,557,840
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $123,610,520) 123,610,520
---------------
TOTAL INVESTMENTS 87.9%
(Cost $123,610,520) $123,610,520
===============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 12.1% $ 17,040,109
===============
NET ASSETS - 100.0% $ 140,650,629
- ------------------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACT PURCHASED
December 2005 Nikkei 225 Index
Futures Contracts
(Aggregate Market Value of
Contracts $55,158,450) 807 $ 4,078,436
December 2005 Yen Currency
Exchange Futures Contracts
(Aggregate Market Value of
Contracts $54,815,475) 494 (1,894,969)
---------------
(TOTAL AGGREGATE MARKET VALUE
OF CONTRACTS $109,973,925) $ 2,183,467
===============
UNITS
----------
EQUITY INDEX SWAP AGREEMENT
December 2005 Topix 100 Index
Swap, Maturing 12/29/05*
(Notional Market Value $118,386,830) 13,400,925 $ 5,271,792
===============
* 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 SEPTEMBER 30, 2005.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 53
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.9%
FINANCIALS 21.4%
BANKS 7.6%
South Financial Group, Inc.+ 11,697 $ 313,947
Whitney Holding Corp. 9,933 268,588
Amegy Bancorp, Inc. 11,114 251,510
First Bancorp Puerto Rico 12,702 214,918
United Bankshares, Inc. 5,870 205,157
Chittenden Corp. 7,300 193,523
Wintrust Financial Corp. 3,722 187,068
Provident Bankshares Corp. 5,167 179,708
Susquehanna Bancshares, Inc. 7,345 176,574
Umpqua Holding Corp.+ 6,989 169,972
Central Pacific Financial Corp. Co. 4,777 168,055
First Republic Bank+ 3,608 127,110
Sterling Financial Corp./WA 5,444 122,762
Boston Private Financial
Holdings, Inc. 4,430 117,572
Community Bank System, Inc. 4,757 107,508
Sterling Bancshares, Inc./TX 7,125 104,809
Prosperity Bancshares, Inc.+ 3,370 101,943
Gold Banc Corp., Inc. 6,070 90,443
Irwin Financial Corp. 2,782 56,725
---------------
TOTAL BANKS 3,157,892
---------------
INSURANCE 4.5%
ProAssurance Corp.* 4,870 227,283
Selective Insurance Group, Inc. 4,458 217,996
Hilb Rogal & Hobbs Co.+ 5,602 209,067
Delphi Financial Group, Inc. -- Class A 4,456 208,541
UICI 5,509 198,324
LandAmerica Financial Group, Inc.+ 2,836 183,347
RLI Corp. 3,363 155,572
Stewart Information Services Corp. 2,852 146,022
United Fire & Casualty Co. 2,660 119,993
Infinity Property & Casualty Corp. 3,255 114,218
Presidential Life Corp. 3,376 60,768
SCPIE Holdings Inc.* 1,562 22,337
---------------
TOTAL INSURANCE 1,863,468
---------------
REAL ESTATE 4.2%
New Century Financial Corp. 8,852 321,062
Colonial Properties Trust 6,983 310,604
Capital Automotive REIT 6,469 250,415
Lexington Corporate
Properties Trust 8,139 191,674
Entertainment Properties Trust 4,064 181,376
Commercial Net Lease Realty 8,466 169,320
Sovran Self Storage, Inc. 2,586 126,585
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Glenborough Realty Trust, Inc. 5,691 $ 109,267
Parkway Properties, Inc./MD 2,221 104,209
---------------
TOTAL REAL ESTATE 1,764,512
---------------
THRIFTS & MORTGAGE FINANCE 3.7%
Fremont General Corp.+ 10,277 224,347
Commercial Federal Corp. 6,001 204,874
Downey Financial Corp. 3,278 199,630
MAF Bancorp, Inc. 4,324 177,284
Brookline Bancorp, Inc. 9,674 153,043
FirstFed Financial Corp.*+ 2,600 139,906
BankAtlantic Bancorp, Inc. -- Class A 7,050 119,779
Bankunited Financial Corp. -- Class A 4,181 95,619
Flagstar Bancorp, Inc.+ 5,478 88,196
Anchor BanCorp Wisconsin, Inc. 2,945 86,819
Dime Community Bancshares 4,375 64,400
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 1,553,897
---------------
CAPITAL MARKETS 0.8%
Investment Technology
Group, Inc.* 6,612 195,715
Piper Jaffray Cos., Inc.* 3,141 93,790
SWS Group, Inc. 2,462 40,377
---------------
TOTAL CAPITAL MARKETS 329,882
---------------
CONSUMER FINANCE 0.3%
Cash America International, Inc. 4,596 95,367
Rewards Network, Inc.* 3,292 22,484
---------------
TOTAL CONSUMER FINANCE 117,851
---------------
DIVERSIFIED FINANCIALS 0.3%
Financial Federal Corp. 2,746 109,291
---------------
TOTAL DIVERSIFIED FINANCIALS 109,291
---------------
TOTAL FINANCIALS 8,896,793
---------------
INDUSTRIALS 20.3%
COMMERCIAL SERVICES & SUPPLIES 4.6%
United Stationers, Inc.* 5,227 250,164
School Specialty, Inc.* 3,590 175,120
Tetra Tech, Inc.* 8,957 150,657
G & K Services, Inc. -- Class A 3,315 130,578
ABM Industries, Inc. 6,049 125,880
NCO Group, Inc.*+ 5,049 104,312
Imagistics International, Inc.* 2,427 101,570
Mobile Mini, Inc.*+ 2,335 101,222
Viad Corp. 3,507 95,916
Heidrick & Struggles
International, Inc.* 2,935 95,035
Consolidated Graphics, Inc.* 1,861 80,116
Bowne & Co., Inc. 5,351 76,466
Coinstar, Inc.* 4,010 74,225
See Notes to Financial Statements.
54 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Spherion Corp.* 9,555 $ 72,618
CDI Corp. 1,953 57,692
Sourcecorp, Inc.* 2,463 52,807
Central Parking Corp. 3,226 48,229
On Assignment, Inc.* 3,981 34,037
Standard Register Co. 1,988 29,721
Volt Information Sciences, Inc.* 1,280 26,010
Angelica Corp. 1,453 25,936
PRG-Schultz International, Inc.* 6,654 20,028
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,928,339
---------------
MACHINERY 3.8%
Briggs & Stratton Corp. 8,110 280,525
Manitowoc Co., Inc. 4,727 237,532
Albany International Corp. -- Class A 5,000 184,350
Gardner Denver, Inc.* 4,059 181,031
Watts Industries, Inc. -- Class A 3,988 115,054
EnPro Industries, Inc.* 3,295 111,009
Stewart & Stevenson Services, Inc. 4,570 108,994
Barnes Group, Inc. 2,706 97,037
Astec Industries, Inc.* 2,721 77,249
Valmont Industries, Inc. 2,571 75,485
Robbins & Myers, Inc. 1,815 40,801
Lindsay Manufacturing Co. 1,810 39,838
Lydall, Inc.* 2,535 22,638
Wolverine Tube, Inc.* 2,367 17,752
---------------
TOTAL MACHINERY 1,589,295
---------------
AEROSPACE & DEFENSE 3.0%
DRS Technologies, Inc. 4,387 216,542
Curtiss-Wright Corp. 3,403 209,999
Armor Holdings, Inc.*+ 4,615 198,491
Moog, Inc. -- Class A*+ 5,403 159,497
Esterline Technologies Corp.* 3,981 150,840
Triumph Group, Inc.* 2,499 92,888
AAR Corp.* 5,121 87,979
Kaman Corp. -- Class A 3,588 73,375
Cubic Corp.+ 2,435 41,687
Applied Signal Technology, Inc. 1,810 34,535
---------------
TOTAL AEROSPACE & DEFENSE 1,265,833
---------------
CONSTRUCTION & ENGINEERING 1.9%
Shaw Group, Inc.*+ 12,393 305,612
URS Corp.*+ 6,711 271,057
EMCOR Group, Inc.* 2,443 144,870
Insituform Technologies, Inc. -- Class A* 4,225 73,050
---------------
TOTAL CONSTRUCTION & ENGINEERING 794,589
---------------
ELECTRICAL EQUIPMENT 1.7%
Acuity Brands, Inc.+ 6,987 207,304
Regal-Beloit Corp.+ 4,565 148,089
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Woodward Governor Co. 1,551 $ 131,913
A.O. Smith Corp. 3,161 90,089
Artesyn Technologies, Inc.*+ 6,240 58,032
C&D Technologies, Inc. 3,989 37,536
MagneTek, Inc.* 4,487 15,166
---------------
TOTAL ELECTRICAL EQUIPMENT 688,129
---------------
TRADING COMPANIES & DISTRIBUTORS 1.2%
Hughes Supply, Inc.+ 10,480 341,648
Applied Industrial
Technologies, Inc. 3,925 140,829
Lawson Products, Inc. 725 26,622
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 509,099
---------------
BUILDING PRODUCTS 1.1%
Universal Forest Products, Inc. 2,530 145,020
NCI Building Systems, Inc.*+ 3,332 135,912
Griffon Corp.*+ 4,080 100,368
Apogee Enterprises, Inc. 4,372 74,761
---------------
TOTAL BUILDING PRODUCTS 456,061
---------------
ROAD & RAIL 1.1%
Kansas City Southern* 12,889 300,443
Arkansas Best Corp.+ 3,996 139,340
---------------
TOTAL ROAD & RAIL 439,783
---------------
AIRLINES 0.8%
SkyWest, Inc.+ 9,093 243,875
Frontier Airlines, Inc.* 5,681 55,560
Mesa Air Group, Inc.*+ 4,545 37,496
---------------
TOTAL AIRLINES 336,931
---------------
MARINE 0.5%
Kirby Corp.* 3,952 195,347
---------------
TOTAL MARINE 195,347
---------------
AIR FREIGHT & COURIERS 0.3%
EGL, Inc.* 5,060 137,379
---------------
TOTAL AIR FREIGHT & COURIERS 137,379
---------------
INDUSTRIAL CONGLOMERATES 0.3%
Tredegar Corp. 4,369 56,841
Standex International Corp. 1,750 46,077
---------------
TOTAL INDUSTRIAL CONGLOMERATES 102,918
---------------
TOTAL INDUSTRIALS 8,443,703
---------------
INFORMATION TECHNOLOGY 14.2%
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 4.4%
Varian Semiconductor
Equipment Associates, Inc.*+ 5,840 247,441
Skyworks Solutions, Inc.*+ 24,886 174,700
Cymer, Inc.*+ 5,572 174,515
Photronics, Inc.*+ 6,485 125,809
DSP Group, Inc.* 4,497 115,393
Standard Microsystems Corp.* 3,262 97,566
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 55
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Brooks Automation, Inc.*+ 7,135 $ 95,110
Axcelis Technologies, Inc.*+ 15,795 82,450
Cohu, Inc. 3,418 80,836
Exar Corp.* 5,491 76,984
FEI Co.* 3,917 75,402
Kopin Corp.* 10,834 75,296
Veeco Instruments, Inc.* 4,190 67,208
Helix Technology Corp. 4,102 60,504
Ultratech, Inc.* 3,777 58,883
Actel Corp.* 3,991 57,710
Supertex, Inc.* 1,820 54,582
Advanced Energy Industries, Inc.* 4,442 47,796
Pericom Semiconductor Corp.* 4,150 36,686
Rudolph Technologies, Inc.*+ 2,235 30,105
ESS Technologies, Inc.* 5,562 19,745
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 1,854,721
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 4.3%
Anixter International, Inc.* 5,055 203,868
Benchmark Electronics, Inc.*+ 6,573 197,979
Coherent, Inc.* 4,888 143,121
Checkpoint Systems, Inc.* 5,955 141,253
Global Imaging Systems, Inc.* 3,622 123,329
Aeroflex, Inc.*+ 11,737 109,858
Electro Scientific Industries, Inc.* 4,505 100,732
Technitrol, Inc. 6,365 97,512
Paxar Corp.* 5,752 96,921
Park Electrochemical Corp. 3,145 83,814
Agilsys, Inc. 4,773 80,377
CTS Corp. 5,728 69,309
Methode Electronics, Inc. -- Class A 5,875 67,680
Radisys Corp.* 3,175 61,595
Photon Dynamics, Inc.* 2,667 51,073
Bell Microproducts, Inc.* 4,614 46,279
X-Rite, Inc. 2,895 35,898
Keithley Instruments, Inc. 2,247 32,806
Gerber Scientific, Inc.* 3,505 27,479
Planar Systems, Inc.* 2,320 19,070
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,789,953
---------------
SOFTWARE 2.1%
THQ, Inc.* 9,749 207,849
Internet Security Systems, Inc.* 6,137 147,349
JDA Software Group, Inc.* 4,480 68,006
Verity, Inc.* 5,910 62,764
SPSS, Inc.* 2,527 60,648
MRO Software, Inc.* 3,392 57,121
Altiris, Inc.* 3,612 55,228
EPIQ Systems, Inc.* 1,997 43,575
MapInfo Corp.*+ 3,245 39,751
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Catapult Communications Corp.* 1,620 $ 29,711
Phoenix Technologies, Ltd.* 3,929 29,585
Napster, Inc.* 6,887 27,548
NYFIX, Inc.*+ 4,592 26,496
Captaris, Inc.* 4,509 16,954
---------------
TOTAL SOFTWARE 872,585
---------------
COMMUNICATIONS EQUIPMENT 1.8%
Belden CDT, Inc.+ 7,213 140,149
Black Box Corp. 2,688 112,789
ViaSat, Inc.* 3,520 90,288
Inter-Tel, Inc. 3,280 68,880
Bel Fuse, Inc. -- Class B 1,823 66,412
Symmetricom, Inc.* 7,303 56,525
C-COR, Inc.*+ 7,510 50,693
Digi International, Inc.* 3,202 34,357
Ditech Communications Corp.* 5,057 34,084
PC-Tel, Inc.* 3,334 31,340
Brooktrout, Inc.* 2,002 25,966
Network Equipment
Technologies, Inc.* 3,884 17,905
Tollgrade Communications, Inc.* 2,064 17,461
---------------
TOTAL COMMUNICATIONS EQUIPMENT 746,849
---------------
IT CONSULTING & SERVICES 1.0%
eFunds Corp.* 7,135 134,352
MAXIMUS, Inc. 3,000 107,250
Ciber, Inc.*+ 8,646 64,240
Intrado, Inc.* 2,785 50,214
Pegasus Solutions, Inc.* 2,777 24,937
Carreker Corp.* 3,372 23,806
Startek, Inc. 1,770 23,364
---------------
TOTAL IT CONSULTING & SERVICES 428,163
---------------
COMPUTERS & PERIPHERALS 0.5%
Hutchinson Technology, Inc.*+ 4,026 105,159
Adaptec, Inc.* 17,676 67,699
SBS Technologies, Inc.* 2,457 23,661
---------------
TOTAL COMPUTERS & PERIPHERALS 196,519
---------------
INTERNET SOFTWARE & SERVICES 0.1%
MIVA, Inc.* 4,347 26,212
---------------
TOTAL INTERNET SOFTWARE & SERVICES 26,212
---------------
TOTAL INFORMATION TECHNOLOGY 5,915,002
---------------
CONSUMER DISCRETIONARY 12.2%
SPECIALTY RETAIL 3.7%
Zale Corp.*+ 8,042 218,582
Linens 'N Things, Inc.*+ 7,113 189,917
Too, Inc.*+ 5,185 142,225
TBC Corp.* 3,526 121,612
PEP Boys-Manny Moe & Jack 8,499 117,626
Stage Stores, Inc.+ 4,305 115,675
Sonic Automotive, Inc. 4,650 103,323
See Notes to Financial Statements.
56 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Burlington Coat Factory
Warehouse Corp. 2,600 $ 98,904
Group 1 Automotive, Inc.* 3,341 92,212
Dress Barn, Inc.*+ 3,476 79,114
Gymboree Corp.* 4,922 67,136
Jo-Ann Stores, Inc.* 3,640 62,972
Cost Plus, Inc.* 3,462 62,835
Haverty Furniture Cos., Inc. 3,567 43,624
Goody's Family Clothing, Inc. 3,117 23,596
Hancock Fabrics, Inc./DE+ 3,006 20,230
---------------
TOTAL SPECIALTY RETAIL 1,559,583
---------------
HOUSEHOLD DURABLES 3.2%
Standard-Pacific Corp.+ 10,668 442,829
M.D.C. Holdings, Inc. 5,093 401,787
La-Z-Boy, Inc.+ 8,139 107,353
M/I Homes, Inc. 1,952 105,915
Interface, Inc. -- Class A* 7,507 62,008
Skyline Corp. 1,066 43,322
Bassett Furniture Industries, Inc. 1,853 34,503
Libbey, Inc. 2,185 33,212
National Presto Industries, Inc. 743 31,808
Department 56, Inc.* 2,166 27,075
Russ Berrie & Co., Inc. 1,868 26,376
Fedders Corp. 3,690 7,897
Applica, Inc.* 3,795 6,338
---------------
TOTAL HOUSEHOLD DURABLES 1,330,423
---------------
HOTELS, RESTAURANTS & LEISURE 1.6%
Aztar Corp.* 5,596 172,413
Pinnacle Entertainment, Inc.* 6,414 117,569
Ryan's Restaurant Group, Inc.* 6,583 76,824
Landry's Restaurants, Inc.+ 2,612 76,531
Lone Star Steakhouse &
Saloon, Inc. 2,822 73,372
Marcus Corp. 3,387 67,875
O'Charleys, Inc.* 3,507 50,185
Multimedia Games, Inc.*+ 4,260 41,365
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 676,134
---------------
TEXTILES & APPAREL 1.2%
Kellwood Co.+ 4,372 113,016
Oxford Industries, Inc.+ 2,207 99,580
Brown Shoe Co., Inc. 2,893 95,469
Russell Corp. 5,208 73,120
Stride Rite Corp. 5,697 73,036
Haggar Corp. 856 24,336
Ashworth, Inc.* 2,192 14,971
---------------
TOTAL TEXTILES & APPAREL 493,528
---------------
LEISURE EQUIPMENT & PRODUCTS 0.6%
K2, Inc.* 7,479 85,261
Jakks Pacific, Inc.*+ 4,189 67,987
Arctic Cat, Inc. 2,047 42,045
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Action Performance Cos., Inc. 2,922 $ 36,525
Sturm Ruger & Co., Inc. 3,380 31,096
Meade Instruments Corp.* 2,669 7,100
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 270,014
---------------
MULTILINE RETAIL 0.5%
ShopKo Stores, Inc.* 4,748 121,169
Fred's, Inc.+ 6,260 78,313
---------------
TOTAL MULTILINE RETAIL 199,482
---------------
AUTOMOBILES 0.5%
Fleetwood Enterprises, Inc.*+ 8,870 109,101
Monaco Coach Corp.+ 4,177 61,569
Coachmen Industries, Inc. 2,233 25,657
---------------
TOTAL AUTOMOBILES 196,327
---------------
INTERNET & CATALOG RETAIL 0.5%
Insight Enterprises, Inc.* 7,642 142,141
J. Jill Group, Inc.* 3,195 50,545
---------------
TOTAL INTERNET & CATALOG RETAIL 192,686
---------------
AUTO COMPONENTS 0.2%
Superior Industries
International, Inc. 3,592 77,300
Standard Motor Products, Inc. 1,996 16,187
---------------
TOTAL AUTO COMPONENTS 93,487
---------------
DISTRIBUTORS 0.1%
Audiovox Corp. -- Class A* 2,987 41,758
---------------
TOTAL DISTRIBUTORS 41,758
---------------
MEDIA 0.1%
4Kids Entertainment, Inc.* 2,050 35,649
---------------
TOTAL MEDIA 35,649
---------------
TOTAL CONSUMER DISCRETIONARY 5,089,071
---------------
MATERIALS 7.8%
METALS & MINING 4.0%
Commercial Metals Co.+ 9,132 308,114
Quanex Corp. 3,974 263,158
Reliance Steel & Aluminum Co. 4,347 230,087
Carpenter Technology Corp. 3,425 200,739
RTI International Metals, Inc.* 3,587 141,148
Aleris International, Inc.* 4,851 133,160
Chaparral Steel Co.* 3,587 90,464
Ryerson Tull, Inc.+ 3,957 84,284
Century Aluminum Co.*+ 3,587 80,636
Brush Engineered Materials, Inc.* 3,023 48,005
Steel Technologies, Inc. 1,743 45,196
A.M. Castle & Co.* 1,521 26,618
---------------
TOTAL METALS & MINING 1,651,609
---------------
CHEMICALS 1.4%
H.B. Fuller Co. 4,524 140,606
OM Group, Inc.* 4,493 90,444
PolyOne Corp.* 14,432 87,458
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 57
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Arch Chemicals, Inc. 3,711 $ 86,281
A. Schulman, Inc. 4,804 86,232
Material Sciences Corp.* 2,001 30,155
Quaker Chemical Corp. 1,526 26,522
Penford Corp. 1,389 18,571
Wellman, Inc. 2,702 17,103
---------------
TOTAL CHEMICALS 583,372
---------------
CONTAINERS & PACKAGING 1.2%
AptarGroup, Inc. 5,499 273,905
Rock-Tenn Co. -- Class A 4,892 73,869
Myers Industries, Inc. 4,909 57,141
Chesapeake Corp. 3,100 57,009
Caraustar Industries, Inc.* 4,519 49,619
---------------
TOTAL CONTAINERS & PACKAGING 511,543
---------------
PAPER & FOREST PRODUCTS 0.7%
Wausau Paper Corp. 8,090 101,206
Neenah Paper, Inc. 2,320 67,976
Schweitzer-Mauduit
International, Inc. 2,391 53,367
Buckeye Technologies, Inc.* 5,192 42,159
Pope & Talbot, Inc. 2,565 26,188
---------------
TOTAL PAPER & FOREST PRODUCTS 290,896
---------------
CONSTRUCTION MATERIALS 0.5%
Texas Industries, Inc. 3,562 193,773
---------------
TOTAL CONSTRUCTION MATERIALS 193,773
---------------
TOTAL MATERIALS 3,231,193
---------------
UTILITIES 7.1%
GAS UTILITIES 4.1%
Southern Union Co.* 15,394 396,703
Atmos Energy Corp. 12,630 356,797
Piedmont Natural Gas Co.+ 12,036 302,946
New Jersey Resources Corp. 4,320 198,634
Southwest Gas Corp. 6,017 164,806
Northwest Natural Gas Co. 4,331 161,200
Laclede Group, Inc. 3,324 107,997
Cascade Natural Gas Corp. 1,789 38,946
---------------
TOTAL GAS UTILITIES 1,728,029
---------------
ELECTRIC UTILITIES 2.2%
Allete, Inc.+ 4,715 215,994
Cleco Corp. 7,841 184,891
Unisource Energy Corp. 5,450 181,158
El Paso Electric Co.* 7,538 157,167
UIL Holding Corp. 2,036 106,503
Central Vermont Public
Service Corp. 1,926 33,705
Green Mountain Power Corp. 816 26,871
---------------
TOTAL ELECTRIC UTILITIES 906,289
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MULTI-UTILITIES 0.6%
Avista Corp.+ 7,621 $ 147,848
CH Energy Group, Inc. 2,127 100,990
---------------
TOTAL MULTI-UTILITIES 248,838
---------------
WATER UTILITIES 0.2%
American States Water Co. 2,636 88,201
---------------
TOTAL WATER UTILITIES 88,201
---------------
TOTAL UTILITIES 2,971,357
---------------
ENERGY 6.3%
OIL & GAS 3.2%
Cimarex Energy Co.*+ 12,897 584,621
Spinnaker Exploration Co.* 4,233 273,833
Stone Energy Corp.* 4,234 258,443
Swift Energy Co.*+ 4,496 205,692
---------------
TOTAL OIL & GAS 1,322,589
---------------
ENERGY EQUIPMENT & SERVICES 3.1%
SEACOR Holdings, Inc.* 3,240 235,159
Oceaneering International, Inc.*+ 4,125 220,316
Maverick Tube Corp.*+ 6,757 202,710
Veritas DGC, Inc.*+ 5,322 194,892
W-H Energy Services, Inc.* 4,416 143,167
Offshore Logistics, Inc.* 3,658 135,346
Input/Output, Inc.*+ 11,040 88,099
Dril-Quip, Inc.* 1,151 55,248
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 1,274,937
---------------
TOTAL ENERGY 2,597,526
---------------
HEALTH CARE 5.9%
HEALTH CARE EQUIPMENT & SUPPLIES 3.2%
Cooper Cos., Inc.+ 6,937 531,444
Invacare Corp. 4,976 207,350
Conmed Corp.* 4,641 129,391
Viasys Healthcare, Inc.* 4,958 123,900
Analogic Corp. 2,153 108,533
Greatbatch, Inc.* 3,395 93,159
Datascope Corp. 1,931 59,900
Vital Signs, Inc. 890 41,020
Osteotech, Inc.* 2,702 15,482
Theragenics Corp.* 5,025 14,824
---------------
TOTAL HEALTH CARE EQUIPMENT
& SUPPLIES 1,325,003
---------------
HEALTH CARE PROVIDERS & SERVICES 1.8%
Sunrise Senior Living, Inc.*+ 2,799 186,805
SFBC International, Inc.* 2,875 127,621
NDCHealth Corp. 5,692 107,692
Parexel International Corp.* 4,168 83,735
Gentiva Health Services, Inc.* 3,656 66,247
Cross Country Healthcare, Inc.* 3,300 61,248
RehabCare Group, Inc.* 2,634 54,050
Hooper Holmes, Inc. 10,289 40,436
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 727,834
---------------
See Notes to Financial Statements.
58 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
BIOTECHNOLOGY 0.5%
Cambrex Corp. 4,153 $ 78,741
Regeneron Pharmaceuticals, Inc.* 6,882 65,310
Arqule, Inc.* 5,527 43,277
Savient Pharmaceuticals, Inc.* 9,551 36,007
---------------
TOTAL BIOTECHNOLOGY 223,335
---------------
PHARMACEUTICALS 0.4%
Alpharma, Inc. -- Class A 6,527 162,326
Bradley Pharmaceuticals, Inc.* 2,190 23,915
---------------
TOTAL PHARMACEUTICALS 186,241
---------------
TOTAL HEALTH CARE 2,462,413
---------------
CONSUMER STAPLES 4.5%
FOOD PRODUCTS 2.0%
Corn Products International, Inc.+ 11,754 237,078
Ralcorp Holdings, Inc. 4,657 195,222
TreeHouse Foods, Inc.* 4,837 130,019
Hain Celestial Group, Inc.*+ 4,781 92,751
Sanderson Farms, Inc. 2,277 84,613
J&J Snack Foods Corp. 1,065 61,557
American Italian Pasta Co. -- Class A+ 2,897 30,882
---------------
TOTAL FOOD PRODUCTS 832,122
---------------
FOOD & DRUG RETAILING 1.5%
Performance Food Group Co.* 5,884 185,699
Casey's General Stores, Inc.+ 7,895 183,164
Longs Drug Stores Corp. 4,196 179,967
Nash Finch Co.+ 2,016 85,055
---------------
TOTAL FOOD & DRUG RETAILING 633,885
---------------
PERSONAL PRODUCTS 0.5%
NBTY, Inc.* 8,765 205,977
---------------
TOTAL PERSONAL PRODUCTS 205,977
---------------
HOUSEHOLD PRODUCTS 0.4%
Spectrum Brands, Inc.* 5,827 137,226
---------------
TOTAL HOUSEHOLD PRODUCTS 137,226
---------------
TOBACCO 0.1%
Alliance One International, Inc. 13,615 48,197
---------------
TOTAL TOBACCO 48,197
---------------
TOTAL CONSUMER STAPLES 1,857,407
---------------
TELECOMMUNICATION SERVICES 0.2%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.2%
General Communication, Inc. -- Class A*+ 7,344 72,706
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 72,706
---------------
TOTAL TELECOMMUNICATION SERVICES 72,706
---------------
TOTAL COMMON STOCKS
(Cost $34,452,111) 41,537,171
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 0.1%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $ 22,813 $ 22,813
3.24% due 10/03/05 17,375 17,375
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $40,188) 40,188
---------------
SECURITIES LENDING COLLATERAL 12.1%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 5,043,318 5,043,318
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $5,043,318) 5,043,318
---------------
TOTAL INVESTMENTS 112.1%
(Cost $39,535,617) $ 46,620,677
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (12.1)% $ (5,047,817)
===============
NET ASSETS - 100.0% $ 41,572,860
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 9.
REIT - REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 59
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.9%
FINANCIALS 24.1%
INSURANCE 9.2%
Fidelity National Financial, Inc. 40,710 $ 1,812,409
Everest Re Group Ltd.+ 13,244 1,296,588
Old Republic International Corp. 42,968 1,145,957
W.R. Berkley Corp. 26,282 1,037,613
First American Corp. 22,415 1,023,693
HCC Insurance Holdings, Inc.+ 24,833 708,485
Protective Life Corp. 16,406 675,599
Stancorp Financial Group, Inc. 6,505 547,721
AmerUs Group Co.+ 9,123 523,386
Allmerica Financial Corp.* 12,549 516,266
Unitrin, Inc. 10,771 511,192
Mercury General Corp. 8,320 499,117
Ohio Casualty Corp. 15,166 411,302
American Financial Group, Inc./OH 10,949 371,500
Horace Mann Educators Corp. 10,118 200,134
---------------
TOTAL INSURANCE 11,280,962
---------------
THRIFTS & MORTGAGE FINANCE 4.6%
Radian Group, Inc.+ 20,048 1,064,549
New York Community
Bancorp, Inc.+ 55,671 913,005
PMI Group, Inc.+ 21,628 862,308
Independence Community
Bank Corp.+ 17,631 601,041
IndyMac Bancorp, Inc.+ 14,967 592,394
Webster Financial Corp. 12,622 567,485
Astoria Financial Corp. 21,039 555,850
Washington Federal, Inc.+ 20,398 460,179
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 5,616,811
---------------
BANKS 4.1%
Commerce Bancorp, Inc./NJ+ 38,625 1,185,401
Mercantile Bankshares Corp. 19,283 1,038,968
Associated Banc-Corp.+ 30,030 915,314
Colonial BancGroup, Inc. 36,197 810,813
FirstMerit Corp.+ 19,605 525,218
Greater Bay Bancorp 11,952 294,497
Texas Regional Bancshares, Inc. -- Class A 9,720 279,839
---------------
TOTAL BANKS 5,050,050
---------------
REAL ESTATE 3.3%
AMB Property Corp.+ 19,991 897,596
Liberty Property Trust+ 20,684 879,897
Hospitality Properties Trust 16,914 724,934
Mack-Cali Realty Corp. 14,574 654,955
New Plan Excel Realty Trust 24,402 560,026
Highwoods Properties, Inc.+ 12,607 372,033
---------------
TOTAL REAL ESTATE 4,089,441
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CAPITAL MARKETS 1.5%
A.G. Edwards, Inc. 18,114 $ 793,574
Jefferies Group, Inc.+ 11,640 506,922
Raymond James Financial, Inc. 13,363 429,220
LaBranche & Co., Inc.*+ 14,290 124,180
---------------
TOTAL CAPITAL MARKETS 1,853,896
---------------
DIVERSIFIED FINANCIALS 0.7%
Leucadia National Corp.+ 19,262 830,192
---------------
TOTAL DIVERSIFIED FINANCIALS 830,192
---------------
CONSUMER FINANCE 0.7%
AmeriCredit Corp.*+ 32,814 783,270
---------------
TOTAL CONSUMER FINANCE 783,270
---------------
TOTAL FINANCIALS 29,504,622
---------------
INFORMATION TECHNOLOGY 13.6%
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.8%
Intersil Corp. -- Class A+ 36,078 785,779
International Rectifier Corp.*+ 15,130 682,060
Integrated Device Technology, Inc.*+ 46,760 502,202
Fairchild Semiconductor
International, Inc.*+ 28,235 419,572
RF Micro Devices, Inc.* 44,270 250,126
Atmel Corp.*+ 99,580 205,135
Credence Systems Corp.*+ 23,341 186,261
Cabot Microelectronics Corp.*+ 5,760 169,229
Triquint Semiconductor, Inc.* 32,953 115,995
Lattice Semiconductor Corp.*+ 26,723 114,374
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 3,430,733
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.6%
Arrow Electronics, Inc.* 27,826 872,623
Avnet, Inc.*+ 34,202 836,239
Vishay Intertechnology, Inc.* 43,349 518,021
Tech Data Corp.*+ 13,655 501,275
Plexus Corp.* 10,293 175,907
KEMET Corp.*+ 20,375 170,742
Newport Corp.* 9,376 130,608
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 3,205,415
---------------
SOFTWARE 2.4%
Cadence Design Systems, Inc.*+ 65,325 1,055,652
Fair Isaac Corp.+ 15,415 690,592
Synopsys, Inc.* 33,940 641,466
Macrovision Corp.*+ 11,900 227,290
RSA Security, Inc.* 16,660 211,749
Mentor Graphics Corp.*+ 18,655 160,433
---------------
TOTAL SOFTWARE 2,987,182
---------------
IT CONSULTING & SERVICES 2.2%
CheckFree Corp.* 21,289 805,150
Ceridian Corp.* 34,440 714,630
See Notes to Financial Statements.
60 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
BISYS Group, Inc.* 28,436 $ 381,895
Acxiom Corp. 18,440 345,197
MPS Group, Inc.* 23,766 280,439
Keane, Inc.*+ 11,036 126,141
---------------
TOTAL IT CONSULTING & SERVICES 2,653,452
---------------
COMPUTERS & PERIPHERALS 2.1%
Sandisk Corp.*+ 42,780 2,064,135
Imation Corp. 8,058 345,446
McData Corp. -- Class A* 36,498 191,250
---------------
TOTAL COMPUTERS & PERIPHERALS 2,600,831
---------------
COMMUNICATIONS EQUIPMENT 1.5%
3Com Corp.*+ 90,977 371,186
Polycom, Inc.* 22,750 367,868
Avocent Corp.*+ 11,500 363,860
Powerwave Technologies, Inc.*+ 25,848 335,766
CommScope, Inc.*+ 12,909 223,842
Utstarcom, Inc.*+ 24,226 197,926
---------------
TOTAL COMMUNICATIONS EQUIPMENT 1,860,448
---------------
TOTAL INFORMATION TECHNOLOGY 16,738,061
---------------
UTILITIES 13.0%
MULTI-UTILITIES 7.0%
SCANA Corp. 26,698 1,127,723
Wisconsin Energy Corp. 27,480 1,097,002
MDU Resources Group, Inc. 28,180 1,004,617
Energy East Corp.+ 34,704 874,194
Alliant Energy Corp. 27,428 798,978
NSTAR+ 25,108 726,123
OGE Energy Corp.+ 21,280 597,968
Puget Energy, Inc.+ 23,570 553,424
WPS Resources Corp.+ 8,924 515,807
Vectren Corp. 17,909 507,720
PNM Resources, Inc. 16,166 463,479
Aquila, Inc.* 87,817 347,755
---------------
TOTAL MULTI-UTILITIES 8,614,790
---------------
ELECTRIC UTILITIES 3.9%
Pepco Holdings, Inc.+ 44,493 1,035,352
Sierra Pacific Resources*+ 43,128 640,451
Northeast Utilities 30,599 610,450
Hawaiian Electric Industries, Inc. 19,078 531,895
Great Plains Energy, Inc.+ 17,569 525,489
Westar Energy, Inc.+ 20,429 492,952
Black Hills Corp.+ 7,669 332,604
Duquesne Light Holdings, Inc.+ 18,314 315,184
IDACORP, Inc.+ 9,899 298,257
---------------
TOTAL ELECTRIC UTILITIES 4,782,634
---------------
GAS UTILITIES 2.1%
Oneok, Inc.+ 23,760 808,315
National Fuel Gas Co. 19,795 676,989
AGL Resources, Inc. 18,163 674,029
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
WGL Holdings, Inc. 11,475 $ 368,692
---------------
TOTAL GAS UTILITIES 2,528,025
---------------
TOTAL UTILITIES 15,925,449
---------------
CONSUMER DISCRETIONARY 10.6%
HOUSEHOLD DURABLES 3.0%
Lennar Corp. -- Class A+ 31,435 1,878,555
Mohawk Industries, Inc.*+ 12,380 993,495
American Greetings Corp. -- Class A+ 15,765 431,961
Furniture Brands International, Inc. 12,266 221,156
Blyth, Inc. 6,240 139,090
---------------
TOTAL HOUSEHOLD DURABLES 3,664,257
---------------
SPECIALTY RETAIL 2.7%
Foot Locker, Inc.+ 36,908 809,762
Barnes & Noble, Inc. 12,872 485,274
AnnTaylor Stores Corp.* 17,114 454,377
Regis Corp. 10,620 401,648
Borders Group, Inc.+ 16,567 367,290
Rent-A-Center, Inc.* 17,560 339,084
Payless Shoesource, Inc.*+ 16,005 278,487
Pier 1 Imports, Inc.+ 20,265 228,387
---------------
TOTAL SPECIALTY RETAIL 3,364,309
---------------
MEDIA 2.0%
Belo Corp. -- Class A 22,749 520,042
Lee Enterprises, Inc. 10,715 455,173
Media General, Inc. 5,645 327,467
Westwood One, Inc. 15,920 316,649
Scholastic Corp.*+ 8,245 304,735
Entercom Communications Corp.* 8,977 283,583
Emmis Communications Corp. -- Class A* 8,589 189,731
---------------
TOTAL MEDIA 2,397,380
---------------
AUTO COMPONENTS 1.6%
BorgWarner, Inc.+ 13,256 748,434
Lear Corp. 15,762 535,435
Modine Manufacturing Co. 8,184 300,189
ArvinMeritor, Inc. 16,520 276,215
Bandag, Inc. 2,828 121,208
---------------
TOTAL AUTO COMPONENTS 1,981,481
---------------
MULTILINE RETAIL 0.6%
Saks, Inc.* 33,341 616,809
99 Cents Only Stores* 11,312 104,636
---------------
TOTAL MULTILINE RETAIL 721,445
---------------
HOTELS, RESTAURANTS & LEISURE 0.5%
CBRL Group, Inc.+ 10,964 369,048
Bob Evans Farms, Inc. 8,352 189,674
Krispy Kreme Doughnuts, Inc.*+ 14,520 90,895
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 649,617
---------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 61
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS 0.2%
Callaway Golf Co.+ 15,449 $ 233,125
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 233,125
---------------
TOTAL CONSUMER DISCRETIONARY 13,011,614
---------------
ENERGY 10.2%
OIL & GAS 5.8%
Noble Energy, Inc.+ 41,080 1,926,652
Pioneer Natural Resources Co.+ 33,382 1,833,340
Newfield Exploration Co.*+ 29,852 1,465,733
Pogo Producing Co. 14,043 827,695
Forest Oil Corp.* 12,860 670,006
Overseas Shipholding Group, Inc.+ 6,995 408,018
---------------
TOTAL OIL & GAS 7,131,444
---------------
ENERGY EQUIPMENT & SERVICES 4.4%
ENSCO International, Inc.+ 35,725 1,664,428
Pride International, Inc.*+ 37,246 1,061,883
Cooper Cameron Corp.*+ 13,178 974,249
Helmerich & Payne, Inc.+ 12,125 732,229
Tidewater, Inc.+ 14,322 697,052
Hanover Compressor Co.* 19,385 268,676
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 5,398,517
---------------
TOTAL ENERGY 12,529,961
---------------
INDUSTRIALS 9.3%
MACHINERY 3.0%
SPX Corp.+ 17,245 792,408
Timken Co.+ 19,420 575,415
Flowserve Corp.*+ 12,990 472,187
Kennametal, Inc.+ 9,062 444,400
Trinity Industries, Inc.+ 10,033 406,236
AGCO Corp.*+ 21,312 387,878
Crane Co. 11,680 347,363
Federal Signal Corp. 11,304 193,185
Tecumseh Products Co. -- Class A 4,351 93,634
---------------
TOTAL MACHINERY 3,712,706
---------------
COMMERCIAL SERVICES & SUPPLIES 1.9%
Manpower, Inc. 20,525 911,105
Brink's Co. 13,800 566,628
Adesa, Inc. 21,095 466,199
Banta Corp. 5,675 288,801
Kelly Services, Inc. 4,479 137,326
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 2,370,059
---------------
ROAD & RAIL 0.8%
Yellow Roadway Corp.*+ 13,575 562,276
Swift Transportation Co., Inc.*+ 12,288 217,498
Werner Enterprises, Inc. 12,130 209,728
---------------
TOTAL ROAD & RAIL 989,502
---------------
CONSTRUCTION & ENGINEERING 0.7%
Quanta Services, Inc.*+ 27,770 354,345
Granite Construction, Inc. 7,751 296,398
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Dycom Industries, Inc.*+ 11,450 $ 231,519
---------------
TOTAL CONSTRUCTION & ENGINEERING 882,262
---------------
TRADING COMPANIES & DISTRIBUTORS 0.6%
GATX Corp.+ 11,711 463,170
United Rentals, Inc.*+ 15,703 309,506
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 772,676
---------------
INDUSTRIAL CONGLOMERATES 0.6%
Teleflex, Inc.+ 9,558 673,839
---------------
TOTAL INDUSTRIAL CONGLOMERATES 673,839
---------------
BUILDING PRODUCTS 0.5%
York International Corp. 9,912 555,766
---------------
TOTAL BUILDING PRODUCTS 555,766
---------------
MARINE 0.4%
Alexander & Baldwin, Inc. 10,264 546,455
---------------
TOTAL MARINE 546,455
---------------
AIRLINES 0.4%
AirTran Holdings, Inc.*+ 20,520 259,783
Alaska Air Group, Inc.*+ 6,426 186,740
---------------
TOTAL AIRLINES 446,523
---------------
ELECTRICAL EQUIPMENT 0.3%
Thomas & Betts Corp.* 12,378 425,927
---------------
TOTAL ELECTRICAL EQUIPMENT 425,927
---------------
AEROSPACE & DEFENSE 0.1%
Sequa Corp. -- Class A* 1,477 87,143
---------------
TOTAL AEROSPACE & DEFENSE 87,143
---------------
TOTAL INDUSTRIALS 11,462,858
---------------
MATERIALS 7.9%
CHEMICALS 5.3%
Lyondell Chemical Co.+ 48,140 1,377,767
Lubrizol Corp. 16,007 693,583
Valspar Corp.+ 23,800 532,168
RPM International, Inc. 27,716 509,974
FMC Corp.* 8,850 506,397
Cabot Corp. 14,573 481,055
Airgas, Inc. 15,660 464,006
Scotts Miracle-Gro Co. -- Class A 5,260 462,512
Cytec Industries, Inc. 9,317 404,171
Albemarle Corp. 9,022 340,129
Minerals Technologies, Inc.+ 4,729 270,546
Sensient Technologies Corp. 11,126 210,838
Ferro Corp. 9,889 181,167
---------------
TOTAL CHEMICALS 6,434,313
---------------
PAPER & FOREST PRODUCTS 0.7%
Bowater, Inc.+ 13,182 372,655
Potlatch Corp.+ 6,861 357,595
Glatfelter 10,328 145,522
---------------
TOTAL PAPER & FOREST PRODUCTS 875,772
---------------
See Notes to Financial Statements.
62 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONTAINERS & PACKAGING 0.7%
Sonoco Products Co.+ 23,269 $ 635,476
Longview Fibre Co. 11,999 233,861
---------------
TOTAL CONTAINERS & PACKAGING 869,337
---------------
CONSTRUCTION MATERIALS 0.7%
Martin Marietta Materials, Inc. 10,913 856,234
---------------
TOTAL CONSTRUCTION MATERIALS 856,234
---------------
METALS & MINING 0.5%
Worthington Industries, Inc. 16,740 352,042
Steel Dynamics, Inc.+ 9,020 306,319
---------------
TOTAL METALS & MINING 658,361
---------------
TOTAL MATERIALS 9,694,017
---------------
HEALTH CARE 7.2%
HEALTH CARE PROVIDERS & SERVICES 3.9%
Pacificare Health Systems, Inc.*+ 20,587 1,642,431
Omnicare, Inc.+ 24,830 1,396,191
Triad Hospitals, Inc.*+ 20,207 914,771
Community Health Systems, Inc.*+ 21,105 819,085
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 4,772,478
---------------
BIOTECHNOLOGY 1.9%
Invitrogen Corp.*+ 12,494 939,924
Charles River Laboratories
International, Inc.*+ 16,915 737,832
Millennium Pharmaceuticals, Inc.*+ 72,621 677,554
---------------
TOTAL BIOTECHNOLOGY 2,355,310
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.0%
Advanced Medical Optics, Inc.* 15,560 590,502
Steris Corp. 16,040 381,591
Varian, Inc.*+ 7,540 258,773
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,230,866
---------------
PHARMACEUTICALS 0.4%
Perrigo Co.+ 19,620 280,762
Par Pharmaceutical Cos., Inc.* 8,040 214,025
---------------
TOTAL PHARMACEUTICALS 494,787
---------------
TOTAL HEALTH CARE 8,853,441
---------------
CONSUMER STAPLES 3.2%
FOOD PRODUCTS 2.2%
Dean Foods Co.* 35,186 1,367,328
Smithfield Foods, Inc.* 23,302 691,603
J.M. Smucker Co.+ 13,703 665,144
---------------
TOTAL FOOD PRODUCTS 2,724,075
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
FOOD & DRUG RETAILING 0.5%
BJ's Wholesale Club, Inc.*+ 15,984 $ 444,356
Ruddick Corp. 8,163 188,157
---------------
TOTAL FOOD & DRUG RETAILING 632,513
---------------
BEVERAGES 0.3%
PepsiAmericas, Inc. 14,777 335,881
---------------
TOTAL BEVERAGES 335,881
---------------
TOBACCO 0.2%
Universal Corp./Richmond VA 6,034 234,300
---------------
TOTAL TOBACCO 234,300
---------------
TOTAL CONSUMER STAPLES 3,926,769
---------------
TELECOMMUNICATION SERVICES 0.8%
WIRELESS TELECOMMUNICATION SERVICES 0.8%
Telephone & Data Systems, Inc.+ 24,172 942,708
---------------
TOTAL WIRELESS
TELECOMMUNICATION SERVICES 942,708
---------------
TOTAL TELECOMMUNICATION SERVICES 942,708
---------------
TOTAL COMMON STOCKS
(Cost $105,478,613) 122,589,500
---------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.4%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $ 265,805 265,805
3.24% due 10/03/05 202,443 202,443
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $468,248) 468,248
---------------
SECURITIES LENDING COLLATERAL 23.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 28,753,596 28,753,596
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $28,753,596) 28,753,596
---------------
TOTAL INVESTMENTS 123.7%
(Cost $134,700,457) $ 151,811,344
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (23.7)% $ (29,089,790)
===============
NET ASSETS - 100.0% $ 122,721,554
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 9.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 63
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.6%
FINANCIALS 35.8%
BANKS 10.6%
Bank of America Corp.+ 39,002 $ 1,641,984
Wells Fargo & Co.+ 16,346 957,385
Wachovia Corp.+ 15,354 730,697
U.S. Bancorp+ 17,712 497,353
SunTrust Banks, Inc. 3,414 237,102
BB&T Corp.+ 5,188 202,591
Fifth Third Bancorp+ 5,280 193,934
National City Corp. 5,509 184,221
PNC Financial Services Group, Inc. 2,890 167,678
Regions Financial Corp.+ 4,495 139,884
KeyCorp+ 4,018 129,581
North Fork Bancorporation, Inc. 4,683 119,417
Comerica, Inc. 1,629 95,948
AmSouth Bancorp+ 3,451 87,172
M&T Bank Corp. 802 84,779
Marshall & Ilsley Corp. 1,920 83,539
Synovus Financial Corp. 2,976 82,495
Zions Bancorporation+ 894 63,662
Compass Bancshares, Inc. 1,130 51,788
Huntington Bancshares, Inc. 2,151 48,333
First Horizon National Corp. 1,227 44,602
---------------
TOTAL BANKS 5,844,145
---------------
INSURANCE 8.5%
American International Group, Inc.+ 25,187 1,560,587
MetLife, Inc.+ 7,387 368,094
Allstate Corp. 6,406 354,188
Prudential Financial, Inc.+ 4,875 329,355
St. Paul Travelers Cos., Inc. 6,538 293,360
AFLAC, Inc. 4,947 224,099
Hartford Financial Services Group, Inc.+ 2,829 218,314
Chubb Corp.+ 1,852 165,847
Marsh & McLennan Cos., Inc.+ 5,201 158,058
ACE Ltd. 2,715 127,795
Loews Corp.+ 1,318 121,796
Aon Corp. 3,064 98,293
XL Capital Ltd. 1,287 87,555
Lincoln National Corp.+ 1,657 86,197
MBIA, Inc.+ 1,297 78,624
Ambac Financial Group, Inc. 1,018 73,357
Cincinnati Financial Corp. 1,609 67,401
Jefferson-Pilot Corp.+ 1,260 64,474
SAFECO Corp. 1,136 60,640
UnumProvident Corp.+ 2,836 58,138
Torchmark Corp. 994 52,513
---------------
TOTAL INSURANCE 4,648,685
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS 6.7%
Citigroup, Inc. 50,262 $ 2,287,926
J.P. Morgan Chase & Co. 34,151 1,158,744
Principal Financial Group, Inc. 2,606 123,446
CIT Group, Inc. 1,900 85,842
---------------
TOTAL DIVERSIFIED FINANCIALS 3,655,958
---------------
CAPITAL MARKETS 5.0%
Morgan Stanley 10,553 569,229
Merrill Lynch & Co., Inc. 9,031 554,052
Goldman Sachs Group, Inc. 4,426 538,113
Lehman Brothers Holdings, Inc.+ 2,617 304,828
Bank of New York Co., Inc. 7,533 221,545
State Street Corp.+ 3,107 151,994
Mellon Financial Corp. 4,115 131,557
Bear Stearns Cos., Inc. 1,058 116,115
Northern Trust Corp.+ 1,752 88,564
E*Trade Financial Corp.* 3,656 64,346
Janus Capital Group, Inc. 2,111 30,504
---------------
TOTAL CAPITAL MARKETS 2,770,847
---------------
THRIFTS & MORTGAGE FINANCE 2.9%
Fannie Mae 9,352 419,157
Freddie Mac 6,552 369,926
Washington Mutual, Inc.+ 8,547 335,213
Countrywide Financial Corp.+ 5,761 189,998
Golden West Financial Corp.+ 2,386 141,705
Sovereign Bancorp, Inc.+ 3,434 75,685
MGIC Investment Corp.+ 876 56,239
---------------
TOTAL THRIFTS & MORTGAGE FINANCE 1,587,923
---------------
REAL ESTATE 1.1%
Equity Office Properties Trust+ 3,914 128,027
ProLogis+ 2,348 104,040
Equity Residential 2,709 102,536
Vornado Realty Trust 1,100 95,282
Archstone-Smith Trust 2,024 80,697
Plum Creek Timber Co., Inc. (REIT) 1,728 65,508
Apartment Investment &
Management Co. -- Class A+ 881 34,165
---------------
TOTAL REAL ESTATE 610,255
---------------
CONSUMER FINANCE 1.0%
MBNA Corp. 12,247 301,766
Capital One Financial Corp.+ 2,727 216,851
Providian Financial Corp.* 2,807 49,628
---------------
TOTAL CONSUMER FINANCE 568,245
---------------
TOTAL FINANCIALS 19,686,058
---------------
CONSUMER DISCRETIONARY 11.8%
MEDIA 6.2%
Time Warner, Inc. 45,577 825,399
Comcast Corp. -- Class A*+ 21,295 625,647
Viacom, Inc. -- Class B 15,394 508,156
See Notes to Financial Statements.
64 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
The Walt Disney Co. 19,557 $ 471,910
News Corp. -- Class A 23,765 370,496
Clear Channel Communications, Inc.+ 5,147 169,285
Gannett Co., Inc. 2,258 155,418
Tribune Co. 2,532 85,810
Univision Communications, Inc. -- Class A*+ 2,132 56,562
Interpublic Group of Cos., Inc.*+ 4,117 47,922
Knight-Ridder, Inc.+ 700 41,076
New York Times Co. -- Class A 1,370 40,758
---------------
TOTAL MEDIA 3,398,439
---------------
HOTELS, RESTAURANTS & LEISURE 1.4%
McDonald's Corp. 12,145 406,736
Carnival Corp. 4,059 202,869
Starwood Hotels & Resorts Worldwide, Inc. 2,088 119,371
Wendy's International, Inc. 1,116 50,387
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 779,363
---------------
MULTILINE RETAIL 1.1%
Federated Department Stores, Inc. 2,644 176,804
Kohl's Corp.* 3,278 164,490
Sears Holdings Corp.* 980 121,931
J.C. Penney Holding Co., Inc. 2,354 111,627
Family Dollar Stores, Inc. 1,510 30,004
Big Lots, Inc.* 1,107 12,166
Dillard's, Inc. -- Class A+ 574 11,985
---------------
TOTAL MULTILINE RETAIL 629,007
---------------
HOUSEHOLD DURABLES 0.8%
D.R. Horton, Inc. 2,710 98,156
Pulte Homes, Inc. 2,024 86,870
Centex Corp.+ 1,167 75,365
KB Home+ 753 55,120
Whirlpool Corp. 650 49,250
Leggett & Platt, Inc. 1,765 35,653
Stanley Works 650 30,342
Snap-On, Inc. 589 21,275
---------------
TOTAL HOUSEHOLD DURABLES 452,031
---------------
AUTOMOBILES 0.6%
Ford Motor Co.+ 18,011 177,588
General Motors Corp.+ 5,513 168,753
---------------
TOTAL AUTOMOBILES 346,341
---------------
SPECIALTY RETAIL 0.6%
The Gap, Inc. 5,650 98,479
Office Depot, Inc.*+ 2,951 87,645
Tiffany & Co. 1,353 53,809
AutoNation, Inc.*+ 1,683 33,610
Circuit City Stores, Inc. 1,570 26,941
OfficeMax, Inc. 673 21,314
---------------
TOTAL SPECIALTY RETAIL 321,798
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS 0.4%
Eastman Kodak Co. 2,712 $ 65,983
Mattel, Inc.+ 3,881 64,735
Brunswick Corp. 900 33,957
Hasbro, Inc. 1,720 33,798
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 198,473
---------------
TEXTILES & APPAREL 0.3%
VF Corp.+ 863 50,028
Liz Claiborne, Inc. 1,019 40,067
Jones Apparel Group, Inc. 1,103 31,436
Reebok International Ltd. 476 26,927
---------------
TOTAL TEXTILES & APPAREL 148,458
---------------
AUTO COMPONENTS 0.3%
Johnson Controls, Inc. 1,777 110,263
Delphi Corp. 5,441 15,017
Dana Corp.+ 1,403 13,202
Cooper Tire & Rubber Co.+ 529 8,078
---------------
TOTAL AUTO COMPONENTS 146,560
---------------
DISTRIBUTORS 0.1%
Genuine Parts Co. 1,666 71,472
---------------
TOTAL DISTRIBUTORS 71,472
---------------
TOTAL CONSUMER DISCRETIONARY 6,491,942
---------------
ENERGY 9.9%
OIL & GAS 8.8%
Chevron Corp. 21,825 1,412,732
ConocoPhillips 13,576 949,098
Valero Energy Corp.+ 2,858 323,126
Occidental Petroleum Corp. 3,750 320,363
Devon Energy Corp.+ 4,402 302,153
Burlington Resources, Inc. 3,664 297,956
Marathon Oil Corp. 3,431 236,499
Apache Corp. 3,084 231,978
Anadarko Petroleum Corp. 2,224 212,948
Williams Cos., Inc. 5,552 139,078
Kerr-McGee Corp. 1,124 109,152
Amerada Hess Corp. 774 106,425
El Paso Corp.+ 6,246 86,819
Murphy Oil Corp. 1,600 79,792
---------------
TOTAL OIL & GAS 4,808,119
---------------
ENERGY EQUIPMENT & SERVICES 1.1%
Transocean, Inc.* 3,073 188,406
National-Oilwell Varco, Inc.* 1,644 108,175
Nabors Industries Ltd.*+ 1,493 107,242
Noble Corp. 1,304 89,272
Weatherford International Ltd.*+ 1,300 89,258
Rowan Cos., Inc. 1,018 36,129
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 618,482
---------------
TOTAL ENERGY 5,426,601
---------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 65
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INDUSTRIALS 8.1%
AEROSPACE & DEFENSE 1.9%
Honeywell International, Inc. 8,279 $ 310,463
General Dynamics Corp.+ 1,886 225,471
Northrop Grumman Corp. 3,344 181,747
Raytheon Co. 4,412 167,744
L-3 Communications
Holdings, Inc.+ 1,086 85,870
Goodrich Corp. 1,101 48,818
---------------
TOTAL AEROSPACE & DEFENSE 1,020,113
---------------
MACHINERY 1.8%
Illinois Tool Works, Inc. 2,020 166,307
Deere & Co.+ 2,244 137,333
Ingersoll-Rand Co. -- Class A 3,194 122,107
Paccar, Inc. 1,660 112,697
ITT Industries, Inc. 915 103,944
Eaton Corp. 1,400 88,970
Dover Corp. 1,954 79,704
Parker Hannifin Corp. 1,101 70,805
Cummins, Inc. 487 42,851
Pall Corp. 1,225 33,687
Navistar International Corp.* 540 17,512
---------------
TOTAL MACHINERY 975,917
---------------
ROAD & RAIL 1.2%
Burlington Northern Santa Fe Corp. 3,557 212,708
Union Pacific Corp. 2,449 175,593
Norfolk Southern Corp. 3,891 157,819
CSX Corp. 2,091 97,190
---------------
TOTAL ROAD & RAIL 643,310
---------------
INDUSTRIAL CONGLOMERATES 1.1%
Tyco International Ltd.+ 19,604 545,971
Textron, Inc. 1,248 89,507
---------------
TOTAL INDUSTRIAL CONGLOMERATES 635,478
---------------
COMMERCIAL SERVICES & SUPPLIES 0.9%
Cendant Corp. 10,159 209,682
Waste Management, Inc. 5,339 152,749
RR Donnelley & Sons Co. 2,067 76,624
Cintas Corp.+ 1,300 53,365
Allied Waste Industries, Inc.* 2,101 17,753
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 510,173
---------------
AIR FREIGHT & COURIERS 0.5%
FedEx Corp. 2,910 253,548
Ryder System, Inc. 626 21,422
---------------
TOTAL AIR FREIGHT & COURIERS 274,970
---------------
BUILDING PRODUCTS 0.2%
Masco Corp.+ 4,191 128,580
---------------
TOTAL BUILDING PRODUCTS 128,580
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT 0.2%
Cooper Industries Ltd. -- Class A 864 $ 59,737
American Power Conversion Corp. 1,603 41,518
---------------
TOTAL ELECTRICAL EQUIPMENT 101,255
---------------
AIRLINES 0.2%
Southwest Airlines Co. 6,716 99,732
---------------
TOTAL AIRLINES 99,732
---------------
TRADING COMPANIES & DISTRIBUTORS 0.1%
W.W. Grainger, Inc. 754 47,442
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 47,442
---------------
TOTAL INDUSTRIALS 4,436,970
---------------
HEALTH CARE 7.7%
HEALTH CARE PROVIDERS & SERVICES 3.5%
WellPoint, Inc.* 5,828 441,879
Cardinal Health, Inc.+ 4,157 263,720
Aetna, Inc. 2,732 235,334
Caremark Rx, Inc.* 4,371 218,244
Medco Health Solutions, Inc.* 2,849 156,211
McKesson Corp. 2,914 138,269
CIGNA Corp. 1,167 137,543
AmerisourceBergen Corp. 1,000 77,300
Humana, Inc.* 1,581 75,698
Laboratory Corporation of
America Holdings* 1,250 60,887
Health Management
Associates, Inc. -- Class A+ 2,344 55,014
Tenet Healthcare Corp.*+ 4,421 49,648
Manor Care, Inc.+ 778 29,883
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,939,630
---------------
PHARMACEUTICALS 3.5%
Pfizer, Inc. 71,594 1,787,702
Mylan Laboratories, Inc. 2,099 40,427
Watson Pharmaceuticals, Inc.*+ 979 35,841
King Pharmaceuticals, Inc.* 2,314 35,590
---------------
TOTAL PHARMACEUTICALS 1,899,560
---------------
BIOTECHNOLOGY 0.4%
Biogen Idec, Inc.* 3,200 126,336
Applera Corp. - Applied
Biosystems Group 1,864 43,319
Chiron Corp.* 990 43,184
---------------
TOTAL BIOTECHNOLOGY 212,839
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.3%
Fisher Scientific International, Inc.*+ 1,201 74,522
Thermo Electron Corp.* 1,573 48,606
Bausch & Lomb, Inc.+ 552 44,535
PerkinElmer, Inc. 1,190 24,240
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 191,903
---------------
TOTAL HEALTH CARE 4,243,932
---------------
See Notes to Financial Statements.
66 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INFORMATION TECHNOLOGY 7.3%
COMPUTERS & PERIPHERALS 2.4%
Hewlett-Packard Co. 27,780 $ 811,176
EMC Corp./MA*+ 23,464 303,624
Sun Microsystems, Inc.* 33,095 129,733
NCR Corp.* 1,742 55,587
QLogic Corp.* 810 27,702
---------------
TOTAL COMPUTERS & PERIPHERALS 1,327,822
---------------
COMMUNICATIONS EQUIPMENT 1.4%
Motorola, Inc.+ 23,945 528,945
Scientific-Atlanta, Inc. 1,414 53,039
Comverse Technology, Inc.*+ 1,931 50,727
Tellabs, Inc.* 4,390 46,183
JDS Uniphase Corp.*+ 16,000 35,520
ADC Telecommunications, Inc.* 1,123 25,672
Andrew Corp.* 1,580 17,617
CIENA Corp.* 5,493 14,502
---------------
TOTAL COMMUNICATIONS EQUIPMENT 772,205
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT
1.4%
Applied Materials, Inc. 15,754 267,188
Advanced Micro Devices, Inc.*+ 3,781 95,281
Freescale Semiconductor, Inc. --
Class B* 3,973 93,683
KLA-Tencor Corp.+ 1,860 90,694
Micron Technology, Inc.*+ 5,843 77,712
LSI Logic Corp.*+ 3,685 36,297
Novellus Systems, Inc.* 1,320 33,106
Teradyne, Inc.* 1,859 30,673
Applied Micro Circuits Corp.* 2,940 8,820
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 733,454
---------------
IT CONSULTING & SERVICES 0.8%
Electronic Data Systems Corp. 5,053 113,389
Computer Sciences Corp.* 1,730 81,846
Fiserv, Inc.*+ 1,771 81,236
Affiliated Computer
Services, Inc. -- Class A*+ 1,140 62,244
Sabre Holdings Corp. 1,277 25,898
Unisys Corp.* 3,208 21,301
Convergys Corp.*+ 1,346 19,342
---------------
TOTAL IT CONSULTING & SERVICES 405,256
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.6%
Agilent Technologies, Inc.* 4,877 159,722
Jabil Circuit, Inc.*+ 1,627 50,307
Solectron Corp.* 9,431 36,875
Molex, Inc. 1,324 35,324
Symbol Technologies, Inc. 2,320 22,458
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Sanmina-SCI Corp.* 4,997 $ 21,437
Tektronix, Inc. 785 19,805
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 345,928
---------------
SOFTWARE 0.5%
Computer Associates
International, Inc. 4,400 122,364
Siebel Systems, Inc. 5,096 52,642
BMC Software, Inc.* 2,077 43,825
Compuware Corp.* 3,686 35,017
Novell, Inc.* 3,634 27,073
---------------
TOTAL SOFTWARE 280,921
---------------
OFFICE ELECTRONICS 0.2%
Xerox Corp.*+ 9,338 127,464
---------------
TOTAL OFFICE ELECTRONICS 127,464
---------------
TOTAL INFORMATION TECHNOLOGY 3,993,050
---------------
UTILITIES 6.4%
ELECTRIC UTILITIES 3.2%
Exelon Corp.+ 6,508 347,787
Southern Co.+ 7,305 261,227
FPL Group, Inc. 3,711 176,644
FirstEnergy Corp. 3,096 161,363
American Electric Power Co., Inc.+ 3,863 153,361
Entergy Corp. 2,008 149,235
Edison International 3,067 145,008
PPL Corp.+ 3,584 115,871
Progress Energy, Inc.+ 2,355 105,386
Cinergy Corp. 1,888 83,846
Allegheny Energy, Inc.*+ 1,580 48,538
Pinnacle West Capital Corp. 904 39,848
---------------
TOTAL ELECTRIC UTILITIES 1,788,114
---------------
MULTI-UTILITIES 3.1%
Dominion Resources, Inc./VA+ 3,220 277,371
Duke Energy Corp.+ 9,012 262,880
Public Service Enterprise
Group, Inc. 2,239 144,102
PG&E Corp. 3,664 143,812
Sempra Energy 2,439 114,779
Consolidated Edison, Inc. 2,320 112,636
Constellation Energy Group, Inc. 1,728 106,445
Ameren Corp.+ 1,959 104,787
DTE Energy Co. 1,664 76,311
Xcel Energy, Inc.+ 3,780 74,126
NiSource, Inc.+ 2,716 65,863
KeySpan Corp. 1,654 60,834
CenterPoint Energy, Inc. 2,940 43,718
TECO Energy, Inc.+ 1,977 35,625
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 67
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CMS Energy Corp.*+ 2,111 $ 34,726
Calpine Corp.*+ 5,531 14,325
Dynegy, Inc. -- Class A* 2,852 13,433
---------------
TOTAL MULTI-UTILITIES 1,685,773
---------------
GAS UTILITIES 0.1%
Peoples Energy Corp. 450 17,721
Nicor, Inc.+ 392 16,476
---------------
TOTAL GAS UTILITIES 34,197
---------------
TOTAL UTILITIES 3,508,084
---------------
TELECOMMUNICATION SERVICES 5.9%
DIVERSIFIED TELECOMMUNICATION SERVICES 4.2%
Verizon Communications, Inc. 26,788 875,700
SBC Communications, Inc.+ 32,110 769,677
BellSouth Corp.+ 17,751 466,851
AT&T Corp.+ 7,790 154,242
CenturyTel, Inc.+ 1,278 44,704
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 2,311,174
---------------
WIRELESS TELECOMMUNICATION SERVICES 1.7%
Sprint Nextel Corp.+ 28,463 676,850
Alltel Corp.+ 3,579 233,029
---------------
TOTAL WIRELESS
TELECOMMUNICATION SERVICES 909,879
---------------
TOTAL TELECOMMUNICATION SERVICES 3,221,053
---------------
MATERIALS 4.2%
CHEMICALS 1.8%
Dow Chemical Co. 9,360 390,031
Monsanto Co.+ 2,486 155,997
Air Products & Chemicals, Inc. 2,132 117,558
PPG Industries, Inc. 1,646 97,427
Rohm & Haas Co. 1,388 57,088
Sigma-Aldrich Corp. 660 42,280
Ashland, Inc. 747 41,264
Eastman Chemical Co. 789 37,059
Engelhard Corp. 1,103 30,785
---------------
TOTAL CHEMICALS 969,489
---------------
METALS & MINING 1.2%
Alcoa, Inc. 8,510 207,814
Newmont Mining Corp.+ 4,371 206,180
Phelps Dodge Corp.+ 894 116,157
Nucor Corp.+ 1,521 89,724
United States Steel Corp.+ 1,110 47,009
---------------
TOTAL METALS & MINING 666,884
---------------
PAPER & FOREST PRODUCTS 0.9%
Weyerhaeuser Co. 2,332 160,325
International Paper Co.+ 4,772 142,206
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Georgia-Pacific Corp. 2,485 $ 84,639
MeadWestvaco Corp. 1,745 48,197
Louisiana-Pacific Corp.+ 1,039 28,770
---------------
TOTAL PAPER & FOREST PRODUCTS 464,137
---------------
CONTAINERS & PACKAGING 0.2%
Temple-Inland, Inc. 1,078 44,036
Sealed Air Corp.*+ 760 36,069
Bemis Co.+ 1,018 25,145
Pactiv Corp.* 1,390 24,353
---------------
TOTAL CONTAINERS & PACKAGING 129,603
---------------
CONSTRUCTION MATERIALS 0.1%
Vulcan Materials Co.+ 977 72,503
---------------
TOTAL CONSTRUCTION MATERIALS 72,503
---------------
TOTAL MATERIALS 2,302,616
---------------
CONSUMER STAPLES 2.5%
FOOD & DRUG RETAILING 1.5%
CVS Corp.+ 7,902 229,237
Costco Wholesale Corp.+ 4,686 201,920
Kroger Co.* 7,010 144,336
Safeway, Inc.+ 4,390 112,384
Albertson's, Inc.+ 3,451 88,518
Supervalu, Inc. 1,259 39,180
---------------
TOTAL FOOD & DRUG RETAILING 815,575
---------------
FOOD PRODUCTS 0.6%
Archer-Daniels-Midland Co. 6,307 155,531
ConAgra Foods, Inc.+ 5,054 125,086
Tyson Foods, Inc. -- Class A 2,400 43,320
---------------
TOTAL FOOD PRODUCTS 323,937
---------------
BEVERAGES 0.3%
Coca-Cola Enterprises, Inc. 2,847 55,516
Constellation Brands, Inc. --
Class A* 1,850 48,100
Molson Coors Brewing Co. --
Class B 570 36,486
---------------
TOTAL BEVERAGES 140,102
---------------
TOBACCO 0.1%
Reynolds American, Inc. 824 68,408
---------------
TOTAL TOBACCO 68,408
---------------
PERSONAL PRODUCTS 0.0%
Alberto-Culver Co. -- Class B+ 673 30,117
---------------
TOTAL PERSONAL PRODUCTS 30,117
---------------
TOTAL CONSUMER STAPLES 1,378,139
---------------
TOTAL COMMON STOCKS
(Cost $48,716,255) 54,688,445
---------------
See Notes to Financial Statements.
68 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
LARGE-CAP VALUE FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 0.6%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $ 171,974 $ 171,974
3.24% due 10/03/05 130,978 130,978
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $302,952) 302,952
---------------
SECURITIES LENDING COLLATERAL 16.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 8,782,960 8,782,960
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $8,782,960) 8,782,960
---------------
TOTAL INVESTMENTS 116.2%
(Cost $57,802,167) $ 63,774,357
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (16.2)% $ (8,884,092)
===============
NET ASSETS - 100.0% $ 54,890,265
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 9.
REIT--REAL ESTATE INVESTMENT TRUST.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 69
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.6%
HEALTH CARE 20.3%
HEALTH CARE EQUIPMENT & SUPPLIES 10.3%
Respironics, Inc.* 29,846 $ 1,258,904
ResMed, Inc.*+ 14,618 1,164,324
Idexx Laboratories, Inc.* 13,520 904,218
Mentor Corp.+ 15,548 855,295
Sybron Dental Specialties, Inc.* 16,713 694,927
American Medical Systems
Holdings, Inc.* 28,716 578,627
Hologic, Inc.* 9,158 528,874
Haemonetics Corp./MA* 10,933 519,645
Immucor, Inc.*+ 18,833 516,777
Diagnostic Products Corp. 9,750 514,117
Dionex Corp.* 8,421 456,839
Biosite, Inc.* 7,117 440,258
ArthroCare Corp.* 10,278 413,381
Advanced Neuromodulation
Systems, Inc.*+ 8,320 394,867
PolyMedica Corp. 10,038 350,728
Intermagnetics General Corp.* 10,720 299,517
Integra LifeSciences
Holdings Corp.*+ 7,611 291,197
Cyberonics, Inc.*+ 9,074 270,768
DJ Orthopedics, Inc.*+ 9,040 261,618
SurModics, Inc.*+ 6,469 250,286
Merit Medical Systems, Inc.* 11,181 198,351
ICU Medical, Inc.*+ 5,780 166,233
Kensey Nash Corp.*+ 4,166 127,730
Possis Medical, Inc.* 7,179 78,682
BioLase Technology, Inc. 9,564 68,191
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 11,604,354
---------------
HEALTH CARE PROVIDERS & SERVICES 8.2%
Pharmaceutical Product
Development, Inc.* 20,818 1,197,243
Cerner Corp.*+ 12,524 1,088,711
Pediatrix Medical Group, Inc.*+ 9,850 756,677
Sierra Health Services, Inc.*+ 10,518 724,375
United Surgical Partners
International, Inc.* 18,360 718,060
American Healthways, Inc.*+ 13,720 581,728
Owens & Minor, Inc. 16,550 485,742
Chemed Corp. 10,660 462,004
Priority Healthcare Corp. --
Class B* 16,070 447,710
Centene Corp.* 17,613 440,853
AMERIGROUP Corp.* 21,326 407,753
Dendrite International, Inc.* 17,647 354,528
AmSurg Corp.*+ 12,292 336,309
LCA-Vision, Inc.+ 8,522 316,337
LabOne, Inc.* 7,235 314,723
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Amedisys, Inc.*+ 6,465 $ 252,135
Odyssey HealthCare, Inc.* 14,348 243,486
CryoLife, Inc.* 8,885 61,751
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 9,190,125
---------------
PHARMACEUTICALS 1.6%
Medicis Pharmaceutical Corp. --
Class A+ 22,558 734,489
MGI Pharma, Inc.* 29,874 696,363
Connetics Corp.*+ 14,499 245,178
Noven Pharmaceuticals, Inc.* 9,758 136,612
---------------
TOTAL PHARMACEUTICALS 1,812,642
---------------
BIOTECHNOLOGY 0.2%
Enzo Biochem, Inc.* 11,351 174,351
---------------
TOTAL BIOTECHNOLOGY 174,351
---------------
TOTAL HEALTH CARE 22,781,472
---------------
CONSUMER DISCRETIONARY 19.5%
HOTELS, RESTAURANTS & LEISURE 5.2%
Sonic Corp.* 24,805 678,417
Panera Bread Co. -- Class A* 12,815 655,872
Argosy Gaming Co.* 12,244 575,345
P.F. Chang's China Bistro, Inc.*+ 10,908 489,006
CEC Entertainment, Inc.* 14,560 462,426
Jack in the Box, Inc.*+ 14,760 441,472
Shuffle Master, Inc.*+ 14,464 382,283
Rare Hospitality International, Inc.* 14,117 362,807
Triarc Cos. -- Class B 22,480 343,270
IHOP Corp. 8,052 328,038
Red Robin Gourmet Burgers, Inc.*+ 5,970 273,665
WMS Industries, Inc.*+ 9,440 265,547
Papa John's International, Inc.* 5,059 253,557
Steak n Shake Co.* 11,590 210,358
Bally Total Fitness Holding Corp.* 14,176 63,367
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 5,785,430
---------------
SPECIALTY RETAIL 5.1%
Tractor Supply Co.*+ 13,774 628,783
GameStop Corp. -- Class B* 21,500 610,385
Men's Wearhouse, Inc.* 22,360 597,012
Guitar Center, Inc.*+ 10,764 594,280
Aaron Rents, Inc. 18,645 394,342
Genesco, Inc.* 9,406 350,279
Hibbett Sporting Goods, Inc.* 14,796 329,200
Children's Place Retail Stores, Inc.* 8,839 315,022
Electronics Boutique
Holdings Corp.* 4,829 303,454
Select Comfort Corp.*+ 14,919 298,082
HOT Topic, Inc.* 18,752 288,031
Finish Line, Inc. -- Class A 18,320 267,289
Cato Corp. -- Class A 13,003 259,150
Stein Mart, Inc. 11,078 224,883
SEE NOTES TO FINANCIAL STATEMENTS.
70 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Christopher & Banks Corp. 14,871 $ 206,261
Movie Gallery, Inc.+ 10,650 110,654
---------------
TOTAL SPECIALTY RETAIL 5,777,107
---------------
HOUSEHOLD DURABLES 3.2%
NVR, Inc.* 2,234 1,976,978
Meritage Homes Corp.* 9,495 727,887
Champion Enterprises, Inc.*+ 31,449 464,816
Ethan Allen Interiors, Inc. 14,718 461,409
---------------
TOTAL HOUSEHOLD DURABLES 3,631,090
---------------
TEXTILES & APPAREL 2.1%
Quiksilver, Inc.*+ 48,670 703,282
Wolverine World Wide, Inc. 23,875 502,569
Phillips-Van Heusen Corp. 15,103 468,495
Fossil, Inc.*+ 20,296 369,184
K-Swiss, Inc. -- Class A 10,774 318,587
---------------
TOTAL TEXTILES & APPAREL 2,362,117
---------------
LEISURE EQUIPMENT & PRODUCTS 1.7%
Polaris Industries, Inc.+ 17,440 864,152
SCP Pool Corp. 21,850 763,220
Nautilus, Inc.+ 13,950 307,877
---------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 1,935,249
---------------
MEDIA 0.9%
Arbitron, Inc. 13,118 522,621
Advo, Inc. 12,992 406,520
Thomas Nelson, Inc. 4,552 85,395
---------------
TOTAL MEDIA 1,014,536
---------------
DISTRIBUTORS 0.5%
Building Material Holding Corp. 5,900 549,821
---------------
TOTAL DISTRIBUTORS 549,821
---------------
AUTOMOBILES 0.4%
Winnebago Industries, Inc. 13,642 395,209
---------------
TOTAL AUTOMOBILES 395,209
---------------
COMMERCIAL SERVICES & SUPPLIES 0.3%
Pre-Paid Legal Services, Inc.+ 4,235 163,895
Vertrue, Inc.* 4,089 148,635
CPI Corp. 2,758 48,513
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 361,043
---------------
AUTO COMPONENTS 0.1%
Midas, Inc.* 5,196 103,296
---------------
TOTAL AUTO COMPONENTS 103,296
---------------
TOTAL CONSUMER DISCRETIONARY 21,914,898
---------------
INDUSTRIALS 15.6%
MACHINERY 4.9%
Oshkosh Truck Corp. 30,414 1,312,668
IDEX Corp. 21,411 911,038
JLG Industries, Inc. 21,190 775,342
Toro Co. 17,431 640,764
Clarcor, Inc. 21,380 614,034
Mueller Industries, Inc. 15,210 422,382
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Kaydon Corp.+ 11,658 $ 331,204
Wabash National Corp.+ 12,964 254,872
ASV, Inc.*+ 7,360 166,704
Milacron, Inc.* 20,744 36,924
---------------
TOTAL MACHINERY 5,465,932
---------------
COMMERCIAL SERVICES & SUPPLIES 3.1%
Waste Connections, Inc.*+ 19,470 683,007
Brady Corp. -- Class A+ 20,428 632,042
Labor Ready, Inc.* 22,038 565,275
John H. Harland Co. 11,632 516,461
Watson Wyatt & Co., Holdings 17,307 466,424
Administaff, Inc. 9,053 359,766
Healthcare Services Group 11,495 221,279
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 3,444,254
---------------
AEROSPACE & DEFENSE 2.1%
Engineered Support Systems, Inc. 17,285 709,376
Teledyne Technologies, Inc.* 13,843 477,168
Gencorp, Inc.* 22,730 423,914
Ceradyne, Inc.* 10,225 375,053
Mercury Computer Systems, Inc.*+ 8,715 228,769
EDO Corp. 6,155 184,835
---------------
TOTAL AEROSPACE & DEFENSE 2,399,115
---------------
ROAD & RAIL 1.8%
Landstar System, Inc. 24,296 972,569
Knight Transportation, Inc. 15,829 385,594
Heartland Express, Inc.+ 18,679 379,931
Old Dominion Freight Line, Inc.* 7,860 263,231
---------------
TOTAL ROAD & RAIL 2,001,325
---------------
ELECTRICAL EQUIPMENT 1.6%
Roper Industries, Inc.+ 35,488 1,394,324
Baldor Electric Co. 11,663 295,657
Vicor Corp. 7,970 120,745
---------------
TOTAL ELECTRICAL EQUIPMENT 1,810,726
---------------
BUILDING PRODUCTS 1.3%
Simpson Manufacturing Co., Inc.+ 15,180 594,145
Lennox International, Inc. 20,720 567,935
ElkCorp 7,499 268,240
---------------
TOTAL BUILDING PRODUCTS 1,430,320
---------------
TRADING COMPANIES & DISTRIBUTORS 0.4%
Watsco, Inc.+ 9,820 521,540
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 521,540
---------------
AIR FREIGHT & COURIERS 0.4%
Forward Air Corp. 13,071 481,536
---------------
TOTAL AIR FREIGHT & COURIERS 481,536
---------------
TOTAL INDUSTRIALS 17,554,748
---------------
INFORMATION TECHNOLOGY 15.3%
SOFTWARE 5.2%
Hyperion Solutions Corp.*+ 16,663 810,655
Micros Systems, Inc.*+ 15,954 697,987
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 71
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Take-Two Interactive Software, Inc.*+ 29,402 $ 649,490
Kronos, Inc./MA* 13,131 586,168
Ansys, Inc.*+ 13,152 506,220
Factset Research Systems, Inc. 13,911 490,224
Progress Software Corp.* 15,421 489,925
Filenet Corp.* 17,160 478,764
Manhattan Associates, Inc.* 11,859 275,129
SS&C Technologies Co. 7,080 259,411
Serena Software, Inc.*+ 11,944 238,044
Sonic Solutions, Inc.* 10,093 217,000
Radiant Systems, Inc.* 9,360 96,595
---------------
TOTAL SOFTWARE 5,795,612
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 3.5%
Flir Systems, Inc.*+ 28,865 853,827
Trimble Navigation Ltd.* 22,198 747,851
Cognex Corp. 19,493 586,154
Itron, Inc.* 10,010 457,057
MTS Systems Corp. 8,210 310,092
Rogers Corp.* 6,737 260,722
Littelfuse, Inc.* 9,266 260,652
Scansource, Inc.* 5,287 257,688
Daktronics, Inc. 6,494 155,726
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 3,889,769
---------------
IT CONSULTING & SERVICES 2.2%
Global Payments, Inc.+ 13,677 1,062,977
CACI International, Inc. -- Class A*+ 12,463 755,258
Talx Corp. 8,715 285,765
Mantech International Corp. -- Class A* 7,340 193,849
iPayment Holdings, Inc.* 5,100 192,984
---------------
TOTAL IT CONSULTING & SERVICES 2,490,833
---------------
INTERNET SOFTWARE & SERVICES 1.5%
Websense, Inc.* 9,921 508,054
j2 Global Communications, Inc.*+ 10,159 410,627
Digital Insight Corp.* 14,110 367,707
WebEx Communications, Inc.*+ 14,355 351,841
Zix Corp.*+ 11,726 23,452
---------------
TOTAL INTERNET SOFTWARE & SERVICES 1,661,681
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 1.4%
Microsemi Corp.*+ 26,025 664,679
ATMI, Inc.* 15,603 483,693
Power Integrations, Inc.* 12,172 264,741
Kulicke & Soffa Industries, Inc.* 21,532 156,107
---------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 1,569,220
---------------
COMPUTERS & PERIPHERALS 0.8%
Avid Technology, Inc.*+ 17,130 709,182
Synaptics, Inc.*+ 10,034 188,639
---------------
TOTAL COMPUTERS & PERIPHERALS 897,821
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT 0.7%
Comtech Telecommunications Corp.* 8,030 $ 333,004
Netgear, Inc.*+ 13,540 325,772
Harmonic, Inc.* 30,501 177,516
---------------
TOTAL COMMUNICATIONS EQUIPMENT 836,292
---------------
TOTAL INFORMATION TECHNOLOGY 17,141,228
---------------
ENERGY 12.7%
OIL & GAS 8.5%
Southwestern Energy Co.* 33,972 2,493,545
Massey Energy Co.+ 31,839 1,626,018
Vintage Petroleum, Inc. 22,778 1,040,043
Frontier Oil Corp. 23,250 1,031,138
Cabot Oil & Gas Corp. 20,340 1,027,373
St. Mary Land & Exploration Co. 23,366 855,196
Penn Virginia Corp. 7,695 444,078
Remington Oil & Gas Corp.* 9,720 403,380
World Fuel Services Corp. 11,245 364,900
Petroleum Development Corp.* 6,864 263,166
---------------
TOTAL OIL & GAS 9,548,837
---------------
ENERGY EQUIPMENT & SERVICES 4.2%
Unit Corp.* 18,999 1,050,265
Cal Dive International, Inc.*+ 16,075 1,019,316
Lone Star Technologies, Inc.*+ 12,448 691,984
Hydril*+ 8,115 557,014
CARBO Ceramics, Inc. 8,224 542,702
Atwood Oceanics, Inc.*+ 5,540 466,523
Tetra Technologies, Inc.* 14,148 441,700
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 4,769,504
---------------
TOTAL ENERGY 14,318,341
---------------
FINANCIALS 7.8%
BANKS 3.7%
East-West Bancorp, Inc. 23,183 789,149
Hudson United Bancorp 18,420 779,718
First Midwest Bancorp, Inc./IL+ 18,778 699,293
UCBH Holdings, Inc.+ 38,077 697,571
Republic Bancorp, Inc./MI 28,683 405,578
TrustCo Bank Corp./NY+ 31,079 389,420
PrivateBancorp, Inc. 7,239 248,153
Nara Bancorp, Inc. 8,120 121,394
---------------
TOTAL BANKS 4,130,276
---------------
REAL ESTATE 2.9%
Shurgard Storage Centers, Inc. -- Class A 19,450 1,086,671
Essex Property Trust, Inc.+ 9,574 861,660
Kilroy Realty Corp. 11,988 671,688
Eastgroup Properties, Inc. 9,090 397,687
Acadia Realty Trust 13,010 234,050
---------------
TOTAL REAL ESTATE 3,251,756
---------------
See Notes to Financial Statements.
72 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INSURANCE 1.1%
Philadelphia Consolidated
Holding Co.*+ 7,603 $ 645,494
Zenith National Insurance Corp. 9,530 597,436
---------------
TOTAL INSURANCE 1,242,930
---------------
CONSUMER FINANCE 0.1%
World Acceptance Corp.* 7,726 196,318
---------------
TOTAL CONSUMER FINANCE 196,318
---------------
TOTAL FINANCIALS 8,821,280
---------------
MATERIALS 3.4%
CONSTRUCTION MATERIALS 1.7%
Florida Rock Industries, Inc.+ 19,598 1,256,036
Headwaters, Inc.*+ 17,234 644,551
---------------
TOTAL CONSTRUCTION MATERIALS 1,900,587
---------------
METALS & MINING 0.9%
Cleveland-Cliffs, Inc.+ 9,075 790,523
Amcol International Corp. 9,095 173,442
---------------
TOTAL METALS & MINING 963,965
---------------
CHEMICALS 0.6%
Georgia Gulf Corp.+ 14,180 341,454
MacDermid, Inc. 10,356 271,949
Omnova Solutions, Inc.* 16,936 74,010
---------------
TOTAL CHEMICALS 687,413
---------------
PAPER & FOREST PRODUCTS 0.2%
Deltic Timber Corp. 5,110 235,316
---------------
TOTAL PAPER & FOREST PRODUCTS 235,316
---------------
TOTAL MATERIALS 3,787,281
---------------
CONSUMER STAPLES 2.4%
FOOD PRODUCTS 1.2%
Flowers Foods, Inc. 21,660 590,885
Delta & Pine Land Co. 15,018 396,625
Lance, Inc. 12,386 216,260
Peet's Coffee & Tea, Inc.* 5,790 177,290
---------------
TOTAL FOOD PRODUCTS 1,381,060
---------------
FOOD & DRUG RETAILING 0.7%
United Natural Foods, Inc.*+ 17,024 601,969
Great Atlantic & Pacific Tea Co.* 7,050 199,938
---------------
TOTAL FOOD & DRUG RETAILING 801,907
---------------
PERSONAL PRODUCTS 0.3%
USANA Health Sciences, Inc.*+ 4,260 203,202
Natures Sunshine Products, Inc. 5,014 116,525
---------------
TOTAL PERSONAL PRODUCTS 319,727
---------------
HOUSEHOLD PRODUCTS 0.2%
WD-40 Co. 6,873 182,203
---------------
TOTAL HOUSEHOLD PRODUCTS 182,203
---------------
TOTAL CONSUMER STAPLES 2,684,897
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
UTILITIES 2.3%
GAS UTILITIES 2.3%
Energen Corp. 30,435 $ 1,316,618
UGI Corp. 43,390 1,221,429
---------------
TOTAL GAS UTILITIES 2,538,047
---------------
TOTAL UTILITIES 2,538,047
---------------
TELECOMMUNICATION SERVICES 0.3%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.3%
Commonwealth Telephone Enterprises, Inc. 9,052 341,260
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 341,260
---------------
TOTAL TELECOMMUNICATION SERVICES 341,260
---------------
TOTAL COMMON STOCKS
(Cost $103,090,557) 111,883,452
---------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.3%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $ 191,436 191,436
3.24% due 10/03/05 145,802 145,802
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $337,238) 337,238
---------------
SECURITIES LENDING COLLATERAL 11.9%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 13,293,323 13,293,323
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $13,293,323) 13,293,323
---------------
TOTAL INVESTMENTS 111.8%
(Cost $116,721,118) $ 125,514,013
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (11.8)% $ (13,215,602)
===============
NET ASSETS - 100.0% $ 112,298,411
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 9.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 73
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 100.8%
CONSUMER DISCRETIONARY 22.8%
SPECIALTY RETAIL 8.9%
Chico's FAS, Inc.*+ 13,914 $ 512,035
Michaels Stores, Inc. 10,428 344,750
Williams-Sonoma, Inc.*+ 8,960 343,616
Abercrombie & Fitch Co. -- Class A 6,739 335,939
Advance Auto Parts, Inc.*+ 8,433 326,169
Ross Stores, Inc. 11,245 266,506
CarMax, Inc.*+ 8,047 251,630
Urban Outfitters, Inc.*+ 8,482 249,371
American Eagle Outfitters, Inc. 10,531 247,794
O'Reilly Automotive, Inc.* 8,604 242,461
Petsmart, Inc. 11,029 240,212
Claire's Stores, Inc. 7,642 184,401
Pacific Sunwear of California, Inc.*+ 5,747 123,216
Aeropostale, Inc.*+ 4,271 90,759
---------------
TOTAL SPECIALTY RETAIL 3,758,859
---------------
HOTELS, RESTAURANTS & LEISURE 3.4%
GTECH Holdings Corp. 8,913 285,751
Brinker International, Inc.* 6,779 254,619
Cheesecake Factory, Inc.* 6,038 188,627
Outback Steakhouse, Inc. 5,057 185,086
Boyd Gaming Corp. 3,343 144,150
International Speedway Corp. -- Class A 2,713 142,351
Applebee's International, Inc. 6,083 125,858
Ruby Tuesday, Inc. 4,904 106,711
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 1,433,153
---------------
HOUSEHOLD DURABLES 3.3%
Harman International
Industries, Inc. 5,080 519,532
Toll Brothers, Inc.*+ 9,110 406,944
Ryland Group, Inc.+ 3,610 246,996
Hovnanian Enterprises, Inc. -- Class A*+ 2,760 141,312
Tupperware Corp.+ 4,103 93,466
---------------
TOTAL HOUSEHOLD DURABLES 1,408,250
---------------
COMMERCIAL SERVICES & SUPPLIES 2.4%
Career Education Corp.*+ 7,923 281,742
Laureate Education, Inc.*+ 3,830 187,555
Education Management Corp.* 5,137 165,617
ITT Educational Services, Inc.* 2,916 143,905
Corinthian Colleges, Inc.* 7,026 93,235
DeVry, Inc.*+ 4,510 85,915
Sotheby's Holdings, Inc. -- Class A* 3,440 57,517
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,015,486
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
MEDIA 1.9%
Washington Post Co. -- Class B 452 $ 362,730
Valassis Communications, Inc.* 3,840 149,683
Reader's Digest Association, Inc. 7,631 121,867
Harte-Hanks, Inc. 4,480 118,406
Catalina Marketing Corp.+ 3,094 70,358
---------------
TOTAL MEDIA 823,044
---------------
MULTILINE RETAIL 1.3%
Neiman-Marcus Group, Inc. -- Class A 3,770 376,812
Dollar Tree Stores, Inc.*+ 8,268 179,002
---------------
TOTAL MULTILINE RETAIL 555,814
---------------
TEXTILES & APPAREL 0.9%
Polo Ralph Lauren Corp. 4,650 233,895
Timberland Co. -- Class A* 4,256 143,767
---------------
TOTAL TEXTILES & APPAREL 377,662
---------------
AUTO COMPONENTS 0.5%
Gentex Corp.+ 12,050 209,670
---------------
TOTAL AUTO COMPONENTS 209,670
---------------
AUTOMOBILES 0.2%
Thor Industries, Inc. 2,658 90,372
---------------
TOTAL AUTOMOBILES 90,372
---------------
TOTAL CONSUMER DISCRETIONARY 9,672,310
---------------
HEALTH CARE 17.0%
HEALTH CARE PROVIDERS & SERVICES 6.1%
Patterson Cos., Inc.*+ 10,620 425,119
Health Net, Inc.*+ 8,730 413,104
Lincare Holdings, Inc.*+ 7,557 310,215
Henry Schein, Inc.* 6,713 286,108
Renal Care Group, Inc.* 5,245 248,193
Covance, Inc.* 4,800 230,352
Universal Health Services, Inc. -- Class B+ 4,290 204,333
LifePoint Hospitals, Inc.*+ 4,387 191,843
VCA Antech, Inc.*+ 6,356 162,205
Apria Healthcare Group, Inc.* 3,812 121,641
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,593,113
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 5.3%
Varian Medical Systems, Inc.*+ 10,076 398,103
DENTSPLY International, Inc. 6,104 329,738
Beckman Coulter, Inc. 4,774 257,701
Cytyc Corp.* 8,638 231,930
Hillenbrand Industries, Inc.+ 4,701 221,182
Inamed Corp.*+ 2,797 211,677
Edwards Lifesciences Corp.* 4,600 204,286
Intuitive Surgical, Inc.*+ 2,690 197,150
Gen-Probe, Inc.* 3,901 192,904
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,244,671
---------------
See Notes to Financial Statements.
74 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
PHARMACEUTICALS 3.6%
Sepracor, Inc.*+ 8,112 $ 478,527
Barr Pharmaceuticals, Inc.* 8,193 449,960
IVAX Corp.* 16,564 436,627
Valeant Pharmaceuticals International 7,129 143,150
---------------
TOTAL PHARMACEUTICALS 1,508,264
---------------
BIOTECHNOLOGY 2.0%
Protein Design Labs, Inc.* 8,243 230,804
Cephalon, Inc.*+ 4,470 207,497
Techne Corp.*+ 2,995 170,655
Vertex Pharmaceuticals, Inc.*+ 7,370 164,720
Martek Biosciences Corp.*+ 2,445 85,893
---------------
TOTAL BIOTECHNOLOGY 859,569
---------------
TOTAL HEALTH CARE 7,205,617
---------------
INFORMATION TECHNOLOGY 16.4%
IT CONSULTING & SERVICES 3.9%
Cognizant Technology Solutions Corp.* 10,516 489,940
DST Systems, Inc.*+ 5,371 294,492
Alliance Data Systems Corp.*+ 5,339 209,022
Certegy, Inc. 4,777 191,175
MoneyGram International, Inc. 6,585 142,960
Anteon International Corp.* 2,510 107,328
SRA International, Inc. -- Class A* 2,810 99,699
CSG Systems International, Inc.* 3,783 82,129
Gartner, Inc. -- Class A*+ 4,429 51,775
---------------
TOTAL IT CONSULTING & SERVICES 1,668,520
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 3.9%
Microchip Technology, Inc. 16,106 485,113
Lam Research Corp.*+ 10,509 320,209
MEMC Electronic Materials, Inc.*+ 12,090 275,531
Cypress Semiconductor Corp.*+ 10,290 154,865
Cree, Inc.*+ 5,820 145,616
Silicon Laboratories, Inc.*+ 3,436 104,420
Semtech Corp.*+ 5,668 93,352
Micrel, Inc.*+ 5,070 56,936
LTX Corp.* 4,730 19,961
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 1,656,003
---------------
SOFTWARE 3.6%
McAfee, Inc.*+ 12,735 400,134
Activision, Inc.*+ 15,680 320,656
Macromedia, Inc.* 5,859 238,286
Sybase, Inc.*+ 6,960 163,003
Jack Henry & Associates, Inc. 5,788 112,287
Reynolds & Reynolds Co. -- Class A 3,941 108,023
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Transaction Systems
Architects, Inc. -- Class A*+ 2,864 $ 79,762
Wind River Systems, Inc.*+ 5,766 74,554
Advent Software, Inc.*+ 1,226 33,029
---------------
TOTAL SOFTWARE 1,529,734
---------------
COMMUNICATIONS EQUIPMENT 2.0%
Harris Corp. 10,252 428,534
ADTRAN, Inc. 5,187 163,390
F5 Networks, Inc.*+ 2,956 128,497
Plantronics, Inc. 3,633 111,933
---------------
TOTAL COMMUNICATIONS EQUIPMENT 832,354
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.6%
CDW Corp.+ 4,837 284,996
Amphenol Corp. -- Class A 6,838 275,845
National Instruments Corp.+ 4,239 104,449
---------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 665,290
---------------
COMPUTERS & PERIPHERALS 0.9%
Western Digital Corp.*+ 16,390 211,923
Diebold, Inc. 5,412 186,497
---------------
TOTAL COMPUTERS & PERIPHERALS 398,420
---------------
OFFICE ELECTRONICS 0.5%
Zebra Technologies Corp. -- Class A*+ 5,553 217,067
---------------
TOTAL OFFICE ELECTRONICS 217,067
---------------
TOTAL INFORMATION TECHNOLOGY 6,967,388
---------------
INDUSTRIALS 16.1%
COMMERCIAL SERVICES & SUPPLIES 5.2%
Dun & Bradstreet Corp.* 5,177 341,009
Republic Services, Inc. 9,510 335,608
ChoicePoint, Inc.* 6,956 300,291
HNI Corp. 4,253 256,116
Corporate Executive Board Co. 3,070 239,399
Stericycle, Inc.*+ 3,421 195,510
Herman Miller, Inc. 5,355 162,256
Deluxe Corp. 3,899 156,584
Copart, Inc.* 5,347 127,633
Korn/Ferry International, Inc.*+ 3,157 51,743
Rollins, Inc. 2,272 44,349
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 2,210,498
---------------
MACHINERY 2.9%
Joy Global, Inc. 6,240 314,870
Pentair, Inc. 7,841 286,197
Harsco Corp. 3,210 210,480
Graco, Inc.+ 5,292 181,410
Donaldson Co., Inc. 5,291 161,534
Nordson Corp. 2,510 95,455
---------------
TOTAL MACHINERY 1,249,946
---------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 75
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AIR FREIGHT & COURIERS 2.1%
Expeditors International
Washington, Inc.+ 8,207 $ 465,994
C.H. Robinson Worldwide, Inc.+ 6,587 422,358
---------------
TOTAL AIR FREIGHT & COURIERS 888,352
---------------
AEROSPACE & DEFENSE 1.8%
Precision Castparts Corp. 10,230 543,213
Alliant Techsystems, Inc.*+ 2,861 213,574
---------------
TOTAL AEROSPACE & DEFENSE 756,787
---------------
ELECTRICAL EQUIPMENT 1.1%
AMETEK, Inc.+ 5,380 231,179
Hubbell, Inc. -- Class B 4,672 219,257
---------------
TOTAL ELECTRICAL EQUIPMENT 450,436
---------------
ROAD & RAIL 0.9%
CNF, Inc. 4,039 212,047
J.B. Hunt Transport Services, Inc. 9,756 185,462
---------------
TOTAL ROAD & RAIL 397,509
---------------
CONSTRUCTION & ENGINEERING 0.7%
Jacobs Engineering Group, Inc.*+ 4,450 299,930
---------------
TOTAL CONSTRUCTION & ENGINEERING 299,930
---------------
TRADING COMPANIES & DISTRIBUTORS 0.7%
Fastenal Co.+ 4,772 291,521
---------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 291,521
---------------
INDUSTRIAL CONGLOMERATES 0.4%
Carlisle Cos., Inc.+ 2,357 149,834
---------------
TOTAL INDUSTRIAL CONGLOMERATES 149,834
---------------
AIRLINES 0.3%
JetBlue Airways Corp.*+ 7,214 126,966
---------------
TOTAL AIRLINES 126,966
---------------
TOTAL INDUSTRIALS 6,821,779
---------------
FINANCIALS 11.9%
REAL ESTATE 4.0%
Developers Diversified Realty Corp. 8,375 391,113
Macerich Co. 4,600 298,724
Regency Centers Corp.+ 4,890 280,931
United Dominion Realty Trust, Inc. 10,560 250,272
Weingarten Realty Investors 6,185 234,102
Rayonier, Inc. 3,881 223,623
---------------
TOTAL REAL ESTATE 1,678,765
---------------
CAPITAL MARKETS 3.9%
Legg Mason, Inc.+ 8,654 949,257
Eaton Vance Corp. 10,054 249,540
SEI Investments Co. 4,937 185,533
Investors Financial Services Corp.+ 5,096 167,658
Waddell & Reed Financial, Inc. --
Class A+ 6,438 124,640
---------------
TOTAL CAPITAL MARKETS 1,676,628
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
BANKS 3.0%
TCF Financial Corp. 8,784 $ 234,972
City National Corp. 3,180 222,886
Bank of Hawaii Corp. 3,987 196,240
Wilmington Trust Corp. 5,214 190,050
Cullen/Frost Bankers, Inc. 3,520 173,677
SVB Financial Group*+ 2,730 132,787
Westamerica Bancorporation 2,504 129,332
---------------
TOTAL BANKS 1,279,944
---------------
INSURANCE 1.0%
Brown & Brown, Inc. 4,256 211,480
Arthur J. Gallagher & Co.+ 7,286 209,910
---------------
TOTAL INSURANCE 421,390
---------------
TOTAL FINANCIALS 5,056,727
---------------
ENERGY 8.3%
OIL & GAS 4.4%
Peabody Energy Corp. 10,100 851,935
Arch Coal, Inc.+ 4,913 331,627
Plains Exploration &
Production Co.* 6,028 258,119
Western Gas Resources, Inc.+ 4,427 226,795
Denbury Resources, Inc.* 4,400 221,936
---------------
TOTAL OIL & GAS 1,890,412
---------------
ENERGY EQUIPMENT & SERVICES 3.9%
Smith International, Inc.+ 16,348 544,552
Patterson-UTI Energy, Inc.+ 13,215 476,797
Grant Prideco, Inc.*+ 9,780 397,557
FMC Technologies, Inc.* 5,279 222,299
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 1,641,205
---------------
TOTAL ENERGY 3,531,617
---------------
CONSUMER STAPLES 3.6%
FOOD & DRUG RETAILING 1.6%
Whole Foods Market, Inc.+ 5,182 696,720
---------------
TOTAL FOOD & DRUG RETAILING 696,720
---------------
HOUSEHOLD PRODUCTS 1.2%
Energizer Holdings, Inc.* 5,458 309,469
Church & Dwight Co., Inc. 4,927 182,003
---------------
TOTAL HOUSEHOLD PRODUCTS 491,472
---------------
FOOD PRODUCTS 0.8%
Hormel Foods Corp. 5,615 185,239
Lancaster Colony Corp. 1,978 85,054
Tootsie Roll Industries, Inc. 1,934 61,404
---------------
TOTAL FOOD PRODUCTS 331,697
---------------
TOTAL CONSUMER STAPLES 1,519,889
---------------
See Notes to Financial Statements.
76 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
UTILITIES 3.5%
GAS UTILITIES 2.2%
Questar Corp. 6,545 $ 576,746
Equitable Resources, Inc. 9,352 365,289
---------------
TOTAL GAS UTILITIES 942,035
---------------
WATER UTILITIES 0.7%
Aqua America, Inc. 7,401 281,386
---------------
TOTAL WATER UTILITIES 281,386
---------------
ELECTRIC UTILITIES 0.6%
DPL, Inc.+ 9,775 271,745
---------------
TOTAL ELECTRIC UTILITIES 271,745
---------------
TOTAL UTILITIES 1,495,166
---------------
MATERIALS 1.0%
CHEMICALS 0.8%
Chemtura Corp. 18,272 226,938
Olin Corp.+ 5,503 104,502
---------------
TOTAL CHEMICALS 331,440
---------------
CONTAINERS & PACKAGING 0.2%
Packaging Corporation of America 4,827 93,692
---------------
TOTAL CONTAINERS & PACKAGING 93,692
---------------
TOTAL MATERIALS 425,132
---------------
TELECOMMUNICATION SERVICES 0.2%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.2%
Cincinnati Bell, Inc.*+ 18,945 83,547
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 83,547
---------------
TOTAL TELECOMMUNICATION SERVICES 83,547
---------------
TOTAL COMMON STOCKS
(Cost $36,624,747) 42,779,172
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 0.6%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $ 145,501 $ 145,501
3.24% due 10/03/05 110,816 110,816
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $256,317) 256,317
---------------
SECURITIES LENDING COLLATERAL 19.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 8,082,491 8,082,491
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $8,082,491) 8,082,491
---------------
TOTAL INVESTMENTS 120.4%
(Cost $44,963,555) $ 51,117,980
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (20.4)% $ (8,677,720)
===============
NET ASSETS - 100.0% $ 42,440,260
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 9.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 77
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
COMMON STOCKS 99.8%
INFORMATION TECHNOLOGY 23.6%
SOFTWARE 6.8%
Microsoft Corp. 45,988 $ 1,183,271
Oracle Corp.* 18,828 233,279
Symantec Corp.* 5,983 135,575
Electronic Arts, Inc.*+ 1,511 85,961
Adobe Systems, Inc.+ 2,456 73,312
Autodesk, Inc. 1,139 52,895
Intuit, Inc.*+ 903 40,463
Citrix Systems, Inc.* 846 21,268
Mercury Interactive Corp.*+ 433 17,147
Parametric Technology Corp.* 1,360 9,479
---------------
TOTAL SOFTWARE 1,852,650
---------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 5.4%
Intel Corp. 30,412 749,656
Texas Instruments, Inc.+ 8,102 274,658
Maxim Integrated Products, Inc. 1,633 69,647
Analog Devices, Inc.+ 1,862 69,155
Broadcom Corp. -- Class A* 1,409 66,096
Linear Technology Corp. 1,528 57,438
Xilinx, Inc. 1,743 48,543
National Semiconductor Corp.+ 1,717 45,157
Altera Corp.*+ 1,856 35,468
Nvidia Corp.*+ 837 28,692
PMC - Sierra, Inc.* 906 7,982
---------------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 1,452,492
---------------
COMPUTERS & PERIPHERALS 5.0%
International Business
Machines Corp. 7,969 639,273
Dell, Inc.* 11,965 409,203
Apple Computer, Inc.* 4,139 221,892
Network Appliance, Inc.* 1,837 43,610
Lexmark International, Inc.* 592 36,142
Gateway, Inc.* 1,314 3,548
---------------
TOTAL COMPUTERS & PERIPHERALS 1,353,668
---------------
COMMUNICATIONS EQUIPMENT 4.3%
Cisco Systems, Inc.* 31,903 572,021
Qualcomm, Inc. 8,137 364,131
Corning, Inc.* 7,344 141,959
Lucent Technologies, Inc.*+ 22,184 72,098
Avaya, Inc.* 2,117 21,805
---------------
TOTAL COMMUNICATIONS EQUIPMENT 1,172,014
---------------
IT CONSULTING & SERVICES 1.3%
First Data Corp. 3,851 154,040
Automatic Data Processing, Inc. 2,898 124,730
Paychex, Inc.+ 1,660 61,553
---------------
TOTAL IT CONSULTING & SERVICES 340,323
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES 0.8%
Yahoo!, Inc.*+ 6,262 $ 211,906
---------------
TOTAL INTERNET SOFTWARE & SERVICES 211,906
---------------
TOTAL INFORMATION TECHNOLOGY 6,383,053
---------------
HEALTH CARE 19.0%
PHARMACEUTICALS 10.0%
Johnson & Johnson, Inc. 14,846 939,455
Abbott Laboratories 7,759 328,982
Wyeth 6,691 309,593
Eli Lilly & Co.+ 5,662 303,030
Merck & Co., Inc. 10,954 298,058
Bristol-Myers Squibb Co.+ 9,764 234,922
Schering-Plough Corp.+ 7,366 155,054
Forest Laboratories, Inc.* 1,699 66,210
Allergan, Inc.+ 655 60,011
---------------
TOTAL PHARMACEUTICALS 2,695,315
---------------
HEALTH CARE EQUIPMENT & SUPPLIES 4.0%
Medtronic, Inc. 6,047 324,240
Baxter International, Inc. 3,108 123,916
Guidant Corp. 1,649 113,599
Zimmer Holdings, Inc.*+ 1,239 85,355
St. Jude Medical, Inc.* 1,819 85,129
Stryker Corp. 1,446 71,476
Boston Scientific Corp.*+ 2,945 68,825
Becton, Dickinson & Co. 1,249 65,485
Biomet, Inc.+ 1,246 43,249
C.R. Bard, Inc. 521 34,401
Hospira, Inc.* 796 32,612
Waters Corp.* 573 23,837
Millipore Corp.* 257 16,163
---------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,088,287
---------------
BIOTECHNOLOGY 2.7%
Amgen, Inc.* 6,159 490,687
Gilead Sciences, Inc.*+ 2,275 110,929
Genzyme Corp.* 1,279 91,628
Medimmune, Inc.* 1,226 41,255
---------------
TOTAL BIOTECHNOLOGY 734,499
---------------
HEALTH CARE PROVIDERS & SERVICES 2.3%
UnitedHealth Group, Inc.+ 6,304 354,285
HCA, Inc. 2,257 108,156
Coventry Health Care, Inc.* 540 46,451
Express Scripts, Inc.*+ 737 45,841
Quest Diagnostics, Inc.+ 830 41,948
IMS Health, Inc. 1,125 28,316
---------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 624,997
---------------
TOTAL HEALTH CARE 5,143,098
---------------
CONSUMER STAPLES 17.3%
BEVERAGES 4.2%
PepsiCo, Inc. 8,340 472,961
See Notes to Financial Statements.
78 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Coca-Cola Co. 10,362 $ 447,535
Anheuser-Busch Cos., Inc.+ 3,876 166,823
Brown-Forman Corp. -- Class B 416 24,769
Pepsi Bottling Group, Inc.+ 689 19,671
---------------
TOTAL BEVERAGES 1,131,759
---------------
HOUSEHOLD PRODUCTS 4.0%
Procter & Gamble Co.+ 13,012 773,693
Kimberly-Clark Corp. 2,377 141,503
Colgate-Palmolive Co.+ 2,592 136,832
Clorox Co.+ 758 42,099
---------------
TOTAL HOUSEHOLD PRODUCTS 1,094,127
---------------
FOOD & DRUG RETAILING 3.2%
Wal-Mart Stores, Inc. 12,469 546,392
Walgreen Co.+ 5,107 221,899
Sysco Corp. 3,157 99,035
---------------
TOTAL FOOD & DRUG RETAILING 867,326
---------------
TOBACCO 3.0%
Altria Group, Inc. 10,358 763,488
UST, Inc.+ 821 34,367
---------------
TOTAL TOBACCO 797,855
---------------
FOOD PRODUCTS 1.7%
General Mills, Inc. 1,830 88,206
Sara Lee Corp.+ 3,915 74,189
WM Wrigley Jr Co. 901 64,764
H.J. Heinz Co. 1,697 62,008
Kellogg Co. 1,276 58,862
Hershey Co. 916 51,580
Campbell Soup Co. 921 27,400
McCormick & Co., Inc. 670 21,862
---------------
TOTAL FOOD PRODUCTS 448,871
---------------
PERSONAL PRODUCTS 1.2%
Gillette Co. 4,648 270,514
Avon Products, Inc. 2,350 63,450
---------------
TOTAL PERSONAL PRODUCTS 333,964
---------------
TOTAL CONSUMER STAPLES 4,673,902
---------------
INDUSTRIALS 14.1%
INDUSTRIAL CONGLOMERATES 7.6%
General Electric Co. 52,913 1,781,581
3M Co.+ 3,818 280,088
---------------
TOTAL INDUSTRIAL CONGLOMERATES 2,061,669
---------------
AEROSPACE & DEFENSE 2.6%
Boeing Co. 4,096 278,323
United Technologies Corp. 5,118 265,317
Lockheed Martin Corp.+ 1,819 111,032
Rockwell Collins, Inc.+ 884 42,715
---------------
TOTAL AEROSPACE & DEFENSE 697,387
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AIR FREIGHT & COURIERS 1.4%
United Parcel Service, Inc. -- Class B 5,529 $ 382,220
---------------
TOTAL AIR FREIGHT & COURIERS 382,220
---------------
MACHINERY 1.0%
Caterpillar, Inc. 3,381 198,634
Danaher Corp.+ 1,184 63,734
---------------
TOTAL MACHINERY 262,368
---------------
ELECTRICAL EQUIPMENT 0.7%
Emerson Electric Co. 2,059 147,836
Rockwell Automation, Inc. 904 47,822
---------------
TOTAL ELECTRICAL EQUIPMENT 195,658
---------------
COMMERCIAL SERVICES & SUPPLIES 0.5%
Pitney Bowes, Inc. 1,139 47,542
Robert Half International, Inc. 845 30,074
Avery Dennison Corp.+ 547 28,657
Equifax, Inc. 650 22,711
Monster Worldwide, Inc.*+ 604 18,549
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 147,533
---------------
BUILDING PRODUCTS 0.2%
American Standard Cos., Inc. 915 42,593
---------------
TOTAL BUILDING PRODUCTS 42,593
---------------
CONSTRUCTION & ENGINEERING 0.1%
Fluor Corp. 440 28,327
---------------
TOTAL CONSTRUCTION & ENGINEERING 28,327
---------------
TOTAL INDUSTRIALS 3,817,755
---------------
ENERGY 10.5%
OIL & GAS 8.4%
Exxon Mobil Corp. 31,467 1,999,413
EOG Resources, Inc.+ 1,202 90,030
XTO Energy, Inc.+ 1,804 81,757
Sunoco, Inc. 684 53,489
Kinder Morgan, Inc.+ 485 46,637
---------------
TOTAL OIL & GAS 2,271,326
---------------
ENERGY EQUIPMENT & SERVICES 2.1%
Schlumberger Ltd.+ 2,939 247,993
Halliburton Co.+ 2,536 173,767
Baker Hughes, Inc.+ 1,705 101,754
BJ Services Co. 1,612 58,016
---------------
TOTAL ENERGY EQUIPMENT & SERVICES 581,530
---------------
TOTAL ENERGY 2,852,856
---------------
CONSUMER DISCRETIONARY 9.5%
SPECIALTY RETAIL 3.8%
Home Depot, Inc.+ 10,682 407,412
Lowe's Cos., Inc.+ 3,896 250,902
Best Buy Co., Inc.+ 2,016 87,756
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 79
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
Staples, Inc.+ 3,667 $ 78,180
Bed Bath & Beyond, Inc.* 1,471 59,105
TJX Cos., Inc. 2,327 47,657
Limited Brands, Inc.+ 1,747 35,691
Sherwin-Williams Co. 567 24,988
AutoZone, Inc.*+ 287 23,893
RadioShack Corp. 669 16,591
---------------
TOTAL SPECIALTY RETAIL 1,032,175
---------------
HOTELS, RESTAURANTS & LEISURE 1.4%
Starbucks Corp.* 1,913 95,841
Yum! Brands, Inc. 1,429 69,178
Harrah's Entertainment, Inc. 920 59,975
Marriott International, Inc. -- Class A+ 858 54,054
International Game
Technology, Inc.+ 1,707 46,089
Hilton Hotels Corp. 1,637 36,538
Darden Restaurants, Inc.+ 675 20,500
---------------
TOTAL HOTELS, RESTAURANTS & LEISURE 382,175
---------------
MULTILINE RETAIL 1.1%
Target Corp. 4,412 229,115
Nordstrom, Inc. 1,100 37,752
Dollar General Corp.+ 1,599 29,326
---------------
TOTAL MULTILINE RETAIL 296,193
---------------
INTERNET & CATALOG RETAIL 0.8%
eBay, Inc.* 5,543 228,372
---------------
TOTAL INTERNET & CATALOG RETAIL 228,372
---------------
MEDIA 0.7%
McGraw-Hill Cos., Inc.+ 1,864 89,546
Omnicom Group, Inc. 909 76,020
Dow Jones & Co., Inc. 295 11,266
Meredith Corp. 217 10,826
---------------
TOTAL MEDIA 187,658
---------------
TEXTILES & APPAREL 0.5%
Nike, Inc. -- Class B+ 951 77,678
Coach, Inc.* 1,892 59,333
---------------
TOTAL TEXTILES & APPAREL 137,011
---------------
HOUSEHOLD DURABLES 0.5%
Fortune Brands, Inc. 733 59,615
Black & Decker Corp. 402 33,000
Newell Rubbermaid, Inc.+ 1,371 31,053
Maytag Corp. 399 7,286
---------------
TOTAL HOUSEHOLD DURABLES 130,954
---------------
COMMERCIAL SERVICES & SUPPLIES 0.3%
Apollo Group, Inc. -- Class A*+ 733 48,664
H&R Block, Inc. 1,624 38,943
---------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 87,607
---------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
AUTOMOBILES 0.3%
Harley-Davidson, Inc.+ 1,366 $ 66,169
---------------
TOTAL AUTOMOBILES 66,169
---------------
AUTO COMPONENTS 0.1%
Goodyear Tire & Rubber Co.*+ 883 13,766
Visteon Corp. 645 6,308
---------------
TOTAL AUTO COMPONENTS 20,074
---------------
TOTAL CONSUMER DISCRETIONARY 2,568,388
---------------
FINANCIALS 3.4%
CONSUMER FINANCE 1.7%
American Express Co. 6,196 355,898
SLM Corp. 2,081 111,625
---------------
TOTAL CONSUMER FINANCE 467,523
---------------
CAPITAL MARKETS 0.7%
Charles Schwab Corp.+ 5,185 74,820
Franklin Resources, Inc.+ 737 61,878
T. Rowe Price Group, Inc. 647 42,249
Federated Investors, Inc. -- Class B 424 14,090
---------------
TOTAL CAPITAL MARKETS 193,037
---------------
INSURANCE 0.4%
Progressive Corp. 982 102,884
---------------
TOTAL INSURANCE 102,884
---------------
REAL ESTATE 0.4%
Simon Property Group, Inc. 914 67,746
Public Storage, Inc. 420 28,140
---------------
TOTAL REAL ESTATE 95,886
---------------
DIVERSIFIED FINANCIALS 0.2%
Moody's Corp.+ 1,257 64,207
---------------
TOTAL DIVERSIFIED FINANCIALS 64,207
---------------
TOTAL FINANCIALS 923,537
---------------
MATERIALS 1.5%
CHEMICALS 1.2%
EI Du Pont de Nemours & Co. 4,969 194,636
Praxair, Inc. 1,614 77,359
Ecolab, Inc. 923 29,471
International Flavors & Fragrances, Inc. 417 14,862
Hercules, Inc.* 559 6,831
---------------
TOTAL CHEMICALS 323,159
---------------
METALS & MINING 0.2%
Freeport-McMoRan Copper &
Gold, Inc. -- Class B+ 884 42,953
Allegheny Technologies, Inc.+ 422 13,074
---------------
TOTAL METALS & MINING 56,027
---------------
See Notes to Financial Statements.
80 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ------------------------------------------------------------------------------
CONTAINERS & PACKAGING 0.1%
Ball Corp. 546 $ 20,060
---------------
TOTAL CONTAINERS & PACKAGING 20,060
---------------
TOTAL MATERIALS 399,246
---------------
UTILITIES 0.7%
ELECTRIC UTILITIES 0.5%
TXU Corp. 1,198 135,230
---------------
TOTAL ELECTRIC UTILITIES 135,230
---------------
MULTI-UTILITIES 0.2%
AES Corp.*+ 3,262 53,595
---------------
TOTAL MULTI-UTILITIES 53,595
---------------
TOTAL UTILITIES 188,825
---------------
TELECOMMUNICATION SERVICES 0.2%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.2%
Qwest Communications
International, Inc.* 7,615 31,222
Citizens Communications Co.+ 1,717 23,265
---------------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 54,487
---------------
TOTAL TELECOMMUNICATION SERVICES 54,487
---------------
TOTAL COMMON STOCKS
(Cost $24,679,960) 27,005,147
---------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 0.4%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $ 57,960 57,960
3.24% due 10/03/05 44,144 44,144
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $102,104) 102,104
---------------
SECURITIES LENDING COLLATERAL 11.4%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 9) 3,088,154 3,088,154
---------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $3,088,154) 3,088,154
---------------
TOTAL INVESTMENTS 111.6%
(Cost $27,870,218) $ 30,195,405
===============
LIABILITIES IN EXCESS OF OTHER ASSETS - (11.6)% $ (3,136,546)
===============
NET ASSETS - 100.0% $ 27,058,859
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 9.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 81
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
STRENGTHENING DOLLAR FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 67.3%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $ 4,153,976 $ 4,153,976
3.24% due 10/03/05 3,163,751 3,163,751
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $7,317,727) 7,317,727
---------------
TOTAL INVESTMENTS 67.3%
(Cost $7,317,727) $ 7,317,727
===============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 32.7% $ 3,559,522
===============
NET ASSETS - 100.0% $ 10,877,249
- ------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- ------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2005 U.S. Dollar Index
Futures Contracts
(Aggregate Market Value of Contracts $714,800) 8 $ 15,968
===============
UNITS
-------
CURRENCY INDEX SWAP AGREEMENT
November 2005 U.S. Dollar Index
Swap, Maturing 11/28/05*
(Notional Market Value $21,068,750) 235,808 $ 117,396
===============
* PRICE RETURN BASED ON U.S. DOLLAR INDEX +/- FINANCING AT A VARIABLE RATE.
See Notes to Financial Statements.
82 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
WEAKENING DOLLAR FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 75.1%
Repurchase Agreement (Note 6)
3.25% due 10/03/05 $ 6,964,966 $ 6,964,966
3.24% due 10/03/05 5,304,657 5,304,657
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $12,269,623) 12,269,623
---------------
TOTAL INVESTMENTS 75.1%
(Cost $12,269,623) $ 12,269,623
===============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 24.9% $ 4,068,079
===============
NET ASSETS - 100.0% $ 16,337,702
- ------------------------------------------------------------------------------
UNREALIZED
LOSS
UNITS (NOTE 1)
- ------------------------------------------------------------------------------
CURRENCY INDEX SWAP AGREEMENT
SOLD SHORT
November 2005 U.S. Dollar Index
Swap, Maturing 11/28/05*
(Notional Market Value $32,552,996) 364,343 $ (879,487)
===============
* PRICE RETURN BASED ON U.S. DOLLAR INDEX +/- FINANCING AT A VARIABLE RATE.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 83
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
FEDERAL AGENCY DISCOUNT NOTES 90.1%
Farmer Mac*
3.62% due 11/22/05 $55,000,000 $ 54,723,472
3.46% due 10/28/05 50,000,000 49,879,861
3.72% due 12/30/05 50,000,000 49,545,333
3.70% due 12/27/05 33,000,000 32,711,708
3.70% due 12/20/05 30,000,000 29,759,500
3.58% due 11/10/05 29,000,000 28,890,565
3.36% due 10/06/05 25,000,000 24,993,000
2.93% due 12/09/05 25,000,000 24,863,674
3.60% due 11/15/05 20,000,000 19,914,120
3.06% due 12/09/05 20,000,000 19,886,100
2.86% due 12/15/05 20,000,000 19,884,011
Federal Farm Credit Bank*
3.70% due 12/23/05 50,000,000 49,583,750
3.60% due 10/20/05 25,000,000 24,957,500
3.51% due 11/04/05 25,000,000 24,922,000
3.06% due 11/17/05 25,000,000 24,904,375
2.80% due 11/01/05 10,000,000 9,977,444
3.05% due 12/15/05 9,000,000 8,944,338
Federal Home Loan Bank*
3.37% due 10/05/05 50,000,000 49,990,653
3.34% due 10/07/05 50,000,000 49,981,444
3.51% due 10/12/05 50,000,000 49,956,125
3.34% due 10/17/05 50,000,000 49,935,056
3.50% due 10/26/05 50,000,000 49,888,194
3.57% due 11/09/05 50,000,000 49,816,542
3.64% due 11/30/05 50,000,000 49,706,778
3.80% due 02/10/06 50,000,000 49,313,889
3.60% due 07/13/06 25,000,000 25,000,000
4.00% due 05/30/06 25,000,000 25,000,000
3.60% due 11/16/05 25,000,000 24,890,000
3.65% due 01/20/06 25,000,000 24,723,715
Freddie Mac*
3.12% due 10/11/05+ 50,000,000 49,965,333
3.46% due 10/25/05 50,000,000 49,894,278
3.51% due 12/20/05 50,000,000 49,619,750
3.57% due 12/20/05+ 50,000,000 49,613,250
3.58% due 01/03/06 50,000,000 49,542,555
3.66% due 01/17/06 50,000,000 49,461,167
3.01% due 10/05/05 25,000,000 24,995,819
3.40% due 11/30/05 25,000,000 24,863,056
3.68% due 12/27/05 25,000,000 24,782,778
---------------
TOTAL FEDERAL AGENCY DISCOUNT NOTES
(Cost $1,369,281,133) 1,369,281,133
---------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 8.7%
Individual Repurchase Agreement
Lehman Brothers, Inc. at 3.25% due
10/03/05 (Secured by U.S. Treasury Notes,
as collateral, maturing 12/15/09 with a
Market Value of $105,575,122 and maturing
02/15/13 with a Market Value
of $29,846,484) having a collective
Maturity Value of $132,829,054 $ 132,793,089 $ 132,793,089
---------------
TOTAL REPURCHASE AGREEMENTS
(Cost $132,793,089) 132,793,089
---------------
SECURITIES LENDING COLLATERAL 6.6%
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 105.4%
(Cost $1,602,074,222) $ 1,602,074,222
===============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (5.4)% $ (81,667,532)
===============
NET ASSETS - 100.0% $ 1,520,406,690
* 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 SEPTEMBER 30, 2005 - SEE
NOTE 9.
See Notes to Financial Statements.
84 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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 SEMI-ANNUAL REPORT | 85
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
- --------------------------------------------------------------------------------
INVERSE
NOVA URSA OTC ARKTOS MEDIUS MID-CAP
FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value*
(Notes 1, 2, 6 and 9) $ -- $ -- $ 1,130,116,441 $ -- $ 74,993,067 $ 8,628,286
Investments in Master
Portfolio** (Note 3) 298,299,653 484,875,426 -- 208,000,439 -- --
Segregated Cash with
Broker -- -- 2,910,000 -- 2,659,325 458,190
Receivable for Equity
Index Swap Settlement
(Note 1) -- -- -- -- 191,965 --
Receivable for Futures
Contracts Settlement
(Note 1) -- -- 213,400 -- 116,705 --
Receivable for
Securities Sold (Note
1) 858,892 454,218 -- 8,433,403 -- --
Receivable for Shares
Purchased 2,070,807 4,622,022 7,166,003 3,052,004 4,085,850 363,599
Investment Income
Receivable (Note 1) -- -- 20,099 -- 42,630 2,334
Other Assets -- -- -- 33,838 -- 88
- ------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 301,229,352 489,951,666 1,140,425,943 219,519,684 82,089,542 9,452,497
==================================================================================================================
LIABILITIES
Payable for Equity
Index Swap Settlement
(Note 1) -- -- -- -- -- 113,412
Payable for Futures
Contracts Settlement
(Note 1) -- -- -- -- -- 17,734
Payable upon Return of
Securities Loaned
(Note 9) -- -- 209,194,920 -- 12,774,694 --
Payable for Securities
Purchased (Note 1) -- -- 2,308,175 -- 1,004,589 --
Liability for Shares
Redeemed 2,816,228 4,909,609 5,250,029 11,412,857 2,468,413 1,202,722
Investment Advisory
Fees Payable (Note 4) -- -- 617,761 -- 48,847 5,675
Transfer Agent and
Administrative Fees
Payable (Note 4) 61,378 103,375 205,920 44,943 13,569 1,576
Distribution and
Service Fees Payable
(Note 4) 23,401 19,615 8,101 6,476 7,058 932
Portfolio Accounting
Fees Payable (Note 4) 23,893 36,492 54,300 17,977 5,427 631
Custody Fees Payable -- -- 19,768 -- 1,303 151
Cash Payable to
Custodian Bank -- -- -- -- -- --
Dividends Payable -- -- -- -- -- --
Other Liabilities 30,053 50,946 100,475 22,198 6,676 752
- ------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 2,954,953 5,120,037 217,759,449 11,504,451 16,330,576 1,343,585
==================================================================================================================
NET ASSETS $ 298,274,399 $ 484,831,629 $ 922,666,494 $ 208,015,233 $ 65,758,966 $ 8,108,912
==================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 340,556,192 $ 735,550,575 $ 1,496,771,878 $ 382,941,102 $ 57,989,548 $ 9,345,222
Undistributed Net
Investment Income
(Loss) (1,053,415) (1,298,167) (119,185) (586,209) (97,197) 126,971
Accumulated Net
Realized Gain (Loss)
on Investments,
Equity Index Swaps,
and Futures
Contracts (53,053,274) (240,156,299) (919,316,896) (163,616,209) 2,776,395 (1,293,225)
Net Unrealized
Appreciation
(Depreciation) on
Investments,
Equity Index Swaps,
and Futures
Contracts 11,824,896 (9,264,480) 345,330,697 (10,723,451) 5,090,220 (70,056)
==================================================================================================================
NET ASSETS $ 298,274,399 $ 484,831,629 $ 922,666,494 $ 208,015,233 $ 65,758,966 $ 8,108,912
==================================================================================================================
Investor Class $ 157,915,694 $ 385,667,080 $ 878,830,384 $ 177,806,400 N/A N/A
Advisor Class 61,709,040 37,980,931 25,779,834 11,943,008 N/A N/A
A-Class 27,077,692 14,974,452 2,200,429 2,338,239 $ 1,808,347 $ 488,696
C-Class 51,571,973 46,209,166 15,855,847 15,927,586 17,346,962 375,114
H-Class N/A N/A N/A N/A 46,603,657 7,245,102
SHARES OUTSTANDING
Investor Class 5,699,164 45,642,401 81,544,865 7,712,689 N/A N/A
Advisor Class 2,311,580 4,682,905 2,482,965 523,606 N/A N/A
A-Class 1,010,464 1,846,548 210,974 102,192 50,834 11,980
C-Class 1,950,813 5,732,025 1,547,378 725,975 502,490 9,314
H-Class N/A N/A N/A N/A 1,309,608 177,571
NET ASSET VALUES
Investor Class $ 27.71 $ 8.45 $ 10.78 $ 23.05 N/A N/A
Advisor Class 26.70 8.11 10.38 22.81 N/A N/A
A-Class 26.80 8.11 10.43 22.88 $ 35.57 $ 40.79
A-Class Maximum
Offering Price*** 28.14 8.51 10.95 24.02 37.34 42.82
C-Class 26.44 8.06 10.25 21.94 34.52 40.28
H-Class N/A N/A N/A N/A 35.59 40.80
* THE COST OF SECURITIES AT VALUE IS $0, $0, $784,842,301, $0, $70,245,125,
$8,628,286, $140,582,963, $51,160,641, $70,664,797, $0, $89,499,913, AND
$123,610,520, RESPECTIVELY.
** THE COST OF INVESTMENT IN MASTER PORTFOLIO IS $286,474,757, $494,139,906,
$0, $218,723,890, $0, $0, $0, $0, $0, $2,263,782,302, $0 AND $0,
RESPECTIVELY.
*** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
See Notes to Financial Statements.
86 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
September 30, 2005
- --------------------------------------------------------------------------------
INVERSE U.S. LARGE-CAP LARGE-CAP
MEKROS SMALL-CAP GOVERNMENT JUNO EUROPE JAPAN
FUND FUND BOND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value*
(Notes 1, 2, 6 and 9) $ 154,456,931 $ 51,160,641 $ 77,151,268 $ -- $ 92,701,505 $ 123,610,520
Investments in Master
Portfolio** (Note 3) -- -- -- 2,047,567,954 -- --
Segregated Cash with
Broker 5,723,008 4,978,401 373,750 -- -- 3,489,500
Receivable for Equity
Index Swap Settlement
(Note 1) 887,914 -- -- -- 295,636 5,300,543
Receivable for Futures
Contracts Settlement
(Note 1) 157,409 -- -- -- -- --
Receivable for
Securities Sold (Note
1) -- -- 24,493,177 -- -- --
Receivable for Shares
Purchased 12,391,991 505,093 1,804,900 5,296,646 1,821,215 10,073,225
Investment Income
Receivable (Note 1) 101,136 13,837 465,034 -- 176,120 33,439
Other Assets -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 173,718,389 56,657,972 104,288,129 2,052,864,600 94,994,476 142,507,227
==================================================================================================================
LIABILITIES
Payable for Equity
Index Swap Settlement
(Note 1) -- 1,589,929 -- -- -- --
Payable for Futures
Contracts Settlement
(Note 1) -- 33,909 114,595 -- -- 488,556
Payable upon Return Of
Securities Loaned
(Note 9) 16,702,851 -- -- -- -- --
Payable for Securities
Purchased (Note 1) 3,511,079 -- -- 485,505 -- --
Liability for Shares
Redeemed 6,670,492 6,098,787 27,307,227 4,036,214 1,501,249 1,219,916
Investment Advisory
Fees Payable (Note 4) 122,304 42,584 47,400 -- 60,660 89,165
Transfer Agent and
Administrative Fees
Payable (Note 4) 33,973 11,829 18,960 441,674 16,850 24,768
Distribution And
Service Fees Payable
(Note 4) 14,456 5,538 11,267 215,625 7,370 9,185
Portfolio Accounting
Fees Payable (Note 4) 13,589 4,732 9,480 82,590 6,740 9,907
Custody Fees Payable 3,261 1,135 2,275 -- 1,618 2,378
Cash Payable to
Custodian Bank -- -- 120 -- -- 30
Dividends Payable -- -- 17,416 -- -- --
Other Liabilities 16,935 5,568 12,146 215,639 8,269 12,693
- ------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 27,088,940 7,794,011 27,540,886 5,477,247 1,602,756 1,856,598
==================================================================================================================
NET ASSETS $ 146,629,449 $ 48,863,961 $ 76,747,243 $ 2,047,387,353 $ 93,391,720 $ 140,650,629
==================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 150,424,160 $ 59,634,710 $ 82,539,211 $ 2,455,736,716 $ 91,256,847 $ 131,901,225
Undistributed Net
Investment Income
(Loss) (156,911) 384,192 (19,463) (8,726,489) 368,565 379,572
Accumulated Net
Realized Gain (Loss)
on Investments,
Equity Index Swaps, And
Futures Contracts (18,715,008) (10,574,424) (11,940,112) (183,408,526) (1,730,920) 914,573
Net Unrealized
Appreciation
(Depreciation) on
Investments,
Equity Index Swaps, and
Futures Contracts 15,077,208 (580,517) 6,167,607 (216,214,348) 3,497,228 7,455,259
==================================================================================================================
NET ASSETS $ 146,629,449 $ 48,863,961 $ 76,747,243 $ 2,047,387,353 $ 93,391,720 $ 140,650,629
==================================================================================================================
Investor Class N/A N/A $ 24,349,799 $ 1,072,318,942 N/A N/A
Advisor Class N/A N/A 44,205,664 126,945,253 N/A N/A
A-Class $ 5,017,120 $ 697,670 1,136,771 159,378,510 $ 1,878,139 $ 1,544,801
C-Class 30,329,499 5,226,886 7,055,009 688,744,648 6,257,254 4,761,911
H-Class 111,282,830 42,939,405 N/A N/A 85,256,327 134,343,917
SHARES OUTSTANDING
Investor Class N/A N/A 2,128,451 58,621,330 N/A N/A
Advisor Class N/A N/A 3,858,353 7,015,101 N/A N/A
A-Class 162,572 16,422 99,235 8,774,029 101,512 45,655
C-Class 1,017,588 124,436 615,649 39,272,627 350,812 144,238
H-Class 3,607,875 1,010,233 N/A N/A 4,608,884 3,967,267
NET ASSET VALUES
Investor Class N/A N/A $ 11.44 $ 18.29 N/A N/A
Advisor Class N/A N/A 11.46 18.10 N/A N/A
A-Class $ 30.86 $ 42.48 11.46 18.16 $ 18.50 $ 33.84
A-Class Maximum
Offering Price*** 32.40 44.60 12.03 19.07 19.42 35.53
C-Class 29.81 42.00 11.46 17.54 17.84 33.01
H-Class 30.84 42.50 N/A N/A 18.50 33.86
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 87
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP
VALUE VALUE VALUE GROWTH
FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 6 and 9) $ 46,620,677 $ 151,811,344 $ 63,774,357 $ 125,514,013
Segregated Cash with Broker -- -- -- --
Cash in Custodian Bank -- -- 917 --
Receivable for Equity Index Swap Settlement (Note 1) -- -- -- --
Receivable for Futures Contracts Settlement (Note 1) -- -- -- --
Receivable for Securities Sold (Note 1) 201,408 3,608,884 -- --
Receivable for Shares Purchased 207,140 2,494,508 841,981 17,011,189
Investment Income Receivable (Note 1) 43,634 88,840 62,925 51,919
Other Assets -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 47,072,859 158,003,576 64,680,180 142,577,121
==========================================================================================================================
LIABILITIES
Payable for Equity Index Swap Settlement (Note 1) -- -- -- --
Payable upon Return of Securities Loaned (Note 9) 5,043,318 28,753,596 8,782,960 13,293,323
Payable for Securities Purchased (Note 1) 120,059 -- -- 15,956,931
Liability for Shares Redeemed 273,086 6,374,147 931,572 916,882
Investment Advisory Fees Payable (Note 4) 35,907 86,000 42,783 61,463
Transfer Agent and Administrative Fees Payable (Note 4) 11,969 28,667 14,261 20,488
Distribution and Service Fees Payable (Note 4) 3,905 10,578 4,351 9,112
Portfolio Accounting Fees Payable (Note 4) 4,788 11,467 5,704 8,195
Custody Fees Payable 1,149 3,219 1,400 1,966
Dividends Payable -- -- -- --
Other Liabilities 5,818 14,348 6,884 10,350
- --------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 5,499,999 35,282,022 9,789,915 30,278,710
==========================================================================================================================
NET ASSETS $ 41,572,860 $ 122,721,554 $ 54,890,265 $ 112,298,411
==========================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 41,778,604 $ 111,218,681 $ 51,827,787 $ 105,368,784
Undistributed Net Investment Income (Loss) (119,796) (11,802) 131,929 (236,543)
Accumulated Net Realized Loss on Investments,
Currency Index Swaps, and Futures Contracts (7,171,008) (5,596,212) (3,041,641) (1,626,725)
Net Unrealized Appreciation (Depreciation) on Investments,
Currency Index Swaps, and Futures Contracts 7,085,060 17,110,887 5,972,190 8,792,895
==========================================================================================================================
NET ASSETS $ 41,572,860 $ 122,721,554 $ 54,890,265 $ 112,298,411
==========================================================================================================================
Investor Class N/A N/A N/A N/A
Advisor Class N/A N/A N/A N/A
A-Class $ 97,665 $ 605,566 $ 1,034,917 $ 376,848
C-Class 2,882,612 13,724,117 3,909,697 10,637,746
H-Class 38,592,583 108,391,871 49,945,651 101,283,817
SHARES OUTSTANDING
Investor Class N/A N/A N/A N/A
Advisor Class N/A N/A N/A N/A
A-Class 3,235 20,090 37,135 12,336
C-Class 96,644 460,659 141,857 351,789
H-Class 1,278,193 3,596,447 1,792,549 3,313,865
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 $ 30.19 $ 30.14 $ 27.87 $ 30.55
A-Class Maximum Offering Price** 31.70 31.64 29.26 32.07
C-Class 29.83 29.79 27.56 30.24
H-Class 30.19 30.14 27.86 30.56
* THE COST OF SECURITIES AT VALUE IS $39,535,617, $134,700,457, $
57,802,167, $116,721,118, $44,963,555, $27,870,218, $7,317,727, $
12,269,623, AND $1,602,074,222, RESPECTIVELY.
** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
See Notes to Financial Statements.
88 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
September 30, 2005
- --------------------------------------------------------------------------------
MID-CAP LARGE-CAP STRENGTHENING
GROWTH GROWTH DOLLAR
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 6 and 9) $ 51,117,980 $ 30,195,405 $ 7,317,727
Segregated Cash with Broker -- -- 3,458,418
Cash in Custodian Bank -- -- --
Receivable for Equity Index Swap Settlement (Note 1) -- -- 71,192
Receivable for Futures Contracts Settlement (Note 1) -- -- 1,040
Receivable for Securities Sold (Note 1) 2,049,003 910,539 --
Receivable for Shares Purchased 2,093,411 285,960 72,994
Investment Income Receivable (Note 1) 21,331 43,266 1,979
Other Assets -- -- --
- ------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 55,281,725 31,435,170 10,923,350
============================================================================================================
LIABILITIES
Payable for Equity Index Swap Settlement (Note 1) -- -- --
Payable upon Return of Securities Loaned (Note 9) 8,082,491 3,088,154 --
Payable for Securities Purchased (Note 1) -- 17,165 --
Liability for Shares Redeemed 4,702,091 1,231,893 38,407
Investment Advisory Fees Payable (Note 4) 32,518 22,049 4,437
Transfer Agent and Administrative Fees Payable (Note 4) 10,839 7,350 1,232
Distribution and Service Fees Payable (Note 4) 2,957 2,509 734
Portfolio Accounting Fees Payable (Note 4) 4,336 2,940 493
Custody Fees Payable 1,091 705 118
Dividends Payable -- -- --
Other Liabilities 5,142 3,546 680
- ------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 12,841,465 4,376,311 46,101
============================================================================================================
NET ASSETS $ 42,440,260 $ 27,058,859 $ 10,877,249
============================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 39,570,285 $ 29,413,783 $ 11,114,223
Undistributed Net Investment Income (Loss) (170,281) (14,964) 57,228
Accumulated Net Realized Loss on Investments,
Currency Index Swaps, and Futures Contracts (3,114,169) (4,665,147) (427,566)
Net Unrealized Appreciation (Depreciation) on Investments,
Currency Index Swaps, and Futures Contracts 6,154,425 2,325,187 133,364
============================================================================================================
NET ASSETS $ 42,440,260 $ 27,058,859 $ 10,877,249
============================================================================================================
Investor Class N/A N/A N/A
Advisor Class N/A N/A N/A
A-Class $ 540,286 $ 272,738 $ 67,293
C-Class 974,684 2,729,988 1,175,854
H-Class 40,925,290 24,056,133 9,634,102
SHARES OUTSTANDING
Investor Class N/A N/A N/A
Advisor Class N/A N/A N/A
A-Class 18,811 10,861 2,480
C-Class 34,295 109,913 43,436
H-Class 1,423,804 957,839 355,444
NET ASSET VALUES
Investor Class N/A N/A N/A
Advisor Class N/A N/A N/A
A-Class $ 28.72 $ 25.11 $ 27.13
A-Class Maximum Offering Price** 30.15 26.36 28.48
C-Class 28.42 24.84 27.07
H-Class 28.74 25.11 27.10
U.S.
WEAKENING GOVERNMENT
DOLLAR MONEY
FUND MARKET FUND
- -------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 6 and 9) $ 12,269,623 $ 1,602,074,222
Segregated Cash with Broker 4,730,865 --
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) -- --
Receivable for Shares Purchased 167,477 107,762,803
Investment Income Receivable (Note 1) 3,319 330,953
Other Assets -- 177,480
- -------------------------------------------------------------------------------------------
TOTAL ASSETS 17,171,284 1,710,345,458
===========================================================================================
LIABILITIES
Payable for Equity Index Swap Settlement (Note 1) 735,654 --
Payable upon Return of Securities Loaned (Note 9) -- 100,000,000
Payable for Securities Purchased (Note 1) -- --
Liability for Shares Redeemed 72,316 88,619,954
Investment Advisory Fees Payable (Note 4) 15,616 654,379
Transfer Agent and Administrative Fees Payable (Note 4) 4,338 261,752
Distribution and Service Fees Payable (Note 4) 1,397 74,044
Portfolio Accounting Fees Payable (Note 4) 1,735 68,852
Custody Fees Payable 416 32,482
Dividends Payable -- 69,303
Other Liabilities 2,110 158,002
- -------------------------------------------------------------------------------------------
TOTAL LIABILITIES 833,582 189,938,768
===========================================================================================
NET ASSETS $ 16,337,702 $ 1,520,406,690
===========================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 17,328,295 $ 1,520,874,772
Undistributed Net Investment Income (Loss) 66,073 --
Accumulated Net Realized Loss on Investments,
Currency Index Swaps, and Futures Contracts (177,179) (468,082)
Net Unrealized Appreciation (Depreciation) on Investments,
Currency Index Swaps, and Futures Contracts (879,487) --
===========================================================================================
NET ASSETS $ 16,337,702 $ 1,520,406,690
===========================================================================================
Investor Class N/A $ 1,168,196,826
Advisor Class N/A 181,858,311
A-Class $ 417,899 10,173,959
C-Class 586,968 160,177,594
H-Class 15,332,835 N/A
SHARES OUTSTANDING
Investor Class N/A 1,168,619,640
Advisor Class N/A 182,114,186
A-Class 18,044 10,173,986
C-Class 25,420 160,176,827
H-Class 662,284 N/A
NET ASSET VALUES
Investor Class N/A $ 1.00
Advisor Class N/A 1.00
A-Class $ 23.16 1.00
A-Class Maximum Offering Price** 24.31 1.00
C-Class 23.09 1.00
H-Class 23.15 N/A
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 89
STATEMENTS OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
NOVA URSA OTC ARKTOS
FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ -- $ -- $ 539,563 $ --
Interest from Securities Lending, net (Note 9) -- -- 130,872 --
Dividends, Net of Foreign Tax Withheld* (Note 1) -- -- 1,463,597 --
Other Income -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Total Income -- -- 2,134,032 --
- ----------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 4) -- -- 3,498,384 --
Transfer Agent and Administrative Fees (Note 4) 371,431 575,047 1,166,128 276,003
Distribution & Service Fees (Note 4):
Advisor Class 137,798 101,098 71,697 30,925
A-Class 31,042 14,051 2,562 4,333
C-Class 258,569 230,169 79,296 84,549
H-Class -- -- -- --
Portfolio Accounting Fees (Note 4) 143,103 204,135 310,998 110,057
Registration Fees 52,988 109,689 205,079 39,612
Trustees' Fees** 6,255 11,223 22,109 4,437
Miscellaneous 52,229 52,755 236,779 36,293
- ----------------------------------------------------------------------------------------------------------------------
Total Expenses 1,053,415 1,298,167 5,593,032 586,209
- ----------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (1,053,415) (1,298,167) (3,459,000) (586,209)
======================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 7,517,886 (14,975,874) 62,696,862 1,789,880
Equity Index Swaps -- -- -- --
Futures Contracts -- -- 1,112,816 --
- ----------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 7,517,886 (14,975,874) 63,809,678 1,789,880
- ----------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 11,227,044 653,599 13,264,440 (17,059,650)
Equity Index Swaps -- -- -- --
Futures Contracts -- -- 10,089 --
- ----------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 11,227,044 653,599 13,274,529 (17,059,650)
- ----------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 18,744,930 (14,322,275) 77,084,207 (15,269,770)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 17,691,515 $(15,620,442) $ 73,625,207 $(15,855,979)
======================================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $10,281, $0, $0, $0, $313, $0, $0,
$0, $26,146, AND $0, RESPECTIVELY.
** RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(a)(19) OF THE 1940 ACT.
See Notes to Financial Statements.
90 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
Period Ended September 30, 2005
- --------------------------------------------------------------------------------
INVERSE INVERSE
MEDIUS MID-CAP MEKROS SMALL-CAP
FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 210,521 $ 197,426 $ 603,167 $ 793,629
Interest from Securities Lending, net (Note 9) 3,576 -- 25,365 --
Dividends, Net of Foreign Tax Withheld* (Note 1) 345,153 -- 593,905 --
Other Income 4,473 -- 411 --
- --------------------------------------------------------------------------------------------------------------------------
Total Income 563,723 197,426 1,222,848 793,629
- --------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 4) 334,960 59,617 712,914 222,524
Transfer Agent and Administrative Fees (Note 4) 93,044 16,560 198,032 61,812
Distribution & Service Fees (Note 4):
Advisor Class -- -- -- --
A-Class 1,934 164 5,758 1,742
C-Class 88,051 2,725 145,596 17,505
H-Class 69,097 15,715 155,875 55,694
Portfolio Accounting Fees (Note 4) 37,218 6,624 79,159 24,725
Registration Fees 12,557 2,579 26,081 6,511
Trustees' Fees** 1,452 261 3,452 769
Miscellaneous 22,607 2,815 52,892 18,155
- --------------------------------------------------------------------------------------------------------------------------
Total Expenses 660,920 107,060 1,379,759 409,437
- --------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (97,197) 90,366 (156,911) 384,192
==========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 2,795,771 -- 4,952,435 --
Equity Index Swaps 1,824,925 266,237 2,900,291 (1,980,728)
Futures Contracts 1,694,988 (19,667) 3,690,886 (801,361)
- --------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 6,315,684 246,570 11,543,612 (2,782,089)
- --------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 1,227,333 -- 4,461,643 --
Equity Index Swaps 34,673 (21,726) 1,194,353 (1,034,175)
Futures Contracts 218,489 (127,541) 345,561 (230,969)
- --------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 1,480,495 (149,267) 6,001,557 (1,265,144)
- --------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 7,796,179 97,303 17,545,169 (4,047,233)
- --------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 7,698,982 $ 187,669 $ 17,388,258 $ (3,663,041)
==========================================================================================================================
U.S. LARGE-CAP LARGE-CAP
GOVERNMENT JUNO EUROPE JAPAN
BOND FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 3,000,873 $ -- $ 479,218 $ 770,602
Interest from Securities Lending, net (Note 9) -- -- -- --
Dividends, Net of Foreign Tax Withheld* (Note 1) -- -- 408,874 --
Other Income -- -- -- 1,266
- --------------------------------------------------------------------------------------------------------------------------
Total Income 3,000,873 -- 888,092 771,868
- --------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 4) 330,631 -- 282,615 211,035
Transfer Agent and Administrative Fees (Note 4) 132,252 2,891,382 78,504 58,621
Distribution & Service Fees (Note 4):
Advisor Class 219,893 364,409 -- --
A-Class 1,805 200,318 1,541 1,437
C-Class 55,291 3,909,543 21,754 16,726
H-Class -- -- 71,525 53,002
Portfolio Accounting Fees (Note 4) 66,126 518,028 31,402 23,449
Registration Fees 17,529 481,842 13,557 6,714
Trustees' Fees** 2,194 52,525 1,089 700
Miscellaneous 40,549 308,442 17,540 20,612
- --------------------------------------------------------------------------------------------------------------------------
Total Expenses 866,270 8,726,489 519,527 392,296
- --------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 2,134,603 (8,726,489) 368,565 379,572
==========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 2,157,979 (100,159,932) (876,775) --
Equity Index Swaps -- -- (2,729,295) 810,538
Futures Contracts 1,089,637 -- -- 1,117,468
- --------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 3,247,616 (100,159,932) (3,606,070) 1,928,006
- --------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (845,530) 504,135 3,201,592 --
Equity Index Swaps -- -- 3,781,782 7,533,447
Futures Contracts (257,236) -- -- 2,261,611
- --------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (1,102,766) 504,135 6,983,374 9,795,058
- --------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 2,144,850 (99,655,797) 3,377,304 11,723,064
- --------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 4,279,453 $(108,382,286) $ 3,745,869 $ 12,102,636
==========================================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 91
STATEMENTS OF OPERATIONS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP
VALUE VALUE VALUE GROWTH
FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 7,249 $ 11,691 $ 3,821 $ 6,102
Interest from Securities Lending, net (Note 9) 4,830 14,511 5,477 8,396
Dividends, Net of Foreign Tax Withheld* (Note 1) 431,543 955,074 575,428 250,649
Other Income -- -- 214 --
- --------------------------------------------------------------------------------------------------------------------
Total Income 443,622 981,276 584,940 265,147
- --------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 4) 276,038 499,027 214,281 249,587
Transfer Agent and Administrative Fees (Note 4) 92,013 166,342 71,427 83,196
Distribution & Service Fees (Note 4):
Advisor Class -- -- -- --
A-Class 2,290 2,860 2,626 2,788
C-Class 39,330 36,719 49,330 19,641
H-Class 79,890 154,302 56,469 75,497
Portfolio Accounting Fees (Note 4) 36,805 66,537 28,571 33,278
Registration Fees 15,118 19,878 10,242 10,389
Trustees' Fees** 2,040 2,805 1,161 1,528
Miscellaneous 19,894 44,608 18,904 25,786
- --------------------------------------------------------------------------------------------------------------------
Total Expenses 563,418 993,078 453,011 501,690
- --------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (119,796) (11,802) 131,929 (236,543)
- --------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 4,240,673 4,562,364 (165,956) 1,910,445
Currency Index Swaps -- -- -- --
Futures Contracts (50,455) -- -- --
- --------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 4,190,218 4,562,364 (165,956) 1,910,445
- --------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities (2,417,823) 6,478,514 2,114,891 3,998,790
Currency Index Swaps -- -- -- --
Futures Contracts -- -- -- --
- --------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) (2,417,823) 6,478,514 2,114,891 3,998,790
- --------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 1,772,395 11,040,878 1,948,935 5,909,235
- --------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 1,652,599 $ 11,029,076 $ 2,080,864 $ 5,672,692
- --------------------------------------------------------------------------------------------------------------------
* NET OF FOREIGN TAX WITHHELD OF $0, $0, $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.
*** SINCE THE COMMENCEMENT OF OPERATIONS: MAY 25, 2005.
See Notes to Financial Statements.
92 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
Period Ended September 30, 2005
- --------------------------------------------------------------------------------
U.S.
MID-CAP LARGE-CAP STRENGTHENING WEAKENING GOVERNMENT
GROWTH GROWTH DOLLAR DOLLAR MONEY
FUND FUND FUND*** FUND*** MARKET FUND
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 5,910 $ 4,042 $ 117,689 $ 129,265 $ 24,339,947
Interest from Securities Lending, net (Note 9) 3,277 1,294 -- -- 9,228
Dividends, Net of Foreign Tax Withheld* (Note 1) 207,413 317,960 -- -- --
Other Income -- -- -- -- 177,477
- -----------------------------------------------------------------------------------------------------------------------------------
Total Income 216,600 323,296 117,689 129,265 24,526,652
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 4) 196,113 159,123 32,535 33,683 3,854,579
Transfer Agent and Administrative Fees (Note 4) 65,371 53,041 9,038 9,356 1,541,832
Distribution & Service Fees (Note 4):
Advisor Class -- -- -- -- 510,051
A-Class 2,818 927 103 128 12,665
C-Class 10,386 42,557 2,482 2,698 805,301
H-Class 59,956 41,475 8,315 8,554 --
Portfolio Accounting Fees (Note 4) 26,148 21,216 3,615 3,742 402,337
Registration Fees 7,955 4,943 574 302 204,153
Trustees' Fees** 1,007 556 193 70 26,055
Miscellaneous 17,127 14,422 3,606 4,659 526,611
- -----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 386,881 338,260 60,461 63,192 7,883,584
- -----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (170,281) (14,964) 57,228 66,073 16,643,068
- -----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 523,084 (1,849,092) -- -- (3,736)
Currency Index Swaps -- -- (420,086) (159,279) --
Futures Contracts -- -- (7,480) (17,900) --
- -----------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 523,084 (1,849,092) (427,566) (177,179) (3,736)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) on:
Investment Securities 3,343,098 1,521,147 -- -- --
Currency Index Swaps -- -- 117,396 (879,487) --
Futures Contracts -- -- 15,968 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation
(Depreciation) 3,343,098 1,521,147 133,364 (879,487) --
- -----------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 3,866,182 (327,945) (294,202) (1,056,666) (3,736)
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 3,695,901 $ (342,909) $ (236,974) $ (990,593) $ 16,639,332
- -----------------------------------------------------------------------------------------------------------------------------------
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 93
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
NOVA FUND URSA FUND
- ---------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ---------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (1,053,415) $ (2,273,423) $ (1,298,167) $ (2,807,391)
Net Realized Gain (Loss) on Investments 7,517,886 21,079,462 (14,975,874) (48,980,060)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 11,227,044 (1,387,053) 653,599 8,268,455
- ---------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 17,691,515 17,418,986 (15,620,442) (43,518,996)
- ---------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
(NOTE 1)
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 408,588,967 1,414,735,507 487,656,858 1,531,545,815
Advisor Class 137,998,423 370,298,449 110,938,874 250,858,378
A-Class 16,818,416 23,896,367 12,442,594 15,446,772
C-Class 42,421,829 168,553,867 42,614,199 157,946,561
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 (435,114,692) (1,436,144,681) (416,036,873) (1,524,063,187)
Advisor Class (132,399,330) (368,804,662) (112,510,945) (250,498,960)
A-Class (9,963,706) (6,350,348) (4,334,253) (7,698,808)
C-Class (43,376,598) (154,161,133) (38,448,032) (156,062,212)
H-Class -- -- -- --
=========================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (15,026,691) 12,023,366 82,322,422 17,474,359
- ---------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 2,664,824 29,442,352 66,701,980 (26,044,637)
NET ASSETS--BEGINNING OF PERIOD 295,609,575 266,167,223 418,129,649 444,174,286
- ---------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 298,274,399 $ 295,609,575 $ 484,831,629 $ 418,129,649
=========================================================================================================
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) $ (1,053,415) $ -- $ (1,298,167) $ --
=========================================================================================================
OTC FUND
- ------------------------------------------------------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2005+ 2005
- ------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (3,459,000) $ 3,339,815
Net Realized Gain (Loss) on Investments 63,809,678 36,800,772
Net Change in Unrealized Appreciation
(Depreciation) on Investments 13,274,529 (29,857,804)
- ------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 73,625,207 10,282,783
- ------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
(NOTE 1)
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 480,425,383 1,396,741,796
Advisor Class 130,762,137 207,549,823
A-Class 1,209,108 3,898,356
C-Class 27,172,175 124,003,724
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 (473,094,471) (1,467,509,576)
Advisor Class (126,870,589) (242,728,205)
A-Class (983,779) (2,044,524)
C-Class (26,890,767) (122,887,409)
H-Class -- --
========================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 11,729,197 (102,976,015)
- ------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 85,354,404 (92,693,232)
NET ASSETS--BEGINNING OF PERIOD 837,312,090 930,005,322
- ------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 922,666,494 $ 837,312,090
========================================================================
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) $ (119,185) $ 3,339,815
========================================================================
+ UNAUDITED
See Notes to Financial Statements.
94 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ARKTOS FUND MEDIUS FUND
- ---------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ---------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (586,209) $ (1,341,198) $ (97,197) $ (255,319)
Net Realized Gain (Loss) on 1,789,880 (32,513,314) 6,315,684 1,778,274
Investments
Net Change in Unrealized Appreciation
(Depreciation) on Investments (17,059,650) 8,512,163 1,480,495 (3,182,386)
- ---------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (15,855,979) (25,342,349) 7,698,982 (1,659,431)
- ---------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (NOTE 1)
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 346,017,050 975,342,608 -- --
Advisor Class 28,772,209 113,835,651 -- --
A-Class 4,825,206 17,225,239 1,580,751 1,765,474
C-Class 37,053,088 144,800,328 49,107,371 159,054,038
H-Class -- -- 379,157,640 996,786,478
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
COST OF SHARES REDEEMED
Investor Class (353,115,868) (967,546,717) -- --
Advisor Class (33,048,246) (111,775,526) -- --
A-Class (7,915,739) (11,578,445) (1,023,446) (828,790)
C-Class (35,455,046) (160,566,879) (51,399,573) (156,154,210)
H-Class -- -- (397,598,333) (1,003,368,485)
=========================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (12,867,346) (263,741) (20,175,590) (2,745,495)
- ---------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (28,723,325) (25,606,090) (12,476,608) (4,404,926)
NET ASSETS--BEGINNING OF PERIOD 236,738,558 262,344,648 78,235,574 82,640,500
- ---------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 208,015,233 $236,738,558 $ 65,758,966 $ 78,235,574
=========================================================================================================
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) $ (586,209) $ -- $ (97,197) $ --
=========================================================================================================
INVERSE
MID-CAP FUND MEKROS FUND
- ------------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 90,366 $ 36,605 $ (156,911) $ (731,099)
Net Realized Gain (Loss) on 246,570 (1,445,631) 11,543,612 (18,989,715)
Investments
Net Change in Unrealized Appreciation
(Depreciation) on Investments (149,267) 152,438 6,001,557 (5,531,934)
- ------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 187,669 (1,256,588) 17,388,258 (25,252,748)
- ------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM: (NOTE 1)
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 504,389 448,770 6,009,671 8,906,688
C-Class 8,293,138 29,108,039 89,717,869 310,997,432
H-Class 94,417,404 283,941,863 1,330,580,947 2,891,277,659
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 (69,948) (374,744) (4,779,262) (5,593,228)
C-Class (8,891,029) (28,127,040) (80,852,915) (338,792,919)
H-Class (117,476,912) (255,412,567) (1,301,774,256) (2,974,253,320)
============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (23,222,958) 29,584,321 38,902,054 (106,216,919)
- ------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (23,035,289) 28,327,733 56,290,312 (132,836,024)
NET ASSETS--BEGINNING OF PERIOD 31,144,201 2,816,468 90,339,137 223,175,161
- ------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 8,108,912 $ 31,144,201 $ 146,629,449 $ 90,339,137
============================================================================================================
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) $ 126,971 $ 36,605 $ (156,911) $ --
============================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 95
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
INVERSE U.S. GOVERNMENT
SMALL-CAP FUND BOND FUND
- -------------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- -------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 384,192 $ (80,795) $ 2,134,603 $ 3,708,280
Net Realized Gain (Loss) on Investments (2,782,089) (7,206,842) 3,247,616 (1,346,203)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (1,265,144) 888,314 (1,102,766) 2,000,504
- -------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (3,663,041) (6,399,323) 4,279,453 4,362,581
- -------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- (580,343) (1,418,873)
Advisor Class -- -- (1,382,333) (2,006,148)
A-Class -- -- (24,621) (18,194)
C-Class -- -- (147,306) (265,065)
H-Class -- -- -- --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- (2,134,603) (3,708,280)
=============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- 282,248,780 662,404,726
Advisor Class -- -- 525,260,550 515,073,887
A-Class 3,897,561 2,607,402 3,345,078 5,373,963
C-Class 31,375,991 142,203,545 67,113,354 197,577,382
H-Class 363,537,281 888,534,477 -- --
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT
Investor Class -- -- 489,426 1,287,117
Advisor Class -- -- 1,366,888 2,005,277
A-Class -- -- 12,205 11,629
C-Class -- -- 138,185 248,777
H-Class -- -- -- --
COST OF SHARES REDEEMED
Investor Class -- -- (285,214,683) (663,011,921)
Advisor Class -- -- (536,347,513) (511,396,631)
A-Class (3,318,984) (2,194,768) (4,071,713) (3,603,761)
C-Class (29,874,937) (136,603,063) (71,721,259) (190,349,672)
H-Class (364,276,047) (842,508,878) -- --
=============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 1,340,865 52,038,715 (17,380,702) 15,620,773
- -------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (2,322,176) 45,639,392 (15,235,852) 16,275,074
NET ASSETS--BEGINNING OF PERIOD 51,186,137 5,546,745 91,983,095 75,708,021
- -------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 48,863,961 $ 51,186,137 $ 76,747,243 $ 91,983,095
=============================================================================================================
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) $ 384,192 $ -- $ (19,463) $ (19,463)
=============================================================================================================
JUNO FUND
- ------------------------------------------------------------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2005+ 2005
- ------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (8,726,489) $ (20,248,028)
Net Realized Gain (Loss) on Investments (100,159,932) (69,198,399)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 504,135 (129,335,843)
- ------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (108,382,286) (218,782,270)
- ------------------------------------------------------------------------------
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 625,681,298 3,330,861,237
Advisor Class 182,818,995 517,196,846
A-Class 27,015,645 251,608,326
C-Class 96,965,285 1,006,573,970
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 (969,049,651) (2,639,552,558)
Advisor Class (280,673,918) (323,759,333)
A-Class (39,225,404) (65,491,818)
C-Class (262,770,654) (529,212,607)
H-Class -- --
==============================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (619,238,404) 1,548,224,063
- ------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (727,620,690) 1,329,441,793
NET ASSETS--BEGINNING OF PERIOD 2,775,008,043 1,445,566,250
- ------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $2,047,387,353 $ 2,775,008,043
==============================================================================
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) $ (8,726,489) $ --
==============================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004 -- SMALL-CAP VALUE
FUND A-CLASS AND MID-CAP VALUE FUND A-CLASS.
+ UNAUDITED
See Notes to Financial Statements.
96 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
LARGE-CAP LARGE-CAP
EUROPE FUND JAPAN FUND
- -------------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- -------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 368,565 $ 129,997 $ 379,572 $ (151,091)
Net Realized Gain (Loss) on Investments (3,606,070) 9,237,377 1,928,006 (24,241,072)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 6,983,374 (2,440,717) 9,795,058 (15,901,073)
- -------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 3,745,869 6,926,657 12,102,636 (40,293,236)
- -------------------------------------------------------------------------------------------------------------
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) -- (144,310)
H-Class -- (70,630) -- (1,417,844)
- -------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (3,183,377) -- (2,521,035)
=============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class 2,241,175 871,043 1,948,705 444,818
C-Class 32,104,496 66,363,449 7,540,798 25,378,294
H-Class 191,974,193 388,807,179 259,158,376 547,540,563
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- 4,723 -- 10,828
C-Class -- 128,867 -- 205,488
H-Class -- 2,925,682 -- 1,992,473
COST OF SHARES REDEEMED
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class (674,661) (696,912) (971,998) (202,811)
C-Class (31,853,272) (63,147,820) (6,699,982) (26,256,103)
H-Class (172,999,870) (368,119,437) (171,061,072) (651,053,664)
=============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 20,792,061 27,196,774 89,914,827 (101,940,114)
- -------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 24,537,930 30,940,054 102,017,463 (144,754,385)
NET ASSETS--BEGINNING OF PERIOD 68,853,790 37,913,736 38,633,166 183,387,551
- -------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 93,391,720 $ 68,853,790 $ 140,650,629 $ 38,633,166
=============================================================================================================
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) $ 368,565 $ -- $ 379,572 $ --
=============================================================================================================
SMALL-CAP MID-CAP
VALUE FUND VALUE FUND
- ---------------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ---------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (119,796) $ (46,572) $ (11,802) $ 468,799
Net Realized Gain (Loss) on Investments 4,190,218 (3,122,751) 4,562,364 (6,886,526)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (2,417,823) 8,800,847 6,478,514 10,298,850
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 1,652,599 5,631,524 11,029,076 3,881,123
- ---------------------------------------------------------------------------------------------------------------
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 12,088,971 3,620,459* 2,774,143 2,295,545*
C-Class 74,720,544 53,306,968 74,817,679 74,078,406
H-Class 271,661,823 815,754,097 363,875,253 640,902,168
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 (12,885,492) (2,879,033)* (2,693,151) ( 1,989,278)*
C-Class (84,471,016) (43,424,125) (70,358,332) (66,363,111)
H-Class (309,776,291) (765,479,308) (381,526,113) (546,771,708)
===============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (48,661,461) 61,666,934 (13,110,521) 102,500,853
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (47,008,862) 66,475,416 (2,081,445) 106,029,607
NET ASSETS--BEGINNING OF PERIOD 88,581,722 22,106,306 124,802,999 18,773,392
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 41,572,860 $ 88,581,722 $ 122,721,554 $ 124,802,999
===============================================================================================================
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) $ (119,796) $ -- $ (11,802) $ --
===============================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 97
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
LARGE-CAP SMALL-CAP
VALUE FUND GROWTH FUND
- -------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- -------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 131,929 $ 410,050 $ (236,543) $ (526,505)
Net Realized Gain (Loss) on Investments (165,956) 3,485,343 1,910,445 1,784,678
Net Change in Unrealized Appreciation
(Depreciation) on Investments 2,114,891 3,747,358 3,998,790 4,676,353
- -------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 2,080,864 7,642,751 5,672,692 5,934,526
- -------------------------------------------------------------------------------------------------------------
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 3,888,388 618,842** 3,504,565 132,229**
C-Class 134,332,108 62,540,030 38,535,309 68,843,123
H-Class 201,371,049 564,704,785 334,534,362 665,148,507
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 (3,172,607) (410,264)** (3,434,574) (58,702)**
C-Class (135,210,543) (60,564,073) (30,897,604) (69,112,781)
H-Class (178,219,401) (555,417,649) (264,548,316) (646,986,972)
Institutional Class -- -- -- --
=============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 22,988,994 11,597,887 77,693,742 18,965,833
- -------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 25,069,858 19,113,603 83,366,434 23,882,506
NET ASSETS--BEGINNING OF PERIOD 29,820,407 10,706,804 28,931,977 5,049,471
- -------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 54,890,265 $ 29,820,407 $ 112,298,411 $ 28,931,977
=============================================================================================================
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) $ 131,929 $ -- $ (236,543) $ --
=============================================================================================================
MID-CAP
GROWTH FUND
- -----------------------------------------------------------------------------
PERIOD PERIOD
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2005+ 2005
- -----------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (170,281) $ (212,500)
Net Realized Gain (Loss) on Investments 523,084 (1,424,940)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 3,343,098 2,779,507
- -----------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 3,695,901 1,142,067
- -----------------------------------------------------------------------------
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 3,705,187 545,453**
C-Class 32,837,769 25,785,410
H-Class 205,639,882 387,644,386
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 (3,838,542) --
C-Class (34,089,026) (24,651,663)
H-Class (192,110,991) (365,662,253)
Institutional Class -- --
=============================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 12,144,279 23,674,475
- -----------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 15,840,180 24,803,291
NET ASSETS--BEGINNING OF PERIOD 26,600,080 1,796,789
- -----------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 42,440,260 $ 26,600,080
=============================================================================
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) $ (170,281) $ --
=============================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 25, 2005.
** SINCE THE COMMENCEMENT OF OPERATIONS: 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.
+ UNAUDITED
See Notes to Financial Statements.
98 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
LARGE-CAP STRENGTHENING WEAKENING
GROWTH FUND DOLLAR FUND DOLLAR FUND
- -------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
2005+ 2005 2005*+ 2005*+
- -------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (14,964) $ 321,255 $ 57,228 $ 66,073
Net Realized Gain (Loss) on Investments (1,849,092) (1,018,528) (427,566) (177,179)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 1,521,147 780,293 133,364 (879,487)
- -------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (342,909) 83,020 (236,974) (990,593)
- -------------------------------------------------------------------------------------------------------------
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 -- (1) -- --
C-Class -- (153) -- --
H-Class -- (8,523) -- --
Institutional Class -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (8,677) -- --
=============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- -- -- --
Advisor Class -- -- --
A-Class 4,304,995 79,261** 544,396 693,854
C-Class 116,148,166 108,039,150 3,879,535 2,701,139
H-Class 182,236,176 387,101,308 92,252,397 68,077,259
Institutional Class -- -- -- --
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- 153 -- --
H-Class -- 8,519 -- --
Institutional Class -- -- -- --
COST OF SHARES REDEEMED
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class (4,081,509) (6,027)** (456,625) (273,073)
C-Class (132,501,096) (88,139,430) (2,675,515) (2,069,677)
H-Class (170,243,941) (376,411,238) (82,429,965) (51,801,207)
Institutional Class -- -- -- --
=============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (4,137,209) 30,671,696 11,114,223 17,328,295
- -------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (4,480,118) 30,746,039 10,877,249 16,337,702
NET ASSETS--BEGINNING OF PERIOD 31,538,977 792,938 -- --
- -------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 27,058,859 $ 31,538,977 $ 10,877,249 $ 16,337,702
=============================================================================================================
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) $ (14,964) $ -- $ 57,228 $ 66,073
=============================================================================================================
U.S. GOVERNMENT
MONEY MARKET FUND
- --------------------------------------------------------------------------------
PERIOD YEAR
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2005+ 2005
- --------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 16,643,068 $ 10,462,879
Net Realized Gain (Loss) on Investments (3,736) --
Net Change in Unrealized Appreciation
(Depreciation) on Investments -- --
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 16,639,332 10,462,879
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class (13,586,653) (9,062,878)
Advisor Class (1,875,041) (868,123)
A-Class (107,586) (39,838)
C-Class (1,073,788) (306,404)
H-Class -- --
Institutional Class -- (185,636)
Realized Gain on Investment
Investor Class -- --
Advisor Class -- --
A-Class -- --
C-Class -- --
H-Class -- --
Institutional Class -- --
- --------------------------------------------------------------------------------
Total Distributions to Shareholders (16,643,068) (10,462,879)
================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 9,159,091,282 18,938,656,129
Advisor Class 1,488,027,522 3,577,821,000
A-Class 37,444,317 23,938,925
C-Class 1,212,221,507 2,540,283,761
H-Class -- --
Institutional Class -- 928
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT
Investor Class 13,372,680 8,918,802
Advisor Class 1,842,945 853,605
A-Class 57,707 22,293
C-Class 1,016,242 282,882
H-Class -- --
Institutional Class -- 20,804
COST OF SHARES REDEEMED
Investor Class (9,200,273,680) (18,808,627,729)
Advisor Class (1,553,901,339) (3,582,384,097)
A-Class (34,662,937) (16,627,319)
C-Class (1,208,728,059) (2,515,971,843)
H-Class -- --
Institutional Class -- (50,021,804)
================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (84,491,813) 117,166,337
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (84,495,549) 117,166,337
NET ASSETS--BEGINNING OF PERIOD 1,604,902,239 1,487,735,902
- --------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 1,520,406,690 $ 1,604,902,239
================================================================================
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) $ -- $ --
================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 99
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
- --------------------------------------------------------------------------------------------------------------------------------
NOVA FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ $ 25.96 $ (.06) $ 1.81 $ 1.75 $ --
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
SEPTEMBER 30, 2005@ 25.08 (.12) 1.74 1.62 --
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
SEPTEMBER 30, 2005@ 25.15 (.09) 1.74 1.65 --
March 31, 2005 23.42 (.17) 1.90 1.73 --
March 31, 2004* 23.42 -- -- -- --
NOVA FUND C-CLASS
SEPTEMBER 30, 2005@ 24.89 (.18) 1.73 1.55 --
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
SEPTEMBER 30, 2005@ 8.69 (.02) (.22) (.24) --
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
SEPTEMBER 30, 2005@ 8.36 (.04) (.21) (.25) --
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
SEPTEMBER 30, 2005@ 8.37 (.03) (.23) (.26) --
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
SEPTEMBER 30, 2005@ $ -- $ -- $ 1.75 $ 27.71 6.74%
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
SEPTEMBER 30, 2005@ -- -- 1.62 26.70 6.46%
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
SEPTEMBER 30, 2005@ -- -- 1.65 26.80 6.56%
March 31, 2005 -- -- 1.73 25.15 7.39%
March 31, 2004* -- -- -- 23.42 0.00%
NOVA FUND C-CLASS
SEPTEMBER 30, 2005@ -- -- 1.55 26.44 6.23%
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
SEPTEMBER 30, 2005@ -- -- (.24) 8.45 (2.76)%
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
SEPTEMBER 30, 2005@ -- -- (.25) 8.11 (2.99)%
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
SEPTEMBER 30, 2005@ -- -- (.26) 8.11 (3.11)%
March 31, 2005 -- -- (.50) 8.37 (5.64)%
March 31, 2004* -- -- -- 8.87 0.00%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- --------------------------------------------------------------------------------------------------------------------------------
NOVA FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ 1.20%**++ 1.20%**++ (0.42)%** 114% $ 157,916
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
SEPTEMBER 30, 2005@ 1.71%**++ 1.71%**++ (0.93)%** 114% 61,709
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
SEPTEMBER 30, 2005@ 1.46%**++ 1.46%**++ (0.68)%** 114% 27,078
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
SEPTEMBER 30, 2005@ 2.22%**++ 2.22%**++ (1.44)%** 114% 51,572
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
SEPTEMBER 30, 2005@ 1.35%**++ 1.35%**++ (0.42)%** -- 385,667
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
SEPTEMBER 30, 2005@ 1.85%**++ 1.85%**++ (0.92)%** -- 37,981
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
SEPTEMBER 30, 2005@ 1.61%**++ 1.61%**++ (0.68)%** -- 14,974
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 PERIOD.
++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
~ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE
DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
@ UNAUDITED
100 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
- ----------------------------------------------------------------------------------------------------------------
URSA FUND C-CLASS
SEPTEMBER 30, 2005@ $ 8.33 $ (.06) $ (.21) $ (.27) $ --
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
SEPTEMBER 30, 2005@ 9.94 (.04) .88 .84 --
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
SEPTEMBER 30, 2005@ 9.60 (.06) .84 .78 --
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
SEPTEMBER 30, 2005@ 9.63 (.05) .85 .80 --
March 31, 2005 9.46 .06 .11 .17 --
March 31, 2004* 9.46 -- -- -- --
OTC FUND C-CLASS
SEPTEMBER 30, 2005@ 9.50 (.09) .84 .75 --
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
SEPTEMBER 30, 2005@ 24.55 (.05) (1.45) (1.50) --
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
SEPTEMBER 30, 2005@ 24.34 (.11) (1.42) (1.53) --
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 INVESTMENTS
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
- ---------------------------------------------------------------------------------------------------------------
URSA FUND C-CLASS
SEPTEMBER 30, 2005@ $ -- $ -- $ (.27) $ 8.06 (3.24)%
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
SEPTEMBER 30, 2005@ -- -- .84 10.78 8.45%
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
SEPTEMBER 30, 2005@ -- -- .78 10.38 8.13%
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
SEPTEMBER 30, 2005@ -- -- .80 10.43 8.31%
March 31, 2005 -- -- .17 9.63 1.80%
March 31, 2004* -- -- -- 9.46 0.00%
OTC FUND C-CLASS
SEPTEMBER 30, 2005@ -- -- .75 10.25 7.89%
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
SEPTEMBER 30, 2005@ -- -- (1.50) 23.05 (6.11)%
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
SEPTEMBER 30, 2005@ -- -- (1.53) 22.81 (6.29)%
March 31, 2005 -- -- (1.26) 24.34 (4.92)%
March 31, 2004* -- -- (4.37) 25.60 (14.58)%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- ---------------------------------------------------------------------------------------------------------
URSA FUND C-CLASS
SEPTEMBER 30, 2005@ 2.36%**++ 2.36%**++ (1.43)%** -- $ 46,209
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
SEPTEMBER 30, 2005@ 1.18%** 1.18%** (0.72)%** 60% 878,830
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
SEPTEMBER 30, 2005@ 1.68%** 1.68%** (1.21)%** 60% 25,780
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
SEPTEMBER 30, 2005@ 1.43%** 1.43%** (0.97)%** 60% 2,200
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
SEPTEMBER 30, 2005@ 2.19%** 2.19%** (1.73)%** 60% 15,856
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
SEPTEMBER 30, 2005@ 1.36%**++ 1.36%**++ (0.43)%** -- 177,806
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
SEPTEMBER 30, 2005@ 1.86%**++ 1.86%**++ (0.93)%** -- 11,943
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 PERIOD.
++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
~ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE
DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
@ UNAUDITED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 101
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
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
- ----------------------------------------------------------------------------------------------------------------
ARKTOS FUND A-CLASS
SEPTEMBER 30, 2005@ $ 24.39 $ (.08) $ (1.43) $ (1.51) $ --
March 31, 2005 25.60 (.17) (1.04) (1.21) --
March 31, 2004* 25.60 -- -- -- --
ARKTOS FUND C-CLASS
SEPTEMBER 30, 2005@ 23.48 (.16) (1.38) (1.54) --
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
SEPTEMBER 30, 2005@ 31.86 (.02) 3.73 3.71 --
March 31, 2005 28.30 (.03) 3.59 3.56 --
March 31, 2004* 28.30 -- -- -- --
MEDIUS FUND C-CLASS
SEPTEMBER 30, 2005@ 31.03 (.14) 3.63 3.49 --
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
SEPTEMBER 30, 2005@ 31.86 (.01) 3.74 3.73 --
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
SEPTEMBER 30, 2005@ 44.01 .38 (3.60) (3.22) --
March 31, 2005 49.01 (.06) (4.94) (5.00) --
March 31, 2004* 49.01 -- -- -- --
INVERSE MID-CAP FUND C-CLASS
SEPTEMBER 30, 2005@ 43.62 .18 (3.52) (3.34) --
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
SEPTEMBER 30, 2005@ 44.01 .31 (3.52) (3.21) --
March 31, 2005 49.01 .18 (5.18) (5.00) --
March 31, 2004* 50.00 (.05) (.94) (.99) --
MEKROS FUND A-CLASS
SEPTEMBER 30, 2005@ 27.54 (.01) 3.33 3.32 --
March 31, 2005 26.22 (.03) 1.51 1.48 --
March 31, 2004* 26.22 -- -- -- --
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
- --------------------------------------------------------------------------------------------------------------
ARKTOS FUND A-CLASS
SEPTEMBER 30, 2005@ $ -- $ -- $ (1.51) $ 22.88 (6.19)%
March 31, 2005 -- -- (1.21) 24.39 (4.73)%
March 31, 2004* -- -- -- 25.60 0.00%
ARKTOS FUND C-CLASS
SEPTEMBER 30, 2005@ -- -- (1.54) 21.94 (6.56)%
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
SEPTEMBER 30, 2005@ -- -- 3.71 35.57 11.64%
March 31, 2005 -- -- 3.56 31.86 12.58%
March 31, 2004* -- -- -- 28.30 0.00%
MEDIUS FUND C-CLASS
SEPTEMBER 30, 2005@ -- -- 3.49 34.52 11.25%
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
SEPTEMBER 30, 2005@ -- -- 3.73 35.59 11.71%
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
SEPTEMBER 30, 2005@ -- -- (3.22) 40.79 (7.32)%
March 31, 2005 -- -- (5.00) 44.01 (10.20)%
March 31, 2004* -- -- -- 49.01 0.00%
INVERSE MID-CAP FUND C-CLASS
SEPTEMBER 30, 2005@ -- -- (3.34) 40.28 (7.66)%
March 31, 2005 -- -- (5.36) 43.62 (10.94)%
March 31, 2004* -- -- (1.02) 48.98 (2.04)%
INVERSE MID-CAP FUND H-CLASS
SEPTEMBER 30, 2005@ -- -- (3.21) 40.80 (7.29)%
March 31, 2005 -- -- (5.00) 44.01 (10.20)%
March 31, 2004* -- -- (.99) 49.01 (1.98)%
MEKROS FUND A-CLASS
SEPTEMBER 30, 2005@ -- -- 3.32 30.86 12.06%
March 31, 2005 (.16) (.16) 1.32 27.54 5.63%
March 31, 2004* -- -- -- 26.22 0.00%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- ---------------------------------------------------------------------------------------------------------
ARKTOS FUND A-CLASS
SEPTEMBER 30, 2005@ 1.60%**++ 1.60%**++ (0.67)%** -- $ 2,338
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
SEPTEMBER 30, 2005@ 2.37%**++ 2.37%**++ (1.44)%** -- 15,928
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
SEPTEMBER 30, 2005@ 1.62%** 1.62%** (0.11)%** 227% 1,808
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
SEPTEMBER 30, 2005@ 2.37%** 2.37%** (0.83)%** 227% 17,347
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
SEPTEMBER 30, 2005@ 1.61%** 1.61%** (0.09)%** 227% 46,604
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
SEPTEMBER 30, 2005@ 1.70%** 1.70%** 1.81%** -- 489
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
SEPTEMBER 30, 2005@ 2.43%** 2.43%** 0.84%** -- 375
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
SEPTEMBER 30, 2005@ 1.59%** 1.59%** 1.39%** -- 7,245
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
SEPTEMBER 30, 2005@ 1.63%** 1.63%** (0.10)%** 261% 5,017
March 31, 2005 1.61% 1.61% (0.10)% 501% 3,340
March 31, 2004* 0.00%**~ 0.00%**~ 0.00%** 965% 4
* SINCE THE COMMENCEMENT OF OPERATIONS: 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 AND
INVERSE MID-CAP FUND H-CLASS; MARCH 31, 2004 -- ARKTOS FUND A-CLASS,
MEDIUS FUND A-CLASS, INVERSE MID-CAP FUND A-CLASS AND MEKROS 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 PERIOD.
++ RATIOS TO AVERAGE NET ASSETS INCLUDE EXPENSES OF THE CORRESPONDING MASTER
PORTFOLIO.
~ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE
DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
@ UNAUDITED
102 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
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 C-CLASS
SEPTEMBER 30, 2005@ $ 26.69 $ (.12) $ 3.24 $ 3.12 $ --
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) --
MEKROS FUND H-CLASS
SEPTEMBER 30, 2005@ 27.51 (.01) 3.34 3.33 --
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
SEPTEMBER 30, 2005@ 46.09 .35 (3.96) (3.61) --
March 31, 2005 48.80 (.02) (2.69) (2.71) --
March 31, 2004* 48.80 -- -- -- --
INVERSE SMALL-CAP C-CLASS
SEPTEMBER 30, 2005@ 45.71 .19 (3.90) (3.71) --
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
SEPTEMBER 30, 2005@ 46.09 .36 (3.95) (3.59) --
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
SEPTEMBER 30, 2005@ 11.04 .22 .39 .61 (.21)
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
SEPTEMBER 30, 2005@ 11.07 .19 .38 .57 (.18)
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
SEPTEMBER 30, 2005@ 11.07 .20 .39 .59 (.20)
March 31, 2005 11.05 .39 .02 .41 (.39)
March 31, 2004* 11.05 -- -- -- --
U.S. GOVERNMENT BOND FUND C-CLASS
SEPTEMBER 30, 2005@ 11.07 .16 .38 .54 (.15)
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)
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 C-CLASS
SEPTEMBER 30, 2005@ $ -- $ -- $ 3.12 $ 29.81 11.69%
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)%
MEKROS FUND H-CLASS
SEPTEMBER 30, 2005@ -- -- 3.33 30.84 12.10%
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
SEPTEMBER 30, 2005@ -- -- (3.61) 42.48 (7.83)%
March 31, 2005 -- -- (2.71) 46.09 (5.55)%
March 31, 2004* -- -- -- 48.80 0.00%
INVERSE SMALL-CAP C-CLASS
SEPTEMBER 30, 2005@ -- -- (3.71) 42.00 (8.12)%
March 31, 2005 -- -- (3.06) 45.71 (6.27)%
March 31, 2004* -- -- (1.23) 48.77 (2.46)%
INVERSE SMALL-CAP H-CLASS
SEPTEMBER 30, 2005@ -- -- (3.59) 42.50 (7.79)%
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
SEPTEMBER 30, 2005@ -- (.21) .40 11.44 5.49%
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
SEPTEMBER 30, 2005@ -- (.18) .39 11.46 5.15%
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
SEPTEMBER 30, 2005@ -- (.20) .39 11.46 5.28%
March 31, 2005 -- (.39) .02 11.07 3.86%
March 31, 2004* -- -- -- 11.05 0.00%
U.S. GOVERNMENT BOND FUND C-CLASS
SEPTEMBER 30, 2005@ -- (.15) .39 11.46 4.87%
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)%
RATIOS TO
AVERAGE NET ASSETS:
----------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- ------------------------------------------------------------------------------------------------------------------
MEKROS FUND C-CLASS
SEPTEMBER 30, 2005@ 2.39%** 2.39%** (0.86)%** 261% $ 30,329
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
MEKROS FUND H-CLASS
SEPTEMBER 30, 2005@ 1.62%** 1.62%** (0.05)%** 261% 111,283
March 31, 2005 1.62% 1.62% (0.26)% 501% 68,084
March 31, 2004 1.66% 1.66% (0.62)% 965% 174,320
March 31, 2003 1.69% 1.69% (0.20)% 746% 32,101
March 31, 2002 1.61% 1.61% 0.74% 714% 120,045
March 31, 2001* 1.74%** 1.73%** 4.24%** -- 36,704
INVERSE SMALL-CAP A-CLASS
SEPTEMBER 30, 2005@ 1.59%** 1.59%** 1.49%** -- 698
March 31, 2005 1.63% 1.63% (0.03)% -- 404
March 31, 2004* 0.00%**~ 0.00%**~ 0.00%** -- 1
INVERSE SMALL-CAP C-CLASS
SEPTEMBER 30, 2005@ 2.40%** 2.40%** 0.86%** -- 5,227
March 31, 2005 2.39% 2.39% (0.97)% -- 3,951
March 31, 2004* 2.24%** 2.24%** (1.42)%** -- 492
INVERSE SMALL-CAP H-CLASS
SEPTEMBER 30, 2005@ 1.62%** 1.62%** 1.63%** -- 42,939
March 31, 2005 1.63% 1.63% 0.09% -- 46,832
March 31, 2004* 1.54%** 1.54%** (0.72)%** -- 5,054
U.S. GOVERNMENT BOND FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ 0.90%** 0.90%** 3.68%** 446% 24,350
March 31, 2005 0.93% 0.93% 3.95% 737% 25,992
March 31, 2004 0.95% 0.95% 3.84% 1,143% 25,188
March 31, 2003 0.97% 0.97% 4.00% 2,404% 51,370
March 31, 2002 0.88% 0.88% 4.39% 860% 14,138
March 31, 2001 0.97% 0.96% 4.38% 1,107% 80,686
U.S. GOVERNMENT BOND FUND ADVISOR CLASS
SEPTEMBER 30, 2005@ 1.40%** 1.40%** 3.17%** 446% 44,206
March 31, 2005 1.41% 1.41% 3.32% 737% 53,283
March 31, 2004* 1.45%** 1.45%** 3.21%** 1,143% 46,690
U.S. GOVERNMENT BOND FUND A-CLASS
SEPTEMBER 30, 2005@ 1.15%** 1.15%** 3.44%** 446% 1,137
March 31, 2005 1.15% 1.15% 3.63% 737% 1,703
March 31, 2004* 0.00%**~ 0.00%**~ 0.00%** 1,143% 1
U.S. GOVERNMENT BOND FUND C-CLASS
SEPTEMBER 30, 2005@ 1.91%** 1.91%** 2.69%** 446% 7,055
March 31, 2005 1.92% 1.92% 2.86% 737% 11,005
March 31, 2004 1.96% 1.96% 2.85% 1,143% 3,828
March 31, 2003 1.95% 1.95% 2.86% 2,404% 2,163
March 31, 2002* 1.79%** 1.79%** 3.53%** 860% 209
* SINCE THE COMMENCEMENT OF OPERATIONS: NOVEMBER 1, 2000-- MEKROS FUND
H-CLASS; JANUARY 23, 2001-- MEKROS FUND C-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 PERIOD.
~ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE
DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
@ UNAUDITED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 103
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
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
- -----------------------------------------------------------------------------------------------------------------------------
JUNO FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ $ 18.94 $ (.03) $ (.62) $ (.65) $ --
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) --
JUNO FUND ADVISOR CLASS
SEPTEMBER 30, 2005@ 18.79 (.08) (.61) (.69) --
March 31, 2005 19.71 (.17) (.75) (.92) --
March 31, 2004* 22.41 (.13) (2.57) (2.70) --
JUNO FUND A-CLASS
SEPTEMBER 30, 2005@ 18.84 (.06) (.62) (.68) --
March 31, 2005 19.71 (.13) (.74) (.87) --
March 31, 2004* 19.71 -- -- -- --
JUNO FUND C-CLASS
SEPTEMBER 30, 2005@ 18.25 (.12) (.59) (.71) --
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
SEPTEMBER 30, 2005@ 17.14 .09 1.27 1.36 --
March 31, 2005 14.98 .05 2.59 2.64 (.47)
March 31, 2004* 14.98 -- -- -- --
LARGE-CAP EUROPE FUND C-CLASS
SEPTEMBER 30, 2005@ 16.57 .04 1.23 1.27 --
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
SEPTEMBER 30, 2005@ 17.13 .11 1.26 1.37 --
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) --
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
- ------------------------------------------------------------------------------------------------------------------------
JUNO FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ $ -- $ -- $ (.65) $ 18.29 (3.43)%
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)%
JUNO FUND ADVISOR CLASS
SEPTEMBER 30, 2005@ -- -- (.69) 18.10 (3.67)%
March 31, 2005 -- -- (.92) 18.79 (4.67)%
March 31, 2004* -- -- (2.70) 19.71 (12.05)%
JUNO FUND A-CLASS
SEPTEMBER 30, 2005@ -- -- (.68) 18.16 (3.61)%
March 31, 2005 -- -- (.87) 18.84 (4.41)%
March 31, 2004* -- -- -- 19.71 0.00%
JUNO FUND C-CLASS
SEPTEMBER 30, 2005@ -- -- (.71) 17.54 (3.89)%
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
SEPTEMBER 30, 2005@ -- -- 1.36 18.50 7.93%
March 31, 2005 (.01) (.48) 2.16 17.14 17.56%
March 31, 2004* -- -- -- 14.98 0.00%
LARGE-CAP EUROPE FUND C-CLASS
SEPTEMBER 30, 2005@ -- -- 1.27 17.84 7.66%
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
SEPTEMBER 30, 2005@ -- -- 1.37 18.50 8.00%
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)%
RATIOS 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 INVESTOR CLASS
SEPTEMBER 30, 2005@ 4.80%**++ 4.80%**++ 1.30%**++ (0.37)%** 51% $ 1,072,319
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
JUNO FUND ADVISOR CLASS
SEPTEMBER 30, 2005@ 5.31%**++ 5.31%**++ 1.81%**++ (0.88)%** 51% 126,945
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
SEPTEMBER 30, 2005@ 5.06%**++ 5.06%**++ 1.56%**++ (0.63)%** 51% 159,379
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
SEPTEMBER 30, 2005@ 5.81%**++ 5.81%**++ 2.31%**++ (1.38)%** 51% 688,745
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
SEPTEMBER 30, 2005@ 1.65%** 1.65%** 1.65%** 1.04%** 118% 1,878
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
SEPTEMBER 30, 2005@ 2.39%** 2.39%** 2.39%** 0.43%** 118% 6,257
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
SEPTEMBER 30, 2005@ 1.63%** 1.63%** 1.63%** 1.25%** 118% 85,256
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
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 8, 2000 -- LARGE-CAP EUROPE FUND
H-CLASS; MARCH 28, 2001 -- JUNO FUND C-CLASS; MAY 10, 2001 -- LARGE-CAP
EUROPE FUND C-CLASS; AUGUST 1, 2003 -- JUNO FUND ADVISOR CLASS; MARCH 31,
2004 -- JUNO FUND A-CLASS AND LARGE-CAP EUROPE 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 PERIOD.
++ 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.
@ UNAUDITED
^ 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.
# OPERATING EXPENSES EXCLUDE INTEREST EXPENSE FROM SECURITIES SOLD SHORT.
104 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME
- ---------------------------------------------------------------------------------------------------------
LARGE-CAP JAPAN FUND A-CLASS
SEPTEMBER 30, 2005@ $ 29.20 $ .24 $ 4.40 $ 4.64 $ --
March 31, 2005 34.60 .05 (3.96) (3.91) (.56)
March 31, 2004* 34.60 -- -- -- --
LARGE-CAP JAPAN FUND C-CLASS
SEPTEMBER 30, 2005@ 28.61 .13 4.27 4.40 --
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
SEPTEMBER 30, 2005@ 29.22 .26 4.38 4.64 --
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) --
SMALL-CAP VALUE FUND A-CLASS
SEPTEMBER 30, 2005@ 28.22 (.03) 2.00 1.97 --
March 31, 2005* 25.28 (.06) 3.13 3.07 --
SMALL-CAP VALUE FUND C-CLASS
SEPTEMBER 30, 2005@ 28.01 (.13) 1.95 1.82 --
March 31, 2005 25.59 (.24) 2.79 2.55 --
March 31, 2004* 25.00 (.05) .64 .59 --
SMALL-CAP VALUE FUND H-CLASS
SEPTEMBER 30, 2005@ 28.24 (.04) 1.99 1.95 --
March 31, 2005 25.62 (.01) 2.76 2.75 --
March 31, 2004* 25.00 (.01) .63 .62 --
MID-CAP VALUE A-CLASS
SEPTEMBER 30, 2005@ 27.49 .01 2.64 2.65 --
March 31, 2005* 24.58 .11 2.91 3.02 (--)#
MID-CAP VALUE C-CLASS
SEPTEMBER 30, 2005@ 27.29 (.10) 2.60 2.50 --
March 31, 2005 25.11 (.07) 2.36 2.29 (--)#
March 31, 2004* 25.00 (.02) .13 .11 --
MID-CAP VALUE H-CLASS
SEPTEMBER 30, 2005@ 27.49 -- 2.65 2.65 --
March 31, 2005 25.13 .21 2.26 2.47 (--)#
March 31, 2004* 25.00 .01 .12 .13 --
LARGE-CAP VALUE FUND A-CLASS
SEPTEMBER 30, 2005@ 26.56 .08 1.23 1.31 --
March 31, 2005* 24.68 .12 1.81 1.93 (--)#
DISTRIBUTIONS NET INCREASE NET ASSET
FROM NET (DECREASE) IN VALUE, TOTAL
REALIZED TOTAL NET ASSET END OF INVESTMENT
CAPITAL GAINS DISTRIBUTIONS VALUE PERIOD RETURN
- -----------------------------------------------------------------------------------------------------
LARGE-CAP JAPAN FUND A-CLASS
SEPTEMBER 30, 2005@ $ -- $ -- $ 4.64 $ 33.84 15.89%
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
SEPTEMBER 30, 2005@ -- -- 4.40 33.01 15.38%
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
SEPTEMBER 30, 2005@ -- -- 4.64 33.86 15.88%
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)%
SMALL-CAP VALUE FUND A-CLASS
SEPTEMBER 30, 2005@ -- -- 1.97 30.19 6.98%
March 31, 2005* (.13) (.13) 2.94 28.22 12.14%
SMALL-CAP VALUE FUND C-CLASS
SEPTEMBER 30, 2005@ -- -- 1.82 29.83 6.50%
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
SEPTEMBER 30, 2005@ -- -- 1.95 30.19 6.91%
March 31, 2005 (.13) (.13) 2.62 28.24 10.73%
March 31, 2004* -- -- .62 25.62 2.48%
MID-CAP VALUE A-CLASS
SEPTEMBER 30, 2005@ -- -- 2.65 30.14 9.64%
March 31, 2005* (.11) (.11) 2.91 27.49 12.29%
MID-CAP VALUE C-CLASS
SEPTEMBER 30, 2005@ -- -- 2.50 29.79 9.16%
March 31, 2005 (.11) (.11) 2.18 27.29 9.12%
March 31, 2004* -- -- .11 25.11 0.44%
MID-CAP VALUE H-CLASS
SEPTEMBER 30, 2005@ -- -- 2.65 30.14 9.64%
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
SEPTEMBER 30, 2005@ -- -- 1.31 27.87 4.93%
March 31, 2005* (.05) (.05) 1.88 26.56 7.82%
RATIOS TO
AVERAGE NET ASSETS:
---------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
INCOME INCOME TURNOVER PERIOD (000'S
EXPENSES (LOSS) RATE*** OMITTED)
- --------------------------------------------------------------------------------
LARGE-CAP JAPAN FUND A-CLASS
SEPTEMBER 30, 2005@ 1.63%** 1.68%** -- $ 1,545
March 31, 2005 1.62% 0.15% -- 280
March 31, 2004* 0.00%**~ 0.00%** -- 55
LARGE-CAP JAPAN FUND C-CLASS
SEPTEMBER 30, 2005@ 2.39%** 0.91%** -- 4,762
March 31, 2005 2.38% (0.83)% -- 3,381
March 31, 2004 2.42% (2.85)% -- 5,572
March 31, 2003++ 2.36% (0.68)% -- 9
March 31, 2002*++ 2.20%** (0.72)%** -- 12
LARGE-CAP JAPAN FUND H-CLASS
SEPTEMBER 30, 2005@ 1.68%** 1.73%** -- 134,344
March 31, 2005 1.63% (0.17)% -- 34,972
March 31, 2004 1.66% 1.46% -- 177,760
March 31, 2003++ 1.69% (0.06)% -- 2,683
March 31, 2002++ 1.84% 1.44% -- 23,873
March 31, 2001*++ 1.77%** 4.17%** 699% 14,606
SMALL-CAP VALUE FUND A-CLASS
SEPTEMBER 30, 2005@ 1.44%** (0.23)%** 409% 98
March 31, 2005* 1.43%** (0.37)%** 744% 714
SMALL-CAP VALUE FUND C-CLASS
SEPTEMBER 30, 2005@ 2.20%** (0.90)%** 409% 2,883
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
SEPTEMBER 30, 2005@ 1.46%** (0.26)%** 409% 38,593
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
SEPTEMBER 30, 2005@ 1.46%** 0.04%** 263% 606
March 31, 2005* 1.42%** 0.69%** 731% 312
MID-CAP VALUE C-CLASS
SEPTEMBER 30, 2005@ 2.25%** (0.72)%** 263% 13,724
March 31, 2005 2.21% (0.28)% 731% 8,831
March 31, 2004* 2.11%** (0.50)%** 172% 710
MID-CAP VALUE H-CLASS
SEPTEMBER 30, 2005@ 1.47%** -- 263% 108,392
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
SEPTEMBER 30, 2005@ 1.46%** 0.58%** 485% 1,035
March 31, 2005* 1.43%** 0.77%** 747% 211
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 8, 2000 -- LARGE-CAP JAPAN FUND
H-CLASS; MARCH 1, 2002 -- LARGE-CAP JAPAN FUND C-CLASS; FEBRUARY 20, 2004
-- SMALL-CAP VALUE FUND C-CLASS, SMALL-CAP VALUE FUND H-CLASS, MID-CAP
VALUE FUND C-CLASS AND MID-CAP VALUE FUND H-CLASS; MARCH 31, 2004 --
LARGE-CAP JAPAN FUND A-CLASS; SEPTEMBER 1, 2004 -- SMALL-CAP VALUE FUND
A-CLASS, MID-CAP VALUE FUND A-CLASS AND LARGE-CAP VALUE 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 PERIOD.
++ 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.
@ UNAUDITED
# LESS THAN $.01 PER SHARE: MID-CAP VALUE FUND A-CLASS, C-CLASS & H-CLASS
ACTUAL AMOUNT=$.0007; LARGE-CAP VALUE FUND A-CLASS ACTUAL AMOUNT= $.0001.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 105
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
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 VALUE FUND C-CLASS
SEPTEMBER 30, 2005@ $ 26.38 $ (.01) $ 1.19 $ 1.18 $ --
March 31, 2005 24.85 .01 1.57 1.58 (--)#
March 31, 2004 * 25.00 (.02) (.13) (.15) --
LARGE-CAP VALUE FUND H-CLASS
SEPTEMBER 30, 2005@ 26.56 .08 1.22 1.30 --
March 31, 2005 24.87 .16 1.58 1.74 (--)#
March 31, 2004 * 25.00 .01 (.14) (.13) --
SMALL-CAP GROWTH FUND A-CLASS
SEPTEMBER 30, 2005@ 27.96 (.09) 2.68 2.59 --
March 31, 2005 * 24.43 (.12) 3.90 3.78 --
SMALL-CAP GROWTH FUND C-CLASS
SEPTEMBER 30, 2005@ 27.78 (.22) 2.68 2.46 --
March 31, 2005 25.33 (.44) 3.14 2.70 --
March 31, 2004 * 25.00 (.04) .37 .33 --
SMALL-CAP GROWTH FUND H-CLASS
SEPTEMBER 30, 2005@ 27.97 (.10) 2.69 2.59 --
March 31, 2005 25.34 (.23) 3.11 2.88 --
March 31, 2004 * 25.00 (.02) .36 .34 --
MID-CAP GROWTH FUND A-CLASS
SEPTEMBER 30, 2005@ 26.85 (.09) 1.96 1.87 --
March 31, 2005 * 23.91 (.09) 3.04 2.95 --
MID-CAP GROWTH FUND C-CLASS
SEPTEMBER 30, 2005@ 26.66 (.20) 1.96 1.76 --
March 31, 2005 25.15 (.37) 1.89 1.52 --
March 31, 2004 * 25.00 (.05) .20 .15 --
MID-CAP GROWTH FUND H-CLASS
SEPTEMBER 30, 2005@ 26.86 (.09) 1.97 1.88 --
March 31, 2005 25.17 (.17) 1.87 1.70 --
March 31, 2004 * 25.00 (.02) .19 .17 --
LARGE-CAP GROWTH FUND A-CLASS
SEPTEMBER 30, 2005@ 24.48 (.01) .64 .63 --
March 31, 2005 * 23.44 .09 .95 1.04 --
LARGE-CAP GROWTH FUND C-CLASS
SEPTEMBER 30, 2005@ 24.30 (.10) .64 .54 --
March 31, 2005 24.18 (.01) .13 .12 --
March 31, 2004 * 25.00 (.05) (.77) (.82) --
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 VALUE FUND C-CLASS
SEPTEMBER 30, 2005@ $ -- $ -- $ 1.18 $ 27.56 4.47%
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
SEPTEMBER 30, 2005@ -- -- 1.30 27.86 4.89%
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
SEPTEMBER 30, 2005@ -- -- 2.59 30.55 9.26%
March 31, 2005 * (.25) (.25) 3.53 27.96 15.49%
SMALL-CAP GROWTH FUND C-CLASS
SEPTEMBER 30, 2005@ -- -- 2.46 30.24 8.86%
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
SEPTEMBER 30, 2005@ -- -- 2.59 30.56 9.26%
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
SEPTEMBER 30, 2005@ -- -- 1.87 28.72 6.96%
March 31, 2005 * (.01) (.01) 2.94 26.85 12.33%
MID-CAP GROWTH FUND C-CLASS
SEPTEMBER 30, 2005@ -- -- 1.76 28.42 6.60%
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
SEPTEMBER 30, 2005@ -- -- 1.88 28.74 7.00%
March 31, 2005 (.01) (.01) 1.69 26.86 6.75%
March 31, 2004 * -- -- .17 25.17 0.68%
LARGE-CAP GROWTH FUND A-CLASS
SEPTEMBER 30, 2005@ -- -- .63 25.11 2.57%
March 31, 2005 * (--)# (--)# 1.04 24.48 4.45%
LARGE-CAP GROWTH FUND C-CLASS
SEPTEMBER 30, 2005@ -- -- .54 24.84 2.22%
March 31, 2005 (--)# (--)# .12 24.30 0.51%
March 31, 2004 * -- -- (.82) 24.18 (3.28)%
RATIO TO
AVERAGE NET ASSETS:
---------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
TOTAL INCOME TURNOVER PERIOD (000'S
EXPENSES (LOSS) RATE*** OMITTED)
- -----------------------------------------------------------------------------------------------
LARGE-CAP VALUE FUND C-CLASS
SEPTEMBER 30, 2005@ 2.22%** (0.07)%** 485% $ 3,910
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
SEPTEMBER 30, 2005@ 1.47%** 0.58%** 485% 49,946
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
SEPTEMBER 30, 2005@ 1.46%** (0.59)%** 367% 377
March 31, 2005 * 1.43%** (0.74)%** 983% 76
SMALL-CAP GROWTH FUND C-CLASS
SEPTEMBER 30, 2005@ 2.30%** (1.48)%** 367% 10,638
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
SEPTEMBER 30, 2005@ 1.49%** (0.68)%** 367% 101,284
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
SEPTEMBER 30, 2005@ 1.46%** (0.61)%** 387% 540
March 31, 2005 * 1.46%** (0.58)%** 1,211% 553
MID-CAP GROWTH FUND C-CLASS
SEPTEMBER 30, 2005@ 2.21%** (1.43)%** 387% 975
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
SEPTEMBER 30, 2005@ 1.46%** (0.63)%** 387% 40,925
March 31, 2005 1.46% (0.66)% 1,211% 23,733
March 31, 2004 * 1.41%** (0.75)%** 356% 625
LARGE-CAP GROWTH FUND A-CLASS
SEPTEMBER 30, 2005@ 1.44%** (0.06)%** 692% 273
March 31, 2005 * 1.45%** 0.62%** 2018% 74
LARGE-CAP GROWTH FUND C-CLASS
SEPTEMBER 30, 2005@ 2.19%** (0.76)%** 692% 2,730
March 31, 2005 2.20% (0.06)% 2,018% 19,703
March 31, 2004 * 2.08%** (1.25)%** 296% --
* SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004 -- 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, MID-CAP GROWTH
FUND H-CLASS AND LARGE-CAP GROWTH FUND C-CLASS; SEPTEMBER 1, 2004 --
SMALL-CAP GROWTH FUND A-CLASS, MID-CAP GROWTH FUND A-CLASS, AND 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 PERIOD.
@ UNAUDITED
# LESS THAN $.01 PER SHARE: LARGE-CAP VALUE FUND C-CLASS AND H-CLASS ACTUAL
AMOUNT= $.0001; LARGE-CAP GROWTH FUND A-CLASS AND C-CLASS ACTUAL AMOUNT=
$.0042
106 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS
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 H-CLASS
SEPTEMBER 30, 2005 @ $ 24.49 $ .01 $ .61 $ .62 $ --
March 31, 2005 24.18 .37 (.06) .31 --
March 31, 2004 * 25.00 -- (.82) (.82) --
STRENGTHENING DOLLAR FUND
A-CLASS
SEPTEMBER 30, 2005* @ 25.00 .16 1.97 2.13 --
STRENGTHENING DOLLAR FUND
C-CLASS
SEPTEMBER 30, 2005* @ 25.00 .08 1.99 2.07 --
STRENGTHENING DOLLAR FUND
H-CLASS
SEPTEMBER 30, 2005* @ 25.00 .15 1.95 2.10 --
WEAKENING DOLLAR FUND A-CLASS
SEPTEMBER 30, 2005* @ 25.00 .15 (1.99) (1.84) --
WEAKENING DOLLAR FUND C-CLASS
SEPTEMBER 30, 2005* @ 25.00 .10 (2.01) (1.91) --
WEAKENING DOLLAR FUND H-CLASS
SEPTEMBER 30, 2005* @ 25.00 .15 (2.00) (1.85) --
U.S. GOVERNMENT MONEY MARKET
FUND INVESTOR CLASS
SEPTEMBER 30, 2005 @ 1.00 .01 -- .01 (.01)
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
SEPTEMBER 30, 2005 @ 1.00 .01 -- .01 (.01)
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
SEPTEMBER 30, 2005 @ 1.00 .01 -- .01 (.01)
March 31, 2005 1.00 .01 -- .01 (.01)
March 31, 2004* 1.00 -- -- -- --
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 H-CLASS
SEPTEMBER 30, 2005 @ $ -- $ -- $ .62 $ 25.11 2.53%
March 31, 2005 (--)# (--)# .31 24.49 1.30%
March 31, 2004 * -- -- (.82) 24.18 (3.28)%
STRENGTHENING DOLLAR FUND
A-CLASS
SEPTEMBER 30, 2005* @ -- -- 2.13 27.13 8.52%
STRENGTHENING DOLLAR FUND
C-CLASS
SEPTEMBER 30, 2005* @ -- -- 2.07 27.07 8.28%
STRENGTHENING DOLLAR FUND
H-CLASS
SEPTEMBER 30, 2005* @ -- -- 2.10 27.10 8.40%
WEAKENING DOLLAR FUND A-CLASS
SEPTEMBER 30, 2005* @ -- -- (1.84) 23.16 (7.36)%
WEAKENING DOLLAR FUND C-CLASS
SEPTEMBER 30, 2005* @ -- -- (1.91) 23.09 (7.64)%
WEAKENING DOLLAR FUND H-CLASS
SEPTEMBER 30, 2005* @ -- -- (1.85) 23.15 (7.40)%
U.S. GOVERNMENT MONEY MARKET
FUND INVESTOR CLASS
SEPTEMBER 30, 2005 @ -- (.01) -- 1.00 1.17%
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
SEPTEMBER 30, 2005 @ -- (.01) -- 1.00 0.92%
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
SEPTEMBER 30, 2005 @ -- (.01) -- 1.00 1.04%
March 31, 2005 -- (.01) -- 1.00 0.59%
March 31, 2004* -- -- -- 1.00 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)
- ---------------------------------------------------------------------------------------------------------------
LARGE-CAP GROWTH FUND H-CLASS
SEPTEMBER 30, 2005 @ 1.46%** 1.46%** 0.11%** 692% $ 24,056
March 31, 2005 1.47% 1.47% 1.52% 2,018% 11,762
March 31, 2004 * 1.41%** 1.41%** (0.16)%** 296% 793
STRENGTHENING DOLLAR FUND
A-CLASS
SEPTEMBER 30, 2005* @ 1.71%** 1.71%** 1.77%** -- 67
STRENGTHENING DOLLAR FUND
C-CLASS
SEPTEMBER 30, 2005* @ 2.43%** 2.43%** 0.90%** -- 1,176
STRENGTHENING DOLLAR FUND
H-CLASS
SEPTEMBER 30, 2005* @ 1.65%** 1.65%** 1.66%** -- 9,634
WEAKENING DOLLAR FUND A-CLASS
SEPTEMBER 30, 2005* @ 1.72%** 1.72%** 1.89%** -- 418
WEAKENING DOLLAR FUND C-CLASS
SEPTEMBER 30, 2005* @ 2.44%** 2.44%** 1.13%** -- 587
WEAKENING DOLLAR FUND H-CLASS
SEPTEMBER 30, 2005* @ 1.69%** 1.69%** 1.88%** -- 15,333
U.S. GOVERNMENT MONEY MARKET
FUND INVESTOR CLASS
SEPTEMBER 30, 2005 @ 0.86%** 0.86%** 2.35%** -- 1,168,197
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
SEPTEMBER 30, 2005 @ 1.37%** 1.37%** 1.86%** -- 181,858
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
SEPTEMBER 30, 2005 @ 1.12%** 1.12%** 2.15%** -- 10,174
March 31, 2005 1.10% 1.10% 0.93% -- 7,335
March 31, 2004* 0.00%**~ 0.00%**~ 0.00%** -- 1
* SINCE THE COMMENCEMENT OF OPERATIONS: FEBRUARY 20, 2004 -- LARGE-CAP
GROWTH FUND H-CLASS; MARCH 31, 2004 -- U.S. GOVERNMENT MONEY MARKET FUND
A-CLASS; MAY 25, 2005 -- WEAKENING DOLLAR FUND A-CLASS, WEAKENING DOLLAR
FUND C-CLASS AND WEAKENING DOLLAR FUND H-CLASS, STRENGTHENING DOLLAR FUND
A-CLASS, STRENGTHENING DOLLAR FUND C-CLASS AND STRENGTHENING DOLLAR FUND
H-CLASS.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE PERIOD.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE PERIOD.
~ EXPENSE RATIOS FOR THE PERIOD ENDED MARCH 31, 2004 ARE CALCULATED FOR ONE
DAY ONLY AND ARE NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
@ UNAUDITED
# LESS THAN $.01 PER SHARE: LARGE-CAP GROWTH FUND H-CLASS ACTUAL AMOUNT =
$.0042; U.S. GOVERNMENT MONEY MARKET FUND ADVISOR CLASS ACTUAL AMOUNT =
$.00433.
## 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.
### LESS THAN $.01 PER SHARE: U.S. GOVERNMENT MONEY MARKET FUND ADVISOR CLASS
ACTUAL AMOUNT = $.003.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 107
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 ASSET AND NET INCREASE DISTRIBUTIONS
VALUE, NET UNREALIZED IN NET ASSET FROM NET
BEGINNING INVESTMENT GAINS VALUE RESULTING INVESTMENT
OF PERIOD INCOME+ ON SECURITIES FROM OPERATIONS INCOME
- -------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
C-CLASS
SEPTEMBER 30, 2005@ $ 1.00 $ .01 $ -- $ .01 $ (.01)
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
- -----------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
C-CLASS
SEPTEMBER 30, 2005@ $ -- $ (.01) $ -- $ 1.00 0.67%
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 ASSETS,
NET PORTFOLIO END OF
GROSS NET INVESTMENT TURNOVER PERIOD (000'S
EXPENSES EXPENSES INCOME RATE*** OMITTED)
- ------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
C-CLASS
SEPTEMBER 30, 2005@ 1.87%** 1.87%** 1.35%** -- $ 160,178
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. GOVERNMENT
MONEY MARKET FUND C-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 PERIOD.
@ UNAUDITED
# LESS THAN $.01 PER SHARE: U.S. GOVERNMENT MONEY MARKET FUND C-CLASS ACTUAL
AMOUNT = $.00185.
## LESS THAN $.01 PER SHARE: U.S. GOVERNMENT MONEY MARKET FUND C-CLASS ACTUAL
AMOUNT = $.00006.
### LESS THAN $.01 PER SHARE: U.S. GOVERNMENT MONEY MARKET FUND C-CLASS ACTUAL
AMOUNT = $.0006.
108 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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 SEMI-ANNUAL REPORT | 109
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
NOVA URSA ARKTOS JUNO
MASTER MASTER MASTER MASTER
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 6, and 9) $ 348,341,531 $ 474,863,227 $ 213,127,057 $ 3,425,431,651
Segregated Cash with Broker 9,109,800 10,442,250 3,075,000 9,441,963
Receivable for Short Sale -- -- -- 13,933,688
Receivable for Equity Index Swap Settlement (Note 1) -- 714,066 562,371 --
Receivable for Futures Contracts Settlement (Note 1) 318,366 -- -- 2,856,219
Receivable for Shares Purchased -- -- -- 485,505
Investment Income Receivable (Note 1) 289,935 56,913 57,652 468,079
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 358,059,632 486,076,456 216,822,080 3,452,617,105
==================================================================================================================================
LIABILITIES
Short Sale at Market Value -- -- -- 1,394,599,317
Payable for Futures Contracts Settlement (Note 1) -- 364,650 222,119 --
Payable upon Return of Securities Loaned (Note 9) 58,369,738 -- -- --
Payable for Securities Purchased (Note 1) 341,275 -- -- --
Liability for Shares Redeemed 858,892 454,218 8,433,403 --
Investment Advisory Fees Payable (Note 4) 184,180 372,236 161,804 1,590,408
Custody Fees Payable 5,894 9,926 4,315 42,733
Interest Payable -- -- -- 8,816,693
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 59,759,979 1,201,030 8,821,641 1,405,049,151
==================================================================================================================================
NET ASSETS $ 298,299,653 $ 484,875,426 $ 208,000,439 $ 2,047,567,954
==================================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 464,730,988 $ 1,035,296,748 $ 364,040,550 $ 2,353,875,670
Undistributed Net Investment Income 5,967,652 5,119,207 2,443,645 7,242,606
Accumulated Net Realized Loss on Investments,
Options, Equity Index Swaps, and Futures Contracts (207,594,858) (559,425,007) (159,154,491) (351,526,203)
Net Unrealized Appreciation (Depreciation) on Investments,
Options, Equity Index Swaps, and Futures Contracts 35,195,871 3,884,478 670,735 37,975,881
==================================================================================================================================
NET ASSETS $ 298,299,653 $ 484,875,426 $ 208,000,439 $ 2,047,567,954
==================================================================================================================================
SHARES OUTSTANDING 6,082,412 8,797,674 3,801,777 63,013,967
NET ASSET VALUES $ 49.04 $ 55.11 $ 54.71 $ 32.49
* THE COST OF SECURITIES AT VALUE IS $312,885,305, $474,863,227,
$213,127,057, AND $3,425,596,792, RESPECTIVELY.
See Notes to Financial Statements.
110 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2005
- --------------------------------------------------------------------------------
NOVA URSA ARKTOS JUNO
MASTER MASTER MASTER MASTER
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 668,856 $ 7,242,728 $ 3,462,637 $ 57,955,302
Interest from Securities Lending, net (Note 9) 21,612 -- -- --
Dividends (Note 1) 2,088,018 -- -- --
Other Income 52,227 -- -- 22
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 2,830,713 7,242,728 3,462,637 57,955,324
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 4) 1,114,595 2,070,774 993,719 10,411,877
Interest Expense -- -- -- 40,033,353
Custody Fees 34,012 52,747 25,273 267,488
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,148,607 2,123,521 1,018,992 50,712,718
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income 1,682,106 5,119,207 2,443,645 7,242,606
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 8,767,986 -- -- (273,121)
Equity Index Swaps -- (8,463,865) (11,337,303) --
Futures Contracts 2,718,059 (6,360,384) (3,639,266) (33,394,165)
Securities Sold Short -- -- -- (92,290,860)
- ---------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 11,486,045 (14,824,249) (14,976,569) (125,958,146)
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 2,539,588 -- -- (130,203)
Equity Index Swaps -- (1,066,187) (2,001,150) --
Futures Contracts 3,037,190 (3,551,045) (735,695) 9,289,103
Securities Sold Short -- -- -- 9,900,796
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 5,576,778 (4,617,232) (2,736,845) 19,059,696
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 17,062,823 (19,441,481) (17,713,414) (106,898,450)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 18,744,929 $ (14,322,274) $ (15,269,769) $ (99,655,844)
===========================================================================================================================
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 111
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
NOVA MASTER URSA MASTER
PORTFOLIO PORTFOLIO
- ------------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 1,682,106 $ 4,285,546 $ 5,119,207 $ 3,328,476
Net Realized Gain (Loss) on Investments 11,486,045 22,126,081 (14,824,249) (58,061,705)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 5,576,778 (6,718,371) (4,617,232) 14,021,626
- ------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 18,744,929 19,693,256 (14,322,274) (40,711,603)
- ------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- (852) -- --
============================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 256,558,158 920,744,587 291,893,544 912,482,213
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- 852 -- --
COST OF SHARES REDEEMED (272,672,157) (911,016,929) (210,962,355) (897,785,236)
============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (16,113,999) 9,728,510 80,931,189 14,696,977
- ------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 2,630,930 29,420,914 66,608,915 (26,014,626)
NET ASSETS--BEGINNING OF PERIOD 295,668,723 266,247,809 418,266,511 444,281,137
- ------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 298,299,653 $ 295,668,723 $ 484,875,426 $ 418,266,511
============================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 5,967,652 $ 4,285,546 $ 5,119,207 $ --
============================================================================================================
TRANSACTIONS IN SHARES
Shares Purchased 5,434,005 21,299,256 5,182,987 15,339,086
Shares Purchased Through Reinvestment -- 19 -- --
- ------------------------------------------------------------------------------------------------------------
Total Purchased 5,434,005 21,299,275 5,182,987 15,339,086
Shares Redeemed (5,799,366) (21,129,327) (3,778,880) (15,419,385)
- ------------------------------------------------------------------------------------------------------------
Net Shares Purchased (Redeemed) (365,361) 169,948 1,404,107 (80,299)
============================================================================================================
+ UNAUDITED
See Notes to Financial Statements.
112 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ARKTOS MASTER JUNO MASTER
PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- --------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 2,443,645 $ 1,505,576 $ 7,242,606 $ (51,436,221)
Net Realized Gain (Loss) on Investments (14,976,569) (34,029,651) (125,958,146) (163,140,429)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (2,736,845) 8,522,922 19,059,696 16,042,432
- --------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (15,269,769) (24,001,153) (99,655,844) (198,534,218)
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income -- -- -- --
====================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED 182,418,358 587,882,270 214,715,336 2,584,286,537
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT -- -- -- --
COST OF SHARES REDEEMED (195,896,384) (589,489,042) (843,083,823) (1,056,001,980)
====================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (13,478,026) (1,606,772) (628,368,487) 1,528,284,557
- --------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (28,747,795) (25,607,925) (728,024,331) 1,329,750,339
NET ASSETS--BEGINNING OF PERIOD 236,748,234 262,356,159 2,775,592,285 1,445,841,946
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 208,000,439 $ 236,748,234 $ 2,047,567,954 $ 2,775,592,285
====================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 2,443,645 $ -- $ 7,242,606 $ --
====================================================================================================================
TRANSACTIONS IN SHARES
Shares Purchased 3,175,996 9,816,871 6,670,749 71,015,584
Shares Purchased Through Reinvestment -- -- -- --
- --------------------------------------------------------------------------------------------------------------------
Total Purchased 3,175,996 9,816,871 6,670,749 71,015,584
Shares Redeemed (3,447,152) (10,077,144) (26,290,392) (29,804,719)
- --------------------------------------------------------------------------------------------------------------------
Net Shares Purchased (Redeemed) (271,156) (260,273) (19,619,643) 41,210,865
====================================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 113
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 MASTER PORTFOLIO
SEPTEMBER 30, 2005@ $ 45.86 $ (.39) $ 3.57 $ 3.18 $ --
March 31, 2005 42.41 .66 2.79 3.45 (--)#
March 31, 2004 27.42 .32 14.99 15.31 (.32)
March 31, 2003 45.36 .31 (17.94) (17.63) (.31)
March 31, 2002* 50.00 .34 (4.62) (4.28) (.36)
URSA MASTER PORTFOLIO
SEPTEMBER 30, 2005@ 56.57 .58 (2.04) (1.46) --
March 31, 2005 59.44 .45 (3.32) (2.87) --
March 31, 2004 81.01 .06 (21.59) (21.53) (.04)
March 31, 2003 64.57 .46 16.44 16.90 (.46)
March 31, 2002 65.19 1.22 (.35) .87 (1.49)
March 31, 2001* 49.71 2.80 15.50 18.30 (2.82)
ARKTOS MASTER PORTFOLIO
SEPTEMBER 30, 2005@ 58.13 .64 (4.06) (3.42) --
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)
March 31, 2002 96.47 1.37 (8.93) (7.56) (3.73)
March 31, 2001* 53.67 3.70 42.92 46.62 (3.82)
JUNO MASTER PORTFOLIO
SEPTEMBER 30, 2005@ 33.59 .11 (1.21) (1.10) --
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)
March 31, 2001* 49.91 2.72 (4.45) (1.73) (2.79)
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 MASTER PORTFOLIO
SEPTEMBER 30, 2005@ $ -- $ -- $ 3.18 $ 49.04 6.93%
March 31, 2005 -- (--)# 3.45 45.86 8.14%
March 31, 2004 -- (.32) 14.99 42.41 55.84%
March 31, 2003 -- (.31) (17.94) 27.42 (38.94)%
March 31, 2002* -- (.36) (4.64) 45.36 (8.54)%
URSA MASTER PORTFOLIO
SEPTEMBER 30, 2005@ -- -- (1.46) 55.11 (2.58)%
March 31, 2005 -- -- (2.87) 56.57 (4.83)%
March 31, 2004 -- (.04) (21.57) 59.44 (26.58)%
March 31, 2003 -- (.46) 16.44 81.01 26.21%
March 31, 2002 -- (1.49) (.62) 64.57 1.37%
March 31, 2001* -- (2.82) 15.48 65.19 38.06%
ARKTOS MASTER PORTFOLIO
SEPTEMBER 30, 2005@ -- -- (3.42) 54.71 (5.88)%
March 31, 2005 -- -- (2.42) 58.13 (4.00)%
March 31, 2004 -- -- (28.18) 60.55 (31.76)%
March 31, 2003 -- (19.18) 3.55 88.73 20.95%
March 31, 2002 -- (3.73) (11.29) 85.18 (8.03)%
March 31, 2001* -- (3.82) 42.80 96.47 91.61%
JUNO MASTER PORTFOLIO
SEPTEMBER 30, 2005@ -- -- (1.10) 32.49 (3.27)%
March 31, 2005 -- -- (1.31) 33.59 (3.75)%
March 31, 2004 -- -- (2.45) 34.90 (6.56)%
March 31, 2003 -- -- (8.90) 37.35 (19.24)%
March 31, 2002 -- (.97) .86 46.25 4.12%
March 31, 2001* -- (2.79) (4.52) 45.39 (3.67)%
RATIOS 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)
- ----------------------------------------------------------------------------------------------------------
NOVA MASTER PORTFOLIO
SEPTEMBER 30, 2005@ 0.78%** 0.78%** 0.78%** 1.14%** 114% $ 298,300
March 31, 2005 0.77% 0.77% 0.77% 1.26% 388% 295,669
March 31, 2004 0.78% 0.78% 0.78% 0.81% 540% 266,248
March 31, 2003 0.79% 0.79% 0.79% 0.91% 603% 170,793
March 31, 2002* 0.86%** 0.86%** 0.86%** 0.69%** 401% 291,992
URSA MASTER PORTFOLIO
SEPTEMBER 30, 2005@ 0.93%** 0.93%** 0.93%** 2.25%** -- 484,875
March 31, 2005 0.92% 0.92% 0.92% 0.71% -- 418,267
March 31, 2004 0.93% 0.93% 0.93% 0.09% -- 444,281
March 31, 2003 0.94% 0.94% 0.94% 0.52% -- 529,062
March 31, 2002 0.94% 0.94% 0.94% 1.90% -- 228,485
March 31, 2001* 0.95%** 0.95%** 0.95%** 5.11%** -- 225,040
ARKTOS MASTER PORTFOLIO
SEPTEMBER 30, 2005@ 0.93%** 0.93%** 0.93%** 2.24%** -- 208,000
March 31, 2005 0.92% 0.92% 0.92% 0.66% -- 236,748
March 31, 2004 0.93% 0.93% 0.93% 0.10% -- 262,356
March 31, 2003 0.94% 0.94% 0.94% 0.51% -- 149,147
March 31, 2002 0.94% 0.94% 0.94% 1.63% -- 115,929
March 31, 2001* 0.96%** 0.95%** 0.95%** 6.58%** 1,788% 78,919
JUNO MASTER PORTFOLIO
SEPTEMBER 30, 2005@ 4.43%** 4.43%** 0.93%** 0.63%** 51% 2,047,568
March 31, 2005 4.71% 4.71% 0.92% (1.93)% 101% 2,775,592
March 31, 2004 5.12%^ 5.12%^ 0.93% (3.39)% 187% 1,445,842
March 31, 2003 5.18%^@ 5.18%^@ 0.94% (2.72)% -- 189,968
March 31, 2002 0.93% 0.93% 0.93% 1.61% -- 33,105
March 31, 2001* 0.94%** 0.94%** 0.94%** 5.04%** -- 12,417
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 1, 2000-- URSA MASTER
PORTFOLIO, ARKTOS MASTER PORTFOLIO, AND JUNO MASTER PORTFOLIO; AUGUST 1,
2001-- NOVA MASTER PORTFOLIO.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR. THE URSA MASTER
PORTFOLIO AND THE ARKTOS MASTER PORTFOLIO TYPICALLY HOLD MOST OF THEIR
INVESTMENTS IN OPTIONS AND FUTURES CONTRACTS WHICH ARE DEEMED SHORT-TERM
SECURITIES.
+ OPERATING EXPENSES EXCLUDE INTEREST EXPENSE FROM SECURITIES SOLD SHORT.
@ 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
ASSETS VALUE, PER SHARE VALUE, NET INVESTMENT INCOME RATIOS, AND TOTAL
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS DURING ANY PERIOD.
114 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Series Funds (the "Trust") is registered with the SEC 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. C-Class Shares have a 1% Contingent Deferred Sales Charge ("CDSC") if
Shares are redeemed within 12 months of purchase. 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. 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 September 30, 2005, the Trust consisted of forty-eight separate series:
twenty-four Benchmark Funds, one Money Market Fund, one Absolute Return
Strategies Fund, one Hedged Equity Fund, nineteen Sector Funds, and two
Strategic Funds. This report covers the twenty-four Benchmark Funds and the
Money Market Fund (the "Funds"), while the Sector Funds, the Strategic Funds,
and the Absolute Return Strategies Fund and the Hedged Equity Fund are contained
in separate reports.
The following significant accounting policies are in conformity with accounting
principles generally accepted in the United States of America and are
consistently followed by the Trust.
A. Equity securities listed on an exchange (New York Stock Exchange ("NYSE") or
American Stock Exchange) are valued at the last quoted sales price as of close
of business on the NYSE, usually 4:00 p.m., Eastern Time, on the valuation date.
Equity securities listed on the Nasdaq market system are valued at the Nasdaq
Official Closing Price, usually as of 4:00 p.m., Eastern Time, on the valuation
date. Listed options held by the Trust are valued at the Official Settlement
Price listed by the exchange, usually as of 4:00 p.m., Eastern Time.
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. In the event that the exchange for a specific futures contract
closes earlier than 4:00 p.m., Eastern Time, the futures contract is valued at
the Official Settlement Price of the exchange. However, the underlying
securities from which the futures contract value is derived are monitored until
4:00 p.m., Eastern Time, to determine if fair valuation would provide a more
accurate valuation. Short-term securities, if any, are valued at amortized cost,
which approximates market value.
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 agreements.
The value of foreign equity index, commodity index, and U.S. Dollar index swap
agreements entered into by the Funds are accounted for using the unrealized gain
or loss on the agreements that is determined by marking the agreements to the
price at which orders are being filled at the close of the NYSE, usually 4:00
p.m., Eastern Time. In the event that no order is filled at 4:00 p.m., Eastern
Time, the security dealer provides a fair value quote at which the swap
agreement is valued. The swap's market value is then adjusted to include
dividends accrued, financing charges and/or interest associated with the swap
agreements.
Investments 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 Rydex Global Advisors (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
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 115
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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 and are
determined in accordance with income tax regulations which may differ from
accounting principles generally accepted in the United States of America. These
differences are primarily due to differing treatments for items such as deferral
of wash sales and post-October losses and regulated futures contracts and
options. Net investment income and loss, net realized gains and losses, and net
assets are not affected by these differences.
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. Fees paid to brokers to borrow securities in connection with
short sales are considered part of the cost of short sale transactions. In
addition, the Fund must pay out the dividend rate of the equity or coupon rate
of the treasury obligation to the purchaser and records this as an expense.
Short Dividends or Interest Expense is not a fee charged to the shareholder by
the Advisor or other service providers, rather it is more similar to the
transaction costs or capital expenditures associated with the day-to-day
management of any mutual fund in pursuit of its investment objective. Currently,
the Juno Master Portfolio is the only fund practicing the use of short sales.
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 the contract is
closed, the Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed.
G. The 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
116 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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 Funds may also purchase American Depository Receipts ("ADR"), U.S.
Government securities, enter into repurchase agreements, and engage in futures,
options and equity swap transactions.
K. The Fund may leave Cash in Custodian Bank overnight in its cash account with
the custodian, U.S. Bank. Periodically, a 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.
L. 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.
M. 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 related 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 upon the respective
aggregate net asset value of each Fund included in the Trust.
N. 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, options on futures, and swap
agreements. These investments involve, to varying degrees, elements of market
risk and risks in excess of the amounts recognized in the Statements of Assets
and Liabilities.
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 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 RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 117
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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 the Trust 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.
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.
In conjunction with the use of options, futures, options on futures, swap
agreements, as well as short sales of securities, the Funds are required to
maintain collateral in various forms. The Funds use, where appropriate,
depending on the financial instrument utilized and the broker involved, margin
deposits at the broker, cash segregated at the custodian bank, discount notes,
or the repurchase agreements allocated to each Fund.
The risks inherent in the use of options, futures contracts, options on futures
contracts, swap agreements as well as short sales of securities include i)
adverse changes in the value of such instruments; ii) imperfect correlation
between the price of the instruments and movements in the price of the
underlying securities, indices, or futures contracts; iii) the possible absence
of a liquid secondary market for any particular instrument at any time; and iv)
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-ended 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 the Master Portfolio, adjusted for Fund expenses.
The financial statements of the Master Portfolios, including the Schedule of
Investments, are included in this report and should be read in conjunction with
the Funds' financial statements. The percentage of Nova Master Portfolio, Ursa
Master Portfolio, Arktos Master Portfolio, and Juno Master Portfolio owned by
the Nova Fund, the Ursa Fund, the Arktos Fund, and the Juno Fund, respectively,
at September 30, 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 the Advisor,
an affiliated entity, investment advisory fees calculated at an annualized rate
of 0.50% of the average daily net assets of the U.S. Government Bond Fund and
the U.S. Government Money Market Fund; 0.75% of the average daily net assets of
the OTC Fund, the Small-Cap Value Fund, the Mid-Cap Value Fund, the Large-Cap
Value Fund, the Small-Cap Growth Fund, the Mid-Cap Growth Fund, the Large-Cap
Growth Fund, and the Nova Master Portfolio; and 0.90% of the average daily net
assets of the Medius Fund, the Inverse Mid-Cap Fund, the Mekros Fund, the
Inverse Small-Cap Fund, the Large-Cap Europe Fund, the Large-Cap Japan Fund, the
Strengthening Dollar Fund, the Weakening Dollar Fund, the Ursa Master Portfolio,
the Arktos Master Portfolio, and the Juno Master Portfolio. 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 0.20% 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, the Strengthening Dollar Fund, and the Weakening Dollar
Fund.
The Servicer also provides accounting services to the Trust calculated at an
annualized rate of 0.10% on the first $250 million of the average daily net
assets, 0.075% on the next $250 million of the average daily net assets, 0.05%
on the next $250 million of the average daily net assets, and 0.03% on the
average daily net assets over $750 million of each of the Funds. Certain
officers and trustees of the Trust are also officers of 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.
118 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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.
The Trust has adopted a separate Distribution and Shareholder Services Plan
applicable to its C-Class Shares that allows the Funds to pay annual
distribution and service fees of 1.00% of the Funds' C-Class Shares average
daily net assets. The annual 0.25% service fee compensates the shareholder's
financial advisor for providing on-going services to the shareholder. The annual
0.75% distribution fee reimburses the Distributor for paying the shareholder's
financial advisor an ongoing 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.
5. FEDERAL INCOME TAX INFORMATION
The Funds intend to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies and will distribute all net
investment income and capital gains to shareholders. Therefore, no Federal
income tax provision is required.
Income and capital gain distributions are determined in accordance with Federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States of America. These differences are primarily due to
differing treatments for derivatives, foreign currency transactions, losses
deferred due to wash sales, losses deferred due to post-October losses, and
excise tax regulations.
Permanent book and tax basis differences, if any, relating to shareholder
distributions will result in reclassifications to paid-in capital. This includes
net operating losses not utilized during the current year, capital loss
carryforward expired, 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.
At September 30, 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 $ 286,474,757 $ 11,824,896 $ -- $ 11,824,896
Ursa Fund 509,791,113 -- (24,915,687) (24,915,687)
OTC Fund 880,150,148 257,473,960 (7,451,110) 250,022,850
Arktos Fund 218,723,890 275,936 (10,999,387) (10,723,451)
Medius Fund 72,890,201 3,685,604 (1,240,460) 2,445,144
Inverse Mid-Cap Fund 8,628,286 -- (70,056) (70,056)
Mekros Fund 148,915,222 9,902,574 (3,157,625) 6,744,949
Inverse Small-Cap Fund 51,160,641 -- (580,517) (580,517)
U.S. Government Bond Fund 77,984,912 -- (1,152,508) (1,152,508)
Juno Fund 2,303,556,355 -- (255,988,401) (255,988,401)
Large-Cap Europe Fund 90,449,184 2,744,591 (196,634) 2,547,957
Large-Cap Japan Fund 123,610,520 7,455,259 -- 7,455,259
Small-Cap Value Fund 50,896,843 -- (4,276,166) (4,276,166)
Mid-Cap Value Fund 147,948,776 4,786,348 (923,780) 3,862,568
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 119
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TAX TAX NET
TAX UNREALIZED UNREALIZED UNREALIZED
FUND COST GAIN LOSS GAIN (LOSS)
- --------------------------------------------------------------------------------------------------
Large-Cap Value Fund $ 64,379,847 $ -- $ (605,490) $ (605,490)
Small-Cap Growth Fund 124,080,886 2,825,679 (1,392,552) 1,433,127
Mid-Cap Growth Fund 50,876,974 828,013 (587,007) 241,006
Large-Cap Growth Fund 33,034,359 -- (2,838,954) (2,838,954)
Strengthening Dollar Fund 7,317,727 133,364 -- 133,364
Weakening Dollar Fund 12,269,623 -- (879,487) (879,487)
U.S.Government Money Market
Fund 1,602,074,222 -- -- --
Nova Master Portfolio 324,135,363 28,020,911 (4,075,098) 23,945,813
Ursa Master Portfolio 474,863,227 3,884,478 -- 3,884,478
Arktos Master Portfolio 213,127,057 670,735 -- 670,735
Juno Master Portfolio 3,566,776,177 38,141,022 (141,344,526) (103,203,504)
6. REPURCHASE AGREEMENTS
The Trust transfers uninvested cash balances into a single joint account, along
with uninvested cash balances of the Core Equity Fund, the Sector Rotation Fund,
the Absolute Return Strategies Fund, the Hedged Equity Fund, and the Commodities
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 Trust's custodian and is evaluated daily to ensure that its
market value exceeds by, at a minimum, 102% of the delivery value of the
repurchase agreement at maturity.
The repurchase agreements executed by the joint account and outstanding as of
September 30, 2005, were as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- ------------------------------------------------------------------------------------------------
Bear Stearns Cos., Inc. 3.25% due 10/03/05 $ 525,000,000 $ 525,000,000 $ 525,142,188
Citigroup, Inc. 3.24% due 10/03/05 375,000,000 375,000,000 375,101,250
Lehman Brothers, Inc. 3.25% due 10/03/05 295,619,135 295,619,135 295,699,198
Morgan Stanley 3.24% due 10/03/05 250,000,000 250,000,000 250,067,500
- ------------------------------------------------------------------------------------------------
$ 1,445,619,135 $ 1,446,010,136
- ------------------------------------------------------------------------------------------------
As of September 30, 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 6.125% - 8.000% $ 203,611,000 $ 257,500,263
U.S. Treasury Notes 3.000% - 3.875% 1,033,367,912 1,027,768,192
U.S. Currency 0.000% 188,000,000 188,000,000
- ------------------------------------------------------------------------------------------------
$ 1,473,268,455
- ------------------------------------------------------------------------------------------------
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.
120 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
7. SECURITIES TRANSACTIONS
During the period ended September 30, 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
OTC MEDIUS MID-CAP MEKROS SMALL-CAP GOVERNMENT EUROPE
FUND FUND FUND FUND FUND BOND FUND FUND
- --------------------------------------------------------------------------------------------------------------------
Purchases $ 529,347,556 $ 136,674,305 $ -- $ 305,048,761 $ -- $540,255,320 $116,043,619
Sales $ 548,560,927 $ 166,013,310 $ -- $ 288,358,207 $ -- $563,124,600 $ 41,947,883
LARGE-CAP SMALL-CAP MID-CAP LARGE-CAP SMALL-CAP MID-CAP LARGE-CAP
JAPAN VALUE VALUE VALUE GROWTH GROWTH GROWTH
FUND FUND FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------
Purchases $ -- $ 270,253,085 $ 344,402,948 $ 287,370,169 $306,081,101 $194,116,531 $256,370,911
Sales $ -- $ 318,821,955 $ 356,827,220 $ 264,385,417 $228,905,509 $181,795,052 $260,469,054
U.S.
STRENGTHENING WEAKENING GOVERNMENT
DOLLAR DOLLAR MONEY
FUND FUND MARKET FUND
- --------------------------------------------------------
Purchases $ -- $ -- $ --
Sales $ -- $ -- $ --
NOVA MASTER URSA MASTER ARKTOS MASTER JUNO MASTER
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------------------------------------------------------------
Purchases $ 287,456,152 $ -- $ -- $ 864,740,551
Sales $ 300,920,813 $ -- $ -- $1,710,310,966
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 121
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 periods presented were:
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT
- ---------------------------------------------------------------------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ---------------------------------------------------------------------------------------------------
NOVA FUND
Investor Class 15,366,634 57,482,445 -- --
Advisor Class 5,380,602 15,439,006 -- --
A-Class 655,290 997,223 -- --
C-Class 1,671,317 7,074,750 -- --
URSA FUND
Investor Class 56,372,831 168,290,971 -- --
Advisor Class 13,398,521 28,731,154 -- --
A-Class 1,492,688 1,774,311 -- --
C-Class 5,165,157 17,864,496 -- --
OTC FUND
Investor Class 46,719,255 140,651,741 -- --
Advisor Class 13,012,366 21,246,975 -- --
A-Class 121,536 403,601 -- --
C-Class 2,770,747 12,971,805 -- --
ARKTOS FUND
Investor Class 14,305,105 38,823,800 -- --
Advisor Class 1,192,567 4,507,444 -- --
A-Class 194,550 709,777 -- --
C-Class 1,602,286 5,928,300 -- --
MEDIUS FUND
A-Class 47,703 60,112 -- --
C-Class 1,528,704 5,615,876 -- --
H-Class 11,450,968 34,349,386 -- --
INVERSE MID-CAP FUND
A-Class 12,148 9,062 -- --
C-Class 197,597 618,408 -- --
H-Class 2,209,716 6,074,879 -- --
MEKROS FUND
A-Class 209,477 331,933 -- 461
C-Class 3,148,896 12,055,055 -- 8,959
H-Class 45,701,008 110,648,003 -- 35,282
INVERSE SMALL-CAP FUND
A-Class 84,018 51,552 -- --
C-Class 705,211 2,900,097 -- --
H-Class 8,100,203 18,267,219 -- --
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
- -----------------------------------------------------------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- -----------------------------------------------------------------------------------------
NOVA FUND
Investor Class (16,409,463) (58,494,317) (1,042,829) (1,011,872)
Advisor Class (5,168,282) (15,321,064) 212,320 117,942
A-Class (379,047) (263,045) 276,243 734,178
C-Class (1,707,409) (6,487,904) (36,092) 586,846
URSA FUND
Investor Class (48,249,548) (169,302,511) 8,123,283 (1,011,540)
Advisor Class (13,614,662) (28,912,809) (216,141) (181,655)
A-Class (520,758) (899,806) 971,930 874,505
C-Class (4,683,895) (17,743,222) 481,262 121,274
OTC FUND
Investor Class (45,788,462) (148,285,352) 930,793 (7,633,611)
Advisor Class (12,601,021) (25,259,286) 411,345 (4,012,311)
A-Class (99,338) (214,931) 22,198 188,670
C-Class (2,741,714) (12,904,659) 29,033 67,146
ARKTOS FUND
Investor Class (14,670,866) (38,920,504) (365,761) (96,704)
Advisor Class (1,369,724) (4,508,845) (177,157) (1,401)
A-Class (325,954) (476,220) (131,404) 233,557
C-Class (1,544,582) (6,644,566) 57,704 (716,266)
MEDIUS FUND
A-Class (29,815) (27,302) 17,888 32,810
C-Class (1,603,492) (5,558,920) (74,788) 56,956
H-Class (12,001,611) (34,898,715) (550,643) (549,329)
INVERSE MID-CAP FUND
A-Class (1,546) (7,704) 10,602 1,358
C-Class (211,457) (598,039) (13,860) 20,369
H-Class (2,715,505) (5,446,167) (505,789) 628,712
MEKROS FUND
A-Class (168,191) (211,255) 41,286 121,139
C-Class (2,840,135) (13,261,033) 308,761 (1,197,019)
H-Class (44,567,674) (114,857,270) 1,133,334 (4,173,985)
INVERSE SMALL-CAP FUND
A-Class (76,353) (42,815) 7,665 8,737
C-Class (667,197) (2,823,759) 38,014 76,338
H-Class (8,106,126) (17,354,618) (5,923) 912,601
+ UNAUDITED
122 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT
- --------------------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- --------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND
Investor Class 24,188,420 62,414,845 41,560 121,807
Advisor Class 44,776,117 47,245,621 115,490 183,519
A-Class 283,255 483,989 1,023 1,075
C-Class 5,756,738 18,129,933 11,703 23,019
JUNO FUND
Investor Class 34,761,212 164,148,402 -- --
Advisor Class 10,225,953 26,247,651 -- --
A-Class 1,541,822 12,533,793 -- --
C-Class 5,514,130 51,258,840 -- --
LARGE-CAP EUROPE FUND
A-Class 130,414 49,853 -- 271
C-Class 1,904,962 4,295,340 -- 7,616
H-Class 10,824,737 23,821,380 -- 171,099
LARGE-CAP JAPAN FUND
A-Class 68,037 14,460 -- 370
C-Class 261,089 837,470 -- 7,145
H-Class 8,524,221 17,570,283 -- 68,002
SMALL-CAP VALUE FUND
A-Class 412,295 127,767* -- 11*
C-Class 2,652,993 1,959,880 -- 1,040
H-Class 9,268,629 30,483,096 -- 25,822
MID-CAP VALUE FUND
A-Class 99,887 84,808* -- 8*
C-Class 2,648,812 2,866,918 -- 159
H-Class 12,639,809 24,551,108 -- 12,968
LARGE-CAP VALUE FUND
A-Class 146,183 23,110* -- 2*
C-Class 4,938,193 2,417,522 -- 288
H-Class 7,419,931 22,324,716 -- 4,393
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
- --------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- --------------------------------------------------------------------------------------------
U.S. GOVERNMENT BOND FUND
Investor Class (24,455,284) (62,466,069) (225,304) 70,583
Advisor Class (45,847,912) (46,842,070) (956,305) 587,070
A-Class (338,896) (331,301) (54,618) 153,763
C-Class (6,146,756) (17,505,300) (378,315) 647,652
JUNO FUND
Investor Class (53,840,961) (131,892,342) (19,079,749) 32,256,060
Advisor Class (15,587,211) (16,525,201) (5,361,258) 9,722,450
A-Class (2,172,965) (3,385,175) (631,143) 9,148,618
C-Class (15,173,814) (27,791,309) (9,659,684) 23,467,531
LARGE-CAP EUROPE FUND
A-Class (39,433) (39,660) 90,981 10,464
C-Class (1,899,113) (4,094,711) 5,849 208,245
H-Class (9,890,549) (22,714,914) 934,188 1,277,565
LARGE-CAP JAPAN FUND
A-Class (31,968) (6,823) 36,069 8,007
C-Class (235,047) (889,463) 26,042 (44,848)
H-Class (5,753,635) (21,578,874) 2,770,586 (3,940,589)
SMALL-CAP VALUE FUND
A-Class (434,380) (102,458)* (22,085) 25,320*
C-Class (2,988,993) (1,614,516) (336,000) 346,404
H-Class (10,673,179) (28,602,905) (1,404,550) 1,906,013
MID-CAP VALUE FUND
A-Class (91,162) (73,451)* 8,725 11,365*
C-Class (2,511,762) (2,571,732) 137,050 295,345
H-Class (13,251,295) (21,074,966) (611,486) 3,489,110
LARGE-CAP VALUE FUND
A-Class (116,977) (15,183)* 29,206 7,929*
C-Class (4,972,065) (2,347,191) (33,872) 70,619
H-Class (6,567,506) (21,714,513) 852,425 614,596
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
+ UNAUDITED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 123
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
SHARES PURCHASED PURCHASED THROUGH DIVIDEND REINVESTMENT
- ---------------------------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ---------------------------------------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
A-Class 126,326 4,801* -- 26*
C-Class 1,315,492 2,598,719 -- 1,452
H-Class 11,401,151 24,995,214 -- 34,490
MID-CAP GROWTH FUND
A-Class 137,637 20,614* -- 1*
C-Class 1,174,696 1,014,418 -- 11
H-Class 7,447,477 15,067,599 -- 497
LARGE-CAP GROWTH FUND
A-Class 172,372 3,244* -- --
C-Class 4,811,524 4,428,678 -- 6
H-Class 7,341,207 16,112,122 -- 348
STRENGTHENING DOLLAR FUND**
A-Class 20,293 -- -- --
C-Class 146,594 -- -- --
H-Class 3,504,565 -- -- --
WEAKENING DOLLAR FUND**
A-Class 29,221 -- -- --
C-Class 112,659 -- -- --
H-Class 2,850,656 -- -- --
U.S. GOVERNMENT MONEY MARKET FUND
Investor Class 9,159,091,282 18,938,656,130 13,373,423 8,910,853
Advisor Class 1,488,027,522 3,577,821,001 1,842,953 853,529
A-Class 37,444,317 23,938,925 57,707 22,293
C-Class 1,212,221,507 2,540,283,761 1,016,153 282,501
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
- -------------------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- -------------------------------------------------------------------------------------------------------
SMALL-CAP GROWTH FUND
A-Class (116,721) (2,096)* 9,605 2,731*
C-Class (1,061,282) (2,601,481) 254,210 (1,310)
H-Class (9,022,164) (24,195,230) 2,378,987 834,474
MID-CAP GROWTH FUND
A-Class (139,441) -- (1,804) 20,615*
C-Class (1,227,176) (974,263) (52,480) 40,166
H-Class (6,907,173) (14,209,407) 540,304 858,689
LARGE-CAP GROWTH FUND
A-Class (164,514) (241)* 7,858 3,003*
C-Class (5,512,585) (3,617,714) (701,061) 810,970
H-Class (6,863,719) (15,664,901) 477,488 447,569
STRENGTHENING DOLLAR FUND**
A-Class (17,813) -- 2,480 --
C-Class (103,158) -- 43,436 --
H-Class (3,149,121) -- 355,444 --
WEAKENING DOLLAR FUND**
A-Class (11,177) -- 18,044 --
C-Class (87,239) -- 25,420 --
H-Class (2,188,372) -- 662,284 --
U.S. GOVERNMENT MONEY MARKET FUND
Investor Class (9,200,273,680) (18,808,627,729) (27,808,975) 138,939,254
Advisor Class (1,553,901,339) (3,582,384,097) (64,030,864) (3,709,567)
A-Class (34,662,937) (16,627,319) 2,839,087 7,333,899
C-Class (1,208,728,060) (2,515,971,844) 4,509,600 24,594,418
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
** SINCE THE COMMENCEMENT OF OPERATIONS: MAY 25, 2005.
+ UNAUDITED
124 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
9. PORTFOLIO SECURITIES LOANED
The Trust lends its securities to approved brokers to earn additional income.
Within this arrangement, the Trust acts as the lender, U.S. Bank acts as the
agent, and other approved registered broker dealers act as the borrowers. The
Trust receives cash collateral, valued at 100% of the value of the securities on
loan, which is initially held in a segregated account at U.S. Bank. As agent,
U.S. Bank may, for investment purposes, pool the Trust's collateral in joint
accounts with cash collateral from one or more other securities lending
customers of U.S. Bank. Under the terms of the Trust's securities lending
agreement with U.S. Bank, cash collateral may be invested by U.S. Bank in
certain high quality, liquid investments. At September 30, 2005, the pooled cash
collateral investments consisted of repurchase agreements (47.59%), commercial
paper (31.82%), corporate bonds (20.58%), and money market mutual funds (0.01%).
Collateral is maintained over the life of the loan in an amount not less than
the value of loaned securities, as determined at the close of fund business each
day; any additional collateral required due to changes in security values is
delivered to the fund the next business day. Although the collateral mitigates
risk, the Trust could experience a delay in recovering its securities and a
possible loss of income or value if the borrower fails to return the securities.
The Trust has the right under the securities lending agreement to recover the
securities from the borrower on demand.
At September 30, 2005, the following funds participated in securities lending
and received cash collateral:
VALUE OF
CASH SECURITIES
FUND COLLATERAL LOANED
- -----------------------------------------------------------------------
OTC Fund $ 209,194,920 $ 203,517,476
Medius Fund 12,774,694 12,420,443
Mekros Fund 16,702,851 16,063,850
Small-Cap Value Fund 5,043,318 4,870,585
Mid-Cap Value Fund 28,753,596 27,835,160
Large-Cap Value Fund 8,782,960 8,508,570
Small-Cap Growth Fund 13,293,323 12,890,861
Mid-Cap Growth Fund 8,082,491 7,874,061
Large-Cap Growth Fund 3,088,154 2,998,870
U.S. Government Money Market Fund 100,000,000 99,550,000
Nova Master Portfolio 58,369,738 56,708,823
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 125
OTHER INFORMATION
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to securities held in the Funds' portfolios is
available, without charge and upon request, by calling 1-800-820-0888. This
information is also available from the EDGAR database on the SEC's site at
http://www.sec.gov.
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 Funds' Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request, by calling 1-800-820-0888.
RYDEX INVESTMENTS BOARD REVIEW AND APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
The 1940 Act requires that the initial approval of, as well as the continuation
of, a fund's investment advisory agreement must be specifically approved (1) by
the vote of the trustees or by a vote of the shareholders of the fund, and (2)
by the vote of a majority of the trustees who are not parties to the investment
advisory agreement or "interested persons" of any party (the "Independent
Trustees"), cast in person at a meeting called for the purpose of voting on such
approval. In connection with such approvals, the fund's trustees must request
and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. In addition, the SEC takes the position that, as part of their
fiduciary duties with respect to fund fees, fund boards are required to evaluate
the material factors applicable to a decision to approve an investment advisory
agreement.
Consistent with these responsibilities, the Rydex Series Funds Board of Trustees
(the "Board") calls and holds one meeting each year that is dedicated to
considering whether to renew the investment advisory agreement (the "Advisory
Agreement") between the Trust and PADCO Advisors, Inc., which does business
under the name Rydex Investments ("Rydex Investments") with respect to existing
funds in the Trust, including the funds discussed in this Semi-Annual Report
(each a "Fund" and collectively, the "Funds"), and to reviewing certain other
agreements pursuant to which Rydex Investments provides investment advisory
services to certain other registered investment companies. In preparation for
the meeting, the Board requests and reviews a wide variety of materials provided
by Rydex Investments, including information about Rydex Investments' affiliates,
personnel and operations. The Board also receives data provided by third
parties. This information is in addition to the detailed information about the
Funds that the Board reviews during the course of each year, including
information that relates to Fund operations and performance. The Board also
receives a memorandum from Fund counsel regarding the responsibilities of the
Board for the approval of investment advisory agreements. In addition, the
Independent Trustees receive advice from independent counsel to the Independent
Trustees, meet in executive session outside the presence of fund management, if
necessary, and participate in question and answer sessions with representatives
of Rydex Investments.
At a meeting held on August 28 and 29, 2005, the Board approved the selection of
Rydex Investments and the continuance of the Advisory Agreement for an
additional one-year period, based on its review of qualitative and quantitative
information provided by Rydex Investments. The Board's approval of the Advisory
Agreement was based on consideration and evaluation of a variety of specific
factors discussed at that meeting and at prior meetings, including:
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY RYDEX INVESTMENTS
The Board reviewed the scope of services to be provided by Rydex Investments
under the Advisory Agreement and noted that there would be no significant
differences between the scope of services required to be provided by Rydex
Investments for the past year and the scope of services required to be provided
by Rydex Investments for the upcoming year. In reviewing the scope of services
provided to the Funds by Rydex Investments, the Board reviewed and discussed
Rydex Investments' investment experience, noting that Rydex Investments and its
affiliates have committed significant resources over time to the support of the
Funds. The Board also considered Rydex Investments' compliance program and its
compliance record with respect to the Funds. In that regard, the Board noted
that Rydex Investments provides information regarding the portfolio management
and compliance to the Board on a periodic basis in connection with regularly
scheduled meetings of the Board. In addition to the above considerations, the
Board reviewed and considered Rydex Investments' investment processes and
strategies, and matters related to Rydex Investments' portfolio transaction
policies
126 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
OTHER INFORMATION (CONTINUED)
- --------------------------------------------------------------------------------
and procedures. In particular, the Board noted the substantial volume of
portfolio trades and shareholder transaction activity, in general, processed by
Rydex Investments due to the unlimited exchange policy of the majority of the
Funds. The Board further noted that the Funds had met their investment
objectives consistently since their relevant inception dates. Based on this
review, the Board concluded that the nature, extent and quality of services to
be provided by Rydex Investments to the Funds under the Advisory Agreement were
appropriate and continued to support the Board's original selection of Rydex
Investments as investment adviser to the Funds.
FUND EXPENSES AND PERFORMANCE OF THE FUNDS AND RYDEX INVESTMENTS
The Board reviewed statistical information prepared by Rydex Investments
regarding the expense ratio components, including actual advisory fees,
waivers/reimbursements, and gross and net total expenses of each Fund in
comparison with the same information for other funds registered under the 1940
Act determined by Rydex Investments to comprise each Fund's applicable peer
group. Because few funds seek to provide unlimited exchange privileges similar
to those of the Funds (other than the Core Equity Fund, Sector Rotation Fund,
Absolute Return Strategies Fund, and Hedged Equity Fund), each Fund's applicable
peer group is generally limited to the funds of two unaffiliated mutual fund
families. In addition, the Board reviewed statistical information prepared by
Rydex Investments relating to the performance of each Fund, as well as each
Fund's ability to successfully track its benchmark over time, and a comparison
of each Fund's performance to funds with similar investment objectives for the
same periods and to appropriate indices/benchmarks, in light of total return,
yield and market trends. The Board further noted that despite the unique nature
of the Funds, the peer fund information presented to the Board was meaningful
because the peer funds' investment objectives and strategies were closely
aligned with those of the Funds. The Board noted that most of the Funds either
outperformed their peer funds or performed in line with them over relevant
periods. The Board also noted that the investment advisory fees and overall
expenses for the Funds were generally lower than or in line with the investment
advisory fee rates and overall expenses of the peer funds. Based on this review,
the Board concluded that the investment advisory fees and expense levels and the
historical performance of the Funds, as managed by Rydex Investments, as
compared to the investment advisory fees and expense levels and performance of
the peer funds, were satisfactory for the purposes of approving the continuance
of the Advisory Agreement.
COSTS OF SERVICES PROVIDED TO THE FUNDS AND PROFITS REALIZED BY RYDEX
INVESTMENTS AND ITS AFFILIATES
The Board reviewed information about the profitability of the Funds to Rydex
Investments based on the advisory fees payable under the Advisory Agreement for
the last calendar year. Rydex Investments also presented the Board with material
discussing its methodology for determining the level of advisory fees assessable
to the Funds. The Board analyzed the Funds' expenses, including the investment
advisory fees paid to Rydex Investments. The Board also reviewed information
regarding direct revenue received by Rydex Investments and ancillary revenue
received by Rydex Investments and/or its affiliates in connection with the
services provided to the Funds by Rydex Investments (as discussed below). The
Board also discussed Rydex Investments' profit margin as reflected in Rydex
Investments' profitability analysis and reviewed information regarding economies
of scale (as discussed below). Based on this review, the Board concluded that
the profits to be realized by Rydex Investments and its affiliates under the
Advisory Agreement and from other relationships between the Funds and Rydex
Investments and/or its affiliates, if any, were within the range the Board
considered reasonable and appropriate.
ECONOMIES OF SCALE
In connection with its review of the Funds' profitability analysis, the Board
reviewed information regarding economies of scale or other efficiencies that may
result from increases in the Funds' asset levels. The Board noted that the
Advisory Agreement for the Funds did not provide for any breakpoints in the
investment advisory fee rates as a result of increases in the asset levels of
such Funds. The Board also noted that though Rydex Investments' assets under
management were significant, the amount is spread among more than 95 Funds.
Further limiting the realization of economies of scale, is the ability of
shareholders of a majority of the Funds to engage in unlimited trading. The
Board also reviewed Rydex Investments' historic profitability as investment
adviser to the Funds and determined that reductions in fee rates or additions of
breakpoints were not warranted at this juncture. Based on this review, the
Board, recognizing its responsibility to consider this issue at least annually,
concluded that there are limited economies of scale to share with the Funds'
shareholders.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 127
OTHER INFORMATION (CONCLUDED)
- --------------------------------------------------------------------------------
OTHER BENEFITS TO RYDEX INVESTMENTS AND/OR ITS AFFILIATES
The Board noted that Rydex Investments reports its use of soft dollars to the
Board on a quarterly basis, as well as any portfolio transactions on behalf of
the Funds placed through an affiliate of the Funds or Rydex Investments pursuant
to Rule 17e-1 under the 1940 Act. The Board concluded that any such ancillary
benefits would not be disadvantageous to the Funds' shareholders.
Based on the above analysis, the Board determined that the Advisory Agreement,
including the investment advisory fee rates thereunder, are fair and reasonable
in light of all relevant circumstances and concluded that it is in the best
interest of the Funds and their shareholders to continue the Advisory Agreement.
128 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
A Board of Trustees oversees all Rydex Investments, in which its members have no
stated term of service and continue to serve after election until resignation.
The Statement of Additional Information includes further information about Fund
Trustees and Officers, and can be obtained without charge by calling
1-800-820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEES AND OFFICERS
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- --------------------------- ----------------------------------------- --------------
CARL G. VERBONCOEUR* Rydex Series Funds - 2004 110
Trustee, President (1952) Rydex Variable Trust - 2004
Rydex Dynamic Funds - 2004
Rydex ETF Trust - 2004
Rydex Capital Partners SPhinX Fund - 2005
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)
-----------------------------------------
MICHAEL P. BYRUM* Rydex Series Funds - 2005 110
Trustee, Vice President and Rydex Variable Trust - 2005
Secretary (1970) Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Secretary of Rydex Series Funds,
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)
- --------------------------------------------------------------------------------
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 110
Trustee (1945) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of
Marketing/Co-Owner, Schield Management Company
-----------------------------------------
J. KENNETH DALTON Rydex Series Funds - 1995 110
Trustee (1941) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and
Investor, The Dalton Group
-----------------------------------------
JOHN O. DEMARET Rydex Series Funds - 1997 110
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
-----------------------------------------
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 129
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
- --------------------------- ----------------------------------------- --------------
WERNER E. KELLER Rydex Series Funds - 2005 110
Trustee (1940) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired (2001 to present);
Chairman, Centurion Capital Management (1991 to 2001)
-----------------------------------------
THOMAS F. LYDON, JR. Rydex Series Funds - 2005 110
Trustee (1960) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends
-----------------------------------------
PATRICK T. MCCARVILLE Rydex Series Funds - 1997 110
Trustee (1942) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive
Officer, Par Industries, Inc.
-----------------------------------------
ROGER SOMERS Rydex Series Funds - 1993 110
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
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)
JOANNA M. HAIGNEY* Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and Rydex
Chief Compliance Officer and Assistant Dynamic Funds (2004 to present); Assistant Secretary of Rydex Series Funds, Rydex
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)
* 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.
130 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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[LOGO] RYDEXINVESTMENTS
Essential for modern markets(TM)
9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800-820-0888
RBENF-SEMI-0905x0306
BANKING FUND
BASIC MATERIALS FUND
BIOTECHNOLOGY FUND
COMMODITIES FUND
CONSUMER PRODUCTS FUND
ELECTRONICS FUND
ENERGY FUND
SEPTEMBER 30, 2005
RYDEX SERIES FUNDS SECTOR FUNDS SEMI-ANNUAL REPORT
ENERGY SERVICES FUND
FINANCIAL SERVICES FUND
HEALTH CARE FUND
INTERNET FUND
LEISURE FUND
PRECIOUS METALS FUND
REAL ESTATE FUND
RETAILING FUND
TECHNOLOGY FUND
TELECOMMUNICATIONS FUND
TRANSPORTATION FUND
UTILITIES FUND
[GRAPHIC OMITTED]
[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
FUND PROFILES ............................................................. 8
SCHEDULES OF INVESTMENTS .................................................. 18
STATEMENTS OF ASSETS AND LIABILITIES ...................................... 48
STATEMENTS OF OPERATIONS .................................................. 52
STATEMENTS OF CHANGES IN NET ASSETS ....................................... 56
FINANCIAL HIGHLIGHTS ...................................................... 62
NOTES TO FINANCIAL STATEMENTS ............................................. 72
OTHER INFORMATION ......................................................... 81
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS ............................. 84
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 1
LETTER TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
The six-month period from April through September 2005 was a tumultuous one for
the economy and the financial markets. Investors, consumers and businesses alike
were rocked by the twin hurricanes of Katrina and Rita and the unprecedented
rise in energy prices. Energy prices-particularly for refined products such as
gas, diesel, jet fuel and heating oil-skyrocketed, causing consumer confidence
to plummet and raising the prospect of a pullback in consumer spending.
Typically, developments like these would have a downward effect on equity prices
and interest rates, but that wasn't the case as stocks rallied and interest
rates finished the period largely where they began.
Surprisingly, U.S. equity markets navigated the storms remarkably well. While
the old economy Dow Jones Industrial Average(R) Index rose only 1.76%, the
broader S&P 500(R) Index gained 5.02% and the tech-laden Nasdaq 100(R) Index
rose 8.04% on the back of a mini-rally in technology stocks.
Two factors appear to have driven prices higher. The first is that earnings
growth remained strong, increasing at a double-digit pace in both the second and
third quarters, and investors appeared to be looking beyond the immediate impact
of the hurricanes to the anticipated "kick" to economic growth as reconstruction
efforts got underway.
As one might expect, energy stocks led the market higher. In fact, energy prices
were well on their way up prior to the arrival of Katrina as the price of a
barrel of crude oil rose from $49.69 in late May to a high of $69.74 by the end
of August. The Gulf storms exacerbated this rise. That energy prices were
already well on their way up is attributable to the rapid growth in the
powerhouse economies of China and India. China, in particular, continues to
import commodities of all kinds at a voracious rate. In fact, if one takes a
closer look at stock prices during this period, the effect of rising energy
prices and the impact of the storms becomes apparent.
Clearly, energy stocks were the big winners as the S&P Energy Index rose nearly
19.56%. In fact, the meteoric rise in energy stocks is responsible for much of
the stock market's positive performance this year. Utility stocks also fared
well as the S&P Utility Index shot up 15.24% in anticipation of a substantial
rise in home heating costs. Technology stocks rallied as valuations were
perceived to be attractive. On the flip side, health care stocks, which tend to
be perceived as defensive in nature, rose nearly 5.00% as investors looked for a
consumer driven economic slowdown in the wake of the devastation left by Katrina
and Rita.
Despite the uncertainty, the Federal Reserve ("Fed") remained vigilant against
any signs of increasing inflation. The shock to the economy of the storms and
the loss of some of the nation's critical energy infrastructure led many to
predict a pause in the Fed's rate hikes. This was not to be, as the Fed
implemented four 25 basis point rate hikes during the period. Longer rates, on
the other hand, actually declined from April to September, with the yield on the
benchmark 10-Year Treasury Note falling 15 basis points to 4.33%. Despite this
decline, interest rates are clearly on the upswing. Long-term rates bottomed on
June 1, as the yield on the 10-Year Note reached 3.89%. Since the beginning of
June, the trend has been up, with the 10-Year Note peaking at 4.42% in early
August.
With all of the crosscurrents in the economy and the financial markets, stock
price behavior is likely to remain choppy and erratic. Investment strategies
that do not depend on highly directional markets will likely fare well as we
move through the remainder of 2005.
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 SEMI-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 March 31, 2005 and
ending September 30, 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. The example is useful in making comparisons because the U.S.
Securities and Exchange Commission (the "SEC") requires all mutual funds
to calculate expenses based on the 5% return. You can assess your fund's
costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Certain retirement plans such as IRA, 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 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.
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.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 3
ABOUT SHAREHOLDERS' FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2005 SEPTEMBER 30, 2005 PERIOD*
- ----------------------------------------------------------------------------------------------------
TABLE 1. BASED ON ACTUAL FUND RETURN
BANKING FUND
Investor Class 1.31% $1,000.00 $1,002.90 $ 6.58
Advisor Class 1.81% 1,000.00 1,002.10 9.08
A-Class 1.57% 1,000.00 1,004.10 7.89
C-Class 2.36% 1,000.00 1,000.00 11.83
BASIC MATERIALS FUND
Investor Class 1.31% 1,000.00 970.00 6.47
Advisor Class 1.82% 1,000.00 967.40 8.98
A-Class 1.58% 1,000.00 968.80 7.80
C-Class 2.36% 1,000.00 965.00 11.63
BIOTECHNOLOGY FUND
Investor Class 1.32% 1,000.00 1,230.20 7.38
Advisor Class 1.85% 1,000.00 1,227.70 10.33
A-Class 1.59% 1,000.00 1,228.60 8.88
C-Class 2.34% 1,000.00 1,224.70 13.05
COMMODITIES FUND
A-Class 1.56% 1,000.00 1,268.80 8.87
C-Class 2.30% 1,000.00 1,264.80 13.06
H-Class 1.54% 1,000.00 1,268.40 8.76
CONSUMER PRODUCTS FUND
Investor Class 1.29% 1,000.00 1,015.40 6.52
Advisor Class 1.80% 1,000.00 1,010.80 9.07
A-Class 1.58% 1,000.00 1,012.10 7.97
C-Class 2.31% 1,000.00 1,004.40 11.61
ELECTRONICS FUND
Investor Class 1.31% 1,000.00 1,127.10 6.99
Advisor Class 1.83% 1,000.00 1,123.60 9.74
A-Class 1.58% 1,000.00 1,125.50 8.42
C-Class 2.34% 1,000.00 1,121.20 12.44
ENERGY FUND
Investor Class 1.32% 1,000.00 1,264.60 7.49
Advisor Class 1.83% 1,000.00 1,261.30 10.37
A-Class 1.59% 1,000.00 1,262.60 9.02
C-Class 2.34% 1,000.00 1,258.00 13.25
ENERGY SERVICES FUND
Investor Class 1.33% 1,000.00 1,287.50 7.63
Advisor Class 1.83% 1,000.00 1,284.10 10.48
A-Class 1.62% 1,000.00 1,286.50 9.29
C-Class 2.35% 1,000.00 1,281.20 13.44
FINANCIAL SERVICES FUND
Investor Class 1.32% 1,000.00 1,062.30 6.82
Advisor Class 1.81% 1,000.00 1,059.30 9.34
A-Class 1.58% 1,000.00 1,061.10 8.16
C-Class 2.32% 1,000.00 1,056.30 11.96
4 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS' FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2005 SEPTEMBER 30, 2005 PERIOD*
- ----------------------------------------------------------------------------------------------------
HEALTH CARE FUND
Investor Class 1.31% $1,000.00 $1,089.70 $ 6.86
Advisor Class 1.83% 1,000.00 1,087.30 9.58
A-Class 1.59% 1,000.00 1,088.20 8.32
C-Class 2.33% 1,000.00 1,082.90 12.17
INTERNET FUND
Investor Class 1.29% 1,000.00 1,121.10 6.86
Advisor Class 1.81% 1,000.00 1,118.40 9.61
A-Class 1.58% 1,000.00 1,119.60 8.40
C-Class 2.32% 1,000.00 1,115.60 12.30
LEISURE FUND
Investor Class 1.30% 1,000.00 937.70 6.31
Advisor Class 1.79% 1,000.00 934.90 8.68
A-Class 1.56% 1,000.00 936.30 7.57
C-Class 2.30% 1,000.00 932.60 11.14
PRECIOUS METALS FUND
Investor Class 1.22% 1,000.00 1,161.60 6.61
Advisor Class 1.72% 1,000.00 1,158.90 9.31
A-Class 1.53% 1,000.00 1,160.40 8.29
C-Class 2.23% 1,000.00 1,155.70 12.05
REAL ESTATE FUND
A-Class 1.56% 1,000.00 1,153.40 8.42
C-Class 2.35% 1,000.00 1,149.10 12.66
H-Class 1.56% 1,000.00 1,153.70 8.42
RETAILING FUND
Investor Class 1.31% 1,000.00 978.90 6.50
Advisor Class 1.81% 1,000.00 976.60 8.97
A-Class 1.61% 1,000.00 976.70 7.98
C-Class 2.32% 1,000.00 974.60 11.48
TECHNOLOGY FUND
Investor Class 1.31% 1,000.00 1,097.60 6.89
Advisor Class 1.83% 1,000.00 1,094.40 9.61
A-Class 1.94% 1,000.00 1,094.30 10.19
C-Class 2.34% 1,000.00 1,090.90 12.27
TELECOMMUNICATIONS FUND
Investor Class 1.30% 1,000.00 1,133.30 6.95
Advisor Class 1.82% 1,000.00 1,132.60 9.73
A-Class 1.63% 1,000.00 1,132.40 8.71
C-Class 2.37% 1,000.00 1,128.20 12.64
TRANSPORTATION FUND
Investor Class 1.32% 1,000.00 1,013.40 6.66
Advisor Class 1.81% 1,000.00 1,010.30 9.12
A-Class 1.60% 1,000.00 1,012.20 8.07
C-Class 2.32% 1,000.00 1,008.30 11.68
UTILITIES FUND
Investor Class 1.32% 1,000.00 1,153.70 7.13
Advisor Class 1.83% 1,000.00 1,151.10 9.87
A-Class 1.61% 1,000.00 1,152.20 8.69
C-Class 2.33% 1,000.00 1,147.80 12.55
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 5
ABOUT SHAREHOLDERS' FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2005 SEPTEMBER 30, 2005 PERIOD*
- ----------------------------------------------------------------------------------------------------
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
BANKING FUND
Investor Class 1.31% $1,000.00 $1,018.35 $ 6.65
Advisor Class 1.81% 1,000.00 1,015.81 9.19
A-Class 1.57% 1,000.00 1,017.03 7.97
C-Class 2.36% 1,000.00 1,013.02 11.98
BASIC MATERIALS FUND
Investor Class 1.31% 1,000.00 1,018.35 6.65
Advisor Class 1.82% 1,000.00 1,015.76 9.24
A-Class 1.58% 1,000.00 1,016.98 8.02
C-Class 2.36% 1,000.00 1,013.02 11.98
BIOTECHNOLOGY FUND
Investor Class 1.32% 1,000.00 1,018.30 6.70
Advisor Class 1.85% 1,000.00 1,015.61 9.39
A-Class 1.59% 1,000.00 1,016.93 8.07
C-Class 2.34% 1,000.00 1,013.12 11.88
COMMODITIES FUND
A-Class 1.56% 1,000.00 1,017.08 7.92
C-Class 2.30% 1,000.00 1,013.32 11.68
H-Class 1.54% 1,000.00 1,017.18 7.82
CONSUMER PRODUCTS FUND
Investor Class 1.29% 1,000.00 1,018.45 6.55
Advisor Class 1.80% 1,000.00 1,015.86 9.14
A-Class 1.58% 1,000.00 1,016.98 8.02
C-Class 2.31% 1,000.00 1,013.27 11.73
ELECTRONICS FUND
Investor Class 1.31% 1,000.00 1,018.35 6.65
Advisor Class 1.83% 1,000.00 1,015.71 9.29
A-Class 1.58% 1,000.00 1,016.98 8.02
C-Class 2.34% 1,000.00 1,013.12 11.88
ENERGY FUND
Investor Class 1.32% 1,000.00 1,018.30 6.70
Advisor Class 1.83% 1,000.00 1,015.71 9.29
A-Class 1.59% 1,000.00 1,016.93 8.07
C-Class 2.34% 1,000.00 1,013.12 11.88
ENERGY SERVICES FUND
Investor Class 1.33% 1,000.00 1,018.25 6.75
Advisor Class 1.83% 1,000.00 1,015.71 9.29
A-Class 1.62% 1,000.00 1,016.78 8.22
C-Class 2.35% 1,000.00 1,013.07 11.93
FINANCIAL SERVICES FUND
Investor Class 1.32% 1,000.00 1,018.30 6.70
Advisor Class 1.81% 1,000.00 1,015.81 9.19
A-Class 1.58% 1,000.00 1,016.98 8.02
C-Class 2.32% 1,000.00 1,013.22 11.78
HEALTH CARE FUND
Investor Class 1.31% 1,000.00 1,018.35 6.65
Advisor Class 1.83% 1,000.00 1,015.71 9.29
A-Class 1.59% 1,000.00 1,016.93 8.07
C-Class 2.33% 1,000.00 1,013.17 11.83
6 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABOUT SHAREHOLDERS' FUND EXPENSES (concluded)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2005 SEPTEMBER 30, 2005 PERIOD*
- ----------------------------------------------------------------------------------------------------
INTERNET FUND
Investor Class 1.29% $1,000.00 $1,018.45 $ 6.55
Advisor Class 1.81% 1,000.00 1,015.81 9.19
A-Class 1.58% 1,000.00 1,016.98 8.02
C-Class 2.32% 1,000.00 1,013.22 11.78
LEISURE FUND
Investor Class 1.30% 1,000.00 1,018.40 6.60
Advisor Class 1.79% 1,000.00 1,015.91 9.09
A-Class 1.56% 1,000.00 1,017.08 7.92
C-Class 2.30% 1,000.00 1,013.32 11.68
PRECIOUS METALS FUND
Investor Class 1.22% 1,000.00 1,018.81 6.19
Advisor Class 1.72% 1,000.00 1,016.27 8.73
A-Class 1.53% 1,000.00 1,017.23 7.77
C-Class 2.23% 1,000.00 1,013.68 11.32
REAL ESTATE FUND
A-Class 1.56% 1,000.00 1,017.08 7.92
C-Class 2.35% 1,000.00 1,013.07 11.93
H-Class 1.56% 1,000.00 1,017.08 7.92
RETAILING FUND
Investor Class 1.31% 1,000.00 1,018.35 6.65
Advisor Class 1.81% 1,000.00 1,015.81 9.19
A-Class 1.61% 1,000.00 1,016.83 8.17
C-Class 2.32% 1,000.00 1,013.22 11.78
TECHNOLOGY FUND
Investor Class 1.31% 1,000.00 1,018.35 6.65
Advisor Class 1.83% 1,000.00 1,015.71 9.29
A-Class 1.94% 1,000.00 1,015.15 9.85
C-Class 2.34% 1,000.00 1,013.12 11.88
TELECOMMUNICATIONS FUND
Investor Class 1.30% 1,000.00 1,018.40 6.60
Advisor Class 1.82% 1,000.00 1,015.76 9.24
A-Class 1.63% 1,000.00 1,016.73 8.27
C-Class 2.37% 1,000.00 1,012.97 12.03
TRANSPORTATION FUND
Investor Class 1.32% 1,000.00 1,018.30 6.70
Advisor Class 1.81% 1,000.00 1,015.81 9.19
A-Class 1.60% 1,000.00 1,016.88 8.12
C-Class 2.32% 1,000.00 1,013.22 11.78
UTILITIES FUND
Investor Class 1.32% 1,000.00 1,018.30 6.70
Advisor Class 1.83% 1,000.00 1,015.71 9.29
A-Class 1.61% 1,000.00 1,016.13 8.17
C-Class 2.33% 1,000.00 1,013.17 11.83
* Expenses are equal to the fund's annualized expense ratio, multiplied by
the average account value over the period, multiplied by the number of
days in the most recent fiscal half-year, then divided by 365.
+ ANNUALIZED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 7
FUND PROFILES
- --------------------------------------------------------------------------------
BANKING FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the banking sector, including commercial banks (and their holding
companies) and saving-and-loan institutions.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
BANKING FUND
COMMERCIAL BANKS 68%
THRIFTS & MORTGAGE FINANCE 28%
OTHER 4%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 1, 1998
Advisor Class April 1, 1998
A-Class September 1, 2004
C-Class March 30, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Wells Fargo & Co. 5.0%
Wachovia Corp. 4.5%
J.P. Morgan Chase & Co. 4.4%
Bank of America Corp. 4.1%
U.S. Bancorp 3.9%
Washington Mutual, Inc. 3.3%
SunTrust Banks, Inc. 3.0%
National City Corp. 2.8%
Golden West Financial Corp. 2.6%
KeyCorp. 2.5%
- --------------------------------------------------------------------------------
Top Ten Total 36.1%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
BASIC MATERIALS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the
mining, manufacture or sale of basic materials, such as lumber, steel, iron,
aluminum, concrete, chemicals and other basic building and manufacturing
materials.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
BASIC MATERIALS FUND
CHEMICALS 44%
METALS & MINING 26%
CONTAINERS & PACKAGING 12%
PAPER & FOREST PRODUCTS 11%
CONSTRUCTION MATERIALS 7%
"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. 3.7%
El Du Pont de Nemours & Co. 3.3%
Phelps Dodge Corp. 3.3%
Georgia-Pacific Corp. 3.2%
Praxair, Inc. 2.9%
Freeport-McMoRan Copper & Gold, Inc. -- Class B 2.4%
Monsanto Co. 2.4%
Air Products & Chemicals, Inc. 2.3%
Rohm & Haas Co. 2.1%
Nucor Corp. 2.0%
- --------------------------------------------------------------------------------
Top Ten Total 27.6%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
8 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (continued)
- --------------------------------------------------------------------------------
BIOTECHNOLOGY FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the biotechnology industry, including companies involved in research
and development, genetic or biological engineering and in the design,
manufacture or sale of related biotechnology products or services.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
BIOTECHNOLOGY FUND
BIOTECHNOLOGY 100%
"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. 13.3%
Genentech, Inc. 11.4%
Gilead Sciences, Inc. 6.4%
Genzyme Corp. 5.7%
Medimmune, Inc. 4.7%
Chiron Corp. 3.6%
Biogen Idec, Inc. 3.5%
Applera Corp. - Applied Biosystems Group 3.4%
Techne Corp. 2.9%
Invitrogen Corp. 2.9%
- --------------------------------------------------------------------------------
Top Ten Total 57.8%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
COMMODITIES FUND
OBJECTIVE: Seeks long-term capital appreciation through an investment in
commodity-linked instruments and seeks 100% (but at all times at least 80%)
exposure to the performance of the commodities market.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
COMMODITIES FUND
Equity Index Swap Agreements 85.7%
Futures Contracts 10.0%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
A-Class May 25, 2005
C-Class May 25, 2005
H-Class May 25, 2005
The Fund invests principally in derivative instruments; such as equity index
swap agreements, futures contracts, and options on index futures.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 9
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.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
CONSUMER PRODUCTS FUND
FOOD PRODUCTS 34%
BEVERAGES 20%
HOUSEHOLD PRODUCTS 15%
FOOD & STAPLES RETAILING 14%
TOBACCO 10%
PERSONAL PRODUCTS 7%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class July 6, 1998
Advisor Class August 17, 1998
A-Class September 1, 2004
C-Class July 24, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Procter & Gamble Co. 7.2%
PepsiCo, Inc. 5.4%
Altria Group, Inc. 5.1%
Coca-Cola Co. 3.9%
Archer-Daniels-Midland Co. 3.2%
General Mills, Inc. 3.0%
Sysco Corp. 2.9%
WM Wrigley Jr Co. 2.8%
Gillette Co. 2.8%
Kroger Co. 2.8%
- --------------------------------------------------------------------------------
Top Ten Total 39.1%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
ELECTRONICS FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the electronics sector, including semiconductor manufacturers and
distributors, and makers and vendors of other electronic components and devices.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
ELECTRONICS FUND
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 100%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 1, 1998
Advisor Class April 2, 1998
A-Class September 1, 2004
C-Class March 26, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Intel Corp. 10.5%
Texas Instruments, Inc. 6.9%
Applied Materials, Inc. 5.8%
KLA-Tencor Corp. 3.6%
Broadcom Corp. -- Class A 3.4%
Advanced Micro Devices, Inc. 3.1%
Maxim Integrated Products, Inc. 3.0%
Novellus Systems, Inc. 3.0%
Linear Technology Corp. 2.8%
National Semiconductor Corp. 2.8%
- --------------------------------------------------------------------------------
Top Ten Total 44.9%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
10 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
ENERGY FUND
OIL, GAS & CONSUMABLE FUELS 72%
ENERGY EQUIPMENT & SERVICES 28%
"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. 6.4%
BP PLC -- SP ADR 6.0%
Royal Dutch Shell PLC -- SP ADR 4.7%
Total SA -- SP ADR 4.2%
ConocoPhillips 3.6%
Chevron Corp. 2.9%
Schlumberger Ltd. 2.7%
Occidental Petroleum Corp. 2.6%
Repsol YPF SA -- SP ADR 2.3%
Halliburton Co. 2.1%
- --------------------------------------------------------------------------------
Top Ten Total 37.5%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
ENERGY SERVICES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the energy services field, including those that provide services and
equipment in the areas of oil, coal and gas exploration and production.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
ENERGY SERVICES FUND
ENERGY EQUIPMENT & SERVICES 100%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 1, 1998
Advisor Class April 2, 1998
A-Class September 1, 2004
C-Class March 30, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Schlumberger Ltd. 8.8%
Halliburton Co. 8.0%
Baker Hughes, Inc. 5.8%
Transocean, Inc. 5.7%
Nabors Industries Ltd. 4.6%
National-Oilwell Varco, Inc. 4.4%
Noble Corp. 3.5%
Patterson-UTI Energy, Inc. 3.5%
Diamond Offshore Drilling, Inc. 3.5%
BJ Services Co. 3.4%
- --------------------------------------------------------------------------------
Top Ten Total 51.2%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 11
FUND PROFILES (continued)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the financial services sector.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
FINANCIAL SERVICES FUND
INSURANCE 22%
COMMERCIAL BANKS 22%
REAL ESTATE 18%
THRIFTS & MORTGAGE FINANCE 11%
DIVERSIFIED FINANCIAL SERVICES 11%
CONSUMER FINANCE 9%
CAPITAL MARKETS 7%
"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. 3.2%
J.P. Morgan Chase & Co. 2.5%
American Express Co. 2.3%
Wachovia Corp. 2.2%
St. Paul Travelers Cos., Inc. 1.9%
Washington Mutual, Inc. 1.8%
Hartford Financial Services Group, Inc. 1.7%
Chubb Corp. 1.6%
Allstate Corp. 1.6%
National City Corp. 1.6%
- --------------------------------------------------------------------------------
Top Ten Total 20.4%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
HEALTH CARE FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that are
involved in the health care industry.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
HEALTH CARE FUND
PHARMACEUTICALS 32%
HEALTH CARE PROVIDERS & SERVICES 29%
HEALTH CARE EQUIPMENT & SUPPLIES 23%
BIOTECHNOLOGY 16%
"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)
- --------------------------------------------------------------------------------
Johnson & Johnson, Inc. 7.0%
Pfizer, Inc. 6.8%
Amgen, Inc. 5.0%
Genentech, Inc. 4.5%
UnitedHealth Group, Inc. 4.1%
Abbott Laboratories 3.6%
WellPoint, Inc. 3.2%
Schering-Plough Corp. 2.6%
Aetna, Inc. 2.5%
Baxter International, Inc. 2.4%
- --------------------------------------------------------------------------------
Top Ten Total 41.7%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
12 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
INTERNET FUND
COMMUNICATIONS EQUIPMENT 27%
INTERNET SOFTWARE & SERVICES 23%
SOFTWARE 18%
INTERNET & CATALOG RETAIL 13%
MEDIA 6%
OTHER 13%
"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%
Qualcomm, Inc. 6.7%
Google, Inc. -- Class A 6.6%
Time Warner, Inc. 6.4%
Yahoo!, Inc. 6.1%
eBay, Inc. 5.5%
Broadcom Corp. -- Class A 3.9%
Juniper Networks, Inc. 3.2%
Intuit, Inc. 3.1%
McAfee, Inc. 2.9%
- --------------------------------------------------------------------------------
Top Ten Total 53.4%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
LEISURE FUND
OBJECTIVE: Seeks capital appreciation by investing in companies in the leisure
and entertainment businesses.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
LEISURE FUND
HOTELS, RESTAURANTS & LEISURE 63%
MEDIA 25%
LEISURE EQUIPMENT & PRODUCTS 12%
"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)
- --------------------------------------------------------------------------------
The Walt Disney Co. 5.5%
Time Warner, Inc. 5.2%
News Corp. -- Class A 4.8%
Carnival Corp. 3.9%
Viacom, Inc. -- Class B 3.6%
McDonald's Corp. 3.6%
MGM Mirage, Inc. 3.5%
Yum! Brands, Inc. 3.4%
Marriott International. Inc. -- Class A 3.4%
Starbucks Corp. 3.3%
- --------------------------------------------------------------------------------
Top Ten Total 40.2%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 13
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.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
PRECIOUS METALS FUND
METALS & MINING 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. 13.7%
Freeport-McMoRan Copper & Gold, Inc. -- Class B 9.8%
Barrick Gold Corp. 7.5%
Goldcorp, Inc. 6.1%
Placer Dome, Inc. 5.7%
AngloGold Ashanti Ltd. -- SP ADR 5.2%
Gold Fields Ltd. -- SP ADR 4.2%
Glamis Gold Ltd. 3.7%
Harmony Gold Mining Co. Ltd. -- SP ADR 3.5%
Coeur d'Alene Mines Corp. 3.5%
- --------------------------------------------------------------------------------
Top Ten Total 62.9%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
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").
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS 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)
- --------------------------------------------------------------------------------
Simon Property Group, Inc. 2.5%
Equity Office Properties Trust 2.2%
Equity Residential 2.1%
General Growth Properties, Inc. 2.1%
Vornado Realty Trust 2.1%
ProLogis 1.9%
Public Storage, Inc. 1.8%
KIMCO Realty Corp. 1.7%
Archstone-Smith Trust 1.7%
Boston Properties, Inc. 1.7%
- --------------------------------------------------------------------------------
Top Ten Total 19.8%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
14 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
RETAILING FUND
SPECIALTY RETAIL 56%
MULTILINE RETAIL 19%
FOOD & STAPLES RETAILING 14%
INTERNET & CATALOG RETAIL 7%
OTHER 4%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 1, 1998
Advisor Class April 21, 1998
A-Class September 1, 2004
C-Class May 9, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 7.0%
Home Depot, Inc. 5.2%
eBay, Inc. 3.8%
Federated Department Stores, Inc. 3.7%
Nordstrom, Inc. 3.5%
Lowe's Cos., Inc. 3.3%
Target Corp. 3.0%
Staples, Inc. 2.9%
Costco Wholesale Corp. 2.5%
Walgreen Co. 2.3%
- --------------------------------------------------------------------------------
Top Ten Total 37.2%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
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.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
TECHNOLOGY FUND
SOFTWARE 24%
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 23%
COMPUTERS & PERIPHERALS 19%
COMMUNICATIONS EQUIPMENT 16%
IT SERVICES 10%
INTERNET SOFTWARE & SERVICES 6%
OTHER 2%
"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. 5.8%
Intel Corp. 5.1%
Dell, Inc. 4.1%
Cisco Systems, Inc. 4.0%
International Business Machines Corp. 3.7%
Hewlett-Packard Co. 2.8%
Yahoo!, Inc. 2.6%
Applied Materials, Inc. 2.6%
Texas Instruments, Inc. 2.6%
Qualcomm, Inc. 2.4%
- --------------------------------------------------------------------------------
Top Ten Total 35.7%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 15
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.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
TELECOMMUNICATIONS FUND
COMMUNICATION EQUIPMENT 55%
DIVERSIFIED TELECOMMUNICATION SERVICES 23%
WIRELESS TELECOMMUNICATION SERVICES 22%
"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. 6.9%
Vodafone Group PLC -- SP ADR 6.7%
Qualcomm, Inc. 5.1%
Nokia OYJ -- SP ADR 4.7%
Motorola, Inc. 4.5%
Sprint Nextel Corp. 3.8%
Telefonaktiebolaget LM Ericsson -- SP ADR 3.8%
Alltel Corp. 3.7%
Verizon Communications, Inc. 3.6%
SBC Communications, Inc. 3.3%
- --------------------------------------------------------------------------------
Top Ten Total 46.1%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
TRANSPORTATION FUND
OBJECTIVE: Seeks capital appreciation by investing in companies engaged in
providing transportation services or companies engaged in the design,
manufacture, distribution or sale of transportation equipment.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
TRANSPORTATION FUND
ROAD & RAIL 50%
AIR FREIGHT & LOGISTICS 31%
AIRLINES 14%
OTHER 5%
"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 9.7%
Burlington Northern Santa Fe Corp. 8.8%
Norfolk Southern Corp. 8.4%
FedEx Corp. 6.6%
Union Pacific Corp. 6.1%
C.H. Robinson Worldwide, Inc. 5.1%
CSX Corp. 4.5%
CNF, Inc. 4.2%
Southwest Airlines Co. 3.6%
Landstar System, Inc. 3.4%
- --------------------------------------------------------------------------------
Top Ten Total 60.4%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
16 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES (concluded)
- --------------------------------------------------------------------------------
UTILITIES FUND
OBJECTIVE: Seeks capital appreciation by investing in companies that operate
public utilities.
INDUSTRY DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
UTILITIES FUND
ELECTRIC UTILITIES 42%
MULTI-UTILITIES 39%
GAS UTILITIES 17%
OTHER 2%
"Industry Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------------------------------------
Investor Class April 3, 2000
Advisor Class April 3, 2000
A-Class September 1, 2004
C-Class April 27, 2001
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
TXU Corp. 3.3%
Exelon Corp. 3.2%
American Electric Power Co., Inc. 3.0%
Southern Co. 3.0%
Duke Energy Corp. 3.0%
Dominion Resources, Inc./VA 2.9%
Edison International 2.5%
FirstEnergy Corp. 2.4%
Entergy Corp. 2.3%
FPL Group, Inc. 2.3%
- --------------------------------------------------------------------------------
Top Ten Total 27.9%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 17
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
BANKING FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.9%
Wells Fargo & Co. 11,917 $ 697,979
Wachovia Corp.+ 13,188 627,617
J.P. Morgan Chase & Co. 18,012 611,147
Bank of America Corp.+ 13,581 571,760
U.S. Bancorp+ 19,344 543,180
Washington Mutual, Inc.+ 11,770 461,619
SunTrust Banks, Inc. 6,044 419,756
National City Corp. 11,764 393,388
Golden West Financial Corp.+ 6,225 369,703
KeyCorp+ 10,725 345,881
North Fork Bancorporation, Inc. 12,785 326,017
Marshall & Ilsley Corp. 7,400 321,974
AmSouth Bancorp+ 12,100 305,646
Sovereign Bancorp, Inc.+ 13,360 294,454
Zions Bancorporation+ 3,985 283,772
Radian Group, Inc.+ 5,244 278,456
Hibernia Corp. -- Class A 8,640 259,546
First Bancorp Puerto Rico 15,250 258,030
PMI Group, Inc. 6,440 256,763
New York Community Bancorp,
Inc.+ 15,160 248,624
Associated Banc-Corp. 7,898 240,731
Astoria Financial Corp. 8,848 233,764
Bank of Hawaii Corp. 4,710 231,826
IndyMac Bancorp, Inc.+ 5,720 226,398
SVB Financial Group*+ 4,648 226,079
M&T Bank Corp. 1,988 210,151
Westcorp 3,564 209,920
Fannie Mae 4,609 206,575
Fremont General Corp. 9,440 206,075
Central Pacific Financial Corp. Co. 5,760 202,637
Downey Financial Corp.+ 3,322 202,310
Whitney Holding Corp. 7,440 201,178
Freddie Mac 3,334 188,238
Gold Banc Corp., Inc. 12,590 187,591
Anchor BanCorp Wisconsin, Inc. 6,291 185,459
FirstFed Financial Corp.*+ 3,360 180,802
Sterling Financial Corp./WA 7,641 172,305
Comerica, Inc. 2,921 172,047
Banco Bradesco SA -- SP ADR 3,395 166,083
Kookmin Bank -- SP ADR 2,760 163,530
Uniao de Bancos Brasileiros SA 3,064 161,166
IBERIABANK Corp. 3,000 159,450
Banco Itau Holding Financeira
SA -- SP ADR+ 1,260 149,512
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Taylor Capital Group, Inc. 3,720 $ 140,690
Barclays PLC -- SP ADR 3,419 139,427
Corus Bankshares, Inc. 2,364 129,618
Franklin Bank Corp./Houston TX* 7,750 125,162
BB&T Corp.+ 3,059 119,454
Center Financial Corp. 4,920 115,620
Fifth Third Bancorp+ 3,092 113,569
ICICI Bank Ltd. -- SP ADR 3,910 110,457
First Horizon National Corp. 2,830 102,870
Countrywide Financial Corp.+ 2,861 94,356
PNC Financial Services Group, Inc. 1,586 92,020
First Republic Bank 2,290 80,677
Texas Capital Bancshares, Inc.* 3,290 69,583
Regions Financial Corp.+ 2,191 68,184
UnionBanCal Corp. 576 40,159
Synovus Financial Corp. 1,020 28,274
International Bancshares Corp. 720 21,384
Hudson City Bancorp, Inc. 1,490 17,731
Popular, Inc.+ 630 15,259
W Holding Co., Inc. 1,505 14,388
Commerce Bancorp, Inc./NJ+ 430 13,197
Independent Bank Corp./MI 1 17
------------
TOTAL COMMON STOCKS
(Cost $13,121,651) 14,011,235
------------
FACE
AMOUNT
----------
REPURCHASE AGREEMENT 0.4%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 58,192 58,192
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $58,192) 58,192
------------
SECURITIES LENDING COLLATERAL 10.7%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 1,499,704 1,499,704
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,499,704) 1,499,704
------------
TOTAL INVESTMENTS 111.0%
(Cost $14,679,547) $ 15,569,131
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (11.0)% $ (1,539,994)
============
NET ASSETS - 100.0% $ 14,029,137
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
18 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.3%
Dow Chemical Co. 32,002 $ 1,333,523
EI Du Pont de Nemours & Co. 30,104 1,179,174
Phelps Dodge Corp. 9,023 1,172,358
Georgia-Pacific Corp. 34,080 1,160,765
Praxair, Inc.+ 21,918 1,050,530
Freeport-McMoRan Copper & Gold,
Inc. -- Class B+ 17,856 867,623
Monsanto Co.+ 13,744 862,436
Air Products & Chemicals, Inc. 14,870 819,932
Rohm & Haas Co. 18,584 764,360
Nucor Corp.+ 12,383 730,473
Hercules, Inc.* 59,630 728,679
Southern Peru Copper Corp. 11,985 670,681
Lyondell Chemical Co.+ 23,221 664,585
Packaging Corporation of America 33,825 656,543
Eastman Chemical Co. 13,521 635,081
Lubrizol Corp. 14,570 631,318
Newmont Mining Corp.+ 13,379 631,087
PPG Industries, Inc.+ 10,341 612,084
Weyerhaeuser Co.+ 8,856 608,850
International Paper Co.+ 20,388 607,562
Vulcan Materials Co.+ 7,454 553,161
Martin Marietta Materials, Inc. 6,725 527,644
Temple-Inland, Inc. 12,615 515,323
Sigma-Aldrich Corp. 8,035 514,722
Pactiv Corp.* 28,600 501,072
Airgas, Inc. 16,500 488,895
Deltic Timber Corp. 10,108 465,473
Florida Rock Industries, Inc.+ 7,200 461,448
Allegheny Technologies, Inc.+ 14,680 454,786
Sealed Air Corp.*+ 9,105 432,123
Agrium, Inc.+ 19,425 426,767
United States Steel Corp.+ 10,042 425,279
Crown Holdings, Inc.* 25,777 410,885
Alcoa, Inc. 16,539 403,882
FMC Corp.* 7,044 403,058
Mosaic Co.* 24,485 392,250
Headwaters, Inc.*+ 10,285 384,659
Olin Corp.+ 19,865 377,236
Commercial Metals Co.+ 10,715 361,524
Cleveland-Cliffs, Inc.+ 4,100 357,151
Quanex Corp. 5,230 346,331
Lafarge North America, Inc. 5,075 343,121
Huntsman Corp.* 16,560 323,748
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Ashland, Inc. 5,770 $ 318,735
Reliance Steel & Aluminum Co.+ 5,835 308,847
Albemarle Corp. 7,973 300,582
Carpenter Technology Corp. 5,095 298,618
POSCO -- SP ADR+ 5,170 292,415
Smurfit-Stone Container Corp.* 27,695 286,920
Owens-Illinois, Inc.* 13,598 280,391
Potlatch Corp.+ 5,210 271,545
AptarGroup, Inc. 5,426 270,269
Longview Fibre Co. 13,705 267,110
Ecolab, Inc. 8,286 264,572
Material Sciences Corp.* 17,478 263,393
Aleris International, Inc.* 8,765 240,599
Buckeye Technologies, Inc.* 28,016 227,490
Steel Dynamics, Inc.+ 6,440 218,702
A.M. Castle & Co.* 12,131 212,293
Ferro Corp. 11,535 211,321
Goldcorp, Inc.+ 10,385 208,115
Century Aluminum Co.*+ 9,065 203,781
RTI International Metals, Inc.* 5,047 198,599
Ball Corp. 5,374 197,441
H.B. Fuller Co. 6,170 191,764
Chaparral Steel Co.* 7,435 187,511
Chemtura Corp. 14,748 183,170
Bowater, Inc.+ 6,300 178,101
Texas Industries, Inc. 3,225 175,440
Rock-Tenn Co. -- Class A 11,115 167,837
Terra Industries, Inc.* 24,865 165,352
PolyOne Corp.* 26,820 162,529
Chesapeake Corp. 8,050 148,040
Methanex Corp.+ 9,865 146,693
Aracruz Celulose SA 3,510 142,436
MacDermid, Inc. 5,260 138,128
Cambrex Corp. 7,250 137,460
International Flavors & Fragrances,
Inc. 3,720 132,581
Glatfelter 8,970 126,387
BASF AG -- SP ADR 1,660 125,164
Scotts Miracle-Gro Co. -- Class A 1,310 115,188
Nalco Holding Co.* 6,796 114,649
Myers Industries, Inc. 9,660 112,442
Caraustar Industries, Inc.* 10,130 111,227
Schweitzer-Mauduit International,
Inc. 4,975 111,042
Wellman, Inc. 15,455 97,830
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 19
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
BASIC MATERIALS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Valhi, Inc. 5,075 $ 91,249
Companhia Vale do Rio Doce -- SP
ADR 1,980 86,843
Pioneer Cos., Inc.* 3,425 82,406
Georgia Gulf Corp. 3,301 79,488
Mittal Steel NV Co. -- Class A 2,760 79,488
Omnova Solutions, Inc.* 17,348 75,811
Votorantim Celulose e Papel SA -- SP
ADR 5,570 74,638
Penford Corp. 5,278 70,567
Steel Technologies, Inc. 2,640 68,455
IPSCO, Inc. 940 67,201
Cemex SA de CV -- SP ADR 1,162 60,773
Potash Corp. of Saskatchewan+ 620 57,858
Wausau Paper Corp. 4,615 57,734
Pope & Talbot, Inc. 3,925 40,074
------------
TOTAL COMMON STOCKS
(Cost $31,308,194) 35,763,476
------------
FACE
AMOUNT
----------
REPURCHASE AGREEMENT 0.2%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 75,050 75,050
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $75,050) 75,050
------------
SECURITIES LENDING COLLATERAL 11.2%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 4,044,558 4,044,558
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,044,558) 4,044,558
------------
TOTAL INVESTMENTS 110.7%
(Cost $35,427,802) $ 39,883,084
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (10.7)% $ (3,841,792)
============
NET ASSETS - 100.0% $ 36,041,292
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
20 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
BIOTECHNOLOGY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Amgen, Inc.*+ 273,297 $ 21,773,572
Genentech, Inc.* 221,467 18,649,736
Gilead Sciences, Inc.* 215,106 10,488,569
Genzyme Corp.* 129,475 9,275,589
Medimmune, Inc.* 227,950 7,670,517
Chiron Corp.* 134,626 5,872,386
Biogen Idec, Inc.* 144,848 5,718,599
Applera Corp. - Applied Biosystems
Group 236,493 5,496,097
Techne Corp.*+ 84,069 4,790,252
Invitrogen Corp.*+ 62,823 4,726,174
Cephalon, Inc.*+ 95,782 4,446,200
Affymetrix, Inc.*+ 94,657 4,375,993
Celgene Corp.*+ 80,201 4,356,518
United Therapeutics Corp.*+ 61,990 4,326,902
Cubist Pharmaceuticals, Inc.*+ 173,587 3,739,064
Angiotech Pharmaceuticals, Inc.*+ 253,909 3,559,804
Crucell -- SP ADR* 106,548 2,856,552
Alkermes, Inc.*+ 170,011 2,856,185
Medarex, Inc.*+ 298,000 2,836,960
Eyetech Pharmaceuticals, Inc.*+ 145,711 2,616,970
Pharmion Corp.*+ 112,826 2,460,735
QLT, Inc.* 310,704 2,383,100
Myriad Genetics, Inc.* 101,874 2,226,966
Protein Design Labs, Inc.* 70,249 1,966,972
Encysive Pharmaceuticals, Inc.* 157,300 1,852,994
Neurocrine Biosciences, Inc.*+ 35,958 1,768,774
Millennium Pharmaceuticals, Inc.*+ 165,562 1,544,693
Amylin Pharmaceuticals, Inc.* 43,932 1,528,394
Charles River Laboratories
International, Inc.*+ 34,104 1,487,616
ImClone Systems, Inc.* 45,745 1,438,680
CV Therapeutics, Inc.*+ 51,901 1,388,352
Vertex Pharmaceuticals, Inc.*+ 55,348 1,237,028
Telik, Inc.*+ 66,850 1,093,666
Human Genome Sciences, Inc.*+ 77,210 1,049,284
ICOS Corp.* 31,645 874,035
OSI Pharmaceuticals, Inc.* 23,990 701,468
Martek Biosciences Corp.*+ 16,178 568,333
Momenta Pharmaceuticals, Inc.*+ 17,600 479,600
Rigel Pharmaceuticals, Inc.* 18,000 427,860
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Geron Corp.*+ 39,700 $ 407,719
Illumina, Inc.* 31,173 399,326
StemCells, Inc.*+ 70,100 386,952
Keryx Biopharmaceuticals, Inc.*+ 24,300 382,968
Nektar Therapeutics*+ 22,200 376,290
Abgenix, Inc.* 27,900 353,772
Senomyx, Inc.* 20,500 349,115
Zymogenetics, Inc.* 20,450 337,425
Gen-Probe, Inc.* 6,758 334,183
Genitope Corp.*+ 47,700 331,038
Aastrom Biosciences, Inc.*+ 130,800 307,380
ViaCell, Inc.* 49,300 285,940
Northfield Laboratories, Inc.*+ 19,250 248,325
ID Biomedical Corp.* 7,756 233,068
Cell Therapeutics, Inc.*+ 72,075 206,135
Alexion Pharmaceuticals, Inc.* 6,218 172,114
Serologicals Corp.*+ 6,649 150,001
Nabi Biopharmeceuticals* 10,506 137,629
Albany Molecular Research, Inc.* 10,600 129,108
Dov Pharmaceutical, Inc.* 13 221
-------------
TOTAL COMMON STOCKS
(Cost $106,527,368) 162,439,898
-------------
FACE
AMOUNT
----------
REPURCHASE AGREEMENT 0.5%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 847,671 847,671
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $847,671) 847,671
-------------
SECURITIES LENDING COLLATERAL 15.1%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 24,705,453 24,705,453
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $24,705,453) 24,705,453
-------------
TOTAL INVESTMENTS 115.2%
(Cost $132,080,492) $ 187,993,022
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (15.2)% $ (24,874,322)
=============
NET ASSETS - 100.0% $ 163,118,700
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 21
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
COMMODITIES FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 83.8%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $11,713,777 $11,713,777
3.24% due 10/03/05 8,921,448 8,921,448
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $20,635,225) 20,635,225
-----------
TOTAL INVESTMENTS 83.8%
(Cost $20,635,225) $20,635,225
===========
OTHER ASSETS IN EXCESS OF
LIABILITIES - 16.2% $ 3,976,759
-----------
NET ASSETS - 100.0% $24,611,984
===========
- --------------------------------------------------------------------------------
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
October 2005 Goldman Sachs Commodity
Index Futures Contracts
(Aggregate Market
Value of Contracts $2,467,500) 21 $ 54,622
===========
UNITS
-----------
EQUITY INDEX SWAP AGREEMENT
November 2005 Goldman Sachs
Commodity Index Swap,
Maturing 11/28/05*
(Notional Market Value
$21,103,844) 2,821 $ 821,551
===========
* PRICE RETURN BASED ON GOLDMAN SACHS COMMODITY INDEX+/- FINANCING AT A
VARIABLE RATE.
22 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.2%
Procter & Gamble Co.+ 29,347 $ 1,744,973
PepsiCo, Inc. 23,137 1,312,099
Altria Group, Inc. 16,854 1,242,308
Coca-Cola Co. 22,010 950,612
Archer-Daniels-Midland Co. 31,620 779,749
General Mills, Inc. 15,280 736,496
Sysco Corp. 22,128 694,155
WM Wrigley Jr Co. 9,530 685,016
Gillette Co. 11,696 680,707
Kroger Co.* 33,007 679,614
Reynolds American, Inc.+ 7,920 657,518
Campbell Soup Co. 21,071 626,862
Whole Foods Market, Inc.+ 4,450 598,302
Kimberly-Clark Corp. 9,960 592,919
Kraft Foods, Inc. -- Class A 18,725 572,798
Dean Foods Co.* 14,220 552,589
Coca-Cola Enterprises, Inc. 27,090 528,255
Hershey Co. 8,944 503,637
Constellation Brands, Inc. --
Class A*+ 18,715 486,590
McCormick & Co., Inc. 14,476 472,352
Pepsi Bottling Group, Inc.+ 15,770 450,233
Energizer Holdings, Inc.*+ 7,680 435,456
Anheuser-Busch Cos., Inc.+ 9,551 411,075
Loews Corp. - Carolina Group 10,330 409,378
7-Eleven, Inc.* 11,171 397,799
J.M. Smucker Co.+ 8,050 390,747
PepsiAmericas, Inc. 16,790 381,637
Colgate-Palmolive Co.+ 7,184 379,243
Pilgrim's Pride Corp. 10,130 368,732
Alberto-Culver Co. -- Class B+ 8,190 366,503
Church & Dwight Co., Inc. 9,140 337,632
Tootsie Roll Industries, Inc. 9,773 310,293
Lancaster Colony Corp. 6,477 278,511
Kellogg Co. 5,689 262,434
United Natural Foods, Inc.*+ 7,310 258,482
Supervalu, Inc. 7,340 228,421
UST, Inc.+ 5,200 217,672
Sara Lee Corp.+ 11,102 210,383
TreeHouse Foods, Inc.* 7,526 202,299
Hain Celestial Group, Inc.*+ 9,921 192,467
Nash Finch Co. 4,206 177,451
H.J. Heinz Co. 4,750 173,565
ConAgra Foods, Inc.+ 6,366 157,559
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Safeway, Inc.+ 6,009 $ 153,830
Avon Products, Inc. 5,538 149,526
Natures Sunshine Products, Inc. 6,307 146,575
J&J Snack Foods Corp. 1,774 102,537
Clorox Co.+ 1,802 100,083
Albertson's, Inc.+ 3,620 92,853
Estee Lauder Cos., Inc. --
Class A+ 2,496 86,936
Cia de Bebidas das Americas --
SP ADR 1,840 68,411
Cadbury Schweppes PLC --
SP ADR 1,560 63,539
USANA Health Sciences, Inc.* 1,320 62,964
Chiquita Brands International,
Inc.+ 2,250 62,888
Playtex Products, Inc.* 5,650 62,150
Brown-Forman Corp. -- Class B 1,008 60,016
Hansen Natural Corp.*+ 1,250 58,850
Parlux Fragrances, Inc.*+ 1,960 57,114
Longs Drug Stores Corp. 1,295 55,543
Gold Kist, Inc.* 2,823 55,190
Bunge, Ltd.+ 1,018 53,567
Elizabeth Arden, Inc.* 2,400 51,792
Diageo PLC -- SP ADR+ 890 51,629
Tyson Foods, Inc. -- Class A 2,790 50,360
Chattem, Inc.* 1,400 49,700
Mannatech, Inc.+ 3,271 38,761
Molson Coors Brewing Co. --
Class B 440 28,164
Performance Food Group Co.* 880 27,773
Smithfield Foods, Inc.* 922 27,365
NBTY, Inc.* 1,140 26,790
Great Atlantic & Pacific Tea Co.* 940 26,658
Ralcorp Holdings, Inc. 620 25,990
Peet's Coffee & Tea, Inc.* 790 24,190
Nu Skin Enterprises, Inc. 1,267 24,136
Sanderson Farms, Inc. 620 23,039
Ruddick Corp. 970 22,359
Spartan Stores, Inc.* 1,950 20,085
Spectrum Brands, Inc.* 830 19,547
Central Garden and Pet Co.* 430 19,458
American Italian Pasta Co. --
Class A+ 1,140 12,152
------------
TOTAL COMMON STOCKS
(Cost $20,756,617) 24,158,043
------------
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 23
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.4%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 85,179 $ 85,179
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $85,179) 85,179
------------
SECURITIES LENDING COLLATERAL 13.5%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 3,292,068 3,292,068
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $3,292,068) 3,292,068
------------
TOTAL INVESTMENTS 113.1%
(Cost $24,133,864) $ 27,535,290
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (13.1)% $ (3,182,206)
============
NET ASSETS - 100.0% $ 24,353,084
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
24 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
ELECTRONICS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.4%
Intel Corp. 153,646 $ 3,787,374
Texas Instruments, Inc.+ 73,914 2,505,685
Applied Materials, Inc. 124,274 2,107,687
KLA-Tencor Corp.+ 26,949 1,314,033
Broadcom Corp. -- Class A* 26,335 1,235,375
Advanced Micro Devices, Inc.*+ 44,382 1,118,426
Maxim Integrated Products, Inc.+ 25,235 1,076,273
Novellus Systems, Inc.* 42,888 1,075,631
Linear Technology Corp.+ 26,743 1,005,269
National Semiconductor Corp.+ 37,927 997,480
Analog Devices, Inc.+ 25,925 962,854
Altera Corp.*+ 49,342 942,926
Lam Research Corp.*+ 29,517 899,383
Nvidia Corp.*+ 25,593 877,328
Microchip Technology, Inc. 28,203 849,474
MEMC Electronic Materials, Inc.*+ 35,332 805,216
Freescale Semiconductor, Inc. --
Class B* 33,837 797,876
LSI Logic Corp.*+ 66,133 651,410
Integrated Device Technology,
Inc.*+ 59,646 640,598
Cymer, Inc.*+ 19,396 607,483
Intersil Corp. -- Class A+ 25,041 545,393
International Rectifier Corp.*+ 11,275 508,277
Xilinx, Inc. 17,876 497,847
Teradyne, Inc.*+ 29,003 478,549
Microsemi Corp.*+ 18,207 465,007
Agere Systems, Inc.* 43,603 453,907
Micron Technology, Inc.*+ 32,987 438,727
Cree, Inc.*+ 16,417 410,753
Varian Semiconductor Equipment
Associates, Inc.*+ 9,686 410,396
DSP Group, Inc.* 14,758 378,690
Cypress Semiconductor Corp.*+ 24,614 370,441
ATMI, Inc.* 11,243 348,533
Standard Microsystems Corp.* 10,247 306,488
Silicon Laboratories, Inc.*+ 10,083 306,422
Semtech Corp.*+ 18,592 306,210
Triquint Semiconductor, Inc.* 83,504 293,934
Skyworks Solutions, Inc.*+ 40,533 284,542
Photronics, Inc.*+ 14,092 273,385
RF Micro Devices, Inc.* 46,545 262,979
Kopin Corp.* 36,888 256,372
Credence Systems Corp.*+ 31,515 251,490
Micrel, Inc.*+ 21,244 238,570
Supertex, Inc.* 7,897 236,831
Helix Technology Corp. 15,782 232,784
Cohu, Inc. 9,452 223,540
Power Integrations, Inc.* 10,120 220,110
Ultratech, Inc.* 13,747 214,316
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Advanced Energy Industries, Inc.* 19,478 $ 209,583
Veeco Instruments, Inc.* 11,357 182,166
Cabot Microelectronics Corp.*+ 5,570 163,647
Kulicke & Soffa Industries, Inc.* 22,404 162,429
Brooks Automation, Inc.*+ 11,497 153,255
Exar Corp.* 10,640 149,173
Pericom Semiconductor Corp.* 15,285 135,119
Atmel Corp.*+ 57,860 119,192
Axcelis Technologies, Inc.*+ 22,627 118,113
Applied Micro Circuits Corp.* 32,245 96,735
ESS Technologies, Inc.* 20,975 74,461
LTX Corp.* 17,329 73,128
Lattice Semiconductor Corp.*+ 12,986 55,580
Conexant Systems, Inc.* 22,165 39,675
Marvell Technology Group Ltd.*+ 860 39,655
MIPS Technology, Inc.* 5,560 37,975
Netlogic Microsystems, Inc.* 1,740 37,567
Rudolph Technologies, Inc.*+ 2,780 37,447
Entegris, Inc.*+ 3,230 36,499
IXYS Corp.* 3,450 36,432
Sigmatel, Inc.* 1,800 36,432
ADE Corp.* 1,620 36,418
Cirrus Logic, Inc.* 4,750 36,052
Diodes, Inc.* 990 35,897
MKS Instruments, Inc.*+ 2,080 35,838
Tessera Technologies, Inc.* 1,190 35,593
Taiwan Semiconductor Manufacturing
Co. Ltd. -- SP ADR 4,258 35,001
OmniVision Technologies, Inc.*+ 2,740 34,579
ASML Holding NV* 2,070 34,176
Silicon Image, Inc.* 3,790 33,693
PDF Solutions, Inc.* 2,010 33,366
Genesis Microchip, Inc.* 1,510 33,145
------------
TOTAL COMMON STOCKS
(Cost $21,759,556) 35,850,295
------------
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 25
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
ELECTRONICS FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 210,180 $ 210,180
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $210,180) 210,180
------------
SECURITIES LENDING COLLATERAL 21.9%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 7,884,762 7,884,762
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $7,884,762) 7,884,762
------------
TOTAL INVESTMENTS 121.9%
(Cost $29,854,498) $ 43,945,237
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (21.9)% $ (7,888,962)
============
NET ASSETS - 100.0% $ 36,056,275
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
26 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
ENERGY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Exxon Mobil Corp. 206,834 $ 13,142,232
BP PLC -- SP ADR 173,240 12,274,054
Royal Dutch Shell PLC -- SP ADR 147,900 9,708,156
Total SA -- SP ADR+ 63,850 8,672,107
ConocoPhillips 105,808 7,397,037
Chevron Corp. 92,708 6,000,989
Schlumberger Ltd.+ 66,200 5,585,956
Occidental Petroleum Corp. 63,585 5,432,067
Repsol YPF SA -- SP ADR 144,799 4,678,456
Halliburton Co.+ 63,209 4,331,081
Kerr-McGee Corp. 42,410 4,118,435
Devon Energy Corp.+ 59,394 4,076,804
Burlington Resources, Inc. 49,993 4,065,431
Transocean, Inc.* 63,045 3,865,289
Valero Energy Corp. 34,110 3,856,477
Baker Hughes, Inc.+ 61,015 3,641,375
Marathon Oil Corp. 48,909 3,371,297
Apache Corp. 43,808 3,295,238
EOG Resources, Inc. 43,190 3,234,931
Nabors Industries Ltd.*+ 42,025 3,018,656
Overseas Shipholding Group, Inc.+ 48,461 2,826,730
Williams Cos., Inc.+ 111,950 2,804,347
Peabody Energy Corp. 33,100 2,791,985
Cooper Cameron Corp.*+ 32,264 2,385,278
Patterson-UTI Energy, Inc.+ 64,000 2,309,120
XTO Energy, Inc.+ 50,129 2,271,846
Diamond Offshore Drilling, Inc.+ 35,704 2,186,870
Anadarko Petroleum Corp.+ 22,210 2,126,607
Kinder Morgan, Inc.+ 21,600 2,077,056
National-Oilwell Varco, Inc.*+ 31,164 2,050,591
Chesapeake Energy Corp.+ 53,485 2,045,801
Southwestern Energy Co.* 27,744 2,036,410
Forest Oil Corp.* 38,000 1,979,800
Newfield Exploration Co.*+ 39,550 1,941,905
Sunoco, Inc. 24,374 1,906,047
Noble Corp. 27,600 1,889,496
Quicksilver Resources, Inc.*+ 35,596 1,701,133
Helmerich & Payne, Inc.+ 27,949 1,687,840
Rowan Cos., Inc. 47,550 1,687,549
Grant Prideco, Inc.* 40,708 1,654,780
Amerada Hess Corp. 11,963 1,644,912
Cabot Oil & Gas Corp. 32,485 1,640,817
Consol Energy, Inc. 20,700 1,578,789
Vintage Petroleum, Inc. 33,942 1,549,792
Murphy Oil Corp. 29,928 1,492,509
Remington Oil & Gas Corp.* 35,150 1,458,725
Denbury Resources, Inc.* 27,900 1,407,276
St. Mary Land & Exploration Co.+ 38,240 1,399,584
Pride International, Inc.*+ 48,325 1,377,746
Smith International, Inc.+ 40,400 1,345,724
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
ENSCO International, Inc.+ 28,800 $ 1,341,792
Noble Energy, Inc.+ 27,700 1,299,130
Veritas DGC, Inc.*+ 35,387 1,295,872
Arch Coal, Inc.+ 18,640 1,258,200
Cal Dive International, Inc.*+ 19,716 1,250,192
W&T Offshore, Inc. 38,500 1,248,555
Massey Energy Co.+ 24,400 1,246,108
Lone Star Technologies, Inc.*+ 22,400 1,245,216
Swift Energy Co.*+ 26,820 1,227,015
Weatherford International Ltd.*+ 17,746 1,218,440
SEACOR Holdings, Inc.*+ 16,750 1,215,715
Frontier Oil Corp. 26,700 1,184,145
Plains Exploration & Production
Co.* 27,620 1,182,688
Tesoro Corp. 17,200 1,156,528
Unit Corp.* 20,046 1,108,143
Hydril*+ 15,850 1,087,944
Range Resources Corp. 26,000 1,003,860
Petroleum Development Corp.* 25,299 969,964
Grey Wolf, Inc.* 113,250 954,697
Tetra Technologies, Inc.* 28,450 888,209
Cimarex Energy Co.*+ 19,371 878,087
TransMontaigne, Inc.* 82,635 660,254
W-H Energy Services, Inc.* 20,270 657,153
PetroChina Co. Ltd. -- SP ADR+ 7,450 621,107
Western Gas Resources, Inc.+ 11,500 589,145
ENI-Ente Nazionale Idrocarburi --
SP ADR+ 3,700 547,970
BJ Services Co. 15,194 546,832
Petroleo Brasiliero SA -- Petrobras 7,600 543,324
Oceaneering International, Inc.* 9,900 528,759
Todco -- Class A* 12,450 519,290
Pioneer Natural Resources Co.+ 9,175 503,891
GulfMark Offshore, Inc.* 14,292 461,203
Maverick Tube Corp.*+ 15,300 459,000
Teekay Shipping Corp. 10,600 456,330
Tenaris SA -- SP ADR+ 3,100 427,304
Parker Drilling Co.* 35,000 324,450
Pioneer Drilling Co.* 15,459 301,760
NS Group, Inc.* 7,650 300,263
Stolt Offshore SA -- SP ADR* 20,500 237,390
Offshore Logistics, Inc.* 6,169 228,253
Global Industries, Ltd.*+ 14,905 219,700
Superior Energy Services* 9,100 210,119
GlobalSantaFe Corp.+ 4,300 196,166
Atwood Oceanics, Inc.* 1,845 155,367
-------------
TOTAL COMMON STOCKS
(Cost $145,502,693) 204,978,663
-------------
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 27
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
ENERGY FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.9%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 1,926,221 $ 1,926,221
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,926,221) 1,926,221
-------------
SECURITIES LENDING COLLATERAL 14.3%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 29,424,576 29,424,576
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $29,424,576) 29,424,576
-------------
TOTAL INVESTMENTS 114.7%
(Cost $176,853,490) $ 236,329,460
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (14.7)% $ (30,251,177)
=============
NET ASSETS - 100.0% $ 206,078,283
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
28 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
ENERGY SERVICES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Schlumberger Ltd.+ 200,599 $ 16,926,544
Halliburton Co.+ 222,638 15,255,156
Baker Hughes, Inc.+ 186,930 11,155,982
Transocean, Inc.* 178,877 10,966,949
Nabors Industries Ltd.*+ 121,747 8,745,087
National-Oilwell Varco, Inc.*+ 127,371 8,381,012
Noble Corp. 97,985 6,708,053
Patterson-UTI Energy, Inc.+ 184,450 6,654,956
Diamond Offshore Drilling, Inc.+ 108,211 6,627,924
BJ Services Co.+ 179,422 6,457,398
Weatherford International Ltd.*+ 92,506 6,351,462
Grant Prideco, Inc.*+ 152,242 6,188,637
ENSCO International, Inc. 127,877 5,957,789
Cooper Cameron Corp.*+ 75,834 5,606,408
Smith International, Inc.+ 163,548 5,447,784
Rowan Cos., Inc.+ 148,640 5,275,233
Pride International, Inc.* 172,012 4,904,062
Helmerich & Payne, Inc.+ 80,440 4,857,772
Unit Corp.* 70,939 3,921,508
Cal Dive International, Inc.*+ 58,289 3,696,105
SEACOR Holdings, Inc.*+ 49,833 3,616,879
Veritas DGC, Inc.*+ 95,724 3,505,413
Lone Star Technologies, Inc.*+ 62,287 3,462,534
Tetra Technologies, Inc.* 104,117 3,250,533
Hydril*+ 45,128 3,097,586
Tidewater, Inc.+ 61,995 3,017,297
CARBO Ceramics, Inc. 39,684 2,618,747
W-H Energy Services, Inc.*+ 76,043 2,465,314
Oceaneering International, Inc.*+ 43,682 2,333,056
Maverick Tube Corp.*+ 74,925 2,247,750
Offshore Logistics, Inc.* 57,713 2,135,381
Atwood Oceanics, Inc.*+ 22,963 1,933,714
FMC Technologies, Inc.* 44,394 1,869,431
Grey Wolf, Inc.* 134,143 1,130,825
GulfMark Offshore, Inc.* 27,800 897,106
NS Group, Inc.* 18,337 719,727
Hanover Compressor Co.* 38,771 537,366
Tenaris SA -- SP ADR+ 3,865 532,752
Stolt Offshore SA -- SP ADR* 45,500 526,890
Input/Output, Inc.*+ 54,970 438,661
-------------
TOTAL COMMON STOCKS
(Cost $133,786,065) 190,422,783
-------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.9%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 1,798,926 $ 1,798,926
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,798,926) 1,798,926
-------------
SECURITIES LENDING COLLATERAL 23.3%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 44,624,941 44,624,941
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $44,624,941) 44,624,941
-------------
TOTAL INVESTMENTS 123.7%
(Cost $180,209,932) $ 236,846,650
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (23.7)% $ (45,451,123)
=============
NET ASSETS - 100.0% $ 191,395,527
* NON-INCOME PRODUCING SECURITY
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 29
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 100.1%
Citigroup, Inc. 16,042 $ 730,232
J.P. Morgan Chase & Co. 17,025 577,658
American Express Co. 9,122 523,968
Wachovia Corp.+ 10,366 493,318
St. Paul Travelers Cos., Inc. 9,630 432,098
Washington Mutual, Inc.+ 10,236 401,456
Hartford Financial Services
Group, Inc.+ 5,080 392,024
Chubb Corp.+ 4,166 373,065
Allstate Corp.+ 6,740 372,655
National City Corp. 10,730 358,811
SunTrust Banks, Inc. 5,141 357,042
Capital One Financial Corp.+ 4,390 349,093
KeyCorp+ 10,483 338,077
Wells Fargo & Co.+ 5,749 336,719
CIT Group, Inc. 7,390 333,880
W.R. Berkley Corp. 8,276 326,736
North Fork Bancorporation, Inc.+ 12,536 319,668
Leucadia National Corp. 7,350 316,785
Radian Group, Inc.+ 5,929 314,830
U.S. Bancorp+ 11,076 311,014
Host Marriott Corp.+ 18,080 305,552
PMI Group, Inc.+ 7,440 296,633
Vornado Realty Trust 3,391 293,728
Unitrin, Inc.+ 6,170 292,828
Nationwide Financial Services, Inc. 7,270 291,164
Providian Financial Corp.* 16,446 290,765
Allied Capital Corp.+ 10,100 289,163
Zions Bancorporation+ 4,050 288,401
Capital Automotive REIT 7,440 288,002
SVB Financial Group*+ 5,801 282,161
First Bancorp Puerto Rico 16,646 281,650
Golden West Financial Corp.+ 4,720 280,321
AmeriCredit Corp.*+ 11,586 276,558
IndyMac Bancorp, Inc.+ 6,930 274,289
CBL & Associates Properties, Inc. 6,658 272,911
iStar Financial, Inc. 6,680 270,072
Zenith National Insurance Corp. 4,240 265,806
Essex Property Trust, Inc.+ 2,930 263,700
Downey Financial Corp.+ 4,246 258,581
Whitney Holding Corp. 9,380 253,635
Franklin Resources, Inc.+ 2,948 247,514
First American Corp. 5,396 246,435
PartnerRe Ltd. 3,800 243,390
FirstFed Financial Corp.* 4,500 242,145
ING Groep NV -- SP ADR 7,902 235,401
Metris Companies, Inc.* 15,890 232,471
St. Joe Co. 3,690 230,441
Arbor Realty Trust, Inc. 8,090 227,329
Pan Pacific Retail Properties, Inc. 3,430 226,037
Macerich Co. 3,470 225,342
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Philadelphia Consolidated
Holding Co.*+ 2,570 $ 218,193
Barclays PLC -- SP ADR 5,296 215,971
Endurance Specialty Holdings Ltd. 6,260 213,529
Marshall & Ilsley Corp. 4,900 213,199
Boston Properties, Inc. 2,960 209,864
CB Richard Ellis Group, Inc. --
Class A* 4,187 206,000
American Financial Group, Inc./OH 6,000 203,580
Sovereign Bancorp, Inc.+ 8,870 195,495
CNA Financial Corp.* 6,330 189,077
American International Group, Inc. 2,940 182,162
Bank of America Corp.+ 4,251 178,967
SLM Corp. 3,289 176,422
Legg Mason, Inc.+ 1,580 173,310
Prudential Financial, Inc.+ 2,526 170,657
MetLife, Inc.+ 3,406 169,721
Loews Corp.+ 1,761 162,734
Chicago Mercantile Exchange
Holdings, Inc.+ 466 157,182
Corus Bankshares, Inc. 2,760 151,331
Uniao de Bancos Brasileiros SA 2,710 142,546
Morgan Stanley 2,640 142,402
Banco Itau Holding
Financeira SA -- SP ADR+ 1,190 141,205
Associated Banc-Corp.+ 4,610 140,513
Lehman Brothers Holdings, Inc.+ 1,200 139,776
Raymond James Financial, Inc. 4,340 139,401
Simon Property Group, Inc. 1,880 139,346
Nuveen Investments, Inc. --
Class A 3,460 136,289
Regency Centers Corp.+ 2,340 134,433
General Growth Properties, Inc.+ 2,960 132,993
Taubman Centers, Inc. 3,910 123,947
New Century Financial Corp. 3,130 113,525
Commerce Group, Inc. 1,790 103,856
ACE Ltd. 1,990 93,669
Calamos Asset Management,
Inc. -- Class A 3,716 91,711
UnumProvident Corp.+ 4,276 87,658
Banco Bradesco SA -- SP ADR+ 1,720 84,142
Astoria Financial Corp. 3,130 82,695
Ameritrade Holding Corp.* 3,786 81,323
Jones Lang LaSalle, Inc. 1,750 80,605
Ohio Casualty Corp. 2,596 70,404
Student Loan Corp. 290 68,695
Everest Re Group Ltd.+ 690 67,551
Federal Realty Investment Trust+ 1,100 67,023
American Home Mortgage
Investment Corp. 2,200 66,660
Conseco, Inc.*+ 3,130 66,074
Mills Corp. 1,150 63,342
Axis Capital Holdings Ltd. 2,110 60,156
30 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Principal Financial Group, Inc. 1,240 $ 58,739
Commercial Net Lease Realty 2,790 55,800
Kookmin Bank -- SP ADR 920 54,510
T. Rowe Price Group, Inc. 750 48,975
First Republic Bank+ 1,370 48,265
MoneyGram International, Inc. 2,210 47,979
AvalonBay Communities, Inc.+ 550 47,135
Fremont General Corp.+ 2,110 46,061
Westcorp 710 41,819
Sterling Financial Corp./WA 1,670 37,659
First Marblehead Corp.+ 1,450 36,830
Goldman Sachs Group, Inc. 290 35,258
Merrill Lynch & Co., Inc. 500 30,675
Center Financial Corp. 1,120 26,320
ICICI Bank Ltd. -- SP ADR 920 25,990
Universal American
Financial Corp.*+ 1,100 25,014
KIMCO Realty Corp.+ 782 24,570
------------
TOTAL COMMON STOCKS
(Cost $21,583,096) 22,872,487
------------
FACE
AMOUNT
----------
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 132,110 132,110
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $132,110) 132,110
------------
SECURITIES LENDING COLLATERAL 20.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 4,587,778 4,587,778
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $4,587,778) 4,587,778
------------
TOTAL INVESTMENTS 120.7%
(Cost $26,302,984) $ 27,592,375
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (20.7)% $ (4,737,110)
============
NET ASSETS - 100.0% $ 22,855,265
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
REIT--REAL ESTATE INVESTMENT TRUST.
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 31
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
HEALTH CARE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.6%
Johnson & Johnson, Inc. 103,719 $ 6,563,338
Pfizer, Inc. 254,743 6,360,933
Amgen, Inc.*+ 58,866 4,689,854
Genentech, Inc.*+ 49,731 4,187,848
UnitedHealth Group, Inc.+ 67,976 3,820,251
Abbott Laboratories 79,253 3,360,327
WellPoint, Inc.* 40,010 3,033,558
Schering-Plough Corp.+ 116,050 2,442,853
Aetna, Inc.+ 26,903 2,317,425
Baxter International, Inc. 55,454 2,210,951
Guidant Corp. 29,900 2,059,811
Wyeth 43,437 2,009,830
Stryker Corp. 39,260 1,940,622
Medtronic, Inc. 31,564 1,692,462
McKesson Corp. 33,500 1,589,575
St. Jude Medical, Inc.* 33,540 1,569,672
Merck & Co., Inc. 56,778 1,544,929
Eli Lilly & Co.+ 28,133 1,505,678
Express Scripts, Inc.*+ 20,274 1,261,043
Allergan, Inc.+ 13,690 1,254,278
Coventry Health Care, Inc.* 14,414 1,239,892
Gilead Sciences, Inc.*+ 25,428 1,239,869
Genzyme Corp.* 16,900 1,210,716
Medimmune, Inc.* 34,900 1,174,385
Caremark Rx, Inc.*+ 22,670 1,131,913
Bristol-Myers Squibb Co.+ 46,648 1,122,351
AmerisourceBergen Corp.+ 14,270 1,103,071
Humana, Inc.* 23,002 1,101,336
Fisher Scientific
International, Inc.*+ 16,130 1,000,867
Pacificare Health Systems, Inc.*+ 12,508 997,888
CIGNA Corp. 8,370 986,488
C.R. Bard, Inc. 14,630 966,019
WellChoice, Inc.* 12,270 931,293
Hospira, Inc.* 22,689 929,568
Omnicare, Inc.+ 16,300 916,549
Barr Pharmaceuticals, Inc.* 15,600 856,752
Health Net, Inc.*+ 17,600 832,832
Varian Medical Systems, Inc.*+ 20,000 790,200
Tenet Healthcare Corp.*+ 68,600 770,378
Waters Corp.* 18,200 757,120
Chiron Corp.*+ 16,700 728,454
Bausch & Lomb, Inc.+ 8,400 677,712
Watson Pharmaceuticals, Inc.*+ 18,470 676,187
Kinetic Concepts, Inc.* 11,063 628,378
Invitrogen Corp.*+ 8,151 613,200
Endo Pharmaceuticals
Holdings, Inc.* 21,800 581,406
Community Health Systems, Inc.*+ 14,800 574,388
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Triad Hospitals, Inc.*+ 12,600 $ 570,402
Dade Behring Holdings, Inc. 15,540 569,696
Cytyc Corp.* 20,300 545,055
Respironics, Inc.* 12,800 539,904
Beckman Coulter, Inc. 9,884 533,538
IVAX Corp.* 19,500 514,020
Inamed Corp.* 6,600 499,488
Affymetrix, Inc.*+ 10,600 490,038
Kos Pharmaceuticals, Inc.* 7,200 481,896
Universal Health Services,
Inc. -- Class B+ 9,100 433,433
Techne Corp.*+ 7,600 433,048
HCA, Inc. 9,016 432,047
Cardinal Health, Inc.+ 6,206 393,709
Sybron Dental Specialties, Inc.*+ 8,200 340,956
Neurometrix, Inc.* 9,500 282,815
Radiation Therapy Services, Inc.*+ 8,469 269,822
Immucor, Inc.*+ 9,620 263,973
Boston Scientific Corp.*+ 11,253 262,983
Alcon, Inc. 2,000 255,760
Matria Healthcare, Inc.* 6,700 252,925
Thoratec Corp.* 14,000 248,640
Chemed Corp. 5,700 247,038
Allscripts Healthcare
Solutions Inc.*+ 13,700 246,874
Intuitive Surgical, Inc.*+ 3,300 241,857
Lifecell Corp.* 11,000 237,930
Per-Se Technologies, Inc.*+ 11,500 237,590
United Therapeutics Corp.*+ 3,400 237,320
AstraZeneca PLC -- SP ADR 5,000 235,500
Teva Pharmaceutical Industries
Ltd. -- SP ADR+ 6,900 230,598
SuperGen, Inc.*+ 36,600 230,580
WellCare Health Plans, Inc.* 6,200 229,710
Advanced Neuromodulation
Systems, Inc.*+ 4,800 227,808
CNS, Inc. 8,600 224,202
NuVasive, Inc.* 11,800 221,132
Kindred Healthcare, Inc.* 7,100 211,580
Laserscope*+ 7,400 208,532
Discovery Laboratories, Inc.* 31,900 205,755
The Trizetto Group, Inc.* 14,000 197,680
Orasure Technologies, Inc.* 20,900 197,087
AMERIGROUP Corp.* 9,700 185,464
Zimmer Holdings, Inc.*+ 2,000 137,780
Schering AG -- SP ADR 1 63
-------------
TOTAL COMMON STOCKS
(Cost $80,315,516) 92,960,678
-------------
32 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
HEALTH CARE FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 554,075 $ 554,075
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $554,075) 554,075
-------------
SECURITIES LENDING COLLATERAL 18.3%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 17,121,943 17,121,943
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $17,121,943) 17,121,943
-------------
TOTAL INVESTMENTS 118.5%
(Cost $97,991,534) $ 110,636,696
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (18.5)% $ (17,244,526)
=============
NET ASSETS - 100.0% $ 93,392,170
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 33
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
INTERNET FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.3%
Cisco Systems, Inc.* 67,376 $ 1,208,052
Qualcomm, Inc. 19,931 891,912
Google, Inc. -- Class A*+ 2,812 889,886
Time Warner, Inc. 47,199 854,774
Yahoo!, Inc.*+ 24,079 814,833
eBay, Inc.* 17,799 733,319
Broadcom Corp. -- Class A* 11,223 526,471
Juniper Networks, Inc.*+ 17,772 422,796
Intuit, Inc.*+ 9,365 419,646
McAfee, Inc.*+ 12,445 391,022
Amazon.com, Inc.*+ 8,371 379,206
Qwest Communications
International, Inc.* 90,932 372,821
Research In Motion Ltd.*+ 5,364 366,898
IAC/InterActiveCorp*+ 13,398 339,639
VeriSign, Inc.*+ 15,798 337,603
Symantec Corp.* 13,627 308,788
Foundry Networks, Inc.*+ 23,954 304,216
EarthLink, Inc.* 25,136 268,955
Check Point Software
Technologies Ltd.*+ 10,870 264,358
Sun Microsystems, Inc.* 65,908 258,359
F5 Networks, Inc.*+ 5,931 257,821
Internet Security Systems, Inc.* 10,518 252,537
United Online, Inc. 17,624 244,092
WebMD Corp.*+ 18,910 209,523
E*Trade Financial Corp.* 11,735 206,536
BEA Systems, Inc.* 22,045 197,964
Macromedia, Inc.* 4,617 187,773
Websense, Inc.* 3,050 156,190
TIBCO Software, Inc.* 18,147 151,709
j2 Global Communications, Inc.* 3,410 137,832
Monster Worldwide, Inc.*+ 3,897 119,677
Expedia, Inc.* 5,724 113,392
Siebel Systems, Inc. 9,785 101,079
InfoSpace, Inc.* 3,762 89,799
Click Commerce, Inc.* 4,791 87,819
CheckFree Corp.* 1,945 73,560
Stamps.com, Inc.* 4,120 70,905
Red Hat, Inc.* 3,106 65,816
Nutri/System, Inc.* 2,146 53,693
Internet Initiative Japan, Inc. --
SP ADR* 4,414 41,536
Netflix, Inc.*+ 1,190 30,928
CNET Networks, Inc.* 2,266 30,750
Audible, Inc.*+ 2,106 25,883
Digitas, Inc.*+ 2,146 24,379
Palm, Inc.*+ 737 20,879
------------
TOTAL COMMON STOCKS
(Cost $10,873,772) 13,305,626
------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.7%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 95,400 $ 95,400
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $95,400) 95,400
------------
SECURITIES LENDING COLLATERAL 9.7%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 1,299,546 1,299,546
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,299,546) 1,299,546
------------
TOTAL INVESTMENTS 109.7%
(Cost $12,268,718) $ 14,700,572
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (9.7)% $ (1,303,858)
============
NET ASSETS - 100.0% $ 13,396,714
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
34 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
LEISURE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.8%
The Walt Disney Co. 31,036 $ 748,899
Time Warner, Inc. 39,184 709,622
News Corp. -- Class A 41,990 654,624
Carnival Corp. 10,680 533,786
Viacom, Inc. -- Class B 15,133 499,540
McDonald's Corp.+ 14,840 496,992
MGM Mirage, Inc.*+ 10,840 474,467
Yum! Brands, Inc. 9,618 465,607
Marriott International, Inc. --
Class A+ 7,316 460,908
Starbucks Corp.* 8,994 450,599
Hilton Hotels Corp. 17,493 390,444
Darden Restaurants, Inc.+ 10,842 329,271
Hasbro, Inc. 15,126 297,226
Brinker International, Inc.*+ 7,780 292,217
Brunswick Corp. 7,392 278,900
Boyd Gaming Corp. 6,310 272,087
Starwood Hotels & Resorts
Worldwide, Inc.+ 4,758 272,015
DreamWorks Animation
SKG, Inc. -- Class A* 9,340 258,344
Polaris Industries, Inc.+ 5,188 257,065
THQ, Inc.* 11,210 238,997
Electronic Arts, Inc.* 4,195 238,653
Shuffle Master, Inc.*+ 9,023 238,478
Papa John's International, Inc.* 4,713 236,216
Applebee's International, Inc. 11,327 234,356
CBRL Group, Inc.+ 6,940 233,600
Activision, Inc.*+ 10,626 217,302
Warner Music Group Corp.* 11,280 208,793
Marvel Entertainment, Inc.*+ 11,439 204,415
Panera Bread Co. -- Class A* 3,760 192,437
Jakks Pacific, Inc.*+ 11,600 188,268
Choice Hotels International, Inc. 2,876 185,905
IHOP Corp. 4,550 185,367
Harrah's Entertainment, Inc. 2,523 164,474
Las Vegas Sands Corp.*+ 4,980 163,892
Sonic Corp.* 5,720 156,442
Bluegreen Corp.* 8,100 142,965
Royal Caribbean Cruises Ltd.+ 3,240 139,968
Mattel, Inc.+ 8,143 135,825
Scientific Games Corp. -- Class A* 4,350 134,850
Dave & Buster's, Inc.* 10,030 133,900
International Game
Technology, Inc.+ 4,784 129,168
Wynn Resorts Ltd.*+ 2,799 126,375
O'Charleys, Inc.* 8,205 117,414
Shanda Interactive
Entertainment Ltd.*+ 4,280 115,774
Jack in the Box, Inc.*+ 3,295 98,553
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Eastman Kodak Co. 4,013 $ 97,636
Station Casinos, Inc. 1,360 90,250
Luby's, Inc.* 6,410 83,715
Lions Gate Entertainment Corp.*+ 8,540 81,472
Argosy Gaming Co.* 1,542 72,459
Bally Total Fitness Holding Corp.* 15,424 68,945
Wendy's International, Inc. 1,421 64,158
Pixar*+ 1,174 52,255
GTECH Holdings Corp. 1,616 51,809
Penn National Gaming, Inc.* 1,650 51,331
Lone Star Steakhouse &
Saloon, Inc. 1,750 45,500
Ameristar Casinos, Inc. 2,180 45,431
Domino's Pizza, Inc. 1,750 40,810
Marinemax, Inc.* 1,520 38,745
Nautilus, Inc.+ 1,180 26,043
Meade Instruments Corp.* 7,223 19,213
Krispy Kreme Doughnuts, Inc.*+ 2,410 15,087
Mikohn Gaming Corp.* 1,130 15,018
Oakley, Inc. 820 14,219
Monarch Casino & Resort, Inc.* 720 12,233
Outback Steakhouse, Inc. 195 7,137
------------
TOTAL COMMON STOCKS
(Cost $11,690,656) 13,698,466
------------
FACE
AMOUNT
----------
REPURCHASE AGREEMENT 0.6%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 80,519 80,519
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $80,519) 80,519
------------
SECURITIES LENDING COLLATERAL 11.3%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 1,556,276 1,556,276
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $1,556,276) 1,556,276
------------
TOTAL INVESTMENTS 111.7%
(Cost $13,327,451) $ 15,335,261
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (11.7)% $ (1,606,724)
============
NET ASSETS - 100.0% $ 13,728,537
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 35
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
PRECIOUS METALS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 98.6%
Newmont Mining Corp.+ 681,800 $ 32,160,506
Freeport-McMoRan Copper &
Gold, Inc. -- Class B+ 474,743 23,067,762
Barrick Gold Corp.+ 606,929 17,631,288
Goldcorp, Inc.+ 713,989 14,308,340
Placer Dome, Inc. 778,761 13,355,751
AngloGold Ashanti Ltd. --
SP ADR+ 285,036 12,096,928
Gold Fields Ltd. -- SP ADR 681,070 9,895,947
Glamis Gold Ltd.*+ 389,744 8,613,342
Harmony Gold Mining Co. Ltd. --
SP ADR*+ 741,436 8,111,310
Coeur d'Alene Mines Corp.*+ 1,911,378 8,085,129
Meridian Gold, Inc.* 347,086 7,604,654
Pan American Silver Corp.* 418,499 7,390,692
Cia de Minas Buenaventura SA --
SP ADR 233,300 7,243,965
Royal Gold, Inc.+ 259,166 6,963,790
Agnico-Eagle Mines Ltd.+ 456,409 6,759,417
Kinross Gold Corp.* 799,324 6,138,808
Bema Gold Corp.* 2,195,395 5,905,613
Randgold Resources Ltd. --
SP ADR*+ 358,328 5,632,916
Silver Standard Resources, Inc.*+ 377,508 5,171,860
Apex Silver Mines Ltd.* 318,822 5,008,694
Hecla Mining Co.*+ 1,139,743 4,992,074
Golden Star Resources Ltd.*+ 1,423,011 4,752,857
Stillwater Mining Co.* 422,452 3,865,436
Novagold Resources, Inc.*+ 411,324 3,294,705
Crystallex International Corp.*+ 1,904,917 2,990,720
-------------
TOTAL COMMON STOCKS
(Cost $149,196,513) 231,042,504
-------------
FACE
AMOUNT
-----------
SECURITIES LENDING COLLATERAL 27.2%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) $63,821,777 63,821,777
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $63,821,777) 63,821,777
-------------
TOTAL INVESTMENTS 125.8%
(Cost $213,018,290) $ 294,864,281
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (25.8)% $ (60,565,247)
=============
NET ASSETS - 100.0% $ 234,299,034
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
36 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Simon Property Group, Inc.+ 9,451 $ 700,508
Equity Office Properties Trust+ 18,646 609,911
Equity Residential+ 15,560 588,946
General Growth Properties, Inc.+ 13,088 588,044
Vornado Realty Trust 6,635 574,724
ProLogis+ 12,044 533,670
Public Storage, Inc.+ 7,316 490,172
KIMCO Realty Corp.+ 15,450 485,439
Archstone-Smith Trust+ 11,994 478,201
Boston Properties, Inc. 6,680 473,612
Plum Creek Timber Co., Inc. (REIT)+ 12,460 472,359
Host Marriott Corp.+ 24,678 417,058
AvalonBay Communities, Inc.+ 4,860 416,502
Duke Realty Corp.+ 11,229 380,439
Developers Diversified Realty Corp. 8,054 376,122
Trizec Properties, Inc. 15,341 353,763
iStar Financial, Inc. 8,730 352,954
AMB Property Corp. 7,666 344,203
Health Care Property Investors, Inc. 12,650 341,423
CB Richard Ellis Group, Inc. --
Class A* 6,810 335,052
Apartment Investment &
Management Co. -- Class A+ 8,300 321,874
Liberty Property Trust+ 7,560 321,602
Weingarten Realty Investors 8,421 318,735
St. Joe Co. 5,101 318,557
Macerich Co.+ 4,881 316,972
Global Signal, Inc. 7,070 316,312
United Dominion Realty Trust, Inc. 13,319 315,660
Ventas, Inc. 9,544 307,317
Shurgard Storage Centers, Inc. --
Class A 5,474 305,832
Federal Realty Investment Trust 5,004 304,894
Regency Centers Corp.+ 5,300 304,485
Reckson Associates Realty Corp. 8,659 299,168
Rayonier, Inc. 5,186 298,817
Arden Realty, Inc.+ 7,223 297,371
Camden Property Trust 5,255 292,966
SL Green Realty Corp. 4,191 285,742
Hospitality Properties Trust 6,646 284,848
HRPT Properties Trust 22,480 278,977
Mack-Cali Realty Corp. 6,201 278,673
Forest City Enterprises, Inc. --
Class A 7,254 276,377
BRE Properties, Inc. -- Class A 6,150 273,675
Pan Pacific Retail Properties, Inc. 4,133 272,365
Mills Corp.+ 4,840 266,587
Essex Property Trust, Inc.+ 2,923 263,070
CBL & Associates Properties, Inc. 6,376 261,352
Prentiss Properties Trust 6,266 254,400
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
CenterPoint Properties Trust 5,670 $ 254,016
Health Care REIT, Inc. 6,660 247,019
New Plan Excel Realty Trust 10,682 245,152
Capital Automotive REIT 6,279 243,060
Crescent Real Estate EQT Co. 11,779 241,587
Thornburg Mortgage, Inc.+ 9,612 240,877
Healthcare Realty Trust, Inc. 5,870 235,622
CarrAmerica Realty Corp. 6,500 233,675
First Industrial Realty Trust, Inc. 5,827 233,371
Realty Income Corp. 9,610 229,775
Alexandria Real Estate Equities, Inc. 2,762 228,390
Kilroy Realty Corp. 4,015 224,960
Nationwide Health Properties, Inc. 9,596 223,587
Corporate Office Properties
Trust SBI/MD 6,202 216,760
Post Properties, Inc. 5,810 216,422
Brandywine Realty Trust+ 6,900 214,521
Colonial Properties Trust 4,818 214,305
Senior Housing Properties Trust 11,095 210,805
American Financial Realty Trust 14,670 208,314
Highwoods Properties, Inc.+ 7,050 208,045
Cousins Properties, Inc.+ 6,794 205,315
Taubman Centers, Inc. 6,375 202,087
Heritage Property Investment Trust 5,732 200,620
New Century Financial Corp. 5,490 199,122
Washington Real Estate Investment
Trust 6,370 198,171
Lexington Corporate Properties
Trust 8,316 195,842
Pennsylvania Real Estate
Investment Trust 4,586 193,437
Commercial Net Lease Realty 9,520 190,400
Home Properties, Inc. 4,842 190,048
Mid-America Apartment
Communities, Inc.+ 3,883 180,598
Friedman Billings Ramsey Group,
Inc. -- Class A+ 17,520 178,529
LaSalle Hotel Properties 5,164 177,900
Annaly Mortgage Management, Inc. 13,365 173,077
Trustreet Properties, Inc. 11,009 172,291
Eastgroup Properties, Inc. 3,928 171,850
Sovran Self Storage, Inc. 3,457 169,220
Entertainment Properties Trust 3,774 168,434
FelCor Lodging Trust, Inc.* 11,100 168,165
Equity Lifestyle Properties, Inc. 3,673 165,285
Inland Real Estate Corp. 10,230 160,202
Meristar Hospitality Corp.* 17,286 157,821
PS Business Parks, Inc. 3,395 155,491
Innkeepers USA Trust 9,610 148,475
Glimcher Realty Trust 5,952 145,645
National Health Investors, Inc. 5,106 140,977
Equity Inns, Inc. 10,403 140,441
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 37
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Tanger Factory Outlet Centers, Inc. 5,044 $ 140,274
AMLI Residential Properties Trust 4,340 139,184
Sun Communities, Inc. 3,951 129,435
Saul Centers, Inc. 3,585 129,024
Parkway Properties, Inc./MD 2,664 124,995
Glenborough Realty Trust, Inc. 6,345 121,824
Town & Country Trust+ 4,150 120,433
Ramco-Gershenson Properties Trust 4,099 119,650
Acadia Realty Trust 6,508 117,079
Bedford Property Investors, Inc. 4,560 108,710
Correctional Properties Trust 3,507 103,141
Universal Health Realty
Income Trust 2,963 98,520
Urstadt Biddle Properties, Inc. 5,170 78,377
Winston Hotels, Inc. 7,639 76,390
Associated Estates Realty Corp. 7,513 73,627
American Land Lease, Inc. 2,450 58,188
------------
TOTAL COMMON STOCKS
(Cost $24,634,236) 27,808,287
------------
FACE
AMOUNT
----------
REPURCHASE AGREEMENT 0.3%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 76,519 76,519
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $76,519) 76,519
------------
SECURITIES LENDING COLLATERAL 7.7%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 2,151,769 2,151,769
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,151,769) 2,151,769
------------
TOTAL INVESTMENTS 107.5%
(Cost $26,862,524) $ 30,036,575
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (7.5)% $ (2,092,106)
============
NET ASSETS - 100.0% $ 27,944,469
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
REIT--REAL ESTATE INVESTMENT TRUST.
30 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
RETAILING FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.9%
Wal-Mart Stores, Inc.+ 23,184 $ 1,015,923
Home Depot, Inc. 19,837 756,583
eBay, Inc.* 13,312 548,454
Federated Department Stores, Inc. 8,079 540,243
Nordstrom, Inc. 14,740 505,877
Lowe's Cos., Inc.+ 7,436 478,878
Target Corp. 8,333 432,733
Staples, Inc.+ 19,709 420,196
Costco Wholesale Corp.+ 8,525 367,342
Walgreen Co.+ 7,620 331,089
Best Buy Co., Inc.+ 7,561 329,130
Genuine Parts Co. 7,614 326,641
Sherwin-Williams Co. 7,039 310,209
AutoZone, Inc.*+ 3,520 293,040
Office Depot, Inc.*+ 9,423 279,863
CarMax, Inc.*+ 8,830 276,114
CVS Corp.+ 8,478 245,947
J.C. Penney Holding Co., Inc. 4,810 228,090
Michaels Stores, Inc. 6,770 223,816
Petsmart, Inc. 10,101 220,000
Sears Holdings Corp.*+ 1,694 210,767
Big Lots, Inc.*+ 19,130 210,239
American Eagle Outfitters, Inc. 8,806 207,205
Pacific Sunwear of California, Inc.*+ 9,240 198,106
Neiman-Marcus Group, Inc. --
Class A 1,940 193,903
AutoNation, Inc.*+ 9,545 190,614
Aeropostale, Inc.*+ 8,770 186,362
ShopKo Stores, Inc.* 7,280 185,786
Amazon.com, Inc.*+ 4,093 185,413
Advance Auto Parts, Inc.*+ 4,680 181,022
Men's Wearhouse, Inc.* 6,615 176,620
Payless Shoesource, Inc.*+ 9,887 172,034
Urban Outfitters, Inc.*+ 5,712 167,933
IAC/InterActiveCorp*+ 6,492 164,572
Barnes & Noble, Inc. 4,250 160,225
Aaron Rents, Inc. 7,231 152,936
Asbury Automotive Group, Inc.* 8,889 151,380
Building Material Holding Corp. 1,612 150,222
Limited Brands, Inc.+ 7,173 146,544
Ross Stores, Inc. 5,970 141,489
HOT Topic, Inc.* 9,170 140,851
Chico's FAS, Inc.*+ 3,712 136,602
Buckle, Inc. 3,842 130,513
Abercrombie & Fitch Co. -- Class A 2,590 129,111
Genesco, Inc.* 3,420 127,361
TBC Corp.* 3,655 126,061
The Gap, Inc. 7,048 122,847
Kohl's Corp.* 2,431 121,988
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Burlington Coat Factory Warehouse
Corp. 3,172 $ 120,663
Bebe Stores, Inc.+ 5,960 104,300
Too, Inc.*+ 3,480 95,456
Pantry, Inc.* 2,410 90,062
Bed Bath & Beyond, Inc.* 2,235 89,802
Expedia, Inc.* 4,351 86,193
Electronics Boutique Holdings
Corp.* 1,360 85,462
Rite Aid Corp.*+ 20,780 80,626
Dress Barn, Inc.*+ 3,290 74,880
Conn's, Inc.*+ 2,700 74,844
O'Reilly Automotive, Inc.* 2,440 68,759
Children's Place Retail Stores, Inc.* 1,920 68,429
Stein Mart, Inc. 3,330 67,599
Trans World Entertainment Corp.* 8,088 63,814
Select Comfort Corp.* 3,122 62,378
TJX Cos., Inc. 3,007 61,583
Hibbett Sporting Goods, Inc.* 2,720 60,520
Regis Corp. 1,518 57,411
Stamps.com, Inc.* 3,220 55,416
United Auto Group, Inc. 1,650 54,516
BJ's Wholesale Club, Inc.*+ 1,736 48,261
GameStop Corp. -- Class B* 1,410 40,030
Foot Locker, Inc.+ 1,660 36,420
Tuesday Morning Corp. 1,250 32,338
Handleman Co.+ 2,020 25,513
Longs Drug Stores Corp. 580 24,876
Family Dollar Stores, Inc. 1,250 24,838
Sports Authority, Inc.*+ 800 23,552
CSK Auto Corp.* 1,356 20,177
Hancock Fabrics, Inc./DE+ 2,940 19,786
Dollar General Corp.+ 931 17,075
Restoration Hardware, Inc.* 2,700 17,064
Guess ?, Inc.* 710 15,215
Insight Enterprises, Inc.* 808 15,029
99 Cents Only Stores* 1,470 13,598
Movie Gallery, Inc.+ 880 9,143
------------
TOTAL COMMON STOCKS
(Cost $11,595,610) 14,604,502
------------
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 39
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
RETAILING FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.4%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 61,782 $ 61,782
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $61,782) 61,782
------------
SECURITIES LENDING COLLATERAL 23.0%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 3,361,109 3,361,109
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $3,361,109) 3,361,109
------------
TOTAL INVESTMENTS 123.3%
(Cost $15,018,501) $ 18,027,393
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (23.3)% $ (3,411,390)
============
NET ASSETS - 100.0% $ 14,616,003
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
40 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.8%
Microsoft Corp. 91,724 $ 2,360,059
Intel Corp. 83,952 2,069,417
Dell, Inc.* 48,412 1,655,690
Cisco Systems, Inc.* 90,620 1,624,817
International Business Machines
Corp. 18,790 1,507,334
Hewlett-Packard Co. 39,269 1,146,655
Yahoo!, Inc.*+ 31,849 1,077,770
Applied Materials, Inc. 63,424 1,075,671
Texas Instruments, Inc.+ 30,740 1,042,086
Qualcomm, Inc. 22,161 991,705
Motorola, Inc.+ 43,806 967,675
Xerox Corp.*+ 66,249 904,299
Oracle Corp.* 72,820 902,240
Google, Inc. -- Class A*+ 2,690 851,277
Apple Computer, Inc.* 15,610 836,852
KLA-Tencor Corp.+ 13,821 673,912
EMC Corp./MA*+ 47,269 611,661
Corning, Inc.* 30,760 594,591
Paychex, Inc.+ 14,880 551,750
Intuit, Inc.*+ 11,300 506,353
Affiliated Computer Services, Inc. --
Class A*+ 7,020 383,292
Symantec Corp.*+ 15,764 357,212
Adobe Systems, Inc.+ 11,654 347,872
DST Systems, Inc.*+ 6,165 338,027
Sandisk Corp.*+ 6,920 333,890
Arrow Electronics, Inc.* 10,486 328,841
Novell, Inc.*+ 43,640 325,118
Lam Research Corp.*+ 10,520 320,544
Jabil Circuit, Inc.*+ 10,180 314,766
Ceridian Corp.* 14,700 305,025
Juniper Networks, Inc.*+ 12,769 303,775
Novellus Systems, Inc.*+ 11,819 296,421
Avnet, Inc.*+ 11,906 291,102
National Semiconductor Corp.+ 10,924 287,301
McAfee, Inc.*+ 9,048 284,288
Parametric Technology Corp.* 39,492 275,259
Advanced Micro Devices, Inc.*+ 10,795 272,034
Analog Devices, Inc.+ 7,190 267,037
Global Payments, Inc.+ 3,316 257,720
Autodesk, Inc. 5,472 254,120
Lucent Technologies, Inc.*+ 76,845 249,746
Compuware Corp.* 25,823 245,318
Computer Associates International,
Inc.+ 8,690 241,669
Electronic Arts, Inc.*+ 4,206 239,279
Cymer, Inc.* 7,597 237,938
Computer Sciences Corp.* 4,990 236,077
Network Appliance, Inc.* 9,874 234,409
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Nvidia Corp.*+ 6,772 $ 232,144
BEA Systems, Inc.* 24,567 220,612
NCR Corp.* 6,896 220,051
Belden CDT, Inc.+ 11,270 218,976
CSG Systems International, Inc.* 10,050 218,185
Harris Corp. 5,151 215,312
Mercury Interactive Corp.*+ 5,180 205,128
VeriSign, Inc.*+ 9,573 204,575
Sybase, Inc.*+ 8,614 201,740
MEMC Electronic Materials, Inc.*+ 8,771 199,891
Imation Corp. 4,500 192,915
Broadcom Corp. -- Class A* 4,010 188,109
Comverse Technology, Inc.*+ 6,890 181,000
Solectron Corp.* 44,037 172,185
Filenet Corp.* 6,120 170,748
Fiserv, Inc.*+ 3,676 168,618
CACI International, Inc. --
Class A*+ 2,739 165,983
Western Digital Corp.*+ 12,714 164,392
Factset Research Systems, Inc. 4,570 161,047
Powerwave Technologies, Inc.*+ 12,320 160,037
Citrix Systems, Inc.*+ 6,339 159,362
LSI Logic Corp.*+ 16,070 158,289
Fair Isaac Corp.+ 3,442 154,202
MPS Group, Inc.* 12,879 151,972
Avaya, Inc.*+ 14,270 146,981
BISYS Group, Inc.* 10,805 145,111
Tech Data Corp.*+ 3,810 139,865
QLogic Corp.* 4,083 139,639
Macromedia, Inc.* 3,425 139,295
Cadence Design Systems, Inc.*+ 8,594 138,879
Cognizant Technology Solutions
Corp.* 2,932 136,602
SRA International, Inc. -- Class A* 3,780 134,114
Linear Technology Corp.+ 3,470 130,437
Internet Security Systems, Inc.* 5,390 129,414
Activision, Inc.*+ 6,278 128,385
Anixter International, Inc.* 3,140 126,636
Freescale Semiconductor, Inc. --
Class B* 5,270 124,267
International Rectifier Corp.*+ 2,738 123,429
ADC Telecommunications, Inc.*+ 5,290 120,929
NAVTEQ Corp.*+ 2,391 119,430
Ingram Micro, Inc. -- Class A* 5,870 108,830
Semtech Corp.*+ 6,576 108,307
Agere Systems, Inc.* 10,370 107,952
Hyperion Solutions Corp.*+ 2,210 107,516
Wind River Systems, Inc.*+ 8,105 104,798
Microsemi Corp.*+ 3,970 101,394
Websense, Inc.* 1,958 100,269
Amphenol Corp. -- Class A 2,424 97,784
Avocent Corp.*+ 3,090 97,768
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 41
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
F5 Networks, Inc.*+ 2,143 $ 93,156
ATMI, Inc.* 2,900 89,900
Trimble Navigation Ltd.* 2,651 89,312
Cree, Inc.*+ 3,544 88,671
j2 Global Communications, Inc.*+ 2,184 88,277
Micros Systems, Inc.*+ 2,010 87,937
Microchip Technology, Inc. 2,880 86,746
Acxiom Corp.+ 4,600 86,112
Checkpoint Systems, Inc.* 3,620 85,866
Salesforce.com, Inc.* 3,680 85,082
Integrated Device Technology, Inc.* 7,560 81,194
CheckFree Corp.*+ 2,067 78,174
Serena Software, Inc.*+ 3,898 77,687
Standard Microsystems Corp.* 2,580 77,168
Global Imaging Systems, Inc.* 2,210 75,250
ViaSat, Inc.* 2,900 74,385
MAXIMUS, Inc. 2,030 72,572
Black Box Corp.+ 1,720 72,171
MTS Systems Corp. 1,900 71,763
Itron, Inc.* 1,570 71,686
iPayment Holdings, Inc.* 1,880 71,139
Coherent, Inc.* 2,420 70,858
Talx Corp. 2,160 70,826
Synaptics, Inc.*+ 3,717 69,880
THQ, Inc.* 3,100 66,092
Photronics, Inc.*+ 3,390 65,766
Intrado, Inc.* 3,620 65,269
Hutchinson Technology, Inc.*+ 2,460 64,255
SPSS, Inc.* 2,670 64,080
Gateway, Inc.* 23,450 63,315
Agilsys, Inc. 3,720 62,645
Ciber, Inc.*+ 8,290 61,595
Progress Software Corp.* 1,920 60,998
Anteon International Corp.* 1,420 60,719
Ultratech, Inc.* 3,810 59,398
Methode Electronics, Inc. --
Class A 5,060 58,291
Sun Microsystems, Inc.* 14,335 56,193
Altiris, Inc.* 3,620 55,350
Brooks Automation, Inc.*+ 4,122 54,946
Sanmina-SCI Corp.* 12,750 54,697
Symmetricom, Inc.* 6,832 52,880
Kronos, Inc./MA* 1,152 51,425
Comtech Telecommunications
Corp.* 1,210 50,179
Digital Insight Corp.* 1,910 49,775
Digi International, Inc.* 4,340 46,568
Dionex Corp.* 801 43,454
Keane, Inc.*+ 3,500 40,005
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Mantech International Corp. --
Class A* 1,360 $ 35,918
Total System Services, Inc. 1,520 35,431
Tellabs, Inc.* 3,100 32,612
Netgear, Inc.* 1,210 29,113
Akamai Technologies, Inc.* 890 14,196
Red Hat, Inc.*+ 550 11,655
------------
TOTAL COMMON STOCKS
(Cost $33,458,565) 40,706,030
------------
FACE
AMOUNT
----------
REPURCHASE AGREEMENT 0.8%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 332,559 332,559
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $332,559) 332,559
------------
SECURITIES LENDING COLLATERAL 19.6%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 8,009,141 8,009,141
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $8,009,141) 8,009,141
------------
TOTAL INVESTMENTS 120.2%
(Cost $41,800,265) $ 49,047,730
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (20.2)% $ (8,232,166)
============
NET ASSETS - 100.0% $ 40,815,564
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
42 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.5%
Cisco Systems, Inc.* 45,337 $ 812,892
Vodafone Group PLC -- SP ADR+ 30,369 788,683
Qualcomm, Inc. 13,414 600,276
Nokia OYJ -- SP ADR+ 32,774 554,208
Motorola, Inc.+ 23,769 525,057
Sprint Nextel Corp. 18,902 449,490
Telefonaktiebolaget LM Ericsson --
SP ADR*+ 12,091 445,432
Alltel Corp.+ 6,745 439,167
Verizon Communications, Inc. 12,858 420,328
SBC Communications, Inc.+ 16,108 386,109
Corning, Inc.* 19,841 383,527
Juniper Networks, Inc.*+ 11,010 261,928
AT&T Corp.+ 13,224 261,835
BellSouth Corp.+ 9,780 257,214
Lucent Technologies, Inc.*+ 72,143 234,465
PanAmSat Holding Corp. 9,250 223,850
Qwest Communications
International, Inc.* 50,909 208,727
Telewest Global, Inc.* 8,300 190,485
Alcatel SA -- SP ADR*+ 13,706 183,935
NII Holdings, Inc. -- Class B* 2,176 183,763
Harris Corp. 4,376 182,917
American Tower Corp. -- Class A*+ 7,284 181,736
MCI, Inc. 7,160 181,649
Nextel Partners, Inc. -- Class A* 6,988 175,399
Comverse Technology, Inc.*+ 6,468 169,914
Scientific-Atlanta, Inc.+ 4,355 163,356
Avaya, Inc.* 14,848 152,934
Citizens Communications Co.+ 10,510 142,410
Cincinnati Bell, Inc.* 29,730 131,109
ADC Telecommunications, Inc.*+ 5,640 128,930
Powerwave Technologies, Inc.*+ 9,627 125,055
Tellabs, Inc.* 11,720 123,294
Alamosa Holdings, Inc.*+ 6,950 118,914
Avocent Corp.*+ 3,456 109,348
Belden CDT, Inc.+ 5,406 105,039
Commonwealth Telephone
Enterprises, Inc. 2,715 102,355
ViaSat, Inc.* 3,871 99,291
JDS Uniphase Corp.*+ 44,689 99,210
ADTRAN, Inc. 3,060 96,390
CenturyTel, Inc.+ 2,658 92,977
U.S. Cellular Corp.* 1,719 91,829
F5 Networks, Inc.*+ 1,980 86,071
Crown Castle International Corp.* 3,494 86,057
CIENA Corp.* 28,409 75,000
Andrew Corp.* 5,738 63,979
Symmetricom, Inc.* 8,255 63,894
Black Box Corp.+ 1,429 59,961
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Netgear, Inc.* 2,420 $ 58,225
3Com Corp.*+ 14,111 57,573
Plantronics, Inc. 1,820 56,074
General Communication, Inc. --
Class A*+ 5,283 52,302
Polycom, Inc.* 3,195 51,663
Utstarcom, Inc.*+ 5,831 47,639
Digi International, Inc.* 3,961 42,502
Harmonic, Inc.* 6,469 37,650
Inter-Tel, Inc. 1,654 34,734
Ditech Communications Corp.* 4,091 27,573
Tollgrade Communications, Inc.* 3,010 25,465
PC-Tel, Inc.* 2,675 25,145
America Movil SA de CV --
SP ADR 560 14,739
Comtech Telecommunications
Corp.* 340 14,100
SK Telecom Co., Ltd. -- SP ADR 560 12,230
KT Corp. -- SP ADR 540 12,150
Tele Norte Leste Participacoes SA --
ADR 730 12,067
Golden Telecom, Inc.+ 380 11,997
UbiquiTel, Inc.* 1,340 11,712
Talk America Holdings, Inc.* 1,230 11,599
Deutsche Telekom AG -- SP ADR 560 10,214
Premiere Global Services, Inc.* 1,210 9,898
Telesystem International Wireless,
Inc.* 700 616
------------
TOTAL COMMON STOCKS
(Cost $8,396,041) 11,658,256
------------
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 43
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 1.4%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 164,082 $ 164,082
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $164,082) 164,082
------------
SECURITIES LENDING COLLATERAL 22.5%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 2,631,466 2,631,466
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $2,631,466) 2,631,466
------------
TOTAL INVESTMENTS 123.4%
(Cost $11,191,589) $ 14,453,804
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (23.4)% $ (2,741,947)
============
NET ASSETS - 100.0% $ 11,711,857
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
44 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
TRANSPORTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.5%
United Parcel Service, Inc. --
Class B 23,665 $ 1,635,961
Burlington Northern Santa Fe
Corp. 24,617 1,472,097
Norfolk Southern Corp. 34,788 1,411,001
FedEx Corp.+ 12,624 1,099,929
Union Pacific Corp. 14,351 1,028,967
C.H. Robinson Worldwide, Inc.+ 13,247 849,398
CSX Corp. 16,367 760,738
CNF, Inc. 13,292 697,830
Southwest Airlines Co. 40,294 598,366
Landstar System, Inc. 14,056 562,662
Yellow Roadway Corp.*+ 12,818 530,922
Expeditors International Washington,
Inc.+ 6,941 394,110
Forward Air Corp. 10,044 370,021
Alexander & Baldwin, Inc. 6,849 364,641
Laidlaw International, Inc. 14,083 340,386
AMR Corp.*+ 30,435 340,263
Alaska Air Group, Inc.*+ 11,605 337,241
Kirby Corp.* 5,530 273,348
SkyWest, Inc. 10,178 272,974
Canadian National Railway Co. 3,747 266,000
EGL, Inc.* 9,434 256,133
ABX Air, Inc.* 29,930 245,426
Arkansas Best Corp.+ 6,809 237,430
J.B. Hunt Transport Services, Inc.+ 11,590 220,326
Heartland Express, Inc.+ 10,437 212,289
Frontier Airlines, Inc.* 21,496 210,231
Kansas City Southern* 8,936 208,298
Ryder System, Inc. 5,632 192,727
Swift Transportation Co., Inc.* 9,280 164,256
Mesa Air Group, Inc.*+ 19,290 159,142
Knight Transportation, Inc. 6,067 147,792
Pinnacle Airlines Corp.* 18,570 120,705
CP Ships Ltd. 5,410 115,395
Old Dominion Freight Line, Inc.* 3,229 108,139
Continental Airlines, Inc. --
Class B*+ 8,649 83,549
JetBlue Airways Corp.*+ 4,424 77,862
HUB Group, Inc. -- Class A* 1,837 67,436
World Air Holdings, Inc.* 5,050 53,530
Canadian Pacific Railway Ltd. 1,203 51,681
Ryanair Holdings PLC -- SP ADR* 783 35,650
Werner Enterprises, Inc. 2,032 35,133
AirTran Holdings, Inc.* 2,444 30,941
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Gol Linhas Aereas Inteligentes
SA -- SP ADR+ 866 $ 28,102
USA Truck, Inc.* 895 22,644
Sirva, Inc.* 1,654 12,339
Pacer International, Inc. 180 4,745
------------
TOTAL COMMON STOCKS
(Cost $14,080,263) 16,708,756
------------
FACE
AMOUNT
--------
REPURCHASE AGREEMENT 0.9%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $152,061 152,061
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $152,061) 152,061
------------
SECURITIES LENDING COLLATERAL 5.7%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 956,441 956,441
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $956,441) 956,441
------------
TOTAL INVESTMENTS 106.1%
(Cost $15,188,765) $ 17,817,258
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (6.1)% $ (1,030,834)
============
NET ASSETS - 100.0% $ 16,786,424
* Non-Income Producing Security.
+ All or a portion of this security is on loan at September 30, 2005 - See
Note 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 45
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
UTILITIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 99.4%
TXU Corp.+ 21,380 $ 2,413,374
Exelon Corp.+ 44,585 2,382,622
American Electric Power Co., Inc.+ 56,664 2,249,561
Southern Co.+ 62,324 2,228,706
Duke Energy Corp.+ 74,899 2,184,804
Dominion Resources, Inc./VA+ 25,192 2,170,039
Edison International 38,294 1,810,540
FirstEnergy Corp.+ 34,377 1,791,729
Entergy Corp. 22,993 1,708,840
FPL Group, Inc.+ 35,674 1,698,082
PG&E Corp.+ 41,589 1,632,368
Public Service Enterprise Group,
Inc. 24,421 1,571,736
PPL Corp. 44,446 1,436,939
Ameren Corp.+ 26,245 1,403,845
Xcel Energy, Inc.+ 70,247 1,377,544
Sempra Energy 28,612 1,346,481
Constellation Energy Group, Inc. 21,845 1,345,652
AES Corp.*+ 78,941 1,297,001
Pinnacle West Capital Corp. 29,201 1,287,180
Questar Corp. 14,161 1,247,867
Consolidated Edison, Inc.+ 25,642 1,244,919
Cinergy Corp. 25,537 1,134,098
Nicor, Inc.+ 26,711 1,122,663
CenterPoint Energy, Inc.+ 72,967 1,085,019
DTE Energy Co.+ 22,969 1,053,358
Allegheny Energy, Inc.*+ 32,770 1,006,694
Pepco Holdings, Inc. 41,686 970,033
WPS Resources Corp.+ 16,750 968,150
Wisconsin Energy Corp. 23,800 950,096
Reliant Energy, Inc.*+ 61,507 949,668
NiSource, Inc.+ 38,163 925,453
CMS Energy Corp.*+ 55,280 909,356
Westar Energy, Inc.+ 37,592 907,095
Oneok, Inc.+ 26,578 904,184
TECO Energy, Inc.+ 49,072 884,277
Atmos Energy Corp. 31,061 877,473
MDU Resources Group, Inc. 23,757 846,937
Aqua America, Inc. 21,915 833,208
NSTAR+ 27,130 784,600
SCANA Corp. 18,350 775,104
Vectren Corp. 27,288 773,615
Energen Corp. 17,740 767,432
AGL Resources, Inc. 20,499 760,718
NorthWestern Corp. 24,790 748,410
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
UGI Corp. 26,052 $ 733,364
Duquesne Light Holdings, Inc.+ 42,465 730,823
NRG Energy, Inc.*+ 17,011 724,669
DPL, Inc.+ 25,709 714,710
Southern Union Co.* 27,615 711,639
Energy East Corp.+ 27,867 701,970
Cleco Corp. 29,418 693,676
Equitable Resources, Inc. 16,948 661,989
Northwest Natural Gas Co. 17,710 659,166
Sierra Pacific Resources*+ 44,014 653,608
Hawaiian Electric Industries, Inc. 21,614 602,598
OGE Energy Corp.+ 20,095 564,670
Black Hills Corp.+ 12,955 561,858
Southwest Gas Corp. 19,860 543,965
National Fuel Gas Co. 14,230 486,666
Puget Energy, Inc.+ 20,510 481,575
New Jersey Resources Corp. 10,385 477,502
WGL Holdings, Inc. 14,130 453,997
Avista Corp. 23,183 449,750
PNM Resources, Inc.+ 15,097 432,831
El Paso Electric Co.* 20,490 427,217
Unisource Energy Corp. 11,821 392,930
Aquila, Inc.* 98,588 390,409
Calpine Corp.*+ 142,449 368,943
Allete, Inc.+ 7,625 349,301
Dynegy, Inc. -- Class A*+ 71,380 336,200
Laclede Group, Inc. 10,053 326,622
IDACORP, Inc.+ 9,268 279,245
Alliant Energy Corp. 9,200 267,996
American States Water Co. 7,660 256,304
Progress Energy, Inc.+ 5,019 224,600
Green Mountain Power Corp. 5,220 171,895
Empire District Electric Co. 6,400 146,368
Northeast Utilities 7,100 141,645
KeySpan Corp. 3,740 137,557
South Jersey Industries, Inc. 2,900 84,506
Otter Tail Power Co. 2,716 84,033
Great Plains Energy, Inc. 2,461 73,609
SJW Corp. 900 43,452
UIL Holding Corp. 489 25,580
Connecticut Water Service, Inc. 1,025 25,338
EnergySouth, Inc. 636 17,547
------------
TOTAL COMMON STOCKS
(Cost $62,567,870) 73,379,793
------------
46 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
UTILITIES FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 0.5%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 348,632 $ 348,632
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $348,632) 348,632
------------
SECURITIES LENDING COLLATERAL 22.5%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 16,649,917 16,649,917
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $16,649,917) 16,649,917
------------
TOTAL INVESTMENTS 122.4%
(Cost $79,566,419) $ 90,378,342
============
LIABILITIES IN EXCESS OF
OTHER ASSETS - (22.4)% $(16,547,011)
============
NET ASSETS - 100.0% $ 73,831,331
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 47
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
- --------------------------------------------------------------------------------
BASIC BIO-
BANKING MATERIALS TECHNOLOGY COMMODITIES
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 15,569,131 $ 39,883,084 $ 187,993,022 $ 20,635,225
Segregated Cash with Broker -- -- -- 2,193,050
Receivable for Equity Index Swap Settlement (Note 1) -- -- -- 595,523
Receivable for Securities Sold (Note 1) 137,535 -- -- --
Receivable for Shares Purchased 1,205,517 1,138,670 1,417,955 1,341,045
Investment Income Receivable (Note 1) 16,324 38,534 11,305 5,581
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 16,928,507 41,060,288 189,422,282 24,770,424
==============================================================================================================================
LIABILITIES
Payable for Futures Contracts Settlement (Note 1) -- -- -- 21,000
Payable upon Return of Securities Loaned (Note 8) 1,499,704 4,044,558 24,705,453 --
Payable for Securities Purchased (Note 1) 964,453 728,083 -- --
Liability for Shares Redeemed 422,079 209,686 1,380,555 112,863
Investment Advisory Fees Payable (Note 3) 7,747 21,242 133,369 13,691
Transfer Agent and Administrative Fees Payable (Note 3) 2,279 6,248 39,226 4,564
Distribution and Service Fees Payable (Note 3) 825 3,021 6,071 1,856
Portfolio Accounting Fees Payable (Note 3) 911 2,499 15,690 1,825
Custody Fees Payable 219 644 4,045 438
Other Liabilities 1,153 3,015 19,173 2,203
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 2,899,370 5,018,996 26,303,582 158,440
==============================================================================================================================
NET ASSETS $ 14,029,137 $ 36,041,292 $ 163,118,700 $ 24,611,984
==============================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 57,779,495 $ 55,337,581 $ 313,717,649 $ 22,651,739
Undistributed Net Investment Income (Loss) 242,325 197,114 (950,312) 65,063
Accumulated Net Realized Gain (Loss) on Investments, Equity
Index Swaps and Futures Contracts (44,882,267) (23,948,685) (205,561,167) 1,019,009
Net Unrealized Appreciation (Depreciation) on Investments,
Equity Index Swaps, and Futures Contracts 889,584 4,455,282 55,912,530 876,173
==============================================================================================================================
NET ASSETS $ 14,029,137 $ 36,041,292 $ 163,118,700 $ 24,611,984
==============================================================================================================================
Investor Class $ 9,927,034 $ 15,701,830 $ 124,936,097 N/A
Advisor Class 1,692,249 9,003,370 30,913,649 N/A
A-Class 29,134 249,620 750,132 $ 1,124,246
C-Class 2,380,720 11,086,472 6,518,822 2,268,489
H-Class N/A N/A N/A 21,219,249
SHARES OUTSTANDING
Investor Class 972,875 527,904 5,773,621 N/A
Advisor Class 173,803 312,481 1,489,396 N/A
A-Class 2,987 8,636 36,072 35,446
C-Class 246,553 390,220 315,545 71,749
H-Class N/A N/A N/A 669,188
NET ASSET VALUES
Investor Class $ 10.20 $ 29.74 $ 21.64 N/A
Advisor Class 9.74 28.81 20.76 N/A
A-Class 9.76 28.91 20.80 $ 31.72
A-Class Maximum Offering Price** 10.25 30.35 21.84 33.30
C-Class 9.66 28.41 20.66 31.62
H-Class N/A N/A N/A 31.71
* THE COST OF SECURITIES AT VALUE IS $14,679,547, $35,427,802, $132,080,492,
$20,635,225, $24,133,864, $29,854,498, $176,853,490, $180,209,932,
$26,302,984, $97,991,534, $12,268,718, AND $13,327,451, RESPECTIVELY.
** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
48 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
September 30, 2005
- --------------------------------------------------------------------------------
CONSUMER ENERGY
PRODUCTS ELECTRONICS ENERGY SERVICES
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 27,535,290 $ 43,945,237 $236,329,460 $236,846,650
Segregated Cash with Broker -- -- -- --
Receivable for Equity Index Swap Settlement (Note 1) -- -- -- --
Receivable for Securities Sold (Note 1) -- -- 1,029,136 --
Receivable for Shares Purchased 159,749 1,065,474 6,428,395 1,670,842
Investment Income Receivable (Note 1) 58,167 1,864 66,248 60,481
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 27,753,206 45,012,575 243,853,239 238,577,973
===========================================================================================================================
LIABILITIES
Payable for Futures Contracts Settlement (Note 1) -- -- -- --
Payable upon Return of Securities Loaned (Note 8) 3,292,068 7,884,762 29,424,576 44,624,941
Payable for Securities Purchased (Note 1) -- 611,656 -- --
Liability for Shares Redeemed 72,860 405,290 8,114,761 2,332,199
Investment Advisory Fees Payable (Note 3) 20,498 32,599 140,762 135,529
Transfer Agent and Administrative Fees Payable (Note 3) 6,029 9,588 41,400 39,862
Distribution and Service Fees Payable (Note 3) 2,680 2,900 11,843 10,428
Portfolio Accounting Fees Payable (Note 3) 2,412 3,835 16,560 15,945
Custody Fees Payable 585 986 4,804 4,158
Other Liabilities 2,990 4,684 20,250 19,384
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 3,400,122 8,956,300 37,774,956 47,182,446
===========================================================================================================================
NET ASSETS $ 24,353,084 $ 36,056,275 $206,078,283 $191,395,527
===========================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 38,555,683 $191,674,037 $147,649,571 $213,767,749
Undistributed Net Investment Income (Loss) 204,486 (280,327) 174,756 (737,818)
Accumulated Net Realized Gain (Loss) on Investments, Equity
Index Swaps and Futures Contracts (17,808,511) (169,428,174) (1,222,014) (78,271,122)
Net Unrealized Appreciation (Depreciation) on Investments,
Equity Index Swaps, and Futures Contracts 3,401,426 14,090,739 59,475,970 56,636,718
===========================================================================================================================
NET ASSETS $ 24,353,084 $ 36,056,275 $206,078,283 $191,395,527
===========================================================================================================================
Investor Class $ 6,018,602 $ 16,669,089 $139,369,646 $134,073,766
Advisor Class 15,027,828 16,217,483 32,816,569 33,566,758
A-Class 1,133,714 680,259 7,175,384 2,306,765
C-Class 2,172,940 2,489,444 26,716,684 21,448,238
H-Class N/A N/A N/A N/A
SHARES OUTSTANDING
Investor Class 194,363 1,434,187 6,436,051 3,457,224
Advisor Class 501,207 1,450,213 1,562,418 894,881
A-Class 37,723 60,683 340,752 61,296
C-Class 73,272 224,245 1,289,716 577,577
H-Class N/A N/A N/A N/A
NET ASSET VALUES
Investor Class $ 30.97 $ 11.62 $ 21.65 $ 38.78
Advisor Class 29.98 11.18 21.00 37.51
A-Class 30.05 11.21 21.06 37.63
A-Class Maximum Offering Price** 31.55 11.77 22.11 39.51
C-Class 29.66 11.10 20.72 37.13
H-Class N/A N/A N/A N/A
FINANCIAL HEALTH
SERVICES CARE INTERNET LEISURE
FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 27,592,375 $110,636,696 $ 14,700,572 $ 15,335,261
Segregated Cash with Broker -- -- -- --
Receivable for Equity Index Swap Settlement (Note 1) -- -- -- --
Receivable for Securities Sold (Note 1) 1,827,055 705,781 28,703 2,845,159
Receivable for Shares Purchased 199,946 97,709 5,967,523 169,123
Investment Income Receivable (Note 1) 49,328 23,404 26 4,786
- --------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 29,668,704 111,463,590 20,696,824 18,354,329
==========================================================================================================================
LIABILITIES
Payable for Futures Contracts Settlement (Note 1) -- -- -- --
Payable upon Return of Securities Loaned (Note 8) 4,587,778 17,121,943 1,299,546 1,556,276
Payable for Securities Purchased (Note 1) -- -- 5,894,040 --
Liability for Shares Redeemed 2,193,892 831,502 95,312 3,051,786
Investment Advisory Fees Payable (Note 3) 18,386 71,173 6,609 10,234
Transfer Agent and Administrative Fees Payable (Note 3) 5,408 20,933 1,944 3,010
Distribution and Service Fees Payable (Note 3) 2,568 5,094 675 1,455
Portfolio Accounting Fees Payable (Note 3) 2,163 8,373 777 1,204
Custody Fees Payable 565 2,010 193 289
Other Liabilities 2,679 10,392 1,014 1,538
- --------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 6,813,439 18,071,420 7,300,110 4,625,792
==========================================================================================================================
NET ASSETS $ 22,855,265 $ 93,392,170 $ 13,396,714 $ 13,728,537
==========================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 66,522,847 $117,285,327 $ 50,014,786 $ 32,439,270
Undistributed Net Investment Income (Loss) 381,209 (278,066) (100,347) (176,630)
Accumulated Net Realized Gain (Loss) on Investments, Equity
Index Swaps and Futures Contracts (45,338,182) (36,260,253) (38,949,579) (20,541,913)
Net Unrealized Appreciation (Depreciation) on Investments,
Equity Index Swaps, and Futures Contracts 1,289,391 12,645,162 2,431,854 2,007,810
==========================================================================================================================
NET ASSETS $ 22,855,265 $ 93,392,170 $ 13,396,714 $ 13,728,537
==========================================================================================================================
Investor Class $ 6,065,655 $ 63,243,211 $ 8,762,142 $ 3,978,281
Advisor Class 14,161,240 22,506,029 2,859,825 8,795,640
A-Class 478,643 657,401 86,728 18,169
C-Class 2,149,727 6,985,529 1,688,019 936,447
H-Class N/A N/A N/A N/A
SHARES OUTSTANDING
Investor Class 501,044 4,566,653 242,048 139,111
Advisor Class 1,201,223 1,689,916 81,401 320,637
A-Class 40,543 49,299 2,463 662
C-Class 184,782 529,016 48,718 34,165
H-Class N/A N/A N/A N/A
NET ASSET VALUES
Investor Class $ 12.11 $ 13.85 $ 36.20 $ 28.60
Advisor Class 11.79 13.32 35.13 27.43
A-Class 11.81 13.33 35.21 27.47
A-Class Maximum Offering Price** 12.40 13.99 36.97 28.84
C-Class 11.63 13.20 34.65 27.41
H-Class N/A N/A N/A N/A
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 49
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
PRECIOUS REAL
METALS ESTATE RETAILING TECHNOLOGY
FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 294,864,281 $ 30,036,575 $ 18,027,393 $ 49,047,730
Cash in Custodian Bank -- -- -- --
Receivable for Securities Sold (Note 1) 23,825,284 189,390 2,041,455 --
Receivable for Shares Purchased 1,757,127 3,093,783 11,668 14,718
Investment Income Receivable (Note 1) -- 88,353 7,495 7,110
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 320,446,692 33,408,101 20,088,011 49,069,558
=============================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 63,821,777 2,151,769 3,361,109 8,009,141
Payable for Securities Purchased (Note 1) 14,362,583 343,774 -- --
Liability for Shares Redeemed 7,341,091 2,933,656 2,088,522 192,261
Investment Advisory Fees Payable (Note 3) 136,378 20,082 13,219 30,946
Transfer Agent and Administrative Fees Payable (Note 3) 45,459 5,906 3,888 9,102
Distribution and Service Fees Payable (Note 3) 7,131 2,321 1,475 3,618
Portfolio Accounting Fees Payable (Note 3) 18,184 2,363 1,555 3,641
Custody Fees Payable 4,378 802 417 874
Cash Payable to Custodian Bank 385,584 -- -- --
Other Liabilities 25,093 2,959 1,823 4,411
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 86,147,658 5,463,632 5,472,008 8,253,994
=============================================================================================================================
NET ASSETS $ 234,299,034 $ 27,944,469 $ 14,616,003 $ 40,815,564
=============================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 258,918,558 $ 26,318,480 $ 49,790,060 $ 117,969,662
Undistributed Net Investment Income (Loss) (186,602) 379,122 (123,625) (79,740)
Accumulated Net Realized Gain (Loss) on Investments (106,278,913) (1,927,184) (38,059,324) (84,321,823)
Net Unrealized Appreciation (Depreciation) on Investments 81,845,991 3,174,051 3,008,892 7,247,465
=============================================================================================================================
NET ASSETS $ 234,299,034 $ 27,944,469 $ 14,616,003 $ 40,815,564
=============================================================================================================================
Investor Class $ 201,252,047 N/A $ 6,463,583 $ 16,198,825
Advisor Class 8,929,344 N/A 5,563,750 20,863,324
A-Class 1,899,737 $ 233,093 144,812 883,764
C-Class 22,217,906 3,941,939 2,443,858 2,869,651
H-Class N/A 23,769,437 N/A N/A
SHARES OUTSTANDING
Investor Class 4,861,640 N/A 536,686 1,426,398
Advisor Class 217,847 N/A 475,031 1,895,413
A-Class 46,237 7,258 12,350 80,201
C-Class 559,430 124,110 212,505 262,771
H-Class N/A 739,833 N/A N/A
NET ASSET VALUES
Investor Class $ 41.40 N/A $ 12.04 $ 11.36
Advisor Class 40.99 N/A 11.71 11.01
A-Class 41.09 $ 32.11 11.73 11.02
A-Class Maximum Offering Price** 43.14 33.71 12.31 11.57
C-Class 39.72 31.76 11.50 10.92
H-Class N/A 32.13 N/A N/A
* THE COST OF SECURITIES AT VALUE IS $213,018,290, $26,862,524, $15,018,501,
$41,800,265, $11,191,589, $15,188,765, AND $79,566,419, RESPECTIVELY.
** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
50 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
September 30, 2005
- --------------------------------------------------------------------------------
TELECOM-
MUNICATIONS TRANSPORTATION UTILITIES
FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $ 14,453,804 $ 17,817,258 $ 90,378,342
Cash in Custodian Bank 86 -- --
Receivable for Securities Sold (Note 1) 355,403 112,127 2,394,561
Receivable for Shares Purchased 266,630 3,023,184 3,302,369
Investment Income Receivable (Note 1) 9,013 10,968 154,457
- -----------------------------------------------------------------------------------------------------------
TOTAL ASSETS 15,084,936 20,963,537 96,229,729
===========================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 2,631,466 956,441 16,649,917
Payable for Securities Purchased (Note 1) -- 2,937,383 --
Liability for Shares Redeemed 726,325 269,072 5,660,706
Investment Advisory Fees Payable (Note 3) 9,082 8,540 52,390
Transfer Agent and Administrative Fees Payable (Note 3) 2,671 2,512 15,409
Distribution and Service Fees Payable (Note 3) 845 638 4,585
Portfolio Accounting Fees Payable (Note 3) 1,069 1,005 6,164
Custody Fees Payable 289 241 1,479
Cash Payable to Custodian Bank -- -- --
Other Liabilities 1,332 1,281 7,748
- -----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 3,373,079 4,177,113 22,398,398
===========================================================================================================
NET ASSETS $ 11,711,857 $ 16,786,424 $ 73,831,331
===========================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 50,088,612 $ 35,495,993 $ 73,152,872
Undistributed Net Investment Income (Loss) 205,980 (36,343) 757,249
Accumulated Net Realized Gain (Loss) on Investments (41,844,950) (21,301,719) (10,890,713)
Net Unrealized Appreciation (Depreciation) on Investments 3,262,215 2,628,493 10,811,923
===========================================================================================================
NET ASSETS $ 11,711,857 $ 16,786,424 $ 73,831,331
===========================================================================================================
Investor Class $ 6,638,552 $ 11,638,793 $ 47,720,347
Advisor Class 3,145,194 4,175,692 14,540,504
A-Class 2,483 178,798 2,040,974
C-Class 1,925,628 793,141 9,529,506
H-Class N/A N/A N/A
SHARES OUTSTANDING
Investor Class 408,859 512,315 1,751,263
Advisor Class 200,089 193,927 550,096
A-Class 158 8,280 77,019
C-Class 123,619 36,229 369,543
H-Class N/A N/A N/A
NET ASSET VALUES
Investor Class $ 16.24 $ 22.72 $ 27.25
Advisor Class 15.72 21.53 26.43
A-Class 15.74 21.60 26.50
A-Class Maximum Offering Price** 16.52 22.68 27.82
C-Class 15.58 21.89 25.79
H-Class N/A N/A N/A
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 51
STATEMENTS OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
BASIC BIO-
BANKING MATERIALS TECHNOLOGY COMMODITIES
FUND FUND FUND FUND***
- --------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 803 $ 1,748 $ 13,019 $ 122,992
Interest from Securities Lending, net (Note 8) 391 2,846 21,258 --
Dividends, Net of Foreign Tax Withheld* (Note 1) 155,879 310,136 20,438 --
Other Income -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME 157,073 314,730 54,715 122,992
- --------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 46,281 140,795 606,586 27,688
Transfer Agent and Administrative Fees (Note 3) 13,612 41,410 178,408 9,229
Distribution & Service Fees (Note 3):
Advisor Class 6,599 17,250 45,647 --
A-Class 39 229 627 324
C-Class 7,242 26,328 25,465 4,045
H-Class -- -- -- 7,894
Portfolio Accounting Fees (Note 3) 5,445 16,564 71,363 3,692
Registration Fees 3,074 5,846 22,023 261
Trustees' Fees** 291 708 2,819 47
Miscellaneous 1,941 9,770 52,089 4,749
- --------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 84,524 258,900 1,005,027 57,929
- --------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 72,549 55,830 (950,312) 65,063
==========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (445,718) (1,383,039) (756,484) --
Equity Index Swaps -- -- -- 848,567
Futures Contracts -- -- -- 170,442
- --------------------------------------------------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN (LOSS) (445,718) (1,383,039) (756,484) 1,019,009
- --------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 327,859 (1,402,988) 28,602,132 --
Equity Index Swaps -- -- -- 821,551
Futures Contracts -- -- -- 54,622
- --------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 327,859 (1,402,988) 28,602,132 876,173
- --------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (117,859) (2,786,027) 27,845,648 1,895,182
- --------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (45,310) $ (2,730,197) $ 26,895,336 $ 1,960,245
==========================================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $1,113, $2,443, $0, $0, $272, $511,
$50,737, $0, $5,882, $1,413, $0, AND $0, RESPECTIVELY.
** RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(A)(19) OF THE 1940 ACT.
*** SINCE THE COMMENCEMENT OF OPERATIONS: MAY 25, 2005.
52 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
Period Ended September 30, 2005
- --------------------------------------------------------------------------------
CONSUMER ENERGY
PRODUCTS ELECTRONICS ENERGY SERVICES
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 2,878 $ 4,776 $ 14,554 $ 14,441
Interest from Securities Lending, net (Note 8) 2,077 4,021 56,062 8,984
Dividends, Net of Foreign Tax Withheld* (Note 1) 387,530 93,104 1,125,564 277,414
Other Income -- 2,758 -- --
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME 392,485 104,659 1,196,180 300,839
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 175,759 218,488 723,717 583,788
Transfer Agent and Administrative Fees (Note 3) 51,694 64,261 212,858 171,702
Distribution & Service Fees (Note 3):
Advisor Class 55,748 38,679 62,046 66,982
A-Class 1,230 16 3,899 979
C-Class 23,523 11,447 115,837 71,745
H-Class -- -- -- --
Portfolio Accounting Fees (Note 3) 20,678 25,704 85,143 68,681
Registration Fees 6,853 9,624 29,711 15,324
Trustees' Fees** 779 1,126 3,575 2,304
Miscellaneous 11,032 15,641 55,877 57,152
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 347,296 384,986 1,292,663 1,038,657
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 45,189 (280,327) (96,483) (737,818)
===========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 183,603 1,445,133 11,876,170 2,708,954
Equity Index Swaps -- -- -- --
Futures Contracts -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN (LOSS) 183,603 1,445,133 11,876,170 2,708,954
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (518,215) 3,707,819 25,052,478 30,722,220
Equity Index Swaps -- -- -- --
Futures Contracts -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (518,215) 3,707,819 25,052,478 30,722,220
- ---------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (334,612) 5,152,952 36,928,648 33,431,174
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (289,423) $ 4,872,625 $ 36,832,165 $ 32,693,356
===========================================================================================================================
FINANCIAL HEALTH
SERVICES CARE INTERNET LEISURE
FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 2,581 $ 10,039 $ 1,389 $ 2,348
Interest from Securities Lending, net (Note 8) 9,662 5,071 3,500 14,780
Dividends, Net of Foreign Tax Withheld* (Note 1) 452,529 480,906 14,764 70,201
Other Income -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME 464,772 496,016 19,653 87,329
- -------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 153,770 448,024 67,929 132,167
Transfer Agent and Administrative Fees (Note 3) 45,226 131,772 19,979 38,873
Distribution & Service Fees (Note 3):
Advisor Class 63,493 52,625 7,544 53,382
A-Class 446 559 81 17
C-Class 12,800 36,437 9,274 10,563
H-Class -- -- -- --
Portfolio Accounting Fees (Note 3) 18,091 52,719 7,992 15,549
Registration Fees 8,518 14,319 2,530 6,048
Trustees' Fees** 971 1,777 257 711
Miscellaneous 8,260 35,850 4,414 6,649
- -------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 311,575 774,082 120,000 263,959
- -------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 153,197 (278,066) (100,347) (176,630)
=========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 1,195,786 2,767,214 325,562 (232,251)
Equity Index Swaps -- -- -- --
Futures Contracts -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN (LOSS) 1,195,786 2,767,214 325,562 (232,251)
- -------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 1,165,472 4,212,059 123,566 (1,270,809)
Equity Index Swaps -- -- -- --
Futures Contracts -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 1,165,472 4,212,059 123,566 (1,270,809)
- -------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 2,361,258 6,979,273 449,128 (1,503,060)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 2,514,455 $ 6,701,207 $ 348,781 $ (1,679,690)
=========================================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 53
STATEMENTS OF OPERATIONS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
PRECIOUS REAL
METALS ESTATE RETAILING TECHNOLOGY
FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 15,170 $ 3,235 $ 2,265 $ 4,079
Interest from Securities Lending, net (Note 8) 102,631 9,930 2,633 1,766
Dividends, Net of Foreign Tax Withheld* (Note 1) 911,957 693,290 85,756 75,537
Other Income -- -- 458 38,177
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME 1,029,758 706,455 91,112 119,559
- -------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 687,373 173,602 114,010 182,331
Transfer Agent and Administrative Fees (Note 3) 229,125 51,060 33,532 53,627
Distribution & Service Fees (Note 3):
Advisor Class 18,034 -- 26,393 41,808
A-Class 770 626 115 65
C-Class 94,538 13,767 13,801 11,118
H-Class -- 46,991 -- --
Portfolio Accounting Fees (Note 3) 91,650 20,424 13,413 21,451
Registration Fees 29,743 6,395 4,218 8,538
Trustees' Fees** 3,531 976 592 958
Miscellaneous 61,596 13,492 8,663 12,065
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 1,216,360 327,333 214,737 331,961
- -------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (186,602) 379,122 (123,625) (212,402)
===============================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities (9,300,468) 892,941 (522,410) 339,252
- -------------------------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) (9,300,468) 892,941 (522,410) 339,252
- -------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 39,852,116 1,789,164 (272,237) 2,179,806
- -------------------------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 39,852,116 1,789,164 (272,237) 2,179,806
- -------------------------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 30,551,648 2,682,105 (794,647) 2,519,058
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 30,365,046 $ 3,061,227 $ (918,272) $ 2,306,656
===============================================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $30,014, $0, $0, $0, $5,992, $230, AND $0,
RESPECTIVELY.
** RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(A)(19) OF THE 1940 ACT.
54 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
Period Ended September 30, 2005
- --------------------------------------------------------------------------------
TELECOM-
MUNICATIONS TRANSPORTATION UTILITIES
FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 1,026 $ 990 $ 5,851
Interest from Securities Lending, net (Note 8) 3,119 7,525 13,437
Dividends, Net of Foreign Tax Withheld* (Note 1) 203,171 49,159 1,037,335
Other Income 39,894 -- 6,325
- -------------------------------------------------------------------------------------------------------------
TOTAL INCOME 247,210 57,674 1,062,948
- -------------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 64,473 52,106 274,334
Transfer Agent and Administrative Fees (Note 3) 18,963 15,325 80,686
Distribution & Service Fees (Note 3):
Advisor Class 6,921 9,633 28,889
A-Class 2 145 1,364
C-Class 8,360 4,397 40,513
H-Class -- -- --
Portfolio Accounting Fees (Note 3) 7,585 6,130 32,274
Registration Fees 6,137 3,630 7,978
Trustees' Fees** 551 378 1,187
Miscellaneous 602 2,273 23,491
- -------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 113,594 94,017 490,716
- -------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 133,616 (36,343) 572,232
=============================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 767,629 487,117 277,062
- -------------------------------------------------------------------------------------------------------------
Total Net Realized Gain (Loss) 767,629 487,117 277,062
- -------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 448,670 (998,759) 7,513,537
- -------------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 448,670 (998,759) 7,513,537
- -------------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments 1,216,299 (511,642) 7,790,599
- -------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 1,349,915 $ (547,985) $ 8,362,831
=============================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 55
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
BASIC
BANKING FUND MATERIALS FUND
- ---------------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ---------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 72,549 $ 169,847 $ 55,830 $ 138,172
Net Realized Gain (Loss) on Investments (445,718) 2,175,903 (1,383,039) 1,098,535
Net Change in Unrealized Appreciation
(Depreciation) on Investments 327,859 (1,571,784) (1,402,988) 2,081,456
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (45,310) 773,966 (2,730,197) 3,318,163
- ---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- (154,276) -- --
Advisor Class -- (119,014) -- --
A-Class -- (753) -- --
C-Class -- (20,423) -- --
H-Class -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (294,466) -- --
=====================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 115,171,039 241,217,426 138,285,794 418,066,714
Advisor Class 11,774,655 75,431,191 22,466,053 92,089,560
A-Class* 51,260 35,445 223,390 606,462
C-Class 4,806,464 20,785,926 11,923,877 43,781,179
H-Class -- -- -- --
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT
Investor Class -- 143,776 -- --
Advisor Class -- 115,466 -- --
A-Class* -- 753 -- --
C-Class -- 19,988 -- --
H-Class -- -- -- --
COST OF SHARES REDEEMED
Investor Class (110,171,458) (249,711,598) (154,908,673) (415,397,485)
Advisor Class (13,023,744) (76,041,820) (25,800,985) (93,440,891)
A-Class* (37,207) (20,464) (170,099) (422,793)
C-Class (3,233,349) (21,764,204) (7,905,290) (42,485,938)
H-Class -- -- -- --
=====================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 5,337,660 (9,788,115) (15,885,933) 2,796,808
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 5,292,350 (9,308,615) (18,616,130) 6,114,971
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS--BEGINNING OF PERIOD 8,736,787 18,045,402 54,657,422 48,542,451
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 14,029,137 $ 8,736,787 $ 36,041,292 $ 54,657,422
=====================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 242,325 $ 169,776 $ 197,114 $ 141,284
=====================================================================================================================
BIOTECHNOLOGY
FUND
- --------------------------------------------------------------------------------
PERIOD PERIOD
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2005+ 2005
- --------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (950,312) $ (1,768,522)
Net Realized Gain (Loss) on Investments (756,484) (1,123,615)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 28,602,132 (21,683,061)
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 26,895,336 (24,575,198)
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- --
Advisor Class -- --
A-Class -- --
C-Class -- --
H-Class -- --
- --------------------------------------------------------------------------------
Total Distributions to Shareholders -- --
================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 299,238,106 939,296,748
Advisor Class 60,928,406 56,552,141
A-Class* 911,577 103,417
C-Class 14,843,610 30,771,978
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 (272,493,384) (980,867,566)
Advisor Class (42,848,819) (54,810,712)
A-Class* (323,484) (22,836)
C-Class (11,853,255) (30,522,525)
H-Class -- --
================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 48,402,757 (39,499,355)
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 75,298,093 (64,074,553)
- --------------------------------------------------------------------------------
NET ASSETS--BEGINNING OF PERIOD 87,820,607 151,895,160
- --------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 163,118,700 $ 87,820,607
================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ (950,312) $ --
================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
** SINCE THE COMMENCEMENT OF OPERATIONS: MAY 25, 2005 - COMMODITIES FUND
A-CLASS, C-CLASS, AND H-CLASS.
+ UNAUDITED
56 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
COMMODITIES CONSUMER
FUND PRODUCTS FUND
- ---------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD
ENDED ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, MARCH 31,
2005+** 2005+ 2005
- ---------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 65,063 $ 45,189 $ 159,299
Net Realized Gain (Loss) on Investments 1,019,009 183,603 (2,351,007)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 876,173 (518,215) 215,950
- ---------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 1,960,245 (289,423) (1,975,758)
- ---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- (3,974)
Advisor Class -- -- (6,521)
A-Class -- -- (12)
C-Class -- -- (2,810)
H-Class -- -- --
- ---------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- (13,317)
===================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class -- 71,158,631 345,364,944
Advisor Class -- 14,864,707 124,365,818
A-Class* 1,299,111 752,048 479,054
C-Class 3,551,575 65,556,226 57,863,269
H-Class 60,308,150 -- --
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT
Investor Class -- -- 3,756
Advisor Class -- -- 6,407
A-Class* -- -- 12
C-Class -- -- 2,134
H-Class -- -- --
COST OF SHARES REDEEMED
Investor Class -- (80,388,650) (351,675,844)
Advisor Class -- (26,991,480) (110,487,986)
A-Class* (268,383) (98,840) (18,752)
C-Class (1,486,597) (71,042,790) (54,257,308)
H-Class (40,752,117) -- --
===================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 22,651,739 (26,190,148) 11,645,504
- ---------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 24,611,984 (26,479,571) 9,656,429
- ---------------------------------------------------------------------------------------------------
NET ASSETS--BEGINNING OF PERIOD -- 50,832,655 41,176,226
- ---------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 24,611,984 $ 24,353,084 $ 50,832,655
===================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 65,063 $ 204,486 $ 159,297
===================================================================================================
ELECTRONICS ENERGY
FUND FUND
- --------------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- --------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (280,327) $ (384,665) $ (96,483) $ 317,744
Net Realized Gain (Loss) on Investments 1,445,133 (3,257,590) 11,876,170 9,188,986
Net Change in Unrealized Appreciation
(Depreciation) on Investments 3,707,819 (7,619,836) 25,052,478 25,563,323
- --------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 4,872,625 (11,262,091) 36,832,165 35,070,053
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- (34,949)
Advisor Class -- -- -- (7,337)
A-Class -- -- -- (35)
C-Class -- -- -- (4,183)
H-Class -- -- -- --
- --------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- -- (46,504)
====================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 286,538,834 789,501,056 447,721,038 849,279,981
Advisor Class 34,437,328 57,354,167 53,236,525 116,768,117
A-Class* 795,546 2,522 10,917,325 1,228,359
C-Class 5,665,341 18,919,451 55,902,520 73,091,678
H-Class -- -- -- --
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT
Investor Class -- -- -- 32,874
Advisor Class -- -- -- 7,117
A-Class* -- -- -- 35
C-Class -- -- -- 3,676
H-Class -- -- -- --
COST OF SHARES REDEEMED
Investor Class (300,159,667) (799,089,161) (445,534,576) (825,695,467)
Advisor Class (32,394,457) (46,786,342) (50,688,659) (101,748,850)
A-Class* (117,780) (1,672) (5,400,930) (550,655)
C-Class (5,465,453) (17,405,528) (52,405,519) (65,208,344)
H-Class -- -- -- --
====================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (10,700,308) 2,494,493 13,747,724 47,208,521
- --------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (5,827,683) (8,767,598) 50,579,889 82,232,070
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS--BEGINNING OF PERIOD 41,883,958 50,651,556 155,498,394 73,266,324
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 36,056,275 $ 41,883,958 $ 206,078,283 $ 155,498,394
====================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ (280,327) $ -- $ 174,756 $ 271,239
====================================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 57
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
ENERGY SERVICES FINANCIAL SERVICES
FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ----------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (737,818) $ (744,184) $ 153,197 $ 228,025
Net Realized Gain (Loss) on Investments 2,708,954 3,128,884 1,195,786 4,973,109
Net Change in Unrealized Appreciation
(Depreciation) on Investments 30,722,220 14,572,251 1,165,472 (6,409,510)
- ----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 32,693,356 16,956,951 2,514,455 (1,208,376)
- ----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- (62,675)
Advisor Class -- -- -- (191,382)
A-Class -- -- -- (150)
C-Class -- -- -- (13,028)
H-Class -- -- -- --
Realized Gain on Investment
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class -- -- -- --
C-Class -- -- -- --
H-Class -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- -- (267,235)
============================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 294,976,342 492,223,751 69,296,703 252,572,863
Advisor Class 61,173,188 116,589,502 21,290,928 84,180,268
A-Class* 2,373,267 832,467 447,538 36,285
C-Class 23,889,036 49,949,687 9,505,824 30,017,238
H-Class -- -- -- --
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT
Investor Class -- -- -- 53,649
Advisor Class -- -- -- 188,379
A-Class* -- -- -- 150
C-Class -- -- -- 12,484
H-Class -- -- -- --
COST OF SHARES REDEEMED
Investor Class (283,267,299) (451,801,558) (71,255,999) (278,559,637)
Advisor Class (58,508,082) (120,388,840) (36,230,321) (97,329,407)
A-Class* (607,856) (517,996) (2,960) (32,298)
C-Class (17,419,034) (43,230,251) (9,327,446) (30,597,571)
H-Class -- -- -- --
============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 22,609,562 43,656,762 (16,275,733) (39,457,597)
- ----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 55,302,918 60,613,713 (13,761,278) (40,933,208)
NET ASSETS--BEGINNING OF PERIOD 136,092,609 75,478,896 36,616,543 77,549,751
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 191,395,527 $ 136,092,609 $ 22,855,265 $ 36,616,543
============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ (737,818) $ -- $ 381,209 $ 228,012
============================================================================================================================
HEALTH CARE
FUND
- -----------------------------------------------------------------------------------
PERIOD PERIOD
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2005+ 2005
- -----------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (278,066) $ (348,826)
Net Realized Gain (Loss) on Investments 2,767,214 (3,249,304)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 4,212,059 730,774
- -----------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 6,701,207 (2,867,356)
- -----------------------------------------------------------------------------------
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 323,973,650 395,058,540
Advisor Class 43,540,661 78,074,909
A-Class* 896,205 28,151
C-Class 19,534,000 26,311,496
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 (300,824,357) (377,619,512)
Advisor Class (39,037,702) (87,657,299)
A-Class* (265,631) (27,800)
C-Class (17,155,586) (25,039,882)
H-Class -- --
===================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 30,661,240 9,128,603
- -----------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 37,362,447 6,261,247
NET ASSETS--BEGINNING OF PERIOD 56,029,723 49,768,476
- -----------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 93,392,170 $ 56,029,723
===================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ (278,066) $ --
===================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
+ UNAUDITED
58 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
INTERNET LEISURE
FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ----------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (100,347) $ (316,335) $ (176,630) $ (336,391)
Net Realized Gain (Loss) on Investments 325,562 (2,195,060) (232,251) (1,226,024)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 123,566 (3,701,725) (1,270,809) (431,887)
- ----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 348,781 (6,213,120) (1,679,690) (1,994,302)
- ----------------------------------------------------------------------------------------------------------------------------
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 125,882,934 491,707,297 58,222,725 332,169,247
Advisor Class 27,282,811 42,003,577 15,809,994 134,713,068
A-Class* 78,255 792,552 28,431 448,675
C-Class 4,122,656 16,336,597 7,518,345 47,880,936
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 (122,235,889) (497,370,417) (68,609,093) (341,874,154)
Advisor Class (25,506,836) (51,859,911) (34,010,009) (144,792,594)
A-Class* (4,074) (845,031) (22,056) (431,485)
C-Class (4,211,735) (15,849,814) (8,874,510) (47,759,570)
H-Class -- -- -- --
============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 5,408,122 (15,085,150) (29,936,173) (19,645,877)
- ----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 5,756,903 (21,298,270) (31,615,863) (21,640,179)
NET ASSETS--BEGINNING OF PERIOD 7,639,811 28,938,081 45,344,400 66,984,579
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 13,396,714 $ 7,639,811 $ 13,728,537 $ 45,344,400
============================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ (100,347) $ -- $ (176,630) $ --
============================================================================================================================
PRECIOUS REAL ESTATE
METALS FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ---------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (186,602) $ (408,654) $ 379,122 $ 842,346
Net Realized Gain (Loss) on Investments (9,300,468) (19,196,131) 892,941 (286,860)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 39,852,116 (41,721,258) 1,789,164 (195,704)
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 30,365,046 (61,326,043) 3,061,227 359,782
- ---------------------------------------------------------------------------------------------------------------------------
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 625,240,413 1,403,091,432 -- --
Advisor Class 28,613,192 112,779,045 -- --
A-Class* 1,831,593 377,850 1,026,948 535,354
C-Class 15,364,461 69,663,093 12,762,846 46,910,839
H-Class -- -- 357,372,432 989,759,317
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 (582,278,513) (1,453,961,718) -- --
Advisor Class (28,357,983) (104,957,896) -- --
A-Class* (347,942) (136,955) (930,953) (450,080)
C-Class (16,088,227) (62,643,258) (10,317,102) (53,068,353)
H-Class -- -- (344,581,401) (1,057,944,178)
===========================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 43,976,994 (35,788,407) 15,332,770 (74,057,500)
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 74,342,040 (97,114,450) 18,393,997 (73,927,133)
NET ASSETS--BEGINNING OF PERIOD 159,956,994 257,071,444 9,550,472 83,477,605
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 234,299,034 $ 159,956,994 $ 27,944,469 $ 9,550,472
===========================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ (186,602) $ -- $ 379,122 $ --
===========================================================================================================================
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 59
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
RETAILING TECHNOLOGY
FUND FUND
- --------------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- --------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (123,625) $ (136,529) $ (212,402) $ 132,662
Net Realized Gain (Loss) on Investments (522,410) 3,617,578 339,252 (4,711,370)
Net Change in Unrealized Appreciation
(Depreciation) on Investments (272,237) (3,842,246) 2,179,806 (3,517,771)
- --------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (918,272) (361,197) 2,306,656 (8,096,479)
- --------------------------------------------------------------------------------------------------------------------
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 144,133,447 278,778,445 110,724,489 570,657,640
Advisor Class 27,538,199 56,431,348 36,361,477 83,646,308
A-Class* 199,189 1,000 906,598 34,891
C-Class 3,932,263 16,601,681 20,720,060 65,412,312
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT
Investor Class -- -- -- --
Advisor Class -- -- -- --
A-Class* -- -- -- --
C-Class -- -- -- --
COST OF SHARES REDEEMED
Investor Class (144,706,005) (282,642,489) (109,184,371) (568,286,341)
Advisor Class (28,065,998) (65,873,104) (27,083,467) (89,332,490)
A-Class* (44,732) -- (36,200) (27,955)
C-Class (3,201,645) (17,149,592) (19,227,839) (64,866,870)
====================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (215,282) (13,852,711) 13,180,747 (2,762,505)
- --------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (1,133,554) (14,213,908) 15,487,403 (10,858,984)
NET ASSETS--BEGINNING OF PERIOD 15,749,557 29,963,465 25,328,161 36,187,145
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 14,616,003 $ 15,749,557 $ 40,815,564 $ 25,328,161
====================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ (123,625) $ -- $ (79,740) $ 132,662
====================================================================================================================
TELECOMMUNICATIONS
FUND
- --------------------------------------------------------------------------------
PERIOD PERIOD
ENDED ENDED
SEPTEMBER 30, MARCH 31,
2005+ 2005
- --------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ 133,616 $ 72,235
Net Realized Gain (Loss) on Investments 767,629 367,392
Net Change in Unrealized Appreciation
(Depreciation) on Investments 448,670 (2,754,260)
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations 1,349,915 (2,314,633)
- --------------------------------------------------------------------------------
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 84,838,432 212,586,902
Advisor Class 18,994,932 27,053,362
A-Class* 3,711 10,943
C-Class 7,891,281 18,111,398
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT
Investor Class -- --
Advisor Class -- --
A-Class* -- --
C-Class -- --
COST OF SHARES REDEEMED
Investor Class (85,116,594) (219,368,950)
Advisor Class (18,016,462) (32,141,180)
A-Class* (4,067) (8,718)
C-Class (7,940,511) (19,634,453)
================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 650,722 (13,390,696)
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 2,000,637 (15,705,329)
NET ASSETS--BEGINNING OF PERIOD 9,711,220 25,416,549
- --------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 11,711,857 $ 9,711,220
================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 205,980 $ 72,364
================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
+ UNAUDITED
60 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
TRANSPORTATION UTILITIES
FUND FUND
- -------------------------------------------------------------------------------------------------------------------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- -------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income (Loss) $ (36,343) $ (253,904) $ 572,232 $ 662,681
Net Realized Gain (Loss) on Investments 487,117 (1,759,210) 277,062 3,105,892
Net Change in Unrealized Appreciation
(Depreciation) on Investments (998,759) 2,986,695 7,513,537 292,684
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
from Operations (547,985) 973,581 8,362,831 4,061,257
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Net Investment Income
Investor Class -- -- -- (295,855)
Advisor Class -- -- -- (195,078)
A-Class -- -- -- (939)
C-Class -- -- -- (58,131)
- -------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- -- -- (550,003)
===================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
Investor Class 84,163,382 308,076,952 299,210,908 311,376,615
Advisor Class 18,251,833 100,497,315 61,951,279 82,899,027
A-Class* 198,907 124,382 2,499,760 1,075,906
C-Class 939,116 15,606,807 19,099,776 39,229,707
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT
Investor Class -- -- -- 252,599
Advisor Class -- -- -- 192,671
A-Class* -- -- -- 543
C-Class -- -- -- 47,970
COST OF SHARES REDEEMED
Investor Class (80,128,891) (303,670,749) (274,999,923) (315,309,228)
Advisor Class (19,584,818) (100,250,537) (56,937,149) (76,634,420)
A-Class* (47,920) (103,024) (732,783) (949,299)
C-Class (1,924,430) (14,519,697) (15,464,650) (39,041,149)
===================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 1,867,179 5,761,449 34,627,218 3,140,942
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 1,319,194 6,735,030 42,990,049 6,652,196
NET ASSETS--BEGINNING OF PERIOD 15,467,230 8,732,200 30,841,282 24,189,086
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 16,786,424 $ 15,467,230 $ 73,831,331 $ 30,841,282
===================================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ (36,343) $ -- $ 757,249 $ 185,017
===================================================================================================================
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 61
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
BANKING FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ $ 10.17 $ .08 $ (.05) $ .03 $ -- $ --
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
SEPTEMBER 30, 2005@ 9.72 .06 (.04) .02 -- --
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
SEPTEMBER 30, 2005@ 9.72 .07 (.03) .04 -- --
March 31, 2005* 10.06 .06 (.14) (.08) (.26) --
BANKING FUND C-CLASS
SEPTEMBER 30, 2005@ 9.66 .03 (.03) -- -- --
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
SEPTEMBER 30, 2005@ 30.66 .08 (1.00) (.92) -- --
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
SEPTEMBER 30, 2005@ 29.78 .02 (.99) (.97) -- --
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
SEPTEMBER 30, 2005@ 29.84 .08 (1.01) (.93) -- --
March 31, 2005* 25.80 .07 3.97 4.04 -- --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ---------------------------------------------------------------------------------------------------
BANKING FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ $ -- $ .03 $ 10.20 0.29%
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
SEPTEMBER 30, 2005@ -- .02 9.74 0.21%
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
SEPTEMBER 30, 2005@ -- .04 9.76 0.41%
March 31, 2005* (.26) (.34) 9.72 (0.95)%
BANKING FUND C-CLASS
SEPTEMBER 30, 2005@ -- -- 9.66 0.00%
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
SEPTEMBER 30, 2005@ -- (.92) 29.74 (3.00)%
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
SEPTEMBER 30, 2005@ -- (.97) 28.81 (3.26)%
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
SEPTEMBER 30, 2005@ -- (.93) 28.91 (3.12)%
March 31, 2005* -- 4.04 29.84 15.66%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000's
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- ------------------------------------------------------------------------------------------------------------
BANKING FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ 1.31%** 1.31%** 1.54%** 882% $ 9,927
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
SEPTEMBER 30, 2005@ 1.81%** 1.81%** 1.26%** 882% 1,692
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
SEPTEMBER 30, 2005@ 1.57%** 1.57%** 1.38%** 882% 29
March 31, 2005* 1.57%** 1.57%** 1.03%** 1,692% 15
BANKING FUND C-CLASS
SEPTEMBER 30, 2005@ 2.36%** 2.36%** 0.64%** 882% 2,381
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
SEPTEMBER 30, 2005@ 1.31%** 1.31%** 0.56%** 376% 15,702
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
SEPTEMBER 30, 2005@ 1.82%** 1.82%** 0.14%** 376% 9,003
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
SEPTEMBER 30, 2005@ 1.58%** 1.58%** 0.54%** 376% 250
March 31, 2005* 1.55%** 1.55%** 0.44%** 891% 210
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 30, 2001 -- BANKING 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.
@ UNAUDITED
62 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS FUND C-CLASS
SEPTEMBER 30, 2005@ $ 29.44 $ (.04) $ (.99) $ (1.03) $ -- $ --
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) --
BIOTECHNOLOGY FUND INVESTOR
CLASS
SEPTEMBER 30, 2005@ 17.59 (.12) 4.17 4.05 -- --
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
SEPTEMBER 30, 2005@ 16.91 (.17) 4.02 3.85 -- --
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
SEPTEMBER 30, 2005@ 16.93 (.15) 4.02 3.87 -- --
March 31, 2005* 17.89 (.16) (.80) (.96) -- --
BIOTECHNOLOGY FUND C-CLASS
SEPTEMBER 30, 2005@ 16.87 (.22) 4.01 3.79 -- --
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 -- -- -- -- --
COMMODITIES FUND A-CLASS
SEPTEMBER 30, 2005*@ 25.00 .19 6.53 6.72 -- --
COMMODITIES FUND C-CLASS
SEPTEMBER 30, 2005*@ 25.00 .11 6.51 6.62 -- --
COMMODITIES FUND H-CLASS
SEPTEMBER 30, 2005*@ 25.00 .20 6.51 6.71 -- --
CONSUMER PRODUCTS FUND
INVESTOR CLASS
SEPTEMBER 30, 2005@ 30.50 .11 .36 .47 -- --
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) -- --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ----------------------------------------------------------------------------------------------------
BASIC MATERIALS FUND C-CLASS
SEPTEMBER 30, 2005@ $ -- $ (1.03) $ 28.41 (3.50)%
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%
BIOTECHNOLOGY FUND INVESTOR
CLASS
SEPTEMBER 30, 2005@ -- 4.05 21.64 23.02%
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
SEPTEMBER 30, 2005@ -- 3.85 20.76 22.77%
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
SEPTEMBER 30, 2005@ -- 3.87 20.80 22.86%
March 31, 2005* -- (.96) 16.93 (5.37)%
BIOTECHNOLOGY FUND C-CLASS
SEPTEMBER 30, 2005@ -- 3.79 20.66 22.47%
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%
COMMODITIES FUND A-CLASS
SEPTEMBER 30, 2005*@ -- 6.72 31.72 26.88%
COMMODITIES FUND C-CLASS
SEPTEMBER 30, 2005*@ -- 6.62 31.62 26.48%
COMMODITIES FUND H-CLASS
SEPTEMBER 30, 2005*@ -- 6.71 31.71 26.84%
CONSUMER PRODUCTS FUND
INVESTOR CLASS
SEPTEMBER 30, 2005@ -- .47 30.97 1.54%
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)%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000's
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------
BASIC MATERIALS FUND C-CLASS
SEPTEMBER 30, 2005@ 2.36%** 2.36%** (0.27)%** 376% $ 11,086
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
BIOTECHNOLOGY FUND INVESTOR
CLASS
SEPTEMBER 30, 2005@ 1.32%** 1.32%** (1.24)%** 157% 124,936
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
SEPTEMBER 30, 2005@ 1.85%** 1.85%** (1.78)%** 157% 30,914
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
SEPTEMBER 30, 2005@ 1.59%** 1.59%** (1.52)%** 157% 750
March 31, 2005* 1.53%** 1.53%** (1.47)%** 585% 74
BIOTECHNOLOGY FUND C-CLASS
SEPTEMBER 30, 2005@ 2.34%** 2.34%** (2.27)%** 157% 6,519
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
COMMODITIES FUND A-CLASS
SEPTEMBER 30, 2005*@ 1.56%** 1.56%** 1.93%** -- 1,124
COMMODITIES FUND C-CLASS
SEPTEMBER 30, 2005*@ 2.30%** 2.30%** 1.10%** -- 2,268
COMMODITIES FUND H-CLASS
SEPTEMBER 30, 2005*@ 1.54%** 1.54%** 1.92%** -- 21,219
CONSUMER PRODUCTS FUND
INVESTOR CLASS
SEPTEMBER 30, 2005@ 1.29%** 1.29%** 0.72%** 373% 6,019
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
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 30, 2001 -- BIOTECHNOLOGY FUND
C-CLASS; MAY 3, 2001 -- BASIC MATERIALS FUND C-CLASS; SEPTEMBER 1, 2004 --
BIOTECHNOLOGY FUND A-CLASS; MAY 25, 2005 --COMMODITIES FUND A-CLASS,
C-CLASS AND H-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.
@ UNAUDITED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 63
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND ADVISOR
CLASS
SEPTEMBER 30, 2005@ $ 29.66 $ -- $ .32 $ .32 $ -- $ --
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
SEPTEMBER 30, 2005@ 29.69 .06 .30 .36 -- --
March 31, 2005* 27.42 .06 2.22 2.28 (.01) --
CONSUMER PRODUCTS FUND C-CLASS
SEPTEMBER 30, 2005@ 29.53 (.04) .17 .13 -- --
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) --
ELECTRONICS FUND INVESTOR
CLASS
SEPTEMBER 30, 2005@ 10.31 (.05) 1.36 1.31 -- --
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
SEPTEMBER 30, 2005@ 9.95 (.07) 1.30 1.23 -- --
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
SEPTEMBER 30, 2005@ 9.96 (.05) 1.30 1.25 -- --
March 31, 2005* 9.22 (.07) .81 .74 -- --
ELECTRONICS FUND C-CLASS
SEPTEMBER 30, 2005@ 9.90 (.10) 1.30 1.20 -- --
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) -- --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ----------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND ADVISOR
CLASS
SEPTEMBER 30, 2005@ $ -- $ .32 $ 29.98 1.08%
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
SEPTEMBER 30, 2005@ -- .36 30.05 1.21%
March 31, 2005* (.01) 2.27 29.69 8.33%
CONSUMER PRODUCTS FUND C-CLASS
SEPTEMBER 30, 2005@ -- .13 29.66 0.44%
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%
ELECTRONICS FUND INVESTOR
CLASS
SEPTEMBER 30, 2005@ -- 1.31 11.62 12.71%
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
SEPTEMBER 30, 2005@ -- 1.23 11.18 12.36%
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
SEPTEMBER 30, 2005@ -- 1.25 11.21 12.55%
March 31, 2005* -- .74 9.96 8.03%
ELECTRONICS FUND C-CLASS
SEPTEMBER 30, 2005@ -- 1.20 11.10 12.12%
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)%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000's
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------
CONSUMER PRODUCTS FUND ADVISOR
CLASS
SEPTEMBER 30, 2005@ 1.80%** 1.80%** 0.01%** 373% $ 15,028
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
SEPTEMBER 30, 2005@ 1.58%** 1.58%** 0.39%** 373% 1,134
March 31, 2005* 1.56%** 1.56%** 0.42%** 907% 463
CONSUMER PRODUCTS FUND C-CLASS
SEPTEMBER 30, 2005@ 2.31%** 2.31%** (0.25)%** 373% 2,173
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
ELECTRONICS FUND INVESTOR
CLASS
SEPTEMBER 30, 2005@ 1.31%** 1.31%** (0.92)%** 429% 16,669
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
SEPTEMBER 30, 2005@ 1.83%** 1.83%** (1.38)%** 429% 16,217
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
SEPTEMBER 30, 2005@ 1.58%** 1.58%** (1.16)%** 429% 680
March 31, 2005* 1.59%** 1.59%** (1.21)%** 1,106% 1
ELECTRONICS FUND C-CLASS
SEPTEMBER 30, 2005@ 2.34%** 2.34%** (1.87)%** 429% 2,489
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
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 26, 2001 -- ELECTRONICS FUND
C-CLASS; JULY 24, 2001 -- CONSUMER PRODUCTS FUND C-CLASS; SEPTEMBER 1,
2004 -- CONSUMER PRODUCTS FUND A-CLASS AND ELECTRONICS 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.
@ UNAUDITED
64 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ $ 17.12 $ .01 $ 4.52 $ 4.53 $ -- $ --
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
SEPTEMBER 30, 2005@ 16.65 (.03) 4.38 4.35 -- --
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
SEPTEMBER 30, 2005@ 16.68 (.03) 4.41 4.38 -- --
March 31, 2005* 12.79 .02 3.88 3.90 (.01) --
ENERGY FUND C-CLASS
SEPTEMBER 30, 2005@ 16.47 (.08) 4.33 4.25 -- --
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) --
ENERGY SERVICES FUND INVESTOR
CLASS
SEPTEMBER 30, 2005@ 30.12 (.15) 8.81 8.66 -- --
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
SEPTEMBER 30, 2005@ 29.21 (.22) 8.52 8.30 -- --
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
SEPTEMBER 30, 2005@ 29.25 (.19) 8.57 8.38 -- --
March 31, 2005* 23.18 (.18) 6.25 6.07 -- --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ----------------------------------------------------------------------------------------------------
ENERGY FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ $ -- $ 4.53 $ 21.65 26.46%
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
SEPTEMBER 30, 2005@ -- 4.35 21.00 26.13%
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
SEPTEMBER 30, 2005@ -- 4.38 21.06 26.26%
March 31, 2005* (.01) 3.89 16.68 30.46%
ENERGY FUND C-CLASS
SEPTEMBER 30, 2005@ -- 4.25 20.72 25.80%
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)%
ENERGY SERVICES FUND INVESTOR
CLASS
SEPTEMBER 30, 2005@ -- 8.66 38.78 28.75%
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
SEPTEMBER 30, 2005@ -- 8.30 37.51 28.41%
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
SEPTEMBER 30, 2005@ -- 8.38 37.63 28.65%
March 31, 2005* -- 6.07 29.25 26.19%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000's
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------
ENERGY FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ 1.32%** 1.32%** 0.09%** 240% $139,370
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
SEPTEMBER 30, 2005@ 1.83%** 1.83%** (0.39)%** 240% 32,817
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
SEPTEMBER 30, 2005@ 1.59%** 1.59%** (0.35)%** 240% 7,175
March 31, 2005* 1.45%** 1.45%** 0.19%** 546% 744
ENERGY FUND C-CLASS
SEPTEMBER 30, 2005@ 2.34%** 2.34%** (0.87)%** 240% 26,717
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
ENERGY SERVICES FUND INVESTOR
CLASS
SEPTEMBER 30, 2005@ 1.33%** 1.33%** (0.89)%** 152% 134,074
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
SEPTEMBER 30, 2005@ 1.83%** 1.83%** (1.37)%** 152% 33,567
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
SEPTEMBER 30, 2005@ 1.62%** 1.62%** (1.15)%** 152% 2,307
March 31, 2005* 1.53%** 1.53%** (1.13)%** 501% 313
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 19, 2001-- ENERGY FUND
C-CLASS; SEPTEMBER 1, 2004 -- ENERGY FUND A-CLASS AND ENERGY 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.
@ UNAUDITED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 65
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES FUND C-CLASS
SEPTEMBER 30, 2005@ $ 28.98 $ (.30) $ 8.45 $ 8.15 $ -- $ --
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
SEPTEMBER 30, 2005@ 11.40 .08 .63 .71 -- --
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
SEPTEMBER 30, 2005@ 11.13 .05 .61 .66 -- --
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
SEPTEMBER 30, 2005@ 11.13 .06 .62 .68 -- --
March 31, 2005* 10.75 .05 .41 .46 (.08) --
FINANCIAL SERVICES FUND
C-CLASS
SEPTEMBER 30, 2005@ 11.01 -- .62 .62 -- --
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) --
HEALTH CARE FUND INVESTOR
CLASS
SEPTEMBER 30, 2005@ 12.71 (.02) 1.16 1.14 -- --
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
SEPTEMBER 30, 2005@ 12.25 (.06) 1.13 1.07 -- --
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 -- --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ----------------------------------------------------------------------------------------------------
ENERGY SERVICES FUND C-CLASS
SEPTEMBER 30, 2005@ $ -- $ 8.15 $ 37.13 28.12%
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
SEPTEMBER 30, 2005@ -- .71 12.11 6.23%
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
SEPTEMBER 30, 2005@ -- .66 11.79 5.93%
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
SEPTEMBER 30, 2005@ -- .68 11.81 6.11%
March 31, 2005* (.08) .38 11.13 4.22%
FINANCIAL SERVICES FUND
C-CLASS
SEPTEMBER 30, 2005@ -- .62 11.63 5.63%
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)%
HEALTH CARE FUND INVESTOR
CLASS
SEPTEMBER 30, 2005@ -- 1.14 13.85 8.97%
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
SEPTEMBER 30, 2005@ -- 1.07 13.32 8.73%
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%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000's
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------
ENERGY SERVICES FUND C-CLASS
SEPTEMBER 30, 2005@ 2.35%** 2.35%** (1.88)%** 152% $ 21,448
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
SEPTEMBER 30, 2005@ 1.32%** 1.32%** 1.30%** 369% 6,066
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
SEPTEMBER 30, 2005@ 1.81%** 1.81%** 0.80%** 369% 14,161
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
SEPTEMBER 30, 2005@ 1.58%** 1.58%** 1.01%** 369% 479
March 31, 2005* 1.55%** 1.55%** 0.70%** 1,005% 5
FINANCIAL SERVICES FUND
C-CLASS
SEPTEMBER 30, 2005@ 2.32%** 2.32%** 0.04%** 369% 2,150
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
HEALTH CARE FUND INVESTOR
CLASS
SEPTEMBER 30, 2005@ 1.31%** 1.31%** (0.33)%** 287% 63,243
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
SEPTEMBER 30, 2005@ 1.83%** 1.83%** (0.94)%** 287% 22,506
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
* SINCE THE COMMENCEMENT OF OPERATIONS: MARCH 30, 2001-- ENERGY SERVICES
FUND C-CLASS; APRIL 19, 2001-- FINANCIAL SERVICES FUND C-CLASS; SEPTEMBER
1, 2004 -- 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 NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
@ UNAUDITED
66 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE FUND A-CLASS
SEPTEMBER 30, 2005@ $ 12.25 $ (.05) $ 1.13 $ 1.08 $ -- $ --
March 31, 2005* 11.65 (.05) .65 .60 -- --
HEALTH CARE FUND C-CLASS
SEPTEMBER 30, 2005@ 12.19 (.09) 1.10 1.01 -- --
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
SEPTEMBER 30, 2005@ 32.29 (.19) 4.10 3.91 -- --
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
SEPTEMBER 30, 2005@ 31.41 (.25) 3.97 3.72 -- --
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
SEPTEMBER 30, 2005@ 31.45 (.21) 3.97 3.76 -- --
March 31, 2005* 30.65 (.31) 1.11 .80 -- --
INTERNET FUND C-CLASS
SEPTEMBER 30, 2005@ 31.06 (.33) 3.92 3.59 -- --
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) -- --
LEISURE FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ 30.50 (.11) (1.79) (1.90) -- --
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) -- --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ----------------------------------------------------------------------------------------------------
HEALTH CARE FUND A-CLASS
SEPTEMBER 30, 2005@ $ -- $ 1.08 $ 13.33 8.82%
March 31, 2005* -- .60 12.25 5.15%
HEALTH CARE FUND C-CLASS
SEPTEMBER 30, 2005@ -- 1.01 13.20 8.29%
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
SEPTEMBER 30, 2005@ -- 3.91 36.20 12.11%
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
SEPTEMBER 30, 2005@ -- 3.72 35.13 11.84%
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
SEPTEMBER 30, 2005@ -- 3.76 35.21 11.96%
March 31, 2005* -- .80 31.45 2.61%
INTERNET FUND C-CLASS
SEPTEMBER 30, 2005@ -- 3.59 34.65 11.56%
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)%
LEISURE FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ -- (1.90) 28.60 (6.23)%
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)%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000's
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------
HEALTH CARE FUND A-CLASS
SEPTEMBER 30, 2005@ 1.59%** 1.59%** (0.74)%** 287% $ 657
March 31, 2005* 1.56%** 1.56%** (0.65)%** 610% 1
HEALTH CARE FUND C-CLASS
SEPTEMBER 30, 2005@ 2.33%** 2.33%** (1.43)%** 287% 6,986
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
SEPTEMBER 30, 2005@ 1.29%** 1.29%** (1.07)%** 836% 8,762
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
SEPTEMBER 30, 2005@ 1.81%** 1.81%** (1.50)%** 836% 2,860
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
SEPTEMBER 30, 2005@ 1.58%** 1.58%** (1.23)%** 836% 87
March 31, 2005* 1.55%** 1.55%** (1.46)%** 1,947% 4
INTERNET FUND C-CLASS
SEPTEMBER 30, 2005@ 2.32%** 2.32%** (2.02)%** 836% 1,688
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
LEISURE FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ 1.30%** 1.30%** (0.76)%** 249% 3,978
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
* 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.
++ INTERNET FUND -- PER SHARE AMOUNTS FOR THE PERIOD ENDED MARCH 31, 2001
HAVE BEEN RESTATED TO REFLECT A 1:20 REVERSE STOCK SPLIT EFFECTIVE APRIL
20, 2001. LEISURE 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, 2001 ARE CALCULATED FOR ONE
DAY AND NOT INDICATIVE OF FUTURE CLASS PERFORMANCE.
@ UNAUDITED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 67
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 ADVISOR CLASS
SEPTEMBER 30, 2005@ $ 29.34 $ (.18) $ (1.73) $ (1.91) $ -- $ --
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
SEPTEMBER 30, 2005@ 29.34 (.14) (1.73) (1.87) -- --
March 31, 2005* 24.59 (.08) 4.83 4.75 -- --
LEISURE FUND C-CLASS
SEPTEMBER 30, 2005@ 29.39 (.25) (1.73) (1.98) -- --
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
SEPTEMBER 30, 2005@ 35.64 (.01) 5.77 5.76 -- --
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
SEPTEMBER 30, 2005@ 35.37 (.11) 5.73 5.62 -- --
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
SEPTEMBER 30, 2005@ 35.41 .01 5.67 5.68 -- --
March 31, 2005* 37.26 (.01) (1.84) (1.85) -- --
PRECIOUS METALS FUND C-CLASS
SEPTEMBER 30, 2005@ 34.37 (.19) 5.54 5.35 -- --
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) --
REAL ESTATE FUND A-CLASS
SEPTEMBER 30, 2005@ 27.84 .31 3.96 4.27 -- --
March 31, 2005* 26.66 .09 1.24 1.33 (.03) (.12)
REAL ESTATE FUND C-CLASS
SEPTEMBER 30, 2005@ 27.64 .22 3.90 4.12 -- --
March 31, 2005 26.63 .41 .75 1.16 (.03) (.12)
March 31, 2004* 25.00 .02 1.61 1.63 -- --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ---------------------------------------------------------------------------------------------------
LEISURE FUND ADVISOR CLASS
SEPTEMBER 30, 2005@ $ -- $ (1.91) $ 27.43 (6.51)%
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
SEPTEMBER 30, 2005@ -- (1.87) 27.47 (6.37)%
March 31, 2005* -- 4.75 29.34 19.32%
LEISURE FUND C-CLASS
SEPTEMBER 30, 2005@ -- (1.98) 27.41 (6.74)%
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
SEPTEMBER 30, 2005@ -- 5.76 41.40 16.16%
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
SEPTEMBER 30, 2005@ -- 5.62 40.99 15.89%
March 31, 2005 -- (8.80) 35.37 (19.92)%
March 31,2004* (.01) 12.49 44.17 39.46%
PRECIOUS METALS FUND A-CLASS
SEPTEMBER 30, 2005@ -- 5.68 41.09 16.04%
March 31, 2005* -- (1.85) 35.41 (4.97)%
PRECIOUS METALS FUND C-CLASS
SEPTEMBER 30, 2005@ -- 5.35 39.72 15.57%
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%
REAL ESTATE FUND A-CLASS
SEPTEMBER 30, 2005@ -- 4.27 32.11 15.34%
March 31, 2005* (.15) 1.18 27.84 4.98%
REAL ESTATE FUND C-CLASS
SEPTEMBER 30, 2005@ -- 4.12 31.76 14.91%
March 31, 2005 (.15) 1.01 27.64 4.35%
March 31, 2004* -- 1.63 26.63 6.52%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000's
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- ------------------------------------------------------------------------------------------------------------
LEISURE FUND ADVISOR CLASS
SEPTEMBER 30, 2005@ 1.79%** 1.79%** (1.22)%** 249% $ 8,796
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
SEPTEMBER 30, 2005@ 1.56%** 1.56%** (0.97)%** 249% 18
March 31, 2005* 1.55%** 1.55%** (1.02)%** 1,046% 12
LEISURE FUND C-CLASS
SEPTEMBER 30, 2005@ 2.30%** 2.30%** (1.71)%** 249% 936
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
SEPTEMBER 30, 2005@ 1.22%** 1.22%** (0.07)%** 148% 201,252
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
SEPTEMBER 30, 2005@ 1.72%** 1.72%** (0.66)%** 148% 8,929
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
SEPTEMBER 30, 2005@ 1.53%** 1.53%** 0.07%** 148% 1,900
March 31, 2005* 1.45%** 1.45%** (0.02)%** 358% 217
PRECIOUS METALS FUND C-CLASS
SEPTEMBER 30, 2005@ 2.23%** 2.23%** (1.13)%** 148% 22,218
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
REAL ESTATE FUND A-CLASS
SEPTEMBER 30, 2005@ 1.56%** 1.56%** 1.99%** 545% 233
March 31, 2005* 1.54%** 1.54%** 0.52%** 1,773% 71
REAL ESTATE FUND C-CLASS
SEPTEMBER 30, 2005@ 2.35%** 2.35%** 1.44%** 545% 3,942
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
* 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; FEBRUARY 20, 2004 -- REAL ESTATE FUND
C-CLASS; SEPTEMBER 1, 2004 -- LEISURE FUND A-CLASS, PRECIOUS METALS FUND
A-CLASS AND REAL ESTATE 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.
@ UNAUDITED
68 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
This table is presented to show selected data for a share outstanding throughout
each period, and to assist shareholders in evaluating a Fund's performance for
the periods presented.
NET REALIZED NET INCREASE
NET ASSET NET AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, INVESTMENT UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INCOME GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD (LOSS)+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ------------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE FUND H-CLASS
SEPTEMBER 30, 2005@ $ 27.85 $ .30 $ 3.98 $ 4.28 $ -- $ --
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
SEPTEMBER 30, 2005@ 12.30 (.04) (.22) (.26) -- --
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
SEPTEMBER 30, 2005@ 11.99 (.07) (.21) (.28) -- --
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
SEPTEMBER 30, 2005@ 12.01 (.06) (.22) (.28) -- --
March 31, 2005* 10.45 (.07) 1.63 1.56 -- --
RETAILING FUND C-CLASS
SEPTEMBER 30, 2005@ 11.80 (.10) (.20) (.30) -- --
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
SEPTEMBER 30, 2005@ 10.35 (.04) 1.05 1.01 -- --
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
SEPTEMBER 30, 2005@ 10.06 (.07) 1.02 .95 -- --
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
SEPTEMBER 30, 2005@ 10.07 (.07) 1.02 .95 -- --
March 31, 2005* 9.32 -- .75 .75 -- --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ----------------------------------------------------------------------------------------------------
REAL ESTATE FUND H-CLASS
SEPTEMBER 30, 2005@ $ -- $ 4.28 $ 32.13 15.37%
March 31, 2005 (.15) 1.20 27.85 5.06%
March 31, 2004* -- 1.65 26.65 6.60%
RETAILING FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ -- (.26) 12.04 (2.11)%
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
SEPTEMBER 30, 2005@ -- (.28) 11.71 (2.34)%
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
SEPTEMBER 30, 2005@ -- (.28) 11.73 (2.33)%
March 31, 2005* -- 1.56 12.01 14.93%
RETAILING FUND C-CLASS
SEPTEMBER 30, 2005@ -- (.30) 11.50 (2.54)%
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
SEPTEMBER 30, 2005@ -- 1.01 11.36 9.76%
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
SEPTEMBER 30, 2005@ -- .95 11.01 9.44%
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
SEPTEMBER 30, 2005@ -- .95 11.02 9.43%
March 31, 2005* -- .75 10.07 8.05%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------
REAL ESTATE FUND H-CLASS
SEPTEMBER 30, 2005@ 1.56%** 1.56%** 1.90%** 545% $ 23,769
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
SEPTEMBER 30, 2005@ 1.31%** 1.31%** (0.58)%** 546% 6,464
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
SEPTEMBER 30, 2005@ 1.81%** 1.81%** (1.18)%** 546% 5,564
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
SEPTEMBER 30, 2005@ 1.61%** 1.61%** (0.90)%** 546% 145
March 31, 2005* 1.68%** 1.68%** (1.03)%** 1,505% 1
RETAILING FUND C-CLASS
SEPTEMBER 30, 2005@ 2.32%** 2.32%** (1.65)%** 546% 2,444
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
SEPTEMBER 30, 2005@ 1.31%** 1.31%** (0.71)%** 382% 16,199
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
SEPTEMBER 30, 2005@ 1.83%** 1.83%** (1.29)%** 382% 20,863
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
SEPTEMBER 30, 2005@ 1.94%** 1.94%** (1.57)%** 382% 884
March 31, 2005* 1.54%** 1.54%** 0.00%** 1,304% 6
* SINCE THE COMMENCEMENT OF OPERATIONS: MAY 9, 2001 -- RETAILING FUND
C-CLASS; FEBRUARY 20, 2004 -- REAL ESTATE FUND H-CLASS; SEPTEMBER 1, 2004
-- RETAILING FUND A-CLASS AND TECHNOLOGY FUND A-CLASS.
** ANNUALIZED
*** PORTFOLIO TURNOVER RATE IS CALCULATED WITHOUT REGARD TO SHORT-TERM
SECURITIES HAVING A MATURITY OF LESS THAN ONE YEAR.
+ CALCULATED USING THE AVERAGE DAILY SHARES OUTSTANDING FOR THE YEAR.
@ UNAUDITED
THE RYDEX SERIES FUNDS SEMI-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
- ------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND C-CLASS
SEPTEMBER 30, 2005@ $ 10.01 $ (.10) $ 1.01 $ .91 $ -- $ --
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) -- --
TELECOMMUNICATIONS FUND
INVESTOR CLASS
SEPTEMBER 30, 2005@ 14.33 .17 1.74 1.91 -- --
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
SEPTEMBER 30, 2005@ 13.88 .09 1.75 1.84 -- --
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
SEPTEMBER 30, 2005@ 13.90 .06 1.78 1.84 -- --
March 31, 2005* 13.55 .11 .24 .35 -- --
TELECOMMUNICATIONS FUND
C-CLASS
SEPTEMBER 30, 2005@ 13.81 .02 1.75 1.77 -- --
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
SEPTEMBER 30, 2005@ 22.42 (.04) .34 .30 -- --
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
SEPTEMBER 30, 2005@ 21.31 (.09) .31 .22 -- --
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 -- --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ----------------------------------------------------------------------------------------------------
TECHNOLOGY FUND C-CLASS
SEPTEMBER 30, 2005@ $ -- $ .91 $ 10.92 9.09%
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)%
TELECOMMUNICATIONS FUND
INVESTOR CLASS
SEPTEMBER 30, 2005@ -- 1.91 16.24 13.33%
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
SEPTEMBER 30, 2005@ -- 1.84 15.72 13.26%
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
SEPTEMBER 30, 2005@ -- 1.84 15.74 13.24%
March 31, 2005* -- .35 13.90 2.58%
TELECOMMUNICATIONS FUND
C-CLASS
SEPTEMBER 30, 2005@ -- 1.77 15.58 12.82%
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
SEPTEMBER 30, 2005@ -- .30 22.72 1.34%
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
SEPTEMBER 30, 2005@ -- .22 21.53 1.03%
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%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------
TECHNOLOGY FUND C-CLASS
SEPTEMBER 30, 2005@ 2.34%** 2.34%** (1.89)%** 382% $ 2,870
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
TELECOMMUNICATIONS FUND
INVESTOR CLASS
SEPTEMBER 30, 2005@ 1.30%** 1.30%** 2.14%** 625% 6,639
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
SEPTEMBER 30, 2005@ 1.82%** 1.82%** 1.28%** 625% 3,145
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
SEPTEMBER 30, 2005@ 1.63%** 1.63%** 0.85%** 625% 2
March 31, 2005* 1.54%** 1.54%** 1.25%** 1,142% 3
TELECOMMUNICATIONS FUND
C-CLASS
SEPTEMBER 30, 2005@ 2.37%** 2.37%** 0.27%** 625% 1,926
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
SEPTEMBER 30, 2005@ 1.32%** 1.32%** (0.37)%** 675% 11,639
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
SEPTEMBER 30, 2005@ 1.81%** 1.81%** (0.87)%** 675% 4,176
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
* SINCE THE COMMENCEMENT OF OPERATIONS: APRIL 18, 2001 -- TECHNOLOGY FUND
C-CLASS AND TELECOMMUNICATIONS FUND C-CLASS; SEPTEMBER 1, 2004 --
TELECOMMUNICATIONS 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.
@ UNAUDITED
70 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION FUND A-CLASS
SEPTEMBER 30, 2005@ $ 21.34 $ (.05) $ .31 $ .26 $ -- $ --
March 31, 2005* 18.73 (.09) 2.70 2.61 -- --
TRANSPORTATION FUND C-CLASS
SEPTEMBER 30, 2005@ 21.71 (.14) .32 .18 -- --
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 -- --
UTILITIES FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ 23.62 .25 3.38 3.63 -- --
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
SEPTEMBER 30, 2005@ 22.96 .19 3.28 3.47 -- --
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
SEPTEMBER 30, 2005@ 23.00 .23 3.27 3.50 -- --
March 31, 2005* 20.66 .40 2.24 2.64 (.30) --
UTILITES FUND C-CLASS
SEPTEMBER 30, 2005@ 22.47 .12 3.20 3.32 -- --
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
- ----------------------------------------------------------------------------------------------------
TRANSPORTATION FUND A-CLASS
SEPTEMBER 30, 2005@ $ -- $ .26 $ 21.60 1.22%
March 31, 2005* -- 2.61 21.34 13.93%
TRANSPORTATION FUND C-CLASS
SEPTEMBER 30, 2005@ -- .18 21.89 0.83%
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%
UTILITIES FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ -- 3.63 27.25 15.37%
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
SEPTEMBER 30, 2005@ -- 3.47 26.43 15.11%
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
SEPTEMBER 30, 2005@ -- 3.50 26.50 15.22%
March 31, 2005* (.30) 2.34 23.00 12.84%
UTILITES FUND C-CLASS
SEPTEMBER 30, 2005@ -- 3.32 25.79 14.78%
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)%
RATIOS TO
AVERAGE NET ASSETS:
-----------------------------------------
NET NET ASSETS,
INVESTMENT PORTFOLIO END OF
GROSS NET INCOME TURNOVER PERIOD (000'S
EXPENSES EXPENSES (LOSS) RATE*** OMITTED)
- -------------------------------------------------------------------------------------------------------------
TRANSPORTATION FUND A-CLASS
SEPTEMBER 30, 2005@ 1.60%** 1.60%** (0.45)%** 675% $ 179
March 31, 2005* 1.54%** 1.54%** (0.71)%** 929% 22
TRANSPORTATION FUND C-CLASS
SEPTEMBER 30, 2005@ 2.32%** 2.32%** (1.34)%** 675% 793
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
UTILITIES FUND INVESTOR CLASS
SEPTEMBER 30, 2005@ 1.32%** 1.32%** 2.01%** 319% 47,720
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
SEPTEMBER 30, 2005@ 1.83%** 1.83%** 1.54%** 319% 14,541
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
SEPTEMBER 30, 2005@ 1.61%** 1.61%** 1.86%** 319% 2,041
March 31, 2005* 1.54%** 1.54%** 2.98%** 1,124% 128
UTILITES FUND C-CLASS
SEPTEMBER 30, 2005@ 2.33%** 2.33% 1.01%** 319% 9,530
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 -- UTILITIES FUND
INVESTOR CLASS AND ADVISOR CLASS; APRIL 27, 2001 -- UTILITIES FUND
C-CLASS; MAY 14, 2001 -- TRANSPORTATION FUND C-CLASS; SEPTEMBER 1, 2004 --
TRANSPORTATION FUND A-CLASS AND UTILITIES 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.
@ UNAUDITED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 71
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Series Funds (the "Trust") is registered with the SEC 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. C-Class Shares have a 1% Contingent Deferred Sales Charge ("CDSC") if
Shares are redeemed within 12 months of purchase. 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. 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 September 30, 2005, the Trust consisted of forty-eight separate series:
twenty-four Benchmark Funds, one Money Market Fund, one Absolute Return
Strategies Fund, one Hedged Equity Fund, nineteen Sector Funds, and two
Strategic Funds. This report covers the nineteen Sector Funds (the "Funds"),
while the Money Market Fund, the Benchmark Funds, the Strategic Funds, the
Absolute Return Strategies Fund and the Hedged Equity Fund are contained in
separate reports.
The following significant accounting policies are in conformity with accounting
principles generally accepted in the United States of America and are
consistently followed by the Trust.
A. Equity securities listed on an exchange (New York Stock Exchange ("NYSE") or
American Stock Exchange) are valued at the last quoted sales price as of close
of business on the NYSE, usually 4:00 p.m., Eastern Time, on the valuation date.
Equity securities listed on the Nasdaq market system are valued at the Nasdaq
Official Closing Price, usually as of 4:00 p.m., Eastern Time, on the valuation
date. Listed options held by the Trust are valued at the Official Settlement
Price listed by the exchange, usually as of 4:00 p.m., Eastern Time.
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. In the event that the exchange for a specific futures contract
closes earlier than 4:00 p.m., Eastern Time, the futures contract is valued at
the Official Settlement Price of the exchange. However, the underlying
securities from which the futures contract value is derived are monitored until
4:00 p.m., Eastern Time, to determine if fair valuation would provide a more
accurate valuation. Short-term securities, if any, are valued at amortized cost,
which approximates market value.
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 agreements.
The value of foreign equity index, commodity index, and U.S. Dollar index swap
agreements entered into by the Funds are accounted for using the unrealized gain
or loss on the agreements that is determined by marking the agreements to the
price at which orders are being filled at the close of the NYSE, usually 4:00
p.m., Eastern Time. In the event that no order is filled at 4:00 p.m., Eastern
Time, the security dealer provides a fair value quote at which the swap
agreement is valued. The swap's market value is then adjusted to include
dividends accrued, financing charges and/or interest associated with the swap
agreements.
Investments 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 Rydex Global Advisors (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
72 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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. Distributions of net investment income and net realized capital gains are
recorded on the ex-dividend date and are determined in accordance with income
tax regulations which may differ from accounting principles generally accepted
in the United States of America. These differences are primarily due to
differing treatments for items such as deferral of wash sales and post-October
losses and regulated futures contracts and options. Net investment income and
loss, net realized gains and losses, and net assets are not affected by these
differences.
D. Each Fund seeks capital appreciation and invests substantially all of its
assets in equity securities of companies involved in its sector, with the
exception of the Commodities Fund, which invests primarily in "commodity
related" derivative instruments. The Funds may also purchase American Depository
Receipts ("ADRs") and U.S. Government securities, enter into repurchase
agreements, and engage in futures, options and equity swap transactions.
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.
E. 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 the contract is
closed, the Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed.
F. 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.
G. The Fund may leave Cash in Custodian Bank overnight in its cash account with
the custodian, U.S. Bank. Periodically, a 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.
H. 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 related 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 upon the respective
aggregate net asset value of each Fund included in the Trust.
I. 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, options on futures, and swap
agreements. These investments involve, to varying degrees, elements of market
risk and risks in excess of the amounts recognized in the Statements of Assets
and Liabilities.
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
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 73
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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.
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 the Trust 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, swap
agreements, as well as short sales of securities, the Funds are required to
maintain collateral in various forms. The Funds use, where appropriate,
depending on the financial instrument utilized and the broker involved, margin
deposits at the broker, cash segregated at the custodian bank, discount notes,
or the repurchase agreements allocated to each Fund.
The risks inherent in the use of options, futures contracts, options on futures
contracts, swap agreements as well as short sales of securities include i)
adverse changes in the value of such instruments; ii) imperfect correlation
between the price of the instruments and movements in the price of the
underlying securities, indices, or futures contracts; iii) the possible absence
of a liquid secondary market for any particular instrument at any time; and iv)
the potential of counterparty default.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory contract, the Trust pays 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
Commodities Fund and 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
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 ongoing sales commission. The Distributor advances the
first year's service and distribution fees to the Financial Advisor. The
Distributor retains the service and
74 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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, capital loss
carryforward expired, and the utilization of earnings and profits distributed to
the sharesholders 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.
At September 30, 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
- --------------------------------------------------------------------------------------------
Banking Fund $ 14,811,900 $ 773,222 $ (15,991) $ 757,231
Basic Materials Fund 35,427,802 4,686,352 (231,070) 4,455,282
Biotechnology Fund 132,080,492 56,952,609 (1,040,079) 55,912,530
Commodities Fund 20,635,225 876,173 -- 876,173
Consumer Products Fund 24,133,864 3,444,440 (43,014) 3,401,426
Electronics Fund 29,854,498 14,123,476 (32,737) 14,090,739
Energy Fund 177,632,656 58,968,480 (271,676) 58,696,804
Energy Services Fund 181,863,007 55,068,490 (84,847) 54,983,643
Financial Services Fund 26,302,984 1,670,630 (381,239) 1,289,391
Health Care Fund 97,991,534 13,283,783 (638,621) 12,645,162
Internet Fund 12,268,718 2,432,056 (202) 2,431,854
Leisure Fund 13,327,451 2,059,744 (51,934) 2,007,810
Precious Metals Fund 217,984,773 78,083,337 (1,203,830) 76,879,508
Real Estate Fund 27,449,154 2,616,906 (29,485) 2,587,421
Retailing Fund 15,330,002 2,789,145 (91,754) 2,697,391
Technology Fund 41,800,265 7,502,166 (254,701) 7,247,465
Telecommunications Fund 11,191,589 3,273,686 (11,471) 3,262,215
Transportation Fund 15,188,765 2,656,613 (28,120) 2,628,493
Utilities Fund 80,666,688 9,769,682 (58,028) 9,711,654
5. REPURCHASE AGREEMENTS
The Trust 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 Large-Cap Growth Fund, the
Strengthening Dollar Fund, the Weakening Dollar Fund, the U.S. Government Money
Market Fund, the Nova Master Portfolio, the Ursa Master Portfolio, the Arktos
Master Portfolio, the Juno Master Portfolio, the Core Equity Fund, the Sector
Rotation Fund, the Absolute Return Strategies Fund and the Hedged Equity 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 Trust's custodian and is evaluated daily to ensure that its
market value exceeds by, at a minimum, 102% of the delivery value of the
repurchase agreement at maturity.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 75
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
The repurchase agreements executed by the joint account and outstanding as of
September 30, 2005, were as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- -------------------------------------------------------------------------------------------------------
Bear Stearns Cos., Inc. 3.25% due 10/03/05 $ 525,000,000 $ 525,000,000 $ 525,142,188
Citigroup, Inc. 3.24% due 10/03/05 375,000,000 375,000,000 375,101,250
Lehman Brothers, Inc. 3.25% due 10/03/05 302,618,292 302,618,292 302,700,251
Morgan Stanley 3.24% due 10/03/05 250,000,000 250,000,000 250,067,500
- -------------------------------------------------------------------------------------------------------
$1,452,618,292 $1,453,011,189
- -------------------------------------------------------------------------------------------------------
As of September 30, 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 6.125% - 8.000% $ 203,611,000 $ 257,500,263
U.S. Treasury Notes 3.000% - 3.875% 1,040,637,912 1,034,907,188
U.S. Currency 0.000% 188,000,000 188,000,000
- --------------------------------------------------------------------------------
$1,480,407,451
- --------------------------------------------------------------------------------
In the event of counterparty default, the Trust has the right to collect the
collateral to offset losses incurred. There is potential loss to the Trust in
the event the Trust is delayed or prevented from exercising its rights to
dispose of the collateral securities, including the risk of a possible decline
in the value of the underlying securities during the period while the Trust
seeks to assert its rights. The Trust's investment advisor, acting under the
supervision of the Board of Trustees, reviews the value of the collateral and
the credit worthiness of those banks and dealers with which the Trust enters
into repurchase agreements to evaluate potential risks.
6. SECURITIES TRANSACTIONS
During the period ended September 30, 2005, cost of purchases and proceeds from
sales of investment securities, excluding short-term and temporary cash
investments, were:
BASIC BIOTECH- CONSUMER ENERGY
BANKING MATERIALS NOLOGY COMMODITIES PRODUCTS ELECTRONICS ENERGY SERVICES
FUND FUND FUND FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases $106,083,770 $135,189,402 $259,138,063 $ -- $149,032,956 $197,054,560 $407,831,386 $229,043,380
Sales $100,670,784 $151,082,521 $211,894,597 $ -- $175,110,670 $208,221,602 $394,332,526 $207,571,180
FINANCIAL HEALTH PRECIOUS REAL
SERVICES CARE INTERNET LEISURE METALS ESTATE RETAILING TECHNOLOGY
FUND FUND FUND FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases $130,945,818 $309,184,706 $118,012,308 $ 77,245,891 $307,922,904 $221,677,810 $136,112,288 $161,309,604
Sales $146,832,678 $278,937,512 $112,784,162 $107,063,229 $266,148,394 $205,755,595 $136,387,191 $148,329,734
TELECOMMU- TRANSPOR-
NICATIONS TATION UTILITIES
FUND FUND FUND
- ------------------------------------------------------
Purchases $ 89,453,999 $ 85,730,140 $234,514,214
Sales $ 88,685,928 $ 83,905,221 $199,633,324
76 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
7. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of no par value
shares. Transactions in shares for the periods presented were:
PURCHASED THROUGH
SHARES PURCHASED DIVIDEND REINVESTMENT
- ------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ------------------------------------------------------------------------------------------
BANKING FUND
Investor Class 11,071,384 23,295,878 -- 13,430
Advisor Class 1,188,212 7,579,880 -- 11,287
A-Class 5,234 3,495* -- 74*
C-Class 488,662 2,096,355 -- 1,958
BASIC MATERIALS FUND
Investor Class 4,715,229 14,930,185 -- --
Advisor Class 785,492 3,451,617 -- --
A-Class 7,798 21,600* -- --
C-Class 423,865 1,628,841 -- --
BIOTECHNOLOGY FUND
Investor Class 15,236,969 48,992,037 -- --
Advisor Class 3,111,906 2,977,372 -- --
A-Class 48,182 5,666* -- --
C-Class 777,273 1,611,589 -- --
COMMODITIES FUND**
A-Class 44,076 -- -- --
C-Class 124,268 -- -- --
H-Class 2,020,052 -- -- --
CONSUMER PRODUCTS FUND
Investor Class 2,377,628 11,770,064 -- 128
Advisor Class 503,557 4,310,299 -- 225
A-Class 25,470 16,232* -- --
C-Class 2,280,867 2,021,995 -- 75
ELECTRONICS FUND
Investor Class 25,958,757 71,617,772 -- --
Advisor Class 3,212,291 5,499,673 -- --
A-Class 71,613 271* -- --
C-Class 534,534 1,771,576 -- --
ENERGY FUND
Investor Class 24,354,784 60,798,285 -- 2,191
Advisor Class 2,870,340 8,630,164 -- 487
A-Class 580,471 78,501* -- 2*
C-Class 3,296,946 5,409,462 -- 254
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
- -------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- -------------------------------------------------------------------------------------------
BANKING FUND
Investor Class (10,580,407) (24,047,095) 490,977 (737,787)
Advisor Class (1,318,496) (7,664,012) (130,284) (72,845)
A-Class (3,810) (2,006)* 1,424 1,563*
C-Class (331,839) (2,193,967) 156,823 (95,654)
BASIC MATERIALS FUND
Investor Class (5,297,446) (14,988,451) (582,217) (58,266)
Advisor Class (909,049) (3,558,087) (123,557) (106,470)
A-Class (6,201) (14,561)* 1,597 7,039*
C-Class (285,707) (1,591,918) 138,158 36,923
BIOTECHNOLOGY FUND
Investor Class (13,721,504) (51,331,712) 1,515,465 (2,339,675)
Advisor Class (2,227,457) (3,012,236) 884,449 (34,864)
A-Class (16,509) (1,267)* 31,673 4,399*
C-Class (617,310) (1,635,072) 159,963 (23,483)
COMMODITIES FUND**
A-Class (8,630) -- 35,446 --
C-Class (52,519) -- 71,749 --
H-Class (1,350,864) -- 669,188 --
CONSUMER PRODUCTS FUND
Investor Class (2,690,539) (12,084,424) (312,911) (314,232)
Advisor Class (907,668) (3,882,393) (404,111) 428,131
A-Class (3,347) (632)* 22,123 15,600*
C-Class (2,480,129) (1,902,074) (199,262) 119,996
ELECTRONICS FUND
Investor Class (27,157,675) (72,425,283) (1,198,918) (807,511)
Advisor Class (3,029,560) (4,488,866) 182,731 1,010,807
A-Class (11,038) (163)* 60,575 108*
C-Class (524,290) (1,642,995) 10,244 128,581
ENERGY FUND
Investor Class (24,446,189) (59,447,765) (91,405) 1,352,711
Advisor Class (2,809,026) (7,548,827) 61,314 1,081,824
A-Class (284,301) (33,921)* 296,170 44,582*
C-Class (3,099,607) (4,883,626) 197,339 526,090
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
** SINCE THE COMMENCEMENT OF OPERATIONS: MAY 25, 2005.
+ UNAUDITED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 77
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
PURCHASED THROUGH
SHARES PURCHASED DIVIDEND REINVESTMENT
- ------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ------------------------------------------------------------------------------------------
ENERGY SERVICES FUND
Investor Class 8,823,911 19,417,507 -- --
Advisor Class 1,896,241 4,751,943 -- --
A-Class 69,495 28,997* -- --
C-Class 742,313 2,047,670 -- --
FINANCIAL SERVICES FUND
Investor Class 5,919,490 22,725,546 -- 4,601
Advisor Class 1,833,448 7,542,996 -- 16,538
A-Class 40,318 3,231* -- 13*
C-Class 828,448 2,791,751 -- 1,105
HEALTH CARE FUND
Investor Class 24,278,911 31,471,311 -- --
Advisor Class 3,374,284 6,443,013 -- --
A-Class 69,451 2,372* -- --
C-Class 1,532,232 2,192,906 -- --
INTERNET FUND
Investor Class 3,675,970 14,172,147 -- --
Advisor Class 817,205 1,204,965 -- --
A-Class 2,459 23,750* -- --
C-Class 126,388 478,480 -- --
LEISURE FUND
Investor Class 1,972,778 11,597,001 -- --
Advisor Class 552,559 4,833,064 -- --
A-Class 1,007 14,935* -- --
C-Class 262,167 1,743,918 -- --
PRECIOUS METALS FUND
Investor Class 18,034,852 37,551,246 -- --
Advisor Class 829,184 2,981,129 -- --
A-Class 49,971 9,905* -- --
C-Class 445,732 1,919,001 -- --
REAL ESTATE FUND
A-Class 34,103 18,469* -- 2*
C-Class 411,389 1,813,344 -- 376
H-Class 11,532,622 37,395,591 -- 6,652
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
- -------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- -------------------------------------------------------------------------------------------
ENERGY SERVICES FUND
Investor Class (8,673,831) (18,288,460) 150,080 1,129,047
Advisor Class (1,845,235) (5,102,424) 51,006 (350,481)
A-Class (18,903) (18,293)* 50,592 10,704*
C-Class (562,532) (1,784,007) 179,781 263,663
FINANCIAL SERVICES FUND
Investor Class (6,097,746) (25,154,000) (178,256) (2,423,853)
Advisor Class (3,075,369) (8,871,317) (1,241,921) (1,311,783)
A-Class (245) (2,774)* 40,073 470*
C-Class (797,087) (2,846,263) 31,361 (53,407)
HEALTH CARE FUND
Investor Class (22,506,118) (30,262,009) 1,772,793 1,209,302
Advisor Class (3,032,388) (7,332,507) 341,896 (889,494)
A-Class (20,238) (2,286)* 49,213 86*
C-Class (1,332,881) (2,099,736) 199,351 93,170
INTERNET FUND
Investor Class (3,595,290) (14,439,631) 80,680 (267,484)
Advisor Class (762,214) (1,525,482) 54,991 (320,517)
A-Class (121) (23,625)* 2,338 125*
C-Class (129,049) (472,026) (2,661) 6,454
LEISURE FUND
Investor Class (2,328,083) (12,007,565) (355,305) (410,564)
Advisor Class (1,177,704) (5,375,390) (625,145) (542,326)
A-Class (762) (14,518)* 245 417*
C-Class (313,151) (1,739,165) (50,984) 4,753
PRECIOUS METALS FUND
Investor Class (16,840,660) (39,230,930) 1,194,192 (1,679,684)
Advisor Class (854,352) (2,785,939) (25,168) 195,190
A-Class (9,869) (3,770)* 40,102 6,135*
C-Class (480,610) (1,741,709) (34,878) 177,292
REAL ESTATE FUND
A-Class (29,394) (15,922)* 4,709 2,549*
C-Class (334,067) (2,050,876) 77,322 (237,156)
H-Class (11,086,754) (39,956,598) 445,868 (2,554,355)
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
+ UNAUDITED
78 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
PURCHASED THROUGH
SHARES PURCHASED DIVIDEND REINVESTMENT
- ------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- ------------------------------------------------------------------------------------------
RETAILING FUND
Investor Class 11,475,803 24,112,068 -- --
Advisor Class 2,218,596 4,981,461 -- --
A-Class 15,892 96* -- --
C-Class 326,695 1,480,794 -- --
TECHNOLOGY FUND
Investor Class 10,367,903 53,167,975 -- --
Advisor Class 3,401,852 7,944,053 -- --
A-Class 83,024 3,268* -- --
C-Class 2,016,907 6,359,429 -- --
TELECOMMUNICATIONS FUND
Investor Class 5,538,330 14,402,016 -- --
Advisor Class 1,261,964 1,854,348 -- --
A-Class 241 783* -- --
C-Class 544,905 1,276,715 -- --
TRANSPORTATION FUND
Investor Class 3,823,930 14,576,766 -- --
Advisor Class 879,661 4,999,213 -- --
A-Class 9,537 5,861* -- --
C-Class 44,183 776,235 -- --
UTILITIES FUND
Investor Class 11,781,489 14,371,241 -- 11,222
Advisor Class 2,502,273 3,892,652 -- 8,794
A-Class 100,560 47,744* -- 25*
C-Class 796,346 1,880,613 -- 2,233
SHARES REDEEMED NET SHARES PURCHASED (REDEEMED)
- -------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
- -------------------------------------------------------------------------------------------
RETAILING FUND
Investor Class (11,551,446) (24,499,236) (75,643) (387,168)
Advisor Class (2,280,915) (5,825,294) (62,319) (843,833)
A-Class (3,638) -- 12,254 96*
C-Class (264,517) (1,538,273) 62,178 (57,479)
TECHNOLOGY FUND
Investor Class (10,230,621) (53,380,615) 137,282 (212,640)
Advisor Class (2,569,383) (8,496,228) 832,469 (552,175)
A-Class (3,416) (2,675)* 79,608 593*
C-Class (1,882,387) (6,330,391) 134,520 29,038
TELECOMMUNICATIONS FUND
Investor Class (5,548,473) (14,913,660) (10,143) (511,644)
Advisor Class (1,200,314) (2,205,346) 61,650 (350,998)
A-Class (273) (593)* (32) 190*
C-Class (550,539) (1,388,824) (5,634) (112,109)
TRANSPORTATION FUND
Investor Class (3,663,456) (14,426,142) 160,474 150,624
Advisor Class (955,483) (4,967,264) (75,822) 31,949
A-Class (2,303) (4,815)* 7,234 1,046*
C-Class (91,208) (728,572) (47,025) 47,663
UTILITIES FUND
Investor Class (10,786,319) (14,558,513) 995,170 (176,050)
Advisor Class (2,302,562) (3,604,386) 199,711 297,060
A-Class (29,084) (42,226)* 71,476 5,543*
C-Class (640,788) (1,868,584) 155,558 14,262
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 1, 2004.
+ UNAUDITED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 79
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
8. PORTFOLIO SECURITIES LOANED
The Trust lends its securities to approved brokers to earn additional income.
Within this arrangement, the Trust acts as the lender, U.S. Bank acts as the
agent, and other approved registered broker dealers act as the borrowers. The
Trust receives cash collateral, valued at 100% of the value of the securities on
loan, which is initially held in a segregated account at U.S. Bank. As agent,
U.S. Bank may, for investment purposes, pool the Trust's collateral in joint
accounts with cash collateral from one or more other securities lending
customers of U.S. Bank. Under the terms of the Trust's securities lending
agreement with U.S. Bank, cash collateral may be invested by U.S. Bank in
certain high quality, liquid investments. At September 30, 2005, the pooled cash
collateral investments consisted of repurchase agreements (47.59%), commercial
paper (31.82%), corporate bonds (20.58%), and mutual funds (0.01%). Collateral
is maintained over the life of the loan in an amount not less than the value of
loaned securities, as determined at the close of fund business each day; any
additional collateral required due to changes in security values is delivered to
the Fund the next business day. Although the collateral mitigates risk, the
Trust could experience a delay in recovering its securities and a possible loss
of income or value if the borrower fails to return the securities. The Trust has
the right under the securities lending agreement to recover the securities from
the borrower on demand.
At September 30, 2005, the following funds participated in securities lending
and received cash collateral:
VALUE OF
CASH SECURITIES
FUND COLLATERAL LOANED
- --------------------------------------------------------------------------------
Banking Fund $ 1,499,704 $ 1,447,805
Basic Materials Fund 4,044,558 3,951,259
Biotechnology Fund 24,705,453 23,995,246
Consumer Products Fund 3,292,068 3,211,444
Electronics Fund 7,884,762 7,690,502
Energy Fund 29,424,576 28,275,414
Energy Services Fund 44,624,941 42,781,013
Financial Services Fund 4,587,778 4,471,860
Health Care Fund 17,121,943 16,682,101
Internet Fund 1,299,546 1,266,319
Leisure Fund 1,556,276 1,515,988
Precious Metals Fund 63,821,777 59,904,486
Real Estate Fund 2,151,769 2,114,379
Retailing Fund 3,361,109 3,259,335
Technology Fund 8,009,141 7,793,458
Telecommunications Fund 2,631,466 2,494,315
Transportation Fund 956,441 936,913
Utilities Fund 16,649,917 16,045,127
80 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
OTHER INFORMATION
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to securities held in the Funds' portfolios is
available, without charge and upon request, by calling 1-800-820-0888. This
information is also available from the EDGAR database on the SEC's site at
http://www.sec.gov.
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 Funds' Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request, by calling 1-800-820-0888.
RYDEX INVESTMENTS BOARD REVIEW AND APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
The 1940 Act requires that the initial approval of, as well as the continuation
of, a fund's investment advisory agreement must be specifically approved (1) by
a vote of the trustees or by a vote of the shareholders of the fund, and (2) by
a vote of a majority of the trustees who are not parties to the investment
advisory agreement or "interested persons" of any party (the "Independent
Trustees"), cast in person at a meeting called for the purpose of voting on such
approval. In connection with such approvals, the fund's trustees must request
and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. In addition, the SEC takes the position that, as part of their
fiduciary duties with respect to fund fees, fund boards are required to evaluate
the material factors applicable to a decision to approve an investment advisory
agreement.
Consistent with these responsibilities, the Rydex Series Funds Board of Trustees
(the "Board") calls and holds one meeting each year that is dedicated to
considering whether to renew the investment advisory agreement (the "Advisory
Agreement") between the Trust and PADCO Advisors, Inc., which does business
under the name Rydex Investments ("Rydex Investments") with respect to existing
funds in the Trust, including the funds discussed in this Semi-Annual Report
(each a "Fund" and collectively, the "Funds"), and to reviewing certain other
agreements pursuant to which Rydex Investments provides investment advisory
services to certain other registered investment companies. In preparation for
the meeting, the Board requests and reviews a wide variety of materials provided
by Rydex Investments, including information about Rydex Investments' affiliates,
personnel and operations. The Board also receives data provided by third
parties. This information is in addition to the detailed information about the
Funds that the Board reviews during the course of each year, including
information that relates to Fund operations and performance. The Board also
receives a memorandum from Fund counsel regarding the responsibilities of the
Board for the approval of investment advisory agreements. In addition, the
Independent Trustees receive advice from independent counsel to the Independent
Trustees, meet in executive session outside the presence of fund management, if
necessary, and participate in question and answer sessions with representatives
of Rydex Investments.
At a meeting held on August 28 and 29, 2005, the Board approved the selection of
Rydex Investments and the continuance of the Advisory Agreement for an
additional one-year period, based on its review of qualitative and quantitative
information provided by Rydex Investments. The Board's approval of the Advisory
Agreement was based on consideration and evaluation of a variety of specific
factors discussed at that meeting and at prior meetings, including:
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY RYDEX INVESTMENTS
The Board reviewed the scope of services to be provided by Rydex Investments
under the Advisory Agreement and noted that there would be no significant
differences between the scope of services required to be provided by Rydex
Investments for the past year and the scope of services required to be provided
by Rydex Investments for the upcoming year. In reviewing the scope of services
provided to the Funds by Rydex Investments, the Board reviewed and discussed
Rydex Investments' investment experience, noting that Rydex Investments and its
affiliates have committed significant resources over time to the support of the
Funds. The Board also considered Rydex Investments' compliance program and its
compliance record with respect to the Funds. In that regard, the Board noted
that Rydex Investments provides information regarding the portfolio management
and compliance to the Board on a periodic basis in connection with regularly
scheduled meetings of the Board. In addition to the above considerations, the
Board reviewed and considered Rydex Investments' investment processes and
strategies, and matters related to Rydex Investments' portfolio transaction
policies and procedures. In particular, the Board noted the substantial volume
of portfolio trades and shareholder transaction
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 81
OTHER INFORMATION (CONTINUED)
- --------------------------------------------------------------------------------
activity, in general, processed by Rydex Investments due to the unlimited
exchange policy of the majority of the Funds. The Board further noted that the
Funds had met their investment objectives consistently since their relevant
inception dates. Based on this review, the Board concluded that the nature,
extent and quality of services to be provided by Rydex Investments to the Funds
under the Advisory Agreement were appropriate and continued to support the
Board's original selection of Rydex Investments as investment adviser to the
Funds.
FUND EXPENSES AND PERFORMANCE OF THE FUNDS AND RYDEX INVESTMENTS
The Board reviewed statistical information prepared by Rydex Investments
regarding the expense ratio components, including actual advisory fees,
waivers/reimbursements, and gross and net total expenses of each Fund in
comparison with the same information for other funds registered under the 1940
Act determined by Rydex Investments to comprise each Fund's applicable peer
group. Because few funds seek to provide unlimited exchange privileges similar
to those of the Funds (other than the Core Equity Fund, Sector Rotation Fund,
Absolute Return Strategies Fund, and Hedged Equity Fund), each Fund's applicable
peer group is generally limited to the funds of two unaffiliated mutual fund
families. In addition, the Board reviewed statistical information prepared by
Rydex Investments relating to the performance of each Fund, as well as each
Fund's ability to successfully track its benchmark over time, and a comparison
of each Fund's performance to funds with similar investment objectives for the
same periods and to appropriate indices/benchmarks, in light of total return,
yield and market trends. The Board further noted that despite the unique nature
of the Funds, the peer fund information presented to the Board was meaningful
because the peer funds' investment objectives and strategies were closely
aligned with those of the Funds. The Board noted that most of the Funds either
outperformed their peer funds or performed in line with them over relevant
periods. The Board also noted that the investment advisory fees and overall
expenses for the Funds were generally lower than or in line with the investment
advisory fee rates and overall expenses of the peer funds. Based on this review,
the Board concluded that the investment advisory fees and expense levels and the
historical performance of the Funds, as managed by Rydex Investments, as
compared to the investment advisory fees and expense levels and performance of
the peer funds, were satisfactory for the purposes of approving the continuance
of the Advisory Agreement.
COSTS OF SERVICES PROVIDED TO THE FUNDS AND PROFITS REALIZED BY RYDEX
INVESTMENTS AND ITS AFFILIATES
The Board reviewed information about the profitability of the Funds to Rydex
Investments based on the advisory fees payable under the Advisory Agreement for
the last calendar year. Rydex Investments also presented the Board with material
discussing its methodology for determining the level of advisory fees assessable
to the Funds. The Board analyzed the Funds' expenses, including the investment
advisory fees paid to Rydex Investments. The Board also reviewed information
regarding direct revenue received by Rydex Investments and ancillary revenue
received by Rydex Investments and/or its affiliates in connection with the
services provided to the Funds by Rydex Investments (as discussed below). The
Board also discussed Rydex Investments' profit margin as reflected in Rydex
Investments' profitability analysis and reviewed information regarding economies
of scale (as discussed below). Based on this review, the Board concluded that
the profits to be realized by Rydex Investments and its affiliates under the
Advisory Agreement and from other relationships between the Funds and Rydex
Investments and/or its affiliates, if any, were within the range the Board
considered reasonable and appropriate.
ECONOMIES OF SCALE
In connection with its review of the Funds' profitability analysis, the Board
reviewed information regarding economies of scale or other efficiencies that may
result from increases in the Funds' asset levels. The Board noted that the
Advisory Agreement for the Funds did not provide for any breakpoints in the
investment advisory fee rates as a result of increases in the asset levels of
such Funds. The Board also noted that though Rydex Investments' assets under
management were significant, the amount is spread among more than 95 Funds.
Further limiting the realization of economies of scale, is the ability of
shareholders of a majority of the Funds to engage in unlimited trading. The
Board also reviewed Rydex Investments' historic profitability as investment
adviser to the Funds and determined that reductions in fee rates or additions of
breakpoints were not warranted at this juncture. Based on this review, the
Board, recognizing its responsibility to consider this issue at least annually,
concluded that there are limited economies of scale to share with the Funds'
shareholders.
82 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
OTHER INFORMATION (CONCLUDED)
- --------------------------------------------------------------------------------
OTHER BENEFITS TO RYDEX INVESTMENTS AND/OR ITS AFFILIATES
The Board noted that Rydex Investments reports its use of soft dollars to the
Board on a quarterly basis, as well as any portfolio transactions on behalf of
the Funds placed through an affiliate of the Funds or Rydex Investments pursuant
to Rule 17e-1 under the 1940 Act. The Board concluded that any such ancillary
benefits would not be disadvantageous to the Funds' shareholders.
Based on the above analysis, the Board determined that the Advisory Agreement,
including the investment advisory fee rates thereunder, are fair and reasonable
in light of all relevant circumstances and concluded that it is in the best
interest of the Funds and their shareholders to continue the Advisory Agreement.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 83
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
A Board of Trustees oversees all Rydex Investments, in which its members have no
stated term of service, and continue to serve after election until resignation.
The Statement of Additional Information includes further information about Fund
Trustees and Officers, and can be obtained without charge by calling
1-800-820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEES AND OFFICERS
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- --------------------------- ----------------------------------------- --------------
CARL G. VERBONCOEUR* Rydex Series Funds - 2004 110
Trustee, President (1952) Rydex Variable Trust - 2004
Rydex Dynamic Funds - 2004
Rydex ETF Trust - 2004
Rydex Capital Partners SPhinX Fund - 2005
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)
-----------------------------------------
MICHAEL P. BYRUM* Rydex Series Funds - 2005 110
Trustee, Vice President and Rydex Variable Trust - 2005
Secretary (1970) Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
Principal Occupations During Past Five Years: Secretary of Rydex Series Funds, 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)
- ----------------------------------------------------------------------------------------------------
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 110
Trustee (1945) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of Marketing/Co-Owner, Schield
Management Company
-----------------------------------------
J. KENNETH DALTON Rydex Series Funds - 1995 110
Trustee (1941) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and Investor, The Dalton
Group
-----------------------------------------
JOHN O. DEMARET Rydex Series Funds - 1997 110
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
-----------------------------------------
84 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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
- --------------------------- ----------------------------------------- --------------
WERNER E. KELLER Rydex Series Funds - 2005 110
Trustee (1940) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired (2001 to present); Chairman, Centurion Capital
Management (1991 to 2001)
-----------------------------------------
THOMAS F. LYDON, JR. Rydex Series Funds - 2005 110
Trustee (1960) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends
-----------------------------------------
PATRICK T. MCCARVILLE Rydex Series Funds - 1997 110
Trustee (1942) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive Officer, Par Industries,
Inc.
-----------------------------------------
ROGER SOMERS Rydex Series Funds - 1993 110
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
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
Vice President and Treasurer (1963) 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)
JOANNA M. HAIGNEY* Chief Compliance Officer of Rydex Series Funds, Rydex
Chief Compliance Officer and Assistant Variable Trust, and Rydex Dynamic Funds (2004 to present);
Secretary (1967) 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)
* OFFICERS OF THE FUND ARE DEEMED TO BE "INTERESTED PERSONS" OF THE TRUST,
WITHIN THE MEANING OF SECTION 2(A)(19) OF THE 1940 ACT, INASMUCH AS THIS
PERSON IS AFFILIATED WITH THE ADVISOR.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 85
[LOGO] RYDEXINVESTMENTS
ESSENTIAL FOR MODERN MARKETS(TM)
9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800-820-0888
RSECF-SEMI-0905X0306
[GRAPHIC OMITTED]
SEPTEMBER 30, 2005
RYDEX SERIES FUNDS STRATEGIC FUNDS
SEMI-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
FUND PROFILES ............................................................. 5
SCHEDULES OF INVESTMENTS .................................................. 6
STATEMENTS OF ASSETS AND LIABILITIES ...................................... 17
STATEMENTS OF OPERATIONS .................................................. 18
STATEMENTS OF CHANGES IN NET ASSETS ....................................... 19
FINANCIAL HIGHLIGHTS ...................................................... 20
NOTES TO FINANCIAL STATEMENTS ............................................. 21
OTHER INFORMATION ......................................................... 27
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS ............................. 30
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 1
LETTER TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
The six-month period from April to September 2005 was a tumultuous one for the
economy and the financial markets. Investors, consumers and businesses alike
were rocked by the twin hurricanes of Katrina and Rita and the unprecedented
rise in energy prices. Energy prices--particularly for refined products such as
gas, diesel, jet fuel and heating oil--skyrocketed, causing consumer confidence
to plummet and raising the prospect of a pullback in consumer spending.
Typically, developments like these would have a downward effect on equity prices
and interest rates, but that wasn't the case as stocks rallied and interest
rates finished the period largely where they began.
Surprisingly, U.S. equity markets navigated the storms remarkably well. While
the old economy Dow Jones Industrial Average(R) Index rose only 1.76%, the
broader S&P 500(R) Index gained 5.02% and the tech-laden Nasdaq 100(R) Index
rose 8.04% on the back of a mini-rally in technology stocks.
Two factors appear to have driven prices higher. The first is that earnings
growth remained strong, increasing at a double-digit pace in both the second and
third quarters, and investors appeared to be looking beyond the immediate impact
of the hurricanes to the anticipated "kick" to economic growth as reconstruction
efforts got underway.
As one might expect, energy stocks led the market higher. In fact, energy prices
were well on their way up prior to the arrival of Katrina as the price of a
barrel of crude oil rose from $49.69 in late May to a high of $69.74 by the end
of August. The Gulf storms exacerbated this rise. That energy prices were
already well on their way up is attributable to the rapid growth in the
powerhouse economies of China and India. China in particular, continues to
import commodities of all kinds at a voracious rate. In fact, if one takes a
closer look at stock prices during this period, the effect of rising energy
prices and the impact of the storms becomes apparent.
Clearly, energy stocks were the big winners as the S&P Energy Index rose nearly
19.56%. In fact, the meteoric rise in energy stocks is responsible for much of
the stock market's positive performance this year. Utility stocks also fared
well as the S&P Utility Index shot up 15.24% in anticipation of a substantial
rise in home heating costs. Technology stocks rallied as valuations were
perceived to be attractive. On the flip side, health care stocks, which tend to
be perceived as defensive in nature, rose nearly 5.00% as investors looked for a
consumer driven economic slowdown in the wake of the devastation left by Katrina
and Rita.
Despite the uncertainty, the Federal Reserve ("Fed") remained vigilant against
any signs of increasing inflation. The shock to the economy of the storms and
the loss of some of the nation's critical energy infrastructure led many to
predict a pause in the Fed's rate hikes. This was not to be, as the Fed
implemented four 25 basis point rate hikes during the period. Longer rates, on
the other hand, actually declined from April to September, with the yield on the
benchmark 10-Year Treasury Note falling 15 basis points to 4.33%. Despite this
decline, interest rates are clearly on the upswing. Long-term rates bottomed on
June 1, as the yield on the 10-Year Note reached 3.89%. Since the beginning of
June, the trend has been up, with the 10-Year Note peaking at 4.42% in early
August.
With all of the crosscurrents in the economy and the financial markets, stock
price behavior is likely to remain choppy and erratic. Investment strategies
that do not depend on highly directional markets will likely fare well as we
move through the remainder of 2005.
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 SEMI-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 March 31, 2005 and
ending September 30, 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. The example is useful in making comparisons because
the U.S. Securities and Exchange Commission (the "SEC") requires all
mutual funds to calculate expenses based on the 5% return. You can
assess your fund's costs by comparing this hypothetical example with
the hypothetical examples that appear in shareholder reports of other
funds.
Certain retirement plans such as IRA, 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 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.
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.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 3
ABOUT SHAREHOLDERS' FUND EXPENSES (CONCLUDED)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2005 SEPTEMBER 30, 2005 PERIOD*
- ------------------------------------------------------------------------------------------------------------------
TABLE 1. BASED ON ACTUAL FUND RETURN
CORE EQUITY FUND
A-Class 1.63% $1,000.00 $1,075.30 $ 8.48
C-Class 2.38% 1,000.00 1,070.70 12.35
H-Class 1.62% 1,000.00 1,075.30 8.43
SECTOR ROTATION FUND
A-Class 1.63% 1,000.00 1,155.00 8.81
C-Class 2.38% 1,000.00 1,150.90 12.83
H-Class 1.63% 1,000.00 1,155.60 8.81
- ------------------------------------------------------------------------------------------------------------------
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
CORE EQUITY FUND
A-Class 1.63% 1,000.00 1,016.70 8.30
C-Class 2.38% 1,000.00 1,012.90 12.10
H-Class 1.62% 1,000.00 1,016.81 8.19
SECTOR ROTATION FUND
A-Class 1.63% 1,000.00 1,016.70 8.30
C-Class 2.38% 1,000.00 1,012.90 12.10
H-Class 1.63% 1,000.00 1,016.70 8.30
* 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 SEMI-ANNUAL REPORT
FUND PROFILES
- --------------------------------------------------------------------------------
CORE EQUITY FUND
OBJECTIVE: Seeks long-term capital appreciation.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS DEPICTED AS A BAR CHART IN THE PRINTED MATERIAL.]
CORE EQUITY FUND
Other 10.07%
Financials 20.16%
Information Technology 16.08%
Consumer Discretionary 14.17%
Health Care 12.81%
Industrials 11.59%
Energy 7.62%
Consumer Staples 6.40%
"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. 1.3%
General Electric Co. 1.2%
Citigroup, Inc. 1.0%
Pfizer, Inc. 0.8%
Bank of America Corp. 0.8%
Altria Group, Inc. 0.7%
Microsoft Corp. 0.7%
Intel Corp. 0.7%
American International Group, Inc. 0.7%
Johnson & Johnson, Inc. 0.5%
- --------------------------------------------------------------------------------
Top Ten Total 8.4%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
SECTOR ROTATION FUND
OBJECTIVE: Seeks long-term capital appreciation.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS DEPICTED AS A BAR CHART IN THE PRINTED MATERIAL.]
SECTOR ROTATION FUND
Energy 29.71%
Materials 22.88%
Industrials 15.67%
Health Care 14.73%
Utilities 7.56%
Consumer Staples 7.29%
"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. 4.3%
Cemex SA de CV -- SP ADR 3.8%
Vulcan Materials Co. 2.4%
Fluor Corp. 2.1%
TXU Corp. 2.1%
Lafarge North America, Inc. 2.0%
Exxon Mobil Corp. 2.0%
Florida Rock Industries, Inc. 1.9%
Schlumberger Ltd. 1.8%
Duke Energy Corp. 1.8%
- --------------------------------------------------------------------------------
Top Ten Total 24.2%
- --------------------------------------------------------------------------------
"Ten Largest Holdings" exclude any temporary cash or derivative investments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 5
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 98.9%
FINANCIALS 20.1%
INSURANCE 9.3%
American International
Group, Inc.+ 8,565 $ 530,687
Allstate Corp.+ 4,176 230,891
Prudential Financial, Inc.+ 3,291 222,340
St. Paul Travelers Cos., Inc. 4,830 216,722
Lincoln National Corp.+ 3,700 192,474
Hartford Financial Services
Group, Inc. 2,437 188,063
MetLife, Inc.+ 3,751 186,912
Genworth Financial, Inc. --
Class A+ 5,720 184,413
Chubb Corp.+ 2,040 182,682
UnumProvident Corp.+ 8,360 171,380
Ohio Casualty Corp. 6,300 170,856
SAFECO Corp. 3,131 167,133
Assurant, Inc. 4,280 162,897
Loews Corp.+ 1,760 162,642
W.R. Berkley Corp.+ 4,119 162,618
LandAmerica Financial
Group, Inc.+ 2,470 159,685
Selective Insurance Group, Inc. 3,210 156,969
HCC Insurance Holdings, Inc.+ 5,427 154,832
Conseco, Inc.*+ 7,150 150,937
Markel Corp.* 449 148,395
American Physicians Cap, Inc.* 3,012 147,980
Nationwide Financial Services, Inc. 3,660 146,583
Philadelphia Consolidated
Holding Co.*+ 1,710 145,179
AmerUs Group Co. 2,520 144,572
United Fire & Casualty Co. 3,190 143,901
Allmerica Financial Corp.* 3,460 142,344
National Western Life
Insurance Co. -- Class A* 672 141,960
Unitrin, Inc.+ 2,982 141,526
American National Insurance Co. 1,171 139,490
FPIC Insurance Group, Inc.* 3,840 138,202
Stancorp Financial Group, Inc. 1,641 138,172
Bristol West Holdings, Inc.+ 7,550 137,788
Clark, Inc. 8,120 136,660
American Financial
Group, Inc./OH 4,022 136,466
Mercury General Corp. 2,209 132,518
Zenith National Insurance Corp. 2,090 131,022
Safety Insurance Group, Inc. 3,668 130,544
Great American Financial
Resources, Inc. 6,520 130,400
Donegal Group, Inc. -- Class A 5,937 128,833
CNA Financial Corp.* 4,299 128,411
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Midland Co. 3,449 $ 124,267
ProAssurance Corp.* 2,570 119,942
CNA Surety Corp.* 4,193 59,624
UICI 1,620 58,320
First Acceptance Corp.* 5,140 51,965
Crawford & Co. -- Class B 6,250 48,938
Kansas City Life Insurance Co. 898 45,951
First American Corp. 623 28,452
Harleysville Group, Inc. 1,040 24,960
----------
TOTAL INSURANCE 7,228,498
----------
BANKS 2.7%
Bank of America Corp.+ 14,059 591,884
Wachovia Corp.+ 7,072 336,557
SunTrust Banks, Inc. 2,720 188,904
BB&T Corp.+ 4,708 183,847
M&T Bank Corp. 1,690 178,650
Wells Fargo & Co.+ 2,695 157,846
First Citizens BancShares, Inc. --
Class A 898 153,244
Gold Banc Corp., Inc. 9,420 140,358
Republic Bancorp, Inc. 5,060 105,855
U.S. Bancorp+ 961 26,985
Westcorp 200 11,780
----------
TOTAL BANKS 2,075,910
----------
REAL ESTATE 2.5%
AvalonBay Communities, Inc.+ 2,100 179,970
Highwoods Properties, Inc.+ 5,510 162,600
LTC Properties, Inc. 6,310 133,772
CBL & Associates Properties, Inc. 3,170 129,938
RAIT Investment Trust 4,550 129,675
Winston Hotels, Inc. 12,940 129,400
One Liberty Properties, Inc. 6,470 128,818
Boykin Lodging Co.* 10,330 128,298
Criimi MAE, Inc.* 7,180 123,568
Fieldstone Investment Corp. 10,530 122,780
Urstadt Biddle Properties, Inc. 7,960 120,674
Capital Lease Funding, Inc. 11,380 117,783
United Capital Corp.* 4,550 106,743
Vornado Realty Trust 910 78,824
Gramercy Capital Corp./NY 3,017 72,287
MFA Mortgage Investments, Inc.+ 6,830 41,868
Capital Trust/NY, Inc. -- Class A 1,250 40,200
BioMed Realty Trust, Inc. 1,000 24,800
CB Richard Ellis Group, Inc. --
Class A* 220 10,824
----------
TOTAL REAL ESTATE 1,982,822
----------
DIVERSIFIED FINANCIALS 2.2%
Citigroup, Inc.+ 17,750 807,980
J.P. Morgan Chase & Co. 8,616 292,341
Principal Financial Group, Inc. 4,850 229,744
6 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
CIT Group, Inc. 4,320 $ 195,178
Leucadia National Corp. 3,420 147,402
Archipelago Holdings, Inc.* 470 18,729
-----------
TOTAL DIVERSIFIED FINANCIALS 1,691,374
-----------
CAPITAL MARKETS 1.8%
Morgan Stanley 5,520 297,749
Lehman Brothers Holdings, Inc.+ 1,650 192,192
Allied Capital Corp.+ 5,360 153,457
American Capital Strategies, Ltd. 4,040 148,106
MCG Capital Corp. 8,370 141,202
Calamos Asset
Management, Inc. -- Class A 4,880 120,438
Investment Technology
Group, Inc.* 3,360 99,456
Apollo Investment Corp. 4,020 79,596
LaBranche & Co., Inc.*+ 7,720 67,087
SWS Group, Inc. 4,080 66,912
Merrill Lynch & Co., Inc. 564 34,601
Goldman Sachs Group, Inc. 100 12,158
-----------
TOTAL CAPITAL MARKETS 1,412,954
-----------
THRIFTS & MORTGAGE FINANCE 0.8%
Radian Group, Inc.+ 3,062 162,592
ITLA Capital Corp.* 2,390 125,451
Downey Financial Corp.+ 1,691 102,982
MGIC Investment Corp. 1,260 80,892
Corus Bankshares, Inc. 1,475 80,874
Doral Financial Corp.+ 3,110 40,648
R&G Financial Corp. -- Class B 913 12,554
Fannie Mae 150 6,723
Federal Agricultural
Mortgage Corp. 240 5,842
PMI Group, Inc. 100 3,987
-----------
TOTAL THRIFTS & MORTGAGE FINANCE 622,545
-----------
CONSUMER FINANCE 0.8%
Providian Financial Corp.* 8,787 155,354
Metris Companies, Inc.* 10,090 147,617
AmeriCredit Corp.* 6,175 147,397
Nelnet, Inc. -- Class A* 3,000 114,030
American Express Co. 998 57,325
-----------
TOTAL CONSUMER FINANCE 621,723
-----------
TOTAL FINANCIALS 15,635,826
-----------
INFORMATION TECHNOLOGY 16.1%
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 4.0%
Intel Corp. 22,371 551,445
Texas Instruments, Inc.+ 8,605 291,709
Applied Materials, Inc. 11,806 200,230
National Semiconductor Corp.+ 7,520 197,776
Lam Research Corp.*+ 5,064 154,300
Intersil Corp. -- Class A+ 7,020 152,896
Cymer, Inc.* 4,670 146,264
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
International Rectifier Corp.* 3,110 $ 140,199
Novellus Systems, Inc.*+ 5,489 137,664
MKS Instruments, Inc.*+ 7,910 136,289
Photronics, Inc.*+ 6,900 133,860
IXYS Corp.* 11,160 117,850
Standard Microsystems Corp.* 3,730 111,564
MEMC Electronic Materials, Inc.*+ 4,854 110,623
ADE Corp.* 4,480 100,710
Nvidia Corp.*+ 2,540 87,071
Sigmatel, Inc.* 3,940 79,746
Genesis Microchip, Inc.* 3,170 69,582
OmniVision Technologies, Inc.*+ 5,030 63,479
MIPS Technology, Inc.* 9,240 63,109
Skyworks Solutions, Inc.*+ 8,220 57,704
-----------
TOTAL SEMICONDUCTOR &
SEMICONDUCTOR EQUIPMENT 3,104,070
-----------
SOFTWARE 3.2%
Microsoft Corp. 21,678 557,775
McAfee, Inc.*+ 5,280 165,898
Cadence Design Systems, Inc.*+ 9,807 158,481
Fair Isaac Corp.+ 3,510 157,248
Micromuse, Inc.* 19,840 156,339
Citrix Systems, Inc.*+ 6,200 155,868
Compuware Corp.* 16,140 153,330
Internet Security Systems, Inc.* 6,360 152,704
Quest Software, Inc.* 9,860 148,590
MicroStrategy, Inc. -- Class A*+ 2,030 142,689
Sybase, Inc.*+ 6,050 141,691
Serena Software, Inc.*+ 6,840 136,321
Activision, Inc.* 3,470 70,961
MRO Software, Inc.* 2,160 36,374
TIBCO Software, Inc.*+ 3,730 31,183
Filenet Corp.* 1,100 30,690
Netscout Systems, Inc.* 3,671 19,934
Phoenix Technologies, Ltd.* 2,210 16,641
Oracle Corp.* 1,170 14,496
THQ, Inc.* 180 3,838
-----------
TOTAL SOFTWARE 2,451,051
-----------
COMPUTERS & PERIPHERALS 3.0%
Hewlett-Packard Co. 12,700 370,840
International Business
Machines Corp. 3,280 263,122
Apple Computer, Inc.* 4,820 258,400
EMC Corp./MA*+ 15,779 204,180
NCR Corp.* 5,290 168,804
Emulex Corp.* 7,820 158,042
Imation Corp. 3,654 156,647
Intergraph Corp.* 3,490 156,038
QLogic Corp.*+ 4,330 148,086
Brocade Communications
Systems, Inc.* 29,450 120,156
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 7
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Dell, Inc.* 3,400 $ 116,280
Advanced Digital
Information Corp.* 8,510 79,994
McData Corp. -- Class A* 8,220 43,073
Hutchinson Technology, Inc.*+ 1,350 35,262
Palm, Inc.*+ 1,230 34,846
-----------
TOTAL COMPUTERS & PERIPHERALS 2,313,770
-----------
IT CONSULTING & SERVICES 2.4%
First Data Corp. 5,238 209,520
Affiliated Computer
Services, Inc. -- Class A*+ 3,210 175,266
DST Systems, Inc.* 2,850 156,265
Ceridian Corp.* 7,230 150,022
Intrado, Inc.* 7,920 142,798
Forrester Research, Inc.* 6,540 136,163
Covansys Corp.* 8,410 134,224
Mantech
International Corp. -- Class A* 4,920 129,937
SYKES ENTERPRISES* 10,530 125,307
BISYS Group, Inc.* 9,130 122,616
Computer Sciences Corp.* 2,020 95,566
Automatic Data Processing, Inc. 2,110 90,814
CACI International, Inc. --
Class A*+ 1,240 75,144
MPS Group, Inc.* 5,910 69,738
Global Payments, Inc.+ 590 45,855
-----------
TOTAL IT CONSULTING & SERVICES 1,859,235
-----------
COMMUNICATIONS EQUIPMENT 1.7%
Motorola, Inc.+ 12,310 271,928
Cisco Systems, Inc.* 11,953 214,317
Juniper Networks, Inc.*+ 6,950 165,340
Safenet Inc*+ 3,830 139,067
Belden CDT, Inc.+ 7,120 138,342
Polycom, Inc.* 6,140 99,284
Black Box Corp.+ 1,920 80,563
Qualcomm, Inc. 1,720 76,970
Symmetricom, Inc.* 7,430 57,508
Foundry Networks, Inc.*+ 3,490 44,323
Digi International, Inc.* 3,790 40,667
-----------
TOTAL COMMUNICATIONS EQUIPMENT 1,328,309
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.9%
Arrow Electronics, Inc.* 4,903 153,758
Avnet, Inc.*+ 5,982 146,260
Dolby Laboratories, Inc. --
Class A* 8,340 133,440
Coherent, Inc.* 4,550 133,224
Rofin-Sinar Technologies, Inc.* 3,450 131,065
TTM Technologies, Inc.* 3,591 25,676
Agilsys, Inc. 240 4,042
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 727,465
-----------
INTERNET SOFTWARE & SERVICES 0.6%
ValueClick, Inc.* 10,180 $ 173,976
AsiaInfo Holdings, Inc.* 23,960 116,206
United Online, Inc. 6,620 91,687
Digital Insight Corp.* 1,550 40,393
EarthLink, Inc.* 3,580 38,306
Sonicwall, Inc.* 2,610 16,574
-----------
TOTAL INTERNET SOFTWARE & SERVICES 477,142
-----------
OFFICE ELECTRONICS 0.3%
Xerox Corp.*+ 15,760 215,124
-----------
TOTAL OFFICE ELECTRONICS 215,124
-----------
TOTAL INFORMATION TECHNOLOGY 12,476,166
-----------
CONSUMER DISCRETIONARY 14.2%
MEDIA 4.7%
Comcast Corp. -- Class A*+ 9,959 292,595
The Walt Disney Co.+ 11,082 267,409
News Corp. -- Class A 14,520 226,367
Liberty Media Corp. -- Class A* 23,330 187,807
McGraw-Hill Cos., Inc.+ 3,738 179,574
NTL, Inc.* 2,550 170,340
Tribune Co. 4,980 168,772
Univision Communications,
Inc. -- Class A*+ 6,170 163,690
EW Scripps Co. -- Class A 3,150 157,406
Citadel Broadcasting Corp.* 10,510 144,302
John Wiley & Sons, Inc. --
Class A 3,420 142,751
Salem Communications
Corp. /DE -- Class A* 7,710 142,172
Scholastic Corp.*+ 3,830 141,557
Belo Corp. -- Class A 6,100 139,446
DreamWorks Animation
SKG, Inc. -- Class A* 5,010 138,577
McClatchy Co. -- Class A 2,070 135,026
Hearst-Argyle Television, Inc. 5,144 132,149
Cox Radio Inc. -- Class A*+ 8,630 131,176
Sinclair Broadcast Group, Inc. --
Class A 14,190 125,865
Beasley Broadcasting
Group, Inc. -- Class A* 8,390 117,880
Time Warner, Inc. 6,394 115,795
Journal Communications, Inc. --
Class A 6,560 97,744
Playboy Enterprises, Inc. --
Class B*+ 5,650 79,665
Morningstar, Inc.* 1,910 61,120
Viacom, Inc. -- Class B+ 440 14,524
Media General, Inc. 120 6,961
-----------
TOTAL MEDIA 3,680,670
-----------
8 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
SPECIALTY RETAIL 2.4%
Lowe's Cos., Inc.+ 4,150 $ 267,260
Best Buy Co., Inc.+ 3,670 159,755
AutoNation, Inc.*+ 7,490 149,575
Payless Shoesource, Inc.*+ 8,480 147,552
Barnes & Noble, Inc. 3,678 138,661
American Eagle Outfitters, Inc. 5,690 133,886
Talbots, Inc. 4,300 128,656
Syms Corp. 8,870 118,769
CSK Auto Corp.* 7,670 114,130
Home Depot, Inc. 2,960 112,894
Children's Place Retail Stores, Inc.* 2,830 100,861
Too, Inc.*+ 3,165 86,816
Charming Shoppes, Inc.*+ 6,730 71,809
Genesco, Inc.* 1,130 42,081
Buckle, Inc. 1,110 37,707
Guess ?, Inc.* 1,600 34,288
Movie Gallery, Inc.+ 1,210 12,572
-----------
TOTAL SPECIALTY RETAIL 1,857,272
-----------
HOTELS, RESTAURANTS & LEISURE 1.7%
McDonald's Corp. 7,340 245,816
Marriott International, Inc. --
Class A+ 2,430 153,090
Vail Resorts, Inc.* 4,720 135,700
Bluegreen Corp.* 7,300 128,845
CBRL Group, Inc.+ 3,760 126,562
Dover Motorsports, Inc. 17,830 121,957
Yum! Brands, Inc. 2,280 110,375
Dover Downs Gaming &
Entertainment, Inc. 7,550 102,680
Darden Restaurants, Inc. 2,780 84,429
Starwood Hotels & Resorts
Worldwide, Inc. 1,000 57,170
MGM Mirage, Inc.*+ 850 37,204
Luby's, Inc.* 1,580 20,635
Krispy Kreme Doughnuts, Inc.*+ 1,338 8,376
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 1,332,839
-----------
HOUSEHOLD DURABLES 1.4%
NVR, Inc.* 265 234,512
Lennar Corp. -- Class A+ 3,010 179,878
Black & Decker Corp. 1,949 159,993
Toll Brothers, Inc.*+ 3,376 150,806
American Greetings Corp. --
Class A+ 5,490 150,426
Mohawk Industries, Inc.* 1,810 145,253
Libbey, Inc. 4,500 68,400
William Lyon Homes, Inc.*+ 100 15,520
Standard-Pacific Corp. 300 12,453
Dixie Group, Inc.* 560 8,926
-----------
TOTAL HOUSEHOLD DURABLES 1,126,167
-----------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
TEXTILES & APPAREL 1.4%
Jones Apparel Group, Inc. 5,455 $ 155,468
Polo Ralph Lauren Corp. 2,830 142,349
Timberland Co. -- Class A* 4,170 140,863
Columbia Sportswear Co.*+ 2,700 125,280
Steven Madden, Ltd.* 5,320 121,934
K-Swiss, Inc. -- Class A 4,085 120,793
Unifirst Corp./MA 3,131 109,804
Nike, Inc. -- Class B+ 930 75,962
Hartmarx Corp.* 9,940 65,107
Phillips-Van Heusen Corp. 1,130 35,053
-----------
TOTAL TEXTILES & APPAREL 1,092,613
-----------
MULTILINE RETAIL 0.7%
Federated Department
Stores, Inc. 3,839 256,714
ShopKo Stores, Inc.* 5,320 135,766
Nordstrom, Inc. 2,510 86,143
Neiman-Marcus Group, Inc. --
Class A 440 43,978
Target Corp.+ 379 19,682
-----------
TOTAL MULTILINE RETAIL 542,283
-----------
INTERNET & CATALOG RETAIL 0.5%
IAC/InterActiveCorp*+ 5,600 141,960
Blair Corp. 3,250 119,892
Systemax, Inc.* 16,370 115,245
-----------
TOTAL INTERNET & CATALOG RETAIL 377,097
-----------
AUTO COMPONENTS 0.5%
Aftermarket Technology Corp.* 7,620 140,132
Autoliv, Inc. 3,096 134,676
TRW Automotive Holdings Corp.* 2,310 67,775
Modine Manufacturing Co. 590 21,641
-----------
TOTAL AUTO COMPONENTS 364,224
-----------
HEALTH CARE PROVIDERS & SERVICES 0.4%
Alderwoods Group, Inc.* 8,735 143,080
Service Corporation
International/US 17,070 141,510
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 284,590
-----------
Leisure Equipment & Products 0.3%
Brunswick Corp. 2,969 112,020
RC2 Corp.* 2,720 91,827
-----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 203,847
-----------
COMMERCIAL SERVICES & SUPPLIES 0.1%
Jackson Hewitt Tax Service, Inc. 3,460 82,729
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 82,729
-----------
DISTRIBUTORS 0.1%
Building Material Holding Corp. 480 44,731
-----------
TOTAL DISTRIBUTORS 44,731
-----------
TOTAL CONSUMER DISCRETIONARY 10,989,062
-----------
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 9
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
HEALTH CARE 12.8%
HEALTH CARE PROVIDERS & SERVICES 5.8%
UnitedHealth Group, Inc.+ 6,032 $ 338,998
WellPoint, Inc.* 3,490 264,612
CIGNA Corp. 1,960 231,006
McKesson Corp. 4,830 229,183
Aetna, Inc.+ 2,440 210,182
Cardinal Health, Inc.+ 3,241 205,609
Caremark Rx, Inc.* 3,885 193,978
Coventry Health Care, Inc.* 2,247 193,287
HCA, Inc. 3,820 183,054
Express Scripts, Inc.*+ 2,840 176,648
Medco Health Solutions, Inc.* 3,101 170,028
Omnicare, Inc.+ 3,020 169,815
United Surgical Partners
International, Inc.* 4,280 167,391
WellChoice, Inc.* 1,988 150,889
Triad Hospitals, Inc.*+ 3,254 147,309
Lincare Holdings, Inc.*+ 3,470 142,443
PRA International* 4,509 136,668
Genesis HealthCare Corp.* 3,031 122,210
Universal Health Services, Inc. --
Class B+ 2,460 117,170
Humana, Inc.*+ 2,430 116,348
Per-Se Technologies, Inc.*+ 5,370 110,944
Health Net, Inc.* 2,030 96,060
Vital Images, Inc.* 3,920 87,259
Health Tronics Surgical
Services, Inc.* 8,480 84,461
Quest Diagnostics, Inc.+ 1,350 68,229
American Retirement Corp.* 3,600 67,788
Chemed Corp. 1,394 60,416
Ventiv Health, Inc.* 2,020 52,944
The Trizetto Group, Inc.* 3,000 42,360
Kindred Healthcare, Inc.* 1,310 39,038
Medcath Corp.* 1,612 38,285
Matria Healthcare, Inc.* 870 32,842
Beverly Enterprises, Inc.*+ 1,900 23,275
Psychiatric Solutions, Inc.*+ 420 22,777
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 4,493,506
-----------
HEALTH CARE EQUIPMENT & SUPPLIES 2.9%
Baxter International, Inc. 4,900 195,363
Hologic, Inc.* 2,850 164,587
Becton, Dickinson & Co. 3,053 160,069
Thoratec Corp.* 8,470 150,427
Haemonetics Corp./MA* 3,140 149,244
Boston Scientific Corp.*+ 6,290 146,997
Analogic Corp. 2,870 144,677
DJ Orthopedics, Inc.*+ 4,970 143,832
Advanced Neuromodulation
Systems, Inc.* 2,960 140,482
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Orasure Technologies, Inc.* 10,530 $ 99,298
West Pharmaceutical Services, Inc. 3,130 92,867
Intermagnetics General Corp.* 2,932 81,920
Intuitive Surgical, Inc.*+ 1,050 76,955
TriPath Imaging, Inc.* 10,060 71,024
Mentor Corp.+ 1,200 66,012
Medtronic, Inc. 1,216 65,202
Kyphon, Inc.* 1,430 62,834
Bausch & Lomb, Inc.+ 770 62,124
Angiodynamics, Inc.* 2,510 52,710
SurModics, Inc.*+ 870 33,660
Ventana Medical Systems, Inc.* 740 28,172
Immucor, Inc.*+ 1,010 27,714
Palomar Medical
Technologies, Inc.*+ 900 23,607
Vital Signs, Inc. 394 18,159
Cantel Medical Corp.*+ 790 16,622
IRIS International, Inc.* 400 7,376
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,281,934
-----------
PHARMACEUTICALS 2.7%
Pfizer, Inc. 25,497 636,660
Johnson & Johnson, Inc. 6,506 411,700
Watson Pharmaceuticals, Inc.*+ 4,290 157,057
King Pharmaceuticals, Inc.* 9,860 151,647
Alpharma, Inc. -- Class A 6,020 149,717
Kos Pharmaceuticals, Inc.* 1,772 118,600
Hi-Tech Pharmacal Co., Inc.* 3,250 97,760
First Horizon Pharmaceutical
Corp.*+ 4,150 82,460
Abbott Laboratories 1,759 74,582
Merck & Co., Inc. 2,731 74,311
CNS, Inc. 1,860 48,490
Wyeth 998 46,177
Eli Lilly & Co.+ 461 24,673
Bristol-Myers Squibb Co.+ 525 12,631
-----------
TOTAL PHARMACEUTICALS 2,086,465
-----------
BIOTECHNOLOGY 1.4%
Amgen, Inc.* 5,060 403,130
Biogen Idec, Inc.* 5,620 221,878
United Therapeutics Corp.*+ 2,394 167,101
Albany Molecular Research, Inc.* 11,190 136,294
Invitrogen Corp.*+ 1,787 134,436
Pharmion Corp.*+ 352 7,677
Savient Pharmaceuticals, Inc.* 1,510 5,693
-----------
TOTAL BIOTECHNOLOGY 1,076,209
-----------
TOTAL HEALTH CARE 9,938,114
-----------
INDUSTRIALS 11.6%
COMMERCIAL SERVICES & SUPPLIES 2.2%
Cendant Corp.+ 9,260 191,126
RR Donnelley & Sons Co. 4,880 180,902
10 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Waste Management, Inc. 6,190 $ 177,096
United Stationers, Inc.* 3,510 167,989
Labor Ready, Inc.* 6,110 156,721
Pico Holdings, Inc.* 4,030 141,614
Adesa, Inc. 6,310 139,451
Steelcase, Inc. -- Class A 9,160 132,454
Kforce.Com* 9,480 97,644
Resources Connection, Inc.*+ 3,250 96,298
West Corp.* 2,270 84,875
Administaff, Inc. 1,430 56,828
Compx International, Inc. 3,350 54,940
Allied Waste Industries, Inc.*+ 3,580 30,251
Standard Register Co. 1,200 17,940
Clean Harbors, Inc.* 300 10,185
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,736,314
-----------
AEROSPACE & DEFENSE 1.9%
Boeing Co. 4,187 284,507
Lockheed Martin Corp.+ 3,023 184,524
Precision Castparts Corp. 3,408 180,965
Northrop Grumman Corp. 3,286 178,594
Raytheon Co. 4,579 174,093
Esterline Technologies Corp.*+ 3,810 144,361
Heico Corp. 5,630 130,616
Kaman Corp. -- Class A 5,860 119,837
Armor Holdings, Inc.*+ 1,417 60,945
United Technologies Corp. 540 27,994
Aviall, Inc.* 300 10,134
-----------
TOTAL AEROSPACE & DEFENSE 1,496,570
-----------
MACHINERY 1.8%
Oshkosh Truck Corp. 3,418 147,521
EnPro Industries, Inc.* 4,356 146,754
Deere & Co.+ 2,380 145,656
Cummins, Inc.+ 1,620 142,544
Albany International Corp. --
Class A 3,620 133,469
Parker Hannifin Corp. 1,807 116,208
Circor International, Inc. 3,490 95,801
Timken Co. 2,740 81,186
Commercial Vehicle Group, Inc.* 3,650 76,431
Terex Corp.* 1,473 72,810
JLG Industries, Inc. 1,920 70,253
Sun Hydraulics Corp. 2,230 54,189
Titan International, Inc. 3,210 44,073
Cascade Corp. 870 42,369
Dynamic Materials Corp. 300 13,170
Flowserve Corp.*+ 240 8,724
-----------
TOTAL MACHINERY 1,391,158
-----------
ROAD & RAIL 1.5%
Norfolk Southern Corp. 6,350 257,556
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Burlington Northern Santa Fe
Corp 3,334 $ 199,373
CSX Corp. 3,830 178,018
CNF, Inc. 2,850 149,625
Laidlaw International, Inc. 6,068 146,664
RailAmerica, Inc.* 11,610 138,159
Yellow Roadway Corp.*+ 2,800 115,976
-----------
TOTAL ROAD & RAIL 1,185,371
-----------
INDUSTRIAL CONGLOMERATES 1.5%
General Electric Co. 26,569 894,578
Teleflex, Inc.+ 2,160 152,280
Walter Industries, Inc. 993 48,578
3M Co.+ 480 35,213
-----------
TOTAL INDUSTRIAL CONGLOMERATES 1,130,649
-----------
ELECTRICAL EQUIPMENT 0.9%
Thomas & Betts Corp.* 4,170 143,490
LSI Industries, Inc. 7,510 142,690
Preformed Line Products Co. 2,930 138,296
Vicor Corp. 8,620 130,593
Energy Conversion Devices, Inc.*+ 1,100 49,368
Woodward Governor Co. 470 39,973
Evergreen Solar, Inc.* 4,020 37,507
LaBarge, Inc.* 2,810 36,305
-----------
TOTAL ELECTRICAL EQUIPMENT 718,222
-----------
AIR FREIGHT & COURIERS 0.6%
United Parcel Service, Inc. --
Class B 3,610 249,559
Dynamex, Inc.* 7,420 116,049
HUB Group, Inc. -- Class A* 2,920 107,193
-----------
TOTAL AIR FREIGHT & COURIERS 472,801
-----------
BUILDING PRODUCTS 0.5%
USG Corp.* 2,170 149,122
York International Corp. 2,210 123,915
Water Pik Technologies, Inc.* 4,580 92,974
Universal Forest Products, Inc. 240 13,757
-----------
TOTAL BUILDING PRODUCTS 379,768
-----------
CONSTRUCTION & ENGINEERING 0.3%
EMCOR Group, Inc.* 2,580 152,994
Shaw Group, Inc.*+ 1,800 44,388
-----------
TOTAL CONSTRUCTION & ENGINEERING 197,382
-----------
TRADING COMPANIES & DISTRIBUTORS 0.2%
Beacon Roofing Supply, Inc.* 1,910 62,400
Applied Industrial
Technologies, Inc. 1,730 62,072
WESCO International, Inc.*+ 710 24,048
Watsco, Inc.+ 290 15,402
-----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 163,922
-----------
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 11
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
AIRLINES 0.2%
Continental Airlines, Inc. --
Class B*+ 12,440 $ 120,170
-----------
TOTAL AIRLINES 120,170
-----------
TOTAL INDUSTRIALS 8,992,327
-----------
ENERGY 7.6%
OIL & GAS 6.0%
Exxon Mobil Corp. 16,196 1,029,094
ConocoPhillips 5,830 407,575
Chevron Corp. 4,450 288,048
Williams Cos., Inc.+ 9,390 235,219
Devon Energy Corp.+ 3,342 229,395
Valero Energy Corp.+ 2,000 226,120
Occidental Petroleum Corp. 2,642 225,706
Kerr-McGee Corp. 2,100 203,931
Newfield Exploration Co.*+ 3,710 182,161
Burlington Resources, Inc. 2,063 167,763
Swift Energy Co.*+ 3,480 159,210
Pogo Producing Co. 2,700 159,138
Forest Oil Corp.* 2,840 147,964
Callon Petroleum Co.* 7,020 146,929
W&T Offshore, Inc. 3,610 117,072
Sunoco, Inc. 1,480 115,736
Vintage Petroleum, Inc. 2,440 111,410
TransMontaigne, Inc.* 12,930 103,311
Frontier Oil Corp. 1,550 68,743
Overseas Shipholding
Group, Inc.+ 1,063 62,005
Giant Industries, Inc.* 820 48,003
Maritrans, Inc. 1,440 46,080
Harvest Natural Resources, Inc.* 3,764 40,388
Tesoro Corp. 600 40,344
Berry Petroleum Co. -- Class A 600 40,014
Resource America, Inc. -- Class A 1,500 26,595
Holly Corp. 350 22,393
Petroleum Development Corp.* 373 14,301
-----------
TOTAL OIL & GAS 4,664,648
-----------
ENERGY EQUIPMENT & SERVICES 1.6%
Veritas DGC, Inc.*+ 4,390 160,762
Tidewater, Inc.+ 3,240 157,691
Helmerich & Payne, Inc. 2,490 150,371
Rowan Cos., Inc.+ 4,170 147,993
Lone Star Technologies, Inc.*+ 2,142 119,074
NS Group, Inc.* 2,910 114,217
Global Industries, Ltd.*+ 6,240 91,978
Diamond Offshore Drilling, Inc. 1,440 88,200
Hydril*+ 900 61,776
GulfMark Offshore, Inc.* 1,472 47,501
Grey Wolf, Inc.* 5,330 44,932
Cal Dive International, Inc.* 370 23,462
Offshore Logistics, Inc.* 532 19,684
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Lufkin Industries, Inc. 230 $ 10,017
Oil States International, Inc.* 230 8,351
Todco -- Class A* 100 4,171
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 1,250,180
-----------
TOTAL ENERGY 5,914,828
-----------
CONSUMER STAPLES 6.4%
FOOD PRODUCTS 2.3%
Archer-Daniels-Midland Co. 10,100 249,066
General Mills, Inc. 3,560 171,592
Dean Foods Co.* 4,410 171,373
Kellogg Co. 3,550 163,761
Chiquita Brands
International, Inc.+ 5,390 150,650
Kraft Foods, Inc. -- Class A 4,800 146,832
Hain Celestial Group, Inc.*+ 7,200 139,680
M&F Worldwide Corp.* 8,820 137,151
Hershey Co. 2,360 132,892
Pilgrim's Pride Corp. 3,620 131,768
Seaboard Corp. 85 116,705
Gold Kist, Inc.* 2,750 53,763
Maui Land & Pineapple Co., Inc.* 240 7,207
-----------
TOTAL FOOD PRODUCTS 1,772,440
-----------
TOBACCO 1.2%
Altria Group, Inc.+ 7,637 562,923
Reynolds American, Inc. 2,180 180,984
Loews Corp. - Carolina Group 3,810 150,990
-----------
TOTAL TOBACCO 894,897
-----------
BEVERAGES 1.1%
PepsiCo, Inc. 7,030 398,671
Brown-Forman Corp. -- Class B 2,430 144,682
Coca-Cola Co. 3,092 133,544
PepsiAmericas, Inc. 5,358 121,787
Coca-Cola Enterprises, Inc. 2,030 39,585
-----------
TOTAL BEVERAGES 838,269
-----------
FOOD & DRUG RETAILING 1.0%
Wal-Mart Stores, Inc.+ 4,280 187,550
Costco Wholesale Corp.+ 4,270 183,994
Performance Food Group Co.* 5,320 167,899
Supervalu, Inc. 4,540 141,285
Nash Finch Co.+ 1,927 81,300
Walgreen Co.+ 144 6,257
-----------
TOTAL FOOD & DRUG RETAILING 768,285
-----------
HOUSEHOLD PRODUCTS 0.8%
Procter & Gamble Co.+ 4,810 286,003
Kimberly-Clark Corp. 3,373 200,795
Energizer Holdings, Inc.*+ 2,536 143,791
Central Garden and Pet Co.* 576 26,064
-----------
TOTAL HOUSEHOLD PRODUCTS 656,653
-----------
12 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
PERSONAL PRODUCTS 0.0%
Playtex Products, Inc.* 2,090 $ 22,990
Gillette Co. 240 13,968
-----------
TOTAL PERSONAL PRODUCTS 36,958
-----------
TOTAL CONSUMER STAPLES 4,967,502
-----------
UTILITIES 4.1%
MULTI-UTILITIES 1.9%
Duke Energy Corp.+ 7,060 205,940
Constellation Energy Group, Inc. 3,303 203,465
NRG Energy, Inc.*+ 3,705 157,833
CenterPoint Energy, Inc. 10,580 157,325
CMS Energy Corp.*+ 9,200 151,340
NorthWestern Corp. 5,000 150,950
NSTAR+ 4,852 140,320
WPS Resources Corp.+ 2,410 139,298
PNM Resources, Inc.+ 4,830 138,476
Wisconsin Energy Corp. 700 27,944
-----------
TOTAL MULTI-UTILITIES 1,472,891
-----------
ELECTRIC UTILITIES 1.6%
Edison International 5,010 236,873
Entergy Corp. 2,245 166,848
Allegheny Energy, Inc.*+ 5,320 163,430
Sierra Pacific Resources*+ 10,980 163,053
UIL Holding Corp. 2,700 141,237
Westar Energy, Inc.+ 5,762 139,037
El Paso Electric Co.* 4,320 90,072
TXU Corp.+ 567 64,003
Black Hills Corp.+ 1,310 56,815
-----------
TOTAL ELECTRIC UTILITIES 1,221,368
-----------
GAS UTILITIES 0.6%
WGL Holdings, Inc. 4,860 156,152
Oneok, Inc.+ 4,566 155,335
Southern Union Co.* 5,795 149,324
-----------
TOTAL GAS UTILITIES 460,811
-----------
TOTAL UTILITIES 3,155,070
-----------
MATERIALS 4.0%
METALS & MINING 1.7%
Phelps Dodge Corp. 1,812 235,433
Freeport-McMoRan Copper &
Gold, Inc. -- Class B+ 4,110 199,705
Nucor Corp.+ 3,280 193,487
Metals USA, Inc.* 6,840 139,946
Roanoke Electric Steel Corp. 6,720 134,602
Carpenter Technology Corp. 2,066 121,088
United States Steel Corp.+ 2,540 107,569
Stillwater Mining Co.*+ 8,600 78,690
Quanex Corp. 690 45,692
Reliance Steel & Aluminum Co.+ 670 35,463
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Chaparral Steel Co.* 900 $ 22,698
RTI International Metals, Inc.* 447 17,590
Commercial Metals Co.+ 392 13,226
Steel Dynamics, Inc.+ 160 5,434
-----------
TOTAL METALS & MINING 1,350,623
-----------
CHEMICALS 1.4%
Dow Chemical Co. 5,570 232,102
Monsanto Co.+ 2,695 169,111
Lubrizol Corp. 3,460 149,922
Ashland, Inc. 2,610 144,176
FMC Corp.* 2,380 136,184
EI Du Pont de Nemours & Co. 2,840 111,243
Lyondell Chemical Co.+ 3,510 100,456
Westlake Chemical Corp. 2,981 80,725
Terra Industries, Inc.* 250 1,663
-----------
TOTAL CHEMICALS 1,125,582
-----------
CONSTRUCTION MATERIALS 0.5%
Eagle Materials, Inc.+ 1,490 180,841
Texas Industries, Inc. 2,600 141,440
Lafarge North America, Inc. 790 53,412
-----------
TOTAL CONSTRUCTION MATERIALS 375,693
-----------
PAPER & FOREST PRODUCTS 0.4%
Weyerhaeuser Co. 2,509 172,494
Louisiana-Pacific Corp.+ 3,230 89,439
Buckeye Technologies, Inc.* 2,630 21,355
-----------
TOTAL PAPER & FOREST PRODUCTS 283,288
-----------
TOTAL MATERIALS 3,135,186
-----------
TELECOMMUNICATION SERVICES 2.0%
DIVERSIFIED TELECOMMUNICATION SERVICES 1.5%
BellSouth Corp.+ 9,981 262,500
Telewest Global, Inc.* 7,520 172,584
AT&T Corp.+ 8,655 171,369
Golden Telecom, Inc.+ 4,700 148,379
Premiere Global Services, Inc.* 17,100 139,878
Verizon Communications, Inc. 4,125 134,846
SBC Communications, Inc.+ 4,213 100,986
North Pittsburgh Systems, Inc. 1,000 20,410
Hungarian Telephone & Cable* 560 8,389
-----------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 1,159,341
-----------
WIRELESS TELECOMMUNICATION SERVICES 0.5%
Sprint Corp.+ 8,680 206,410
Telephone & Data Systems, Inc.+ 3,910 152,490
-----------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 358,900
-----------
TOTAL TELECOMMUNICATION SERVICES 1,518,241
-----------
TOTAL COMMON STOCKS
(Cost $67,157,471) 76,722,322
-----------
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 13
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
CORE EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 1.0%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 449,236 $ 449,236
3.24% due 10/03/05 342,147 342,147
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $791,383) 791,383
------------
SECURITIES LENDING COLLATERAL 15.1%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 11,708,590 11,708,590
------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $11,708,590) 11,708,590
------------
TOTAL INVESTMENTS 115.0%
(Cost $79,657,444) $ 89,222,295
============
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (15.0)% $(11,650,548)
============
NET ASSETS -- 100.0% $ 77,571,747
================================================================================
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- --------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2005 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $617,000) 10 $ 488
============
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
14 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS 97.8%
ENERGY 29.7%
ENERGY EQUIPMENT & SERVICES 14.9%
Schlumberger Ltd.+ 35,800 $ 3,020,804
Halliburton Co.+ 39,600 2,713,392
Transocean, Inc.*+ 32,300 1,980,313
Baker Hughes, Inc.+ 33,000 1,969,440
Tenaris SA -- SP ADR 13,700 1,888,408
BJ Services Co.+ 43,800 1,576,362
Nabors Industries Ltd.* 20,800 1,494,064
Precision Drilling Corp.* 30,000 1,476,000
GlobalSantaFe Corp.+ 30,700 1,400,534
Weatherford International Ltd.*+ 19,500 1,338,870
Noble Corp. 18,600 1,273,356
ENSCO International, Inc.+ 26,300 1,225,317
Diamond Offshore Drilling, Inc.+ 19,900 1,218,875
Patterson-UTI Energy, Inc.+ 31,700 1,143,736
Smith International, Inc.+ 33,500 1,115,885
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 24,835,356
-----------
OIL & GAS 14.8%
Exxon Mobil Corp. 51,400 3,265,956
BP PLC -- SP ADR 35,500 2,515,175
Total SA -- SP ADR+ 14,500 1,969,390
Chevron Corp. 28,200 1,825,386
PetroChina Co. Ltd. -- SP ADR+ 21,700 1,809,129
Royal Dutch Shell PLC -- SP ADR 27,242 1,788,165
ENI-Ente Nazionale Idrocarburi --
SP ADR+ 11,400 1,688,340
ConocoPhillips 22,400 1,565,984
Petroleo Brasiliero SA --
Petrobras 20,400 1,458,396
EnCana Corp. 20,800 1,212,848
Imperial Oil Ltd. 9,500 1,093,070
Repsol YPF SA -- SP ADR 31,500 1,017,765
Occidental Petroleum Corp. 11,400 973,902
China Petroleum & Chemical
Corp. -- SP ADR+ 21,000 950,460
Royal Dutch Shell PLC -- SP ADR 13,154 905,916
Statoil ASA -- SP ADR 25,500 629,595
-----------
TOTAL OIL & GAS 24,669,477
-----------
TOTAL ENERGY 49,504,833
-----------
MATERIALS 22.9%
CONSTRUCTION MATERIALS 14.7%
Cemex SA de CV -- SP ADR 119,553 6,252,622
Vulcan Materials Co.+ 53,600 3,977,656
Lafarge North America, Inc. 48,700 3,292,607
Florida Rock Industries, Inc.+ 48,500 3,108,365
Martin Marietta Materials, Inc. 37,000 2,903,020
Eagle Materials, Inc.+ 19,800 2,403,126
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Texas Industries, Inc. 33,600 $ 1,827,840
Headwaters, Inc.*+ 21,200 792,880
-----------
TOTAL CONSTRUCTION MATERIALS 24,558,116
-----------
METALS & MINING 8.2%
BHP Billiton Ltd. -- SP ADR+ 54,200 1,852,556
Rio Tinto PLC -- SP ADR+ 8,600 1,412,980
Companhia Vale do Rio Doce --
SP ADR+ 30,100 1,320,186
Anglo American PLC -- ADR+ 40,646 1,227,509
Newmont Mining Corp.+ 20,100 948,117
Barrick Gold Corp.+ 26,400 766,920
Mittal Steel NV Co. -- Class A 26,200 754,560
POSCO -- SP ADR 13,200 746,592
Alcoa, Inc. 30,300 739,926
AngloGold Ashanti Ltd. --
SP ADR+ 15,300 649,332
Alcan, Inc.+ 20,000 634,600
Phelps Dodge Corp. 4,600 597,678
Inco Ltd. 11,300 535,055
Nucor Corp.+ 8,900 525,011
Southern Peru Copper Corp. 9,100 509,236
Chaparral Steel Co.* 14,100 355,602
-----------
TOTAL METALS & MINING 13,575,860
-----------
TOTAL MATERIALS 38,133,976
-----------
INDUSTRIALS 15.7%
CONSTRUCTION & ENGINEERING 15.7%
Fluor Corp.+ 55,000 3,540,900
Jacobs Engineering Group, Inc.*+ 42,800 2,884,720
Chicago Bridge & Iron NV Co. 77,198 2,400,086
URS Corp.* 52,200 2,108,358
Shaw Group, Inc.*+ 84,300 2,078,838
McDermott International, Inc.* 53,600 1,962,296
Dycom Industries, Inc.*+ 89,300 1,805,646
Granite Construction, Inc. 46,400 1,774,336
Washington Group
International, Inc.*+ 32,700 1,762,203
Quanta Services, Inc.*+ 134,400 1,714,944
Foster Wheeler Ltd.*+ 54,800 1,692,772
EMCOR Group, Inc.*+ 25,700 1,524,010
Insituform Technologies, Inc. --
Class A* 50,400 871,416
-----------
TOTAL CONSTRUCTION & ENGINEERING 26,120,525
-----------
TOTAL INDUSTRIALS 26,120,525
-----------
HEALTH CARE 14.7%
BIOTECHNOLOGY 7.4%
Amgen, Inc.* 29,100 2,318,397
Genentech, Inc.* 24,000 2,021,040
Gilead Sciences, Inc.*+ 24,800 1,209,248
Genzyme Corp.* 13,700 981,468
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 15
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
SECTOR ROTATION FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
Biogen Idec, Inc.* 21,200 $ 836,976
Celgene Corp.*+ 13,900 755,048
Medimmune, Inc.* 21,000 706,650
Chiron Corp.* 15,800 689,196
Applera Corp. - Applied
Biosystems Group 22,800 529,872
Invitrogen Corp.*+ 5,700 428,811
Millennium Pharmaceuticals, Inc.*+ 40,400 376,932
Cephalon, Inc.*+ 8,100 376,002
Charles River Laboratories
International, Inc.*+ 8,200 357,684
Affymetrix, Inc.* 7,600 351,348
ImClone Systems, Inc.* 11,000 345,950
-------------
TOTAL BIOTECHNOLOGY 12,284,622
-------------
HEALTH CARE PROVIDERS & SERVICES 7.3%
UnitedHealth Group, Inc.+ 30,500 1,714,100
WellPoint, Inc.* 17,900 1,357,178
Cardinal Health, Inc.+ 16,400 1,040,416
Aetna, Inc.+ 11,300 973,382
Caremark Rx, Inc.*+ 19,300 963,649
CIGNA Corp. 7,200 848,592
HCA, Inc. 16,000 766,720
McKesson Corp. 15,800 749,710
Medco Health Solutions, Inc.* 12,800 701,824
Express Scripts, Inc.*+ 11,000 684,200
Coventry Health Care, Inc.* 6,800 584,936
Quest Diagnostics, Inc.+ 11,400 576,156
Laboratory Corporation of
America Holdings*+ 10,300 501,713
Health Management
Associates, Inc. -- Class A+ 18,000 422,460
Patterson Cos., Inc.*+ 9,500 380,285
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 12,265,321
-------------
TOTAL HEALTH CARE 24,549,943
-------------
UTILITIES 7.5%
MULTI-UTILITIES 5.0%
Duke Energy Corp.+ 102,000 2,975,340
Constellation Energy Group, Inc. 32,800 2,020,480
AES Corp.*+ 113,900 1,871,377
Dynegy, Inc. -- Class A*+ 180,000 847,800
Calpine Corp.*+ 246,600 638,694
-------------
TOTAL MULTI-UTILITIES 8,353,691
-------------
ELECTRIC UTILITIES 2.5%
TXU Corp.+ 31,100 3,510,568
Black Hills Corp.+ 16,900 732,953
-------------
TOTAL ELECTRIC UTILITIES 4,243,521
-------------
TOTAL UTILITIES 12,597,212
-------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
CONSUMER STAPLES 7.3%
TOBACCO 7.3%
Altria Group, Inc.+ 96,300 $ 7,098,273
Reynolds American, Inc.+ 23,300 1,934,366
UST, Inc.+ 37,200 1,557,192
Loews Corp. - Carolina Group 25,100 994,713
Universal Corp./Richmond VA 14,600 566,918
-------------
TOTAL TOBACCO 12,151,462
-------------
TOTAL CONSUMER STAPLES 12,151,462
-------------
TOTAL COMMON STOCKS
(Cost $136,406,656) 163,057,951
-------------
FACE
AMOUNT
------
REPURCHASE AGREEMENTS 2.1%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 1,980,640 1,980,640
3.24% due 10/03/05 1,508,496 1,508,496
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,489,136) 3,489,136
-------------
SECURITIES LENDING COLLATERAL 24.9%
Investment in Securities Lending Short Term
Investment Portfolio Held by
U.S. Bank (Note 8) 41,490,159 41,490,159
-------------
TOTAL SECURITIES LENDING COLLATERAL
(Cost $41,490,159) 41,490,159
-------------
TOTAL INVESTMENTS 124.8%
(Cost $181,385,951) $ 208,037,246
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (24.8)% $ (41,397,668)
=============
NET ASSETS -- 100.0% $ 166,639,578
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS ON LOAN AT SEPTEMBER 30, 2005 - SEE
NOTE 8.
ADR--AMERICAN DEPOSITORY RECEIPT.
16 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
CORE SECTOR
EQUITY ROTATION
FUND FUND
=================================================================================================================
ASSETS
Securities at Value* (Notes 1, 2, 5 and 8) $89,222,295 $208,037,246
Segregated Cash with Broker 31,500 --
Cash in Custodian Bank 980 3,250
Receivable for Futures Contracts Settlement (Note 1) 1,100 --
Receivable for Shares Purchased 135,898 1,379,163
Investment Income Receivable (Note 1) 76,206 241,531
- -----------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 89,467,979 209,661,190
=================================================================================================================
LIABILITIES
Payable upon Return of Securities Loaned (Note 8) 11,708,590 41,490,159
Payable for Securities Purchased (Note 1) -- 1,047,932
Liability for Shares Redeemed 76,552 267,977
Investment Advisory Fees Payable (Note 3) 63,797 123,100
Transfer Agent and Administrative Fees Payable (Note 3) 17,629 34,195
Distribution and Service Fees Payable (Note 3) 11,849 24,435
Portfolio Accounting Fees Payable (Note 3) 7,052 13,678
Custody Fees Payable 2,105 3,283
Other Liabilities 8,658 16,853
- -----------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 11,896,232 43,021,612
=================================================================================================================
NET ASSETS $77,571,747 $166,639,578
=================================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $62,236,240 $142,164,500
Undistributed Net Investment Loss (222,768) (165,859)
Accumulated Net Realized Gain (Loss) on Investments and Futures Contracts 5,992,936 (2,010,358)
Net Unrealized Appreciation (Depreciation) on Investments and Futures Contracts 9,565,339 26,651,295
=================================================================================================================
NET ASSETS $77,571,747 $166,639,578
=================================================================================================================
A-Class $ 1,636,859 $ 7,919,392
C-Class 32,556,171 66,106,080
H-Class 43,378,717 92,614,106
SHARES OUTSTANDING
A-Class 101,444 617,525
C-Class 2,067,090 5,283,767
H-Class 2,688,411 7,209,992
NET ASSET VALUES
A-Class $ 16.14 $ 12.82
A-Class Maximum Offering Price** 16.94 13.46
C-Class 15.75 12.51
H-Class 16.14 12.85
* THE COST OF SECURITIES AT VALUE IS $79,657,444 AND $181,385,951,
RESPECTIVELY.
** NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 17
STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2005
- --------------------------------------------------------------------------------
CORE SECTOR
EQUITY ROTATION
FUND FUND
================================================================================================
INVESTMENT INCOME
Interest (Note 1) $ 54,324 $ 33,325
Interest from Securities Lending, net (Note 8) 9,411 22,691
Dividends, Net of Foreign Tax Withheld* (Note 1) 514,989 1,054,067
- ------------------------------------------------------------------------------------------------
Total Income 578,724 1,110,083
- ------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 376,337 591,765
Transfer Agent and Administrative Fees (Note 3) 105,285 164,379
Distribution & Service Fees (Note 3):
A-Class 1,538 5,748
C-Class 169,795 295,354
H-Class 61,299 84,793
Portfolio Accounting Fees (Note 3) 42,114 65,752
Trustees' Fees** 1,871 2,907
Miscellaneous 43,253 65,244
- ------------------------------------------------------------------------------------------------
Total Expenses 801,492 1,275,942
- ------------------------------------------------------------------------------------------------
Net Investment Loss (222,768) (165,859)
================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain (Loss) on:
Investment Securities 3,336,493 7,910,402
Futures Contracts (122,564) --
- ------------------------------------------------------------------------------------------------
Total Net Realized Gain 3,213,929 7,910,402
- ------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities 2,425,432 11,403,755
Futures Contracts 12,496 --
- ------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 2,437,928 11,403,755
- ------------------------------------------------------------------------------------------------
Net Gain on Investments 5,651,857 19,314,157
- ------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 5,429,089 $ 19,148,298
================================================================================================
* NET OF FOREIGN TAX WITHHELD OF $23 AND $41,477, RESPECTIVELY.
** RELATES TO TRUSTEES NOT DEEMED "INTERESTED PERSONS" WITHIN THE MEANING OF
SECTION 2(A)(19) OF THE 1940 ACT.
18 | THE RYDEX SERIES FUNDS
SEMI-ANNUAL REPORT See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
CORE EQUITY FUND SECTOR ROTATION FUND
=============================================================================================================================
PERIOD YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005
=============================================================================================================================
FROM OPERATIONS
Net Investment Loss $ (222,768) $ (189,164) $ (165,859) $ (765,439)
Net Realized Gain on Investments 3,213,929 5,016,468 7,910,402 3,648,637
Net Change in Unrealized Appreciation (Depreciation)
on Investments and Futures Contracts 2,437,928 235,511 11,403,755 2,085,377
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations 5,429,089 5,062,815 19,148,298 4,968,575
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (NOTE 1)
Realized Gain on Investment
A-Class -- (29,799) -- --
C-Class -- (1,290,813) -- --
H-Class -- (2,321,494) -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions to Shareholders -- (3,642,106) -- --
=============================================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
A-Class 853,304 1,854,516 5,193,310 4,692,623
C-Class 6,574,476 24,157,214 15,221,315 25,139,982
H-Class 48,129,743 84,248,891 67,910,078 65,844,727
VALUE OF SHARES PURCHASED THROUGH
DIVIDEND REINVESTMENT
A-Class -- 29,797 -- --
C-Class -- 1,221,401 -- --
H-Class -- 2,225,710 -- --
COST OF SHARES REDEEMED
A-Class (214,069) (984,731) (1,042,630) (1,881,322)
C-Class (11,035,850) (15,319,518) (12,178,500) (32,396,269)
H-Class (59,003,405) (78,395,806) (41,930,058) (97,924,054)
=============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (14,695,801) 19,037,474 33,173,515 (36,524,313)
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (9,266,712) 20,458,183 52,321,813 (31,555,738)
NET ASSETS--BEGINNING OF PERIOD 86,838,459 66,380,276 114,317,765 145,873,503
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 77,571,747 $ 86,838,459 $ 166,639,578 $ 114,317,765
=============================================================================================================================
UNDISTRIBUTED NET INVESTMENT LOSS $ (222,768) $ -- $ (165,859) $ --
=============================================================================================================================
+ UNAUDITED
THE RYDEX SERIES FUNDS
See Notes to Financial Statements. SEMI-ANNUAL REPORT | 19
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
SEPTEMBER 30, 2005# $15.01 $ (.02) $ 1.15 $ 1.13 $ -- $ -- $ --
March 31, 2005 14.44 .02 1.16 1.18 -- (.61) (.61)
March 31, 2004* 14.44 -- -- -- -- -- --
CORE EQUITY FUND -- C-CLASS
SEPTEMBER 30, 2005# 14.71 (.07) 1.11 1.04 -- -- --
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
SEPTEMBER 30, 2005# 15.01 (.02) 1.15 1.13 -- -- --
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
SEPTEMBER 30, 2005# 11.10 -- 1.72 1.72 -- -- --
March 31, 2005 10.45 (.02) .67 .65 -- -- --
March 31, 2004* 10.45 -- -- -- -- -- --
SECTOR ROTATION FUND -- C-CLASS
SEPTEMBER 30, 2005# 10.87 (.04) 1.68 1.64 -- -- --
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
SEPTEMBER 30, 2005# 11.12 -- 1.73 1.73 -- -- --
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
SEPTEMBER 30, 2005# $ 1.13 $16.14 7.53% 1.63%** (0.22)%** 110% $ 1,637
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
SEPTEMBER 30, 2005# 1.04 15.75 7.07% 2.38%** (0.98)%** 110% 32,556
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
SEPTEMBER 30, 2005# 1.13 16.14 7.53% 1.62%** (0.23)%** 110% 43,379
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
SEPTEMBER 30, 2005# 1.72 12.82 15.50% 1.63%** 0.00%** 113% 7,919
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
SEPTEMBER 30, 2005# 1.64 12.51 15.09% 2.38%** (0.67)%** 113% 66,106
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
SEPTEMBER 30, 2005# 1.73 12.85 15.56% 1.63%** 0.00%** 113% 92,614
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.
# UNAUDITED
20 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Series Funds (the "Trust") is registered with the SEC 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
AMOUNT AS % OF AS % OF NET
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 September 30, 2005, the Trust consisted of forty-eight separate series:
twenty-four Benchmark Funds, one Money Market Fund, one Absolute Return
Strategies Fund, one Hedged Equity Fund, nineteen Sector Funds, and two
Strategic Funds. This report covers the Strategic Funds (the "Funds"), while the
Money Market Fund, the Benchmark Funds, the Sector Funds, the Absolute Return
Strategies Fund and the Hedged Equity Fund are contained in separate reports. As
of September 30, 2005, only A-Class, C-Class and H-Class Shares had been issued
in the Strategic Funds.
The following significant accounting policies are in conformity with accounting
principles generally accepted in the United States of America and are
consistently followed by the Trust.
A. Equity securities listed on an exchange (New York Stock Exchange ("NYSE") or
American Stock Exchange) are valued at the last quoted sales price as of close
of business on the NYSE, usually 4:00 p.m., Eastern Time, on the valuation date.
Equity securities listed on the Nasdaq market system are valued at the Nasdaq
Official Closing Price, usually as of 4:00 p.m., Eastern Time, on the valuation
date. 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. In the event that the
exchange for a specific futures contract closes earlier than 4:00 p.m., Eastern
Time, the futures contract is valued at the Official Settlement Price of the
exchange. However, the underlying securities from which the futures contract
value is derived are monitored until 4:00 p.m., Eastern Time, to determine if
fair valuation would provide a more accurate valuation. Short-term securities,
if any, are valued at amortized cost, which approximates market value.
Investments 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 Rydex Global Advisors (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.
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 related 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.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 21
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
D. Distributions of net investment income and net realized capital gains are
recorded on the ex-dividend date and are determined in accordance with income
tax regulations which may differ from accounting principles generally accepted
in the United States of America. These differences are primarily due to
differing treatments for items such as deferral of wash sales and post-October
losses and regulated futures contracts and options. Net investment income and
loss, net realized gains and losses, and net assets are 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"), U.S. Government securities, enter into repurchase agreements, and
engage in futures, options and equity swap transactions.
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, a 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, options on futures, and swap
agreements. These investments involve, to varying degrees, elements of market
risk and risks in excess of the amounts recognized in the Statements of Assets
and Liabilities.
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 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 the Trust 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, 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
22 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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, swap agreements as well as short sales of securities include i)
adverse changes in the value of such instruments; ii) imperfect correlation
between the price of the instruments and movements in the price of the
underlying securities, indices, or futures contracts; iii) the possible absence
of a liquid secondary market for any particular instrument at any time; and iv)
the potential of counterparty default.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory contract, the Trust pays 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 period ending September 30, 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.
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 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
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 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 period, capital loss
carryforward expired, 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 reclassifica-
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 23
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
tions 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.
At September 30, 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
- --------------------------------------------------------------------------------------------------
Core Equity Fund $ 80,066,603 $10,508,889 $(1,352,709) $ 9,156,180
Sector Rotation Fund 182,134,172 27,292,816 (1,389,742) 25,903,074
5. Repurchase Agreements
The Funds transfer 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 Large-Cap Growth Fund, the
Strengthening Dollar Fund, the Weakening Dollar Fund, the U.S. Government Money
Market Fund, the Nova Master Portfolio, the Ursa Master Portfolio, the Arktos
Master Portfolio, the Juno Master Portfolio, the Commodities Fund, the Absolute
Return Strategies Fund and the Hedged Equity 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 Trust's custodian and is
evaluated daily to ensure that its market value exceeds by, at a minimum, 102%
the delivery value of the repurchase agreements at maturity.
The repurchase agreements executed by the joint account and outstanding as of
September 30, 2005, were as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- -----------------------------------------------------------------------------------------------------------------
Bear Stearns Cos., Inc. 3.25% due 10/03/05 $525,000,000 $ 525,000,000 $ 525,142,188
Citigroup, Inc. 3.24% due 10/03/05 375,000,000 375,000,000 375,101,250
Lehman Brothers, Inc. 3.25% due 10/03/05 295,619,135 295,619,135 295,699,198
Morgan Stanley 3.24% due 10/03/05 250,000,000 250,000,000 250,067,500
- -----------------------------------------------------------------------------------------------------------------
$1,445,619,135 $1,446,010,136
- -----------------------------------------------------------------------------------------------------------------
As of September 30, 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 6.125% - 8.000% $ 203,611,000 $ 257,500,263
U.S. Treasury Notes 3.000% - 3.875% 1,033,367,912 1,027,768,192
U.S. Currency 0.000% 188,000,000 188,000,000
- -----------------------------------------------------------------------------------------------------------------
$1,473,268,455
- -----------------------------------------------------------------------------------------------------------------
In the event of counterparty default, the Trust has the right to collect the
collateral to offset losses incurred. There is potential loss to the Trust in
the event the Trust is delayed or prevented from exercising its rights to
dispose of the collateral securities, including the risk of a possible decline
in the value of the underlying securities during the period while the Trust
seeks to assert its rights. The Trust's investment advisor, acting under the
supervision of the Board of Trustees, reviews the value of the collateral and
the credit worthiness of those banks and dealers with which the Trust enters
into repurchase agreements to evaluate potential risks.
6. SECURITIES TRANSACTIONS
During the period ended September 30, 2005, cost of purchases and proceeds from
sales of investment securities, excluding short-term and temporary cash
investments, were:
CORE EQUITY SECTOR ROTATION
FUND FUND
- --------------------------------------------------------------------------------
Purchases $ 86,119,051 $174,922,170
Sales $101,167,188 $144,867,276
24 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of no par value
shares. Transactions in shares for the periods presented were:
PURCHASED THROUGH NET SHARES
SHARES PURCHASED DIVIDEND REINVESTMENT SHARES REDEEMED PURCHASED (REDEEMED)
- ------------------------------------------------------------------------------------------------------------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2005+ 2005 2005+ 2005 2005+ 2005 2005+ 2005
- ------------------------------------------------------------------------------------------------------------------------------------
CORE EQUITY FUND
A-Class 55,293 130,742 -- 1,988 (14,165) (72,483) 41,128 60,247
C-Class 435,496 1,678,393 -- 82,976 (733,430) (1,064,952) (297,934) 696,417
H-Class 3,094,020 5,720,952 -- 148,480 (3,811,861) (5,410,493) (717,841) 458,939
SECTOR ROTATION FUND
A-Class 436,578 457,712 -- -- (88,265) (188,963) 348,313 268,749
C-Class 1,338,598 2,473,160 -- -- (1,076,816) (3,196,124) 261,782 (722,964)
H-Class 5,692,008 6,351,321 -- -- (3,583,621) (9,541,682) 2,108,387 (3,190,361)
+ UNAUDITED
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 25
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
8. PORTFOLIO SECURITIES LOANED
The Trust lends its securities to approved brokers to earn additional income.
Within this arrangement, the Trust acts as the lender, U.S. Bank acts as the
agent, and other approved registered broker dealers act as the borrowers. The
Trust receives cash collateral, valued at 100% of the value of the securities on
loan, which is initially held in a segregated account at U.S. Bank. As agent,
U.S. Bank may, for investment purposes, pool the Trust's collateral in joint
accounts with cash collateral from one or more other securities lending
customers of U.S. Bank. Under the terms of the Trust's securities lending
agreement with U.S. Bank, cash collateral may be invested by U.S. Bank in
certain high quality, liquid investments. At September 30, 2005, the pooled cash
collateral investments consisted of repurchase agreements (47.59%), commercial
paper (31.82%), corporate bonds (20.58%), and mutual funds (0.01%). Collateral
is maintained over the life of the loan in an amount not less than the value of
loaned securities, as determined at the close of fund business each day; any
additional collateral required due to changes in security values is delivered to
the Fund the next business day. Although the collateral mitigates risk, the
Trust could experience a delay in recovering its securities and a possible loss
of income or value if the borrower fails to return the securities. The Trust has
the right under the securities lending agreement to recover the securities from
the borrower on demand.
At September 30, 2005, the following funds participated in securities lending
and received cash collateral:
VALUE OF
FUND CASH COLLATERAL SECURITIES LOANED
- --------------------------------------------------------------------------------
Core Equity Fund $11,708,590 $11,378,274
Sector Rotation Fund 41,490,159 40,269,756
26 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
OTHER INFORMATION
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to securities held in the Funds' portfolios is
available, without charge and upon request, by calling 1-800-820-0888. This
information is also available from the EDGAR database on the SEC's site at
http://www.sec.gov.
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 Funds' Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request, by calling 1-800-820-0888.
RYDEX INVESTMENTS BOARD REVIEW AND APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
The 1940 Act requires that the initial approval of, as well as the continuation
of, a fund's investment advisory agreement must be specifically approved (1) by
the vote of the trustees or by a vote of the shareholders of the fund, and (2)
by the vote of a majority of the trustees who are not parties to the investment
advisory agreement or "interested persons" of any party (the "Independent
Trustees"), cast in person at a meeting called for the purpose of voting on such
approval. In connection with such approvals, the fund's trustees must request
and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. In addition, the SEC takes the position that, as part of their
fiduciary duties with respect to fund fees, fund boards are required to evaluate
the material factors applicable to a decision to approve an investment advisory
agreement.
Consistent with these responsibilities, the Rydex Series Funds Board of Trustees
(the "Board") calls and holds one meeting each year that is dedicated to
considering whether to renew the investment advisory agreement (the "Advisory
Agreement") between the Trust and PADCO Advisors, Inc., which does business
under the name Rydex Investments ("Rydex Investments") with respect to existing
funds in the Trust, including the funds discussed in this Semi-Annual Report
(each a "Fund" and collectively, the "Funds"), and to reviewing certain other
agreements pursuant to which Rydex Investments provides investment advisory
services to certain other registered investment companies. In preparation for
the meeting, the Board requests and reviews a wide variety of materials provided
by Rydex Investments, including information about Rydex Investments' affiliates,
personnel and operations. The Board also receives data provided by third
parties. This information is in addition to the detailed information about the
Funds that the Board reviews during the course of each year, including
information that relates to Fund operations and performance. The Board also
receives a memorandum from Fund counsel regarding the responsibilities of the
Board for the approval of investment advisory agreements. In addition, the
Independent Trustees receive advice from independent counsel to the Independent
Trustees, meet in executive session outside the presence of fund management, if
necessary, and participate in question and answer sessions with representatives
of Rydex Investments.
At a meeting held on August 28 and 29, 2005, the Board approved the selection of
Rydex Investments and the continuance of the Advisory Agreement for an
additional one-year period, based on its review of qualitative and quantitative
information provided by Rydex Investments. The Board's approval of the Advisory
Agreement was based on consideration and evaluation of a variety of specific
factors discussed at that meeting and at prior meetings, including:
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY RYDEX INVESTMENTS
The Board reviewed the scope of services to be provided by Rydex Investments
under the Advisory Agreement and noted that there would be no significant
differences between the scope of services required to be provided by Rydex
Investments for the past year and the scope of services required to be provided
by Rydex Investments for the upcoming year. In reviewing the scope of services
provided to the Funds by Rydex Investments, the Board reviewed and discussed
Rydex Investments' investment experience, noting that Rydex Investments and its
affiliates have committed significant resources over time to the support of the
Funds. The Board also considered Rydex Investments' compliance program and its
compliance record with respect to the Funds. In that regard, the Board noted
that Rydex Investments provides information regarding the portfolio management
and compliance to the Board on a periodic basis in connection with regularly
scheduled meetings of the Board. In addition to the above considerations, the
Board reviewed and considered Rydex Investments' investment processes and
strategies, and matters related to Rydex Investments' portfolio transaction
policies and procedures. In particular, the Board noted the sub-
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 27
OTHER INFORMATION (CONTINUED)
- --------------------------------------------------------------------------------
stantial volume of portfolio trades and shareholder transaction activity, in
general, processed by Rydex Investments due to the unlimited exchange policy of
the majority of the Funds. The Board further noted that the Funds had met their
investment objectives consistently since their relevant inception dates. Based
on this review, the Board concluded that the nature, extent and quality of
services to be provided by Rydex Investments to the Funds under the Advisory
Agreement were appropriate and continued to support the Board's original
selection of Rydex Investments as investment adviser to the Funds.
FUND EXPENSES AND PERFORMANCE OF THE FUNDS AND RYDEX INVESTMENTS
The Board reviewed statistical information prepared by Rydex Investments
regarding the expense ratio components, including actual advisory fees,
waivers/reimbursements, and gross and net total expenses of each Fund in
comparison with the same information for other funds registered under the 1940
Act determined by Rydex Investments to comprise each Fund's applicable peer
group. Because few funds seek to provide unlimited exchange privileges similar
to those of the Funds (other than the Core Equity Fund, Sector Rotation Fund,
Absolute Return Strategies Fund, and Hedged Equity Fund), each Fund's applicable
peer group is generally limited to the funds of two unaffiliated mutual fund
families. In addition, the Board reviewed statistical information prepared by
Rydex Investments relating to the performance of each Fund, as well as each
Fund's ability to successfully track its benchmark over time, and a comparison
of each Fund's performance to funds with similar investment objectives for the
same periods and to appropriate indices/benchmarks, in light of total return,
yield and market trends. The Board further noted that despite the unique nature
of the Funds, the peer fund information presented to the Board was meaningful
because the peer funds' investment objectives and strategies were closely
aligned with those of the Funds. The Board noted that most of the Funds either
outperformed their peer funds or performed in line with them over relevant
periods. The Board also noted that the investment advisory fees and overall
expenses for the Funds were generally lower than or in line with the investment
advisory fee rates and overall expenses of the peer funds. Based on this review,
the Board concluded that the investment advisory fees and expense levels and the
historical performance of the Funds, as managed by Rydex Investments, as
compared to the investment advisory fees and expense levels and performance of
the peer funds, were satisfactory for the purposes of approving the continuance
of the Advisory Agreement.
COSTS OF SERVICES PROVIDED TO THE FUNDS AND PROFITS REALIZED BY RYDEX
INVESTMENTS AND ITS AFFILIATES
The Board reviewed information about the profitability of the Funds to Rydex
Investments based on the advisory fees payable under the Advisory Agreement for
the last calendar year. Rydex Investments also presented the Board with material
discussing its methodology for determining the level of advisory fees assessable
to the Funds. The Board analyzed the Funds' expenses, including the investment
advisory fees paid to Rydex Investments. The Board also reviewed information
regarding direct revenue received by Rydex Investments and ancillary revenue
received by Rydex Investments and/or its affiliates in connection with the
services provided to the Funds by Rydex Investments (as discussed below). The
Board also discussed Rydex Investments' profit margin as reflected in Rydex
Investments' profitability analysis and reviewed information regarding economies
of scale (as discussed below). Based on this review, the Board concluded that
the profits to be realized by Rydex Investments and its affiliates under the
Advisory Agreement and from other relationships between the Funds and Rydex
Investments and/or its affiliates, if any, were within the range the Board
considered reasonable and appropriate.
ECONOMIES OF SCALE
In connection with its review of the Funds' profitability analysis, the Board
reviewed information regarding economies of scale or other efficiencies that may
result from increases in the Funds' asset levels. The Board noted that the
Advisory Agreement for the Funds did not provide for any breakpoints in the
investment advisory fee rates as a result of increases in the asset levels of
such Funds. The Board also noted that though Rydex Investments' assets under
management were significant, the amount is spread among more than 95 Funds.
Further limiting the realization of economies of scale, is the ability of
shareholders of a majority of the Funds to engage in unlimited trading. The
Board also reviewed Rydex Investments' historic profitability as investment
adviser to the Funds and determined that reductions in fee rates or additions of
breakpoints were not warranted at this juncture. Based on this review, the
Board, recognizing its responsibility to consider this issue at least annually,
concluded that there are limited economies of scale to share with the Funds'
shareholders.
28 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
OTHER INFORMATION (CONCLUDED)
- --------------------------------------------------------------------------------
OTHER BENEFITS TO RYDEX INVESTMENTS AND/OR ITS AFFILIATES
The Board noted that Rydex Investments reports its use of soft dollars to the
Board on a quarterly basis, as well as any portfolio transactions on behalf of
the Funds placed through an affiliate of the Funds or Rydex Investments pursuant
to Rule 17e-1 under the 1940 Act. The Board concluded that any such ancillary
benefits would not be disadvantageous to the Funds' shareholders.
Based on the above analysis, the Board determined that the Advisory Agreement,
including the investment advisory fee rates thereunder, are fair and reasonable
in light of all relevant circumstances and concluded that it is in the best
interest of the Funds and their shareholders to continue the Advisory Agreement.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 29
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
A Board of Trustees oversees all Rydex Investments, in which its members have no
stated term of service, and continue to serve after election until resignation.
The Statement of Additional Information includes further information about Fund
Trustees and Officers, and can be obtained without charge by calling
1-800-820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEES AND OFFICERS
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- -------------------------- ----------------------------------- --------------
CARL G. VERBONCOEUR* Rydex Series Funds - 2004 110
Trustee, President (1952) Rydex Variable Trust - 2004
Rydex Dynamic Funds - 2004
Rydex ETF Trust - 2004
Rydex Capital Partners SPhinX Fund - 2005
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)
-----------------------------------
MICHAEL P. BYRUM* Rydex Series Funds - 2005 110
Trustee, Vice President and Rydex Variable Trust - 2005
Secretary (1970) Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Secretary of Rydex Series Funds,
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)
- --------------------------------------------------------------------------------
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 110
Trustee (1945) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of
Marketing/Co-Owner, Schield Management Company
-----------------------------------
J. KENNETH DALTON Rydex Series Funds - 1995 110
Trustee (1941) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and
Investor, The Dalton Group
-----------------------------------
JOHN O. DEMARET Rydex Series Funds - 1997 110
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
30 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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
- -------------------------- ----------------------------------- --------------
WERNER E. KELLER Rydex Series Funds - 2005 110
Trustee (1940) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired (2001 to present);
Chairman, Centurion Capital Management
-----------------------------------
THOMAS F. LYDON, JR. Rydex Series Funds - 2005 110
Trustee (1960) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends
-----------------------------------
PATRICK T. MCCARVILLE Rydex Series Funds - 1997 110
Trustee (1942) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive
Officer, Par Industries, Inc.
-----------------------------------
ROGER SOMERS Rydex Series Funds - 1993 110
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
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,
Vice President and Treasurer (1963) 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)
JOANNA M. HAIGNEY* Chief Compliance Officer of Rydex Series Funds, Rydex
Chief Compliance Officer and Assistant Variable Trust, and Rydex Dynamic Funds (2004 to
Secretary (1967) 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)
* OFFICERS OF THE FUND ARE DEEMED TO BE "INTERESTED PERSONS" OF THE TRUST,
WITHIN THE MEANING OF SECTION 2(A)(19) OF THE 1940 ACT, INASMUCH AS THIS
PERSON IS AFFILIATED WITH THE ADVISOR.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 31
- --------------------------------------------------------------------------------
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- --------------------------------------------------------------------------------
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[LOGO]RYDEXINVESTMENTS
ESSENTIAL FOR MODERN MARKETS(TM)
9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800-820-0888
RSTF-SEMI-0905X0306
SEPTEMBER 30, 2005
RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
ABSOLUTE RETURN STRATEGIES FUND
HEDGED EQUITY 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
FUND PROFILES .............................................................. 5
SCHEDULES OF INVESTMENTS ................................................... 6
STATEMENTS OF ASSETS AND LIABILITIES ....................................... 17
STATEMENTS OF OPERATIONS ................................................... 18
STATEMENTS OF CHANGES IN NET ASSETS ........................................ 19
FINANCIAL HIGHLIGHTS........................................................ 20
NOTES TO FINANCIAL STATEMENTS............................................... 21
OTHER INFORMATION .......................................................... 27
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS .............................. 30
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 1
LETTER TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
The six-month period from April through September 2005 was a tumultuous one for
the economy and the financial markets. Investors, consumers and businesses alike
were rocked by the twin hurricanes of Katrina and Rita and the unprecedented
rise in energy prices. Energy prices-particularly for refined products such as
gas, diesel, jet fuel and heating oil-skyrocketed, causing consumer confidence
to plummet and raising the prospect of a pullback in consumer spending.
Typically, developments like these would have a downward effect on equity prices
and interest rates, but that wasn't the case as stocks rallied and interest
rates finished the period largely where they began.
Surprisingly, U.S. equity markets navigated the storms remarkably well. While
the old economy Dow Jones Industrial Average(R) Index rose only 1.76%, the
broader S&P 500(R) Index gained 5.02% and the tech-laden Nasdaq 100(R) Index
rose 8.04% on the back of a mini-rally in technology stocks.
Two factors appear to have driven prices higher. The first is that earnings
growth remained strong, increasing at a double-digit pace in both the second and
third quarters, and investors appeared to be looking beyond the immediate impact
of the hurricanes to the anticipated "kick" to economic growth as reconstruction
efforts got underway.
As one might expect, energy stocks led the market higher. In fact, energy prices
were well on their way up prior to the arrival of Katrina as the price of a
barrel of crude oil rose from $49.69 in late May to a high of $69.74 by the end
of August. The Gulf storms exacerbated this rise. That energy prices were
already well on their way up is attributable to the rapid growth in the
powerhouse economies of China and India. China, in particular, continues to
import commodities of all kinds at a voracious rate. In fact, if one takes a
closer look at stock prices during this period, the effect of rising energy
prices and the impact of the storms becomes apparent.
Clearly, energy stocks were the big winners as the S&P Energy Index rose nearly
19.56%. In fact, the meteoric rise in energy stocks is responsible for much of
the stock market's positive performance this year. Utility stocks also fared
well as the S&P Utility Index shot up 15.24% in anticipation of a substantial
rise in home heating costs. Technology stocks rallied as valuations were
perceived to be attractive. On the flip side, health care stocks, which tend to
be perceived as defensive in nature, rose nearly 5.00% as investors looked for a
consumer driven economic slowdown in the wake of the devastation left by Katrina
and Rita.
Despite the uncertainty, the Federal Reserve ("Fed") remained vigilant against
any signs of increasing inflation. The shock to the economy of the storms and
the loss of some of the nation's critical energy infrastructure led many to
predict a pause in the Fed's rate hikes. This was not to be, as the Fed
implemented four 25 basis point rate hikes during the period. Longer rates, on
the other hand, actually declined from April to September, with the yield on the
benchmark 10-Year Treasury Note falling 15 basis points to 4.33%. Despite this
decline, interest rates are clearly on the upswing. Long-term rates bottomed on
June 1, as the yield on the 10-Year Note reached 3.89%. Since the beginning of
June, the trend has been up, with the 10-Year Note peaking at 4.42% in early
August.
With all of the crosscurrents in the economy and the financial markets, stock
price behavior is likely to remain choppy and erratic. Investment strategies
that do not depend on highly directional markets will likely fare well as we
move through the remainder of 2005.
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 SEMI-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 March 31, 2005 and
ending September 30, 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. The example is useful in making comparisons because the U.S.
Securities and Exchange Commission (the "SEC") requires all mutual funds to
calculate expenses based on the 5% return. You can assess your fund's costs
by comparing this hypothetical example with the hypothetical examples that
appear in shareholder reports of other funds.
Certain retirement plans such as IRA, 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 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.
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.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 3
ABOUT SHAREHOLDERS' FUND EXPENSES (CONCLUDED)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
EXPENSE ACCOUNT VALUE ACCOUNT VALUE PAID DURING
RATIO+ MARCH 31, 2005 SEPTEMBER 30, 2005 PERIOD*
- ---------------------------------------------------------------------------------------------------------
TABLE 1. BASED ON ACTUAL FUND RETURN
ABSOLUTE RETURN STRATEGIES FUND
A-Class 1.41% $ 1,000.00 $ 997.20 $ 7.06
C-Class 2.17% 1,000.00 997.20 10.86
H-Class 1.42% 1,000.00 997.20 7.11
HEDGED EQUITY FUND
A-Class 1.44% 1,000.00 1,004.40 7.24
C-Class 2.19% 1,000.00 1,004.40 11.00
H-Class 1.48% 1,000.00 1,004.40 7.44
- ---------------------------------------------------------------------------------------------------------
TABLE 2. BASED ON HYPOTHETICAL 5% RETURN
ABSOLUTE RETURN STRATEGIES FUND
A-Class 1.41% 1,000.00 1,017.84 7.16
C-Class 2.17% 1,000.00 1,013.98 11.02
H-Class 1.42% 1,000.00 1,017.79 7.21
HEDGED EQUITY FUND
A-Class 1.44% 1,000.00 1,017.69 7.31
C-Class 2.19% 1,000.00 1,013.88 11.12
H-Class 1.48% 1,000.00 1,017.49 7.51
* 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
INCLUDES DIVIDEND EXPENSE FROM SECURITIES SOLD SHORT.
+ ANNUALIZED
4 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
FUND PROFILES
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
OBJECTIVE: To provide capital appreciation consistent with the return and risk
characteristics of the hedge fund universe. The secondary objective is to
achieve these returns with low correlation to and less volatility than equity
indices.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.]
HEDGED EQUITY FUND HEDGED EQUITY FUND
LONG HOLDINGS SHORT HOLDINGS
------------------ ------------------
Other 0.6% -0.2%
Consumer Discretionary 1.8% -0.5%
Industrials 1.4% -0.3%
Financials 3.0% -1.8%
Health Care 2.1% -1.3%
Telecommunication Services 0.6%
Energy 0.6% -0.2%
Information Technology 1.2% -0.8%
Consumer Staples 0.5% -0.3%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------
A-Class September 19, 2005
C-Class September 19, 2005
H-Class September 19, 2005
TEN LARGEST LONG HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------
Inamed Corp. 0.2%
EGL, Inc. 0.2%
Pacificare Health Systems, Inc. 0.2%
Pfizer, Inc. 0.2%
Shurgard Storage Centers, Inc. -- Class A 0.2%
ID Biomedical Corp. 0.2%
Capital Automotive REIT 0.2%
BEI Technologies, Inc. 0.2%
Macromedia, Inc. 0.2%
Argosy Gaming Co. 0.2%
- --------------------------------------------------
Top Ten Total 2.0%
- --------------------------------------------------
"Ten Largest Long Holdings" exclude any temporary cash or derivative
instruments.
HEDGED EQUITY FUND
OBJECTIVE: To provide capital appreciation consistent with the return and risk
characteristics of the long/short hedge fund universe. The secondary objective
is to achieve these returns with low correlation to and less volatility than
equity indices.
HOLDINGS DIVERSIFICATION (MARKET EXPOSURE AS % OF NET ASSETS)
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.]
HEDGED EQUITY FUND HEDGED EQUITY FUND
LONG HOLDINGS SHORT HOLDINGS
------------------ ------------------
Other 7.6% -1.8%
Energy 6.2% -1.5%
Materials 4.4% -0.9%
Industrials 6.8% -4.2%
Health Care 5.5% -4.4%
Information Technology 4.4% -3.8%
Financials 5.7% -5.7%
Consumer Discretionary 3.8% -4.3%
"Holdings Diversification (Market Exposure as % of Net Assets)" excludes any
temporary cash investments.
INCEPTION DATES:
- --------------------------------------------------
A-Class September 19, 2005
C-Class September 19, 2005
H-Class September 19, 2005
TEN LARGEST LONG HOLDINGS (% OF TOTAL NET ASSETS)
- --------------------------------------------------
Altria Group, Inc. 1.9%
Texas Instruments, Inc. 1.7%
Pfizer, Inc. 1.5%
Norfolk Southern Corp. 1.2%
Prudential Financial, Inc. 1.2%
Burlington Northern Santa Fe Corp. 1.1%
SBC Communications, Inc. 1.1%
Amerada Hess Corp. 1.0%
Freddie Mac 1.0%
Caremark Rx, Inc. 0.9%
- --------------------------------------------------
Top Ten Total 12.6%
- --------------------------------------------------
"Ten Largest Long Holdings" exclude any temporary cash or derivative
instruments.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 5
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 11.8%
FINANCIALS 3.0%
BANKS 1.2%
Amegy Bancorp, Inc.+ 251 $ 5,680
Hudson United Bancorp+ 134 5,672
Hibernia Corp. -- Class A+ 188 5,648
Westcorp+ 92 5,419
Unizan Financial Corp.+ 222 5,375
State Financial Services Corp. --
Class A+ 147 5,368
National City Corp.+ 62 2,073
--------------
TOTAL BANKS 35,235
--------------
REAL ESTATE 0.6%
Shurgard Storage Centers, Inc. --
Class A+ 104 5,810
Capital Automotive REIT+ 149 5,768
Gables Residential Trust 131 5,718
--------------
TOTAL REAL ESTATE 17,296
--------------
CONSUMER FINANCE 0.4%
Metris Companies, Inc.*+ 389 5,691
WFS Financial, Inc.*+ 81 5,442
--------------
TOTAL CONSUMER FINANCE 11,133
--------------
THRIFTS & MORTGAGE FINANCE 0.3%
Commercial Federal Corp.+ 167 5,702
Freddie Mac+ 66 3,726
--------------
TOTAL THRIFTS & MORTGAGE FINANCE 9,428
--------------
INSURANCE 0.3%
Hartford Financial Services Group, Inc.+ 27 2,084
Chubb Corp.+ 18 1,612
ACE Ltd.+ 26 1,224
XL Capital Ltd.+ 14 952
Ambac Financial Group, Inc.+ 11 793
MBIA, Inc.+ 12 727
--------------
TOTAL INSURANCE 7,392
--------------
DIVERSIFIED FINANCIALS 0.2%
Archipelago Holdings, Inc.*+ 138 5,499
CIT Group, Inc.+ 20 904
--------------
TOTAL DIVERSIFIED FINANCIALS 6,403
--------------
TOTAL FINANCIALS 86,887
--------------
HEALTH CARE 2.1%
HEALTH CARE PROVIDERS & SERVICES 1.2%
Pacificare Health Systems, Inc.*+ 74 5,904
LabOne, Inc.*+ 131 5,699
Priority Healthcare Corp. --
Class B*+ 204 5,683
Renal Care Group, Inc.*+ 120 5,678
NDCHealth Corp.+ 300 5,676
Beverly Enterprises, Inc.*+ 450 5,513
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
HCA, Inc.+ 15 $ 719
CIGNA Corp.+ 5 589
AmerisourceBergen Corp.+ 3 232
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 35,693
--------------
BIOTECHNOLOGY 0.4%
ID Biomedical Corp.*+ 192 5,770
Eyetech Pharmaceuticals, Inc.*+ 311 5,585
--------------
TOTAL BIOTECHNOLOGY 11,355
--------------
PHARMACEUTICALS 0.3%
Pfizer, Inc.+ 234 5,843
Merck & Co., Inc.+ 69 1,877
Watson Pharmaceuticals, Inc.*+ 3 110
--------------
TOTAL PHARMACEUTICALS 7,830
--------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.2%
Inamed Corp.*+ 80 6,054
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 6,054
--------------
TOTAL HEALTH CARE 60,932
--------------
CONSUMER DISCRETIONARY 1.8%
HOTELS, RESTAURANTS & LEISURE 0.4%
Argosy Gaming Co.*+ 122 5,733
Six Flags, Inc.*+ 777 5,586
--------------
TOTAL HOTELS, RESTAURANTS & LEISURE 11,319
--------------
MEDIA 0.4%
Insight Communications Co., Inc.*+ 488 5,675
Cablevision Sys Corp. -- Class A*+ 183 5,613
--------------
TOTAL MEDIA 11,288
--------------
SPECIALTY RETAIL 0.4%
Brookstone, Inc.*+ 287 5,723
Electronics Boutique Holdings Corp.*+ 86 5,404
--------------
TOTAL SPECIALTY RETAIL 11,127
--------------
MULTILINE RETAIL 0.3%
ShopKo Stores, Inc.*+ 224 5,716
Federated Department Stores, Inc.+ 18 1,204
Family Dollar Stores, Inc.+ 17 338
Dillard's, Inc. -- Class A+ 9 188
--------------
TOTAL MULTILINE RETAIL 7,446
--------------
LEISURE EQUIPMENT & PRODUCTS 0.2%
Action Performance Cos., Inc.+ 447 5,587
--------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 5,587
--------------
AUTOMOBILES 0.1%
Ford Motor Co.+ 194 1,913
General Motors Corp.+ 62 1,898
--------------
TOTAL AUTOMOBILES 3,811
--------------
AUTO COMPONENTS 0.0%
Johnson Controls, Inc.+ 20 1,241
--------------
TOTAL AUTO COMPONENTS 1,241
--------------
6 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
TEXTILES & APPAREL 0.0%
VF Corp.+ 12 $ 696
Jones Apparel Group, Inc.+ 12 342
--------------
TOTAL TEXTILES & APPAREL 1,038
--------------
HOUSEHOLD DURABLES 0.0%
Whirlpool Corp.+ 8 606
--------------
TOTAL HOUSEHOLD DURABLES 606
--------------
TOTAL CONSUMER DISCRETIONARY 53,463
--------------
INDUSTRIALS 1.4%
COMMERCIAL SERVICES & SUPPLIES 0.5%
School Specialty, Inc.*+ 117 5,707
Central Parking Corp.+ 369 5,517
Cendant Corp.+ 113 2,332
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 13,556
--------------
AIR FREIGHT & COURIERS 0.3%
EGL, Inc.*+ 221 6,000
FedEx Corp.+ 33 2,875
Ryder System, Inc.+ 8 274
--------------
TOTAL AIR FREIGHT & COURIERS 9,149
--------------
BUILDING PRODUCTS 0.2%
York International Corp.+ 101 5,663
--------------
TOTAL BUILDING PRODUCTS 5,663
--------------
MARINE 0.2%
CP Ships Ltd.+ 263 5,610
--------------
TOTAL MARINE 5,610
--------------
CONSTRUCTION & ENGINEERING 0.2%
Dycom Industries, Inc.*+ 270 5,459
--------------
TOTAL CONSTRUCTION & ENGINEERING 5,459
--------------
ROAD & RAIL 0.0%
Norfolk Southern Corp.+ 42 1,704
--------------
TOTAL ROAD & RAIL 1,704
--------------
MACHINERY 0.0%
Parker Hannifin Corp.+ 12 772
Cummins, Inc.+ 5 440
--------------
TOTAL MACHINERY 1,212
--------------
TOTAL INDUSTRIALS 42,353
--------------
INFORMATION TECHNOLOGY 1.2%
SOFTWARE 0.4%
Macromedia, Inc.*+ 141 5,734
SS&C Technologies Co.+ 156 5,716
--------------
TOTAL SOFTWARE 11,450
--------------
IT CONSULTING & SERVICES 0.2%
Acxiom Corp.+ 288 5,391
Computer Sciences Corp.*+ 9 426
Affiliated Computer Services, Inc. --
Class A*+ 6 328
Sabre Holdings Corp.+ 6 122
Convergys Corp.*+ 8 115
--------------
TOTAL IT CONSULTING & SERVICES 6,382
--------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 0.2%
Helix Technology Corp.+ 374 $ 5,517
Freescale Semiconductor, Inc. --
Class B*+ 21 495
--------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 6,012
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.2%
BEI Technologies, Inc.+ 164 5,738
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 5,738
--------------
INTERNET SOFTWARE & SERVICES 0.2%
Intermix Media, Inc.* 477 5,705
--------------
TOTAL INTERNET SOFTWARE & SERVICES 5,705
--------------
OFFICE ELECTRONICS 0.0%
Xerox Corp.*+ 48 655
--------------
TOTAL OFFICE ELECTRONICS 655
--------------
TOTAL INFORMATION TECHNOLOGY 35,942
--------------
ENERGY 0.6%
OIL & GAS 0.6%
PetroKazakhstan, Inc. -- Class A+ 105 5,715
Tipperary Corp.*+ 771 5,682
Amerada Hess Corp.+ 27 3,713
Kerr-McGee Corp.+ 35 3,399
--------------
TOTAL OIL & GAS 18,509
--------------
TOTAL ENERGY 18,509
--------------
TELECOMMUNICATION SERVICES 0.6%
DIVERSIFIED TELECOMMUNICATION SERVICES 0.6%
PanAmSat Holding Corp.+ 233 5,639
Verizon Communications, Inc.+ 143 4,675
SBC Communications, Inc.+ 170 4,075
BellSouth Corp.+ 95 2,498
CenturyTel, Inc.+ 8 280
--------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 17,167
--------------
TOTAL TELECOMMUNICATION SERVICES 17,167
--------------
CONSUMER STAPLES 0.5%
FOOD & DRUG RETAILING 0.2%
7-Eleven, Inc.*+ 159 5,662
Albertson's, Inc.+ 38 975
--------------
TOTAL FOOD & DRUG RETAILING 6,637
--------------
FOOD PRODUCTS 0.2%
General Mills, Inc.+ 50 2,410
Archer-Daniels-Midland Co.+ 84 2,072
--------------
TOTAL FOOD PRODUCTS 4,482
--------------
TOBACCO 0.1%
Reynolds American, Inc.+ 21 1,743
--------------
TOTAL TOBACCO 1,743
--------------
BEVERAGES 0.0%
Molson Coors Brewing Co. --
Class B+ 11 704
--------------
TOTAL BEVERAGES 704
--------------
TOTAL CONSUMER STAPLES 13,566
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 7
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
UTILITIES 0.3%
MULTI-UTILITIES 0.2%
NorthWestern Corp.+ 188 $ 5,676
PG&E Corp.+ 23 903
NiSource, Inc.+ 18 436
--------------
TOTAL MULTI-UTILITIES 7,015
--------------
ELECTRIC UTILITIES 0.1%
American Electric Power Co., Inc.+ 24 953
Pinnacle West Capital Corp.+ 6 264
--------------
TOTAL ELECTRIC UTILITIES 1,217
--------------
TOTAL UTILITIES 8,232
--------------
MATERIALS 0.3%
METALS & MINING 0.2%
Metals USA, Inc.*+ 278 5,688
United States Steel Corp.+ 8 339
--------------
TOTAL METALS & MINING 6,027
--------------
PAPER & FOREST PRODUCTS 0.1%
Weyerhaeuser Co.+ 15 1,031
Georgia-Pacific Corp.+ 17 579
Louisiana-Pacific Corp.+ 8 222
--------------
TOTAL PAPER & FOREST PRODUCTS 1,832
--------------
TOTAL MATERIALS 7,859
--------------
TOTAL COMMON STOCKS
(Cost $345,296) 344,910
--------------
CONTRACTS
-----------
OPTIONS PURCHASED 0.0%
Put Options on:
October 2005 S&P 500 Index
Futures Contracts Expiring
October 2005 with strike
price of 1140 2 275
--------------
TOTAL OPTIONS PURCHASED
(Cost $758) 275
--------------
FACE
AMOUNT
-----------
REPURCHASE AGREEMENTS 86.4%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 1,433,356 1,433,356
3.24% due 10/03/05 1,091,673 1,091,673
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,525,029) 2,525,029
--------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS SOLD SHORT (5.3)%
MATERIALS (0.1)%
METALS & MINING (0.1)%
Allegheny Technologies, Inc. 18 $ (557)
Freeport-McMoRan Copper & Gold,
Inc. -- Class B 35 (1,701)
--------------
TOTAL METALS & MINING (2,258)
--------------
TOTAL MATERIALS (2,258)
--------------
UTILITIES (0.1)%
MULTI-UTILITIES 0.0%
TECO Energy, Inc. 18 (324)
--------------
TOTAL MULTI-UTILITIES (324)
--------------
ELECTRIC UTILITIES (0.1)%
TXU Corp. 20 (2,258)
--------------
TOTAL ELECTRIC UTILITIES (2,258)
--------------
TOTAL UTILITIES (2,582)
--------------
ENERGY (0.2)%
ENERGY EQUIPMENT & SERVICES (0.2)%
Halliburton Co. 102 (6,989)
--------------
TOTAL ENERGY EQUIPMENT & SERVICES (6,989)
--------------
TOTAL ENERGY (6,989)
--------------
CONSUMER STAPLES (0.3)%
FOOD PRODUCTS (0.1)%
Hershey Co. 17 (957)
--------------
TOTAL FOOD PRODUCTS (957)
--------------
FOOD & DRUG RETAILING (0.1)%
Walgreen Co. 68 (2,955)
--------------
TOTAL FOOD & DRUG RETAILING (2,955)
--------------
PERSONAL PRODUCTS (0.1)%
Gillette Co. 65 (3,783)
--------------
TOTAL PERSONAL PRODUCTS (3,783)
--------------
TOTAL CONSUMER STAPLES (7,695)
--------------
INDUSTRIALS (0.3)%
COMMERCIAL SERVICES & SUPPLIES 0.0%
Monster Worldwide, Inc.* 8 (246)
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES (246)
--------------
AEROSPACE & DEFENSE (0.1)%
Boeing Co. 47 (3,194)
--------------
TOTAL AEROSPACE & DEFENSE (3,194)
--------------
AIR FREIGHT & COURIERS (0.2)%
United Parcel Service, Inc. --
Class B 66 (4,562)
--------------
TOTAL AIR FREIGHT & COURIERS (4,562)
--------------
TOTAL INDUSTRIALS (8,002)
--------------
CONSUMER DISCRETIONARY (0.4)%
MEDIA 0.0%
Dow Jones & Co., Inc. 6 (229)
--------------
TOTAL MEDIA (229)
--------------
8 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
MULTILINE RETAIL 0.0%
Nordstrom, Inc. 20 $ (686)
--------------
TOTAL MULTILINE RETAIL (686)
--------------
TEXTILES & APPAREL 0.0%
Coach, Inc.* 29 (909)
--------------
TOTAL TEXTILES & APPAREL (909)
--------------
COMMERCIAL SERVICES & SUPPLIES 0.0%
Apollo Group, Inc. -- Class A* 14 (930)
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES (930)
--------------
HOTELS, RESTAURANTS & LEISURE 0.0%
Hilton Hotels Corp. 30 (670)
International Game Technology, Inc. 26 (702)
--------------
TOTAL HOTELS, RESTAURANTS & LEISURE (1,372)
--------------
INTERNET & CATALOG RETAIL (0.2)%
eBay, Inc.* 108 (4,450)
--------------
TOTAL INTERNET & CATALOG RETAIL (4,450)
--------------
SPECIALTY RETAIL (0.2)%
GAMESTOP Corp.* 153 (4,815)
--------------
TOTAL SPECIALTY RETAIL (4,815)
--------------
TOTAL CONSUMER DISCRETIONARY (13,391)
--------------
INFORMATION TECHNOLOGY (0.8)%
COMMUNICATIONS EQUIPMENT (0.1)%
ADC Telecommunications, Inc.* 11 (252)
Comverse Technology, Inc.* 20 (525)
Corning, Inc.* 140 (2,706)
--------------
TOTAL COMMUNICATIONS EQUIPMENT (3,483)
--------------
COMPUTERS & PERIPHERALS (0.1)%
Apple Computer, Inc.* 74 (3,967)
--------------
TOTAL COMPUTERS & PERIPHERALS (3,967)
--------------
INTERNET SOFTWARE & SERVICES (0.2)%
Yahoo!, Inc.* 137 (4,636)
--------------
TOTAL INTERNET SOFTWARE & SERVICES (4,636)
--------------
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT (0.2)%
Nvidia Corp.* 15 (514)
Brooks Automation, Inc.* 402 (5,359)
--------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT (5,873)
--------------
SOFTWARE (0.2)%
Autodesk, Inc. 23 (1,068)
Adobe Systems, Inc. 188 (5,612)
--------------
TOTAL SOFTWARE (6,680)
--------------
TOTAL INFORMATION TECHNOLOGY (24,639)
--------------
HEALTH CARE (1.3)%
HEALTH CARE EQUIPMENT & SUPPLIES (0.1)%
Stryker Corp. 48 (2,373)
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES (2,373)
--------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
BIOTECHNOLOGY (0.3)%
Medimmune, Inc.* 26 $ (875)
Gilead Sciences, Inc.* 47 (2,292)
OSI Pharmaceuticals, Inc.* 177 (5,175)
--------------
TOTAL BIOTECHNOLOGY (8,342)
--------------
HEALTH CARE PROVIDERS & SERVICES (0.4)%
Tenet Healthcare Corp.* 53 (595)
UnitedHealth Group, Inc. 102 (5,733)
Per-Se Technologies, Inc.* 303 (6,260)
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES (12,588)
--------------
PHARMACEUTICALS (0.5)%
Schering-Plough Corp. 164 (3,452)
Medicis Pharmaceutical Corp. --
Class A 168 (5,470)
GlaxoSmithKline PLC -- SP ADR 111 (5,692)
--------------
TOTAL PHARMACEUTICALS (14,614)
--------------
TOTAL HEALTH CARE (37,917)
--------------
FINANCIALS (1.8)%
DIVERSIFIED FINANCIALS (0.1)%
Moody's Corp. 42 (2,145)
--------------
TOTAL DIVERSIFIED FINANCIALS (2,145)
--------------
CONSUMER FINANCE (0.2)%
Capital One Financial Corp. 68 (5,407)
--------------
TOTAL CONSUMER FINANCE (5,407)
--------------
REAL ESTATE (0.3)%
Simon Property Group, Inc. 32 (2,372)
Public Storage, Inc. 81 (5,427)
--------------
TOTAL REAL ESTATE (7,799)
--------------
CAPITAL MARKETS (0.3)%
T. Rowe Price Group, Inc. 18 (1,175)
Northern Trust Corp. 32 (1,618)
Charles Schwab Corp. 176 (2,540)
Franklin Resources, Inc. 36 (3,022)
--------------
TOTAL CAPITAL MARKETS (8,355)
--------------
BANKS (0.9)%
Synovus Financial Corp. 45 (1,247)
Huntington Bancshares, Inc. 234 (5,258)
Associated Banc-Corp. 173 (5,273)
Wachovia Corp. 111 (5,283)
Zions Bancorporation 77 (5,483)
Banknorth Group, Inc.* 182 (5,486)
--------------
TOTAL BANKS (28,030)
--------------
TOTAL FINANCIALS (51,736)
--------------
TOTAL COMMON STOCKS SOLD SHORT
(Proceeds $153,523) (155,209)
--------------
TOTAL INVESTMENTS 92.9%
(Cost $2,717,560) $ 2,715,005
==============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 7.1% $ 206,305
==============
NET ASSETS - 100.0% $ 2,921,310
===============================================================================
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 9
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND
- --------------------------------------------------------------------------------
UNREALIZED
GAIN (LOSS)
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2005 U.S. 10-Year
Treasury Note Index Futures Contracts
(Aggregate Market Value of
Contracts $439,750) 4 $ 533
October 2005 Goldman Sachs
Commodity Index Futures Contracts
(Aggregate Market Value of
Contracts $117,500) 1 (269)
December 2005 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $401,940) 6 (258)
December 2005 S&P MidCap 400 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $360,100) 5 (909)
--------------
(TOTAL AGGREGATE MARKET VALUE OF
CONTRACTS $1,319,290) $ (903)
==============
FUTURES CONTRACTS SOLD SHORT
December 2005 U.S. Dollar Index
Futures Contracts
(Aggregate Market Value of
Contracts $536,100) 6 (1,256)
December 2005 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $308,500) 5 (131)
--------------
(TOTAL AGGREGATE MARKET VALUE OF
CONTRACTS $844,600) $ (1,387)
==============
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY WAS HELD AS SHORT SECURITY COLLATERAL AT
SEPTEMBER 30, 2005.
ADR--AMERICAN DEPOSITORY RECEIPT.
REIT--REAL ESTATE INVESTMENT TRUST.
10 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS 44.2%
INDUSTRIALS 6.8%
CONSTRUCTION & ENGINEERING 2.4%
Fluor Corp.+ 83 $ 5,344
Jacobs Engineering Group, Inc.*+ 66 4,448
Chicago Bridge & Iron NV Co.+ 126 3,917
McDermott International, Inc.*+ 100 3,661
Shaw Group, Inc.*+ 128 3,156
URS Corp.*+ 75 3,029
Granite Construction, Inc.+ 74 2,830
Washington Group International, Inc.*+ 51 2,748
Quanta Services, Inc.*+ 206 2,629
Foster Wheeler Ltd.*+ 85 2,626
EMCOR Group, Inc.*+ 35 2,076
Dycom Industries, Inc.*+ 95 1,921
Insituform Technologies, Inc. --
Class A*+ 83 1,435
--------------
TOTAL CONSTRUCTION & ENGINEERING 39,820
--------------
ROAD & RAIL 2.3%
Norfolk Southern Corp.+ 513 20,807
Burlington Northern Santa Fe Corp.+ 304 18,179
--------------
TOTAL ROAD & RAIL 38,986
--------------
AIR FREIGHT & COURIERS 0.8%
FedEx Corp.+ 145 12,634
Ryder System, Inc.+ 15 513
--------------
TOTAL AIR FREIGHT & COURIERS 13,147
--------------
COMMERCIAL SERVICES & SUPPLIES 0.7%
Cendant Corp.+ 494 10,196
Monster Worldwide, Inc.*+ 73 2,242
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 12,438
--------------
MACHINERY 0.3%
Parker Hannifin Corp.+ 55 3,537
Cummins, Inc.+ 20 1,760
--------------
TOTAL MACHINERY 5,297
--------------
ELECTRICAL EQUIPMENT 0.3%
American Power Conversion Corp.+ 164 4,248
--------------
TOTAL ELECTRICAL EQUIPMENT 4,248
--------------
TOTAL INDUSTRIALS 113,936
--------------
ENERGY 6.2%
OIL & GAS 3.8%
Amerada Hess Corp.+ 121 16,638
Kerr-McGee Corp.+ 149 14,469
Exxon Mobil Corp.+ 73 4,639
BP PLC -- SP ADR+ 53 3,755
Royal Dutch Shell PLC -- SP ADR+ 55 3,610
Total SA -- SP ADR+ 23 3,124
PetroChina Co. Ltd. -- SP ADR+ 36 3,001
Royal Dutch Petroleum Co.+ 43 2,701
ENI-Ente Nazionale Idrocarburi --
SP ADR+ 16 2,370
Petroleo Brasiliero SA -- Petrobras+ 29 2,073
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
EnCana Corp.+ 30 $ 1,749
Statoil ASA -- SP ADR+ 70 1,728
China Petroleum & Chemical Corp. --
SP ADR+ 35 1,584
Imperial Oil Ltd.+ 13 1,496
Repsol YPF SA -- SP ADR+ 45 1,454
--------------
TOTAL OIL & GAS 64,391
--------------
ENERGY EQUIPMENT & SERVICES 2.4%
Halliburton Co.+ 83 5,687
Schlumberger Ltd.+ 59 4,978
Baker Hughes, Inc.+ 53 3,163
Transocean, Inc.*+ 51 3,127
Tenaris SA -- SP ADR+ 21 2,895
GlobalSantaFe Corp.+ 53 2,418
Nabors Industries Ltd.*+ 33 2,370
National-Oilwell Varco, Inc.*+ 36 2,369
Weatherford International Ltd.*+ 30 2,060
Noble Corp.+ 30 2,054
Diamond Offshore Drilling, Inc.+ 33 2,021
ENSCO International, Inc.+ 43 2,003
Patterson-UTI Energy, Inc.+ 53 1,912
Smith International, Inc.+ 55 1,832
BJ Services Co.+ 25 900
--------------
TOTAL ENERGY EQUIPMENT & SERVICES 39,789
--------------
TOTAL ENERGY 104,180
--------------
FINANCIALS 5.7%
INSURANCE 3.5%
Prudential Financial, Inc.+ 296 19,998
Loews Corp.+ 106 9,795
Hartford Financial Services Group, Inc.+ 119 9,183
Chubb Corp.+ 79 7,074
ACE Ltd.+ 113 5,319
XL Capital Ltd.+ 58 3,946
MBIA, Inc.+ 56 3,395
--------------
TOTAL INSURANCE 58,710
--------------
THRIFTS & MORTGAGE FINANCE 1.0%
Freddie Mac+ 291 16,430
--------------
TOTAL THRIFTS & MORTGAGE FINANCE 16,430
--------------
BANKS 0.5%
National City Corp.+ 274 9,163
--------------
TOTAL BANKS 9,163
--------------
REAL ESTATE 0.3%
Archstone-Smith Trust+ 120 4,784
--------------
TOTAL REAL ESTATE 4,784
--------------
DIVERSIFIED FINANCIALS 0.2%
CIT Group, Inc.+ 86 3,885
--------------
TOTAL DIVERSIFIED FINANCIALS 3,885
--------------
CAPITAL MARKETS 0.2%
E*Trade Financial Corp.*+ 213 3,749
--------------
TOTAL CAPITAL MARKETS 3,749
--------------
TOTAL FINANCIALS 96,721
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 11
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
HEALTH CARE 5.5%
HEALTH CARE PROVIDERS & SERVICES 2.8%
Caremark Rx, Inc.*+ 295 $ 14,729
CIGNA Corp.+ 109 12,847
Medco Health Solutions, Inc.*+ 176 9,650
Humana, Inc.*+ 111 5,315
HCA, Inc.+ 64 3,067
AmerisourceBergen Corp.+ 14 1,082
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 46,690
--------------
PHARMACEUTICALS 1.5%
Pfizer, Inc.+ 1,029 25,694
Watson Pharmaceuticals, Inc.*+ 15 549
--------------
TOTAL PHARMACEUTICALS 26,243
--------------
BIOTECHNOLOGY 0.9%
Genentech, Inc.*+ 39 3,284
Amgen, Inc.*+ 41 3,267
Genzyme Corp.*+ 20 1,433
Celgene Corp.*+ 19 1,032
Chiron Corp.*+ 21 916
Invitrogen Corp.*+ 10 752
Amylin Pharmaceuticals, Inc.*+ 21 731
Applera Corp. - Applied Biosystems
Group+ 31 720
Charles River Laboratories
International, Inc.*+ 15 654
Affymetrix, Inc.*+ 14 647
Millennium Pharmaceuticals, Inc.*+ 64 597
Protein Design Labs, Inc.*+ 21 588
--------------
TOTAL BIOTECHNOLOGY 14,621
--------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.3%
Hospira, Inc.*+ 109 4,466
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 4,466
--------------
TOTAL HEALTH CARE 92,020
--------------
MATERIALS 4.4%
CONSTRUCTION MATERIALS 2.8%
Vulcan Materials Co.+ 186 13,803
Cemex SA de CV -- SP ADR+ 179 9,362
Lafarge North America, Inc.+ 79 5,341
Florida Rock Industries, Inc.+ 75 4,807
Martin Marietta Materials, Inc.+ 58 4,551
Eagle Materials, Inc.+ 26 3,156
Headwaters, Inc.*+ 78 2,917
Texas Industries, Inc.+ 44 2,393
--------------
TOTAL CONSTRUCTION MATERIALS 46,330
--------------
METALS & MINING 1.1%
BHP Billiton Ltd. -- SP ADR+ 81 2,769
Rio Tinto PLC -- SP ADR+ 13 2,136
Companhia Vale do Rio Doce --
SP ADR+ 43 1,886
Anglo American PLC -- ADR+ 59 1,782
United States Steel Corp.+ 31 1,313
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
Alcoa, Inc.+ 49 $ 1,197
Newmont Mining Corp.+ 25 1,179
POSCO -- SP ADR+ 20 1,131
Mittal Steel NV Co. -- Class A+ 38 1,094
Phelps Dodge Corp.+ 8 1,039
Barrick Gold Corp.+ 35 1,017
Alcan, Inc.+ 29 920
Inco Ltd.+ 18 852
AngloGold Ashanti Ltd. -- SP ADR+ 20 849
Allegheny Technologies, Inc.+ 5 155
--------------
TOTAL METALS & MINING 19,319
--------------
PAPER & FOREST PRODUCTS 0.5%
Weyerhaeuser Co.+ 68 4,675
Georgia-Pacific Corp.+ 70 2,384
Louisiana-Pacific Corp.+ 30 831
--------------
TOTAL PAPER & FOREST PRODUCTS 7,890
--------------
TOTAL MATERIALS 73,539
--------------
INFORMATION TECHNOLOGY 4.3%
SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT 2.7%
Texas Instruments, Inc.+ 845 28,645
Broadcom Corp. -- Class A*+ 166 7,787
National Semiconductor Corp.+ 183 4,813
Freescale Semiconductor, Inc. --
Class B*+ 93 2,193
LSI Logic Corp.*+ 206 2,029
Nvidia Corp.*+ 14 480
--------------
TOTAL SEMICONDUCTOR & SEMICONDUCTOR
EQUIPMENT 45,947
--------------
INTERNET SOFTWARE & SERVICES 0.9%
Google, Inc. -- Class A*+ 18 5,696
VeriSign, Inc.*+ 64 1,368
Akamai Technologies, Inc.*+ 59 941
Netease.com, Inc. -- SP ADR*+ 10 900
CNET Networks, Inc.*+ 59 801
Sina Corp.*+ 29 798
EarthLink, Inc.*+ 66 706
ValueClick, Inc.*+ 41 701
Websense, Inc.*+ 13 666
WebEx Communications, Inc.*+ 26 637
Digital River, Inc.*+ 18 627
aQuantive, Inc.*+ 30 604
Digitas, Inc.*+ 53 602
Openwave Systems, Inc.*+ 33 593
--------------
TOTAL INTERNET SOFTWARE & SERVICES 15,640
--------------
IT CONSULTING & SERVICES 0.3%
Computer Sciences Corp.*+ 41 1,940
Affiliated Computer Services, Inc. --
Class A*+ 28 1,529
Sabre Holdings Corp.+ 29 588
Convergys Corp.*+ 31 445
--------------
TOTAL IT CONSULTING & SERVICES 4,502
--------------
12 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
OFFICE ELECTRONICS 0.2%
Xerox Corp.*+ 209 $ 2,853
--------------
TOTAL OFFICE ELECTRONICS 2,853
--------------
COMMUNICATIONS EQUIPMENT 0.1%
Corning, Inc.*+ 125 2,416
ADC Telecommunications, Inc.*+ 10 229
--------------
TOTAL COMMUNICATIONS EQUIPMENT 2,645
--------------
SOFTWARE 0.1%
Compuware Corp.*+ 193 1,833
--------------
TOTAL SOFTWARE 1,833
--------------
TOTAL INFORMATION TECHNOLOGY 73,420
--------------
CONSUMER STAPLES 3.8%
TOBACCO 2.3%
Altria Group, Inc.+ 424 31,253
Reynolds American, Inc.+ 90 7,472
--------------
TOTAL TOBACCO 38,725
--------------
FOOD PRODUCTS 1.3%
Archer-Daniels-Midland Co.+ 506 12,478
General Mills, Inc.+ 216 10,411
--------------
TOTAL FOOD PRODUCTS 22,889
--------------
FOOD & DRUG RETAILING 0.1%
Albertson's, Inc.+ 53 1,359
Supervalu, Inc.+ 31 965
--------------
TOTAL FOOD & DRUG RETAILING 2,324
--------------
BEVERAGES 0.1%
Molson Coors Brewing Co. --
Class B+ 15 960
--------------
TOTAL BEVERAGES 960
--------------
TOTAL CONSUMER STAPLES 64,898
--------------
CONSUMER DISCRETIONARY+ 3.8%
MULTILINE RETAIL 1.5%
Federated Department Stores, Inc.+ 169 11,301
Sears Holdings Corp.*+ 88 10,949
Family Dollar Stores, Inc.+ 71 1,411
Dillard's, Inc. -- Class A+ 38 793
--------------
TOTAL MULTILINE RETAIL 24,454
--------------
AUTOMOBILES 0.7%
General Motors Corp.+ 274 8,387
Ford Motor Co.+ 395 3,895
--------------
TOTAL AUTOMOBILES 12,282
--------------
HOUSEHOLD DURABLES 0.7%
Pulte Homes, Inc.+ 124 5,322
Centex Corp.+ 65 4,198
Whirlpool Corp.+ 30 2,273
--------------
TOTAL HOUSEHOLD DURABLES 11,793
--------------
AUTO COMPONENTS 0.3%
Johnson Controls, Inc.+ 86 5,336
--------------
TOTAL AUTO COMPONENTS 5,336
--------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
SPECIALTY RETAIL 0.3%
Office Depot, Inc.*+ 155 $ 4,604
--------------
TOTAL SPECIALTY RETAIL 4,604
--------------
TEXTILES & APPAREL 0.2%
VF Corp.+ 50 2,898
Jones Apparel Group, Inc.+ 25 713
--------------
TOTAL TEXTILES & APPAREL 3,611
--------------
HOTELS, RESTAURANTS & LEISURE 0.1%
Darden Restaurants, Inc.+ 78 2,369
--------------
TOTAL HOTELS, RESTAURANTS & LEISURE 2,369
--------------
TOTAL CONSUMER DISCRETIONARY+ 64,449
--------------
UTILITIES 1.9%
MULTI-UTILITIES 1.2%
Duke Energy Corp.+ 151 4,405
PG&E Corp.+ 101 3,964
AES Corp.*+ 180 2,958
Constellation Energy Group, Inc.+ 45 2,772
NiSource, Inc.+ 76 1,843
NRG Energy, Inc.*+ 39 1,661
Dynegy, Inc. -- Class A*+ 238 1,121
Calpine Corp.*+ 353 914
--------------
TOTAL MULTI-UTILITIES 19,638
--------------
ELECTRIC UTILITIES 0.7%
TXU Corp.+ 39 4,402
American Electric Power Co., Inc.+ 104 4,129
Allegheny Energy, Inc.*+ 66 2,028
Pinnacle West Capital Corp.+ 28 1,234
Black Hills Corp.+ 24 1,041
--------------
TOTAL ELECTRIC UTILITIES 12,834
--------------
TOTAL UTILITIES 32,472
--------------
TELECOMMUNICATION SERVICES 1.8%
DIVERSIFIED TELECOMMUNICATION SERVICES 1.8%
SBC Communications, Inc.+ 744 17,834
BellSouth Corp.+ 414 10,888
CenturyTel, Inc.+ 30 1,049
--------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 29,771
--------------
TOTAL TELECOMMUNICATION SERVICES 29,771
--------------
TOTAL COMMON STOCKS
(Cost $732,181) 745,406
--------------
CONTRACTS
-----------
OPTIONS PURCHASED 0.0%
Put Options on:
October 2005 S&P 500 Index
Futures Contracts
Expiring October 2005 with
strike price of 1140 3 413
--------------
TOTAL OPTIONS PURCHASED
(Cost $1,212) 413
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 13
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
FACE VALUE
AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 53.4%
Repurchase Agreement (Note 5)
3.25% due 10/03/05 $ 511,238 $ 511,238
3.24% due 10/03/05 389,370 389,370
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $900,608) 900,608
--------------
SHARES
-----------
COMMON STOCKS SOLD SHORT (30.5)%
UTILITIES (0.8)%
ELECTRIC UTILITIES (0.4)%
Progress Energy, Inc. 53 (2,371)
FPL Group, Inc. 79 (3,760)
--------------
TOTAL ELECTRIC UTILITIES (6,131)
--------------
MULTI-UTILITIES (0.4)%
TECO Energy, Inc. 81 (1,460)
Dominion Resources, Inc./VA 68 (5,857)
--------------
TOTAL MULTI-UTILITIES (7,317)
--------------
TOTAL UTILITIES (13,448)
--------------
MATERIALS (0.9)%
CONTAINERS & PACKAGING (0.1)%
Pactiv Corp.* 50 (876)
Temple-Inland, Inc. 34 (1,389)
--------------
TOTAL CONTAINERS & PACKAGING (2,265)
--------------
PAPER & FOREST PRODUCTS (0.3)%
International Paper Co. 148 (4,410)
--------------
TOTAL PAPER & FOREST PRODUCTS (4,410)
--------------
METALS & MINING (0.5)%
Nucor Corp. 33 (1,947)
Freeport-McMoRan Copper &
Gold, Inc. -- Class B 154 (7,483)
--------------
TOTAL METALS & MINING (9,430)
--------------
TOTAL MATERIALS (16,105)
--------------
TELECOMMUNICATION SERVICES (1.2)%
DIVERSIFIED TELECOMMUNICATION SERVICES (1.2)%
Verizon Communications, Inc. 603 (19,712)
--------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES (19,712)
--------------
TOTAL TELECOMMUNICATION SERVICES (19,712)
--------------
ENERGY (1.5)%
OIL & GAS (1.5)%
ConocoPhillips 149 (10,416)
Chevron Corp. 234 (15,147)
--------------
TOTAL OIL & GAS (25,563)
--------------
TOTAL ENERGY (25,563)
--------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
CONSUMER STAPLES (3.7)%
FOOD PRODUCTS (0.3)%
Hershey Co. 73 $ (4,111)
--------------
TOTAL FOOD PRODUCTS (4,111)
--------------
BEVERAGES (0.8)%
Anheuser-Busch Cos., Inc. 308 (13,256)
--------------
TOTAL BEVERAGES (13,256)
--------------
PERSONAL PRODUCTS (1.3)%
Avon Products, Inc. 194 (5,238)
Gillette Co. 288 (16,762)
--------------
TOTAL PERSONAL PRODUCTS (22,000)
--------------
FOOD & DRUG RETAILING (1.3)%
CVS Corp. 323 (9,370)
Walgreen Co. 300 (13,035)
--------------
TOTAL FOOD & DRUG RETAILING (22,405)
--------------
TOTAL CONSUMER STAPLES (61,772)
--------------
INFORMATION TECHNOLOGY (3.8)%
IT CONSULTING & SERVICES (0.1)%
Unisys Corp.* 145 (963)
--------------
TOTAL IT CONSULTING & SERVICES (963)
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.1)%
Sanmina-SCI Corp.* 264 (1,133)
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS (1,133)
--------------
COMMUNICATIONS EQUIPMENT (0.1)%
Comverse Technology, Inc.* 84 (2,207)
--------------
TOTAL COMMUNICATIONS EQUIPMENT (2,207)
--------------
INTERNET SOFTWARE & SERVICES (1.0)%
Yahoo!, Inc.* 491 (16,615)
--------------
TOTAL INTERNET SOFTWARE & SERVICES (16,615)
--------------
COMPUTERS & PERIPHERALS (1.2)%
Lexmark International, Inc.* 51 (3,113)
Apple Computer, Inc.* 329 (17,638)
--------------
TOTAL COMPUTERS & PERIPHERALS (20,751)
--------------
SOFTWARE (1.3)%
Adobe Systems, Inc. 200 (5,970)
Symantec Corp.* 303 (6,866)
Autodesk, Inc. 204 (9,474)
--------------
TOTAL SOFTWARE (22,310)
--------------
TOTAL INFORMATION TECHNOLOGY (63,979)
--------------
14 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) September 30, 2005
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
- --------------------------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
INDUSTRIALS (4.2)%
COMMERCIAL SERVICES & SUPPLIES 0.0%
Allied Waste Industries, Inc.* 79 $ (668)
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES (668)
--------------
MACHINERY (0.6)%
Caterpillar, Inc. 161 (9,459)
--------------
TOTAL MACHINERY (9,459)
--------------
INDUSTRIAL CONGLOMERATES (0.8)%
3M Co. 184 (13,498)
--------------
TOTAL INDUSTRIAL CONGLOMERATES (13,498)
--------------
AIR FREIGHT & COURIERS (1.2)%
United Parcel Service, Inc. -- Class B 295 (20,393)
--------------
TOTAL AIR FREIGHT & COURIERS (20,393)
--------------
AEROSPACE & DEFENSE (1.6)%
United Technologies Corp. 246 (12,753)
Boeing Co. 209 (14,201)
--------------
TOTAL AEROSPACE & DEFENSE (26,954)
--------------
TOTAL INDUSTRIALS (70,972)
--------------
CONSUMER DISCRETIONARY (4.3)%
HOUSEHOLD DURABLES 0.0%
Maytag Corp. 20 (365)
--------------
TOTAL HOUSEHOLD DURABLES (365)
--------------
AUTO COMPONENTS (0.1)%
Dana Corp. 51 (480)
Delphi Corp. 198 (546)
--------------
TOTAL AUTO COMPONENTS (1,026)
--------------
MULTILINE RETAIL (0.2)%
Nordstrom, Inc. 85 (2,917)
--------------
TOTAL MULTILINE RETAIL (2,917)
--------------
TEXTILES & APPAREL (0.2)%
Coach, Inc.* 129 (4,045)
--------------
TOTAL TEXTILES & APPAREL (4,045)
--------------
COMMERCIAL SERVICES & SUPPLIES (0.2)%
Apollo Group, Inc. -- Class A* 64 (4,249)
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES (4,249)
--------------
HOTELS, RESTAURANTS & LEISURE (0.4)%
Hilton Hotels Corp. 133 (2,969)
International Game Technology, Inc. 115 (3,105)
--------------
TOTAL HOTELS, RESTAURANTS & LEISURE (6,074)
--------------
MEDIA (1.1)%
New York Times Co. -- Class A 35 (1,041)
Dow Jones & Co., Inc. 28 (1,070)
McGraw-Hill Cos., Inc. 93 (4,468)
News Corp. -- Class A 809 (12,612)
--------------
TOTAL MEDIA (19,191)
--------------
INTERNET & CATALOG RETAIL (2.1)%
eBay, Inc.* 850 (35,020)
--------------
TOTAL INTERNET & CATALOG RETAIL (35,020)
--------------
TOTAL CONSUMER DISCRETIONARY (72,887)
--------------
MARKET
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
HEALTH CARE (4.4)%
HEALTH CARE PROVIDERS & SERVICES (0.5)%
Tenet Healthcare Corp.* 239 $ (2,684)
Express Scripts, Inc.* 44 (2,737)
Quest Diagnostics, Inc. 64 (3,234)
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES (8,655)
--------------
HEALTH CARE EQUIPMENT & SUPPLIES (1.1)%
Biomet, Inc. 79 (2,742)
St. Jude Medical, Inc.* 113 (5,289)
Stryker Corp. 214 (10,578)
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES (18,609)
--------------
BIOTECHNOLOGY (1.3)%
Medimmune, Inc.* 86 (2,894)
Biogen Idec, Inc.* 76 (3,000)
Gilead Sciences, Inc.* 305 (14,872)
--------------
TOTAL BIOTECHNOLOGY (20,766)
--------------
PHARMACEUTICALS (1.5)%
Merck & Co., Inc. 373 (10,149)
Schering-Plough Corp. 734 (15,451)
--------------
TOTAL PHARMACEUTICALS (25,600)
--------------
TOTAL HEALTH CARE (73,630)
--------------
FINANCIALS (5.7)%
CAPITAL MARKETS (0.6)%
T. Rowe Price Group, Inc. 5 (326)
Charles Schwab Corp. 51 (736)
Franklin Resources, Inc. 10 (840)
Northern Trust Corp. 143 (7,229)
--------------
TOTAL CAPITAL MARKETS (9,131)
--------------
REAL ESTATE (0.6)%
Simon Property Group, Inc. 144 (10,673)
--------------
TOTAL REAL ESTATE (10,673)
--------------
INSURANCE (0.7)%
Ambac Financial Group, Inc. 6 (432)
Aon Corp. 143 (4,587)
Marsh & McLennan Cos., Inc. 245 (7,446)
--------------
TOTAL INSURANCE (12,465)
--------------
BANKS (0.8)%
First Horizon National Corp. 60 (2,181)
Synovus Financial Corp. 204 (5,655)
North Fork Bancorporation, Inc. 239 (6,095)
--------------
TOTAL BANKS (13,931)
--------------
DIVERSIFIED FINANCIALS (1.0)%
Moody's Corp. 326 (16,652)
--------------
TOTAL DIVERSIFIED FINANCIALS (16,652)
--------------
THRIFTS & MORTGAGE FINANCE (2.0)%
MGIC Investment Corp. 43 (2,761)
Golden West Financial Corp. 145 (8,612)
Fannie Mae 486 (21,782)
--------------
TOTAL THRIFTS & MORTGAGE FINANCE (33,155)
--------------
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 15
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) September 30, 2005
- --------------------------------------------------------------------------------
HEDGED EQUITY FUND
MARKET
VALUE
(NOTE 1)
- -------------------------------------------------------------------------------
TOTAL FINANCIALS $ (96,007)
--------------
TOTAL COMMON STOCKS SOLD SHORT
(Proceeds $506,069) (514,075)
--------------
CONTRACTS
-----------
OPTIONS WRITTEN (0.2)%
Call Options Written on (Note 7):
October 2005 S&P 500 Index
Futures Contracts
Expiring October 2005 with
strike price of 1235 1 (2,950)
--------------
TOTAL OPTIONS WRITTEN
(Premiums Received $4,245) (2,950)
--------------
TOTAL INVESTMENTS 66.9%
(Cost $1,123,687) $ 1,129,402
==============
OTHER ASSETS IN EXCESS
OF LIABILITIES - 33.1% $ 557,962
==============
NET ASSETS - 100.0% $ 1,687,364
================================================================================
UNREALIZED
GAIN
CONTRACTS (NOTE 1)
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
December 2005 S&P 400 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $216,060) 3 $ 1,131
December 2005 Russell 2000 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $267,960) 4 843
December 2005 S&P 500 Index
Mini Futures Contracts
(Aggregate Market Value of
Contracts $246,800) 4 495
--------------
(TOTAL AGGREGATE MARKET VALUE OF
CONTRACTS $730,820) $ 2,469
==============
* NON-INCOME PRODUCING SECURITY.
+ ALL OR A PORTION OF THIS SECURITY IS HELD AS SHORT SECURITY COLLATERAL AT
SEPTEMBER 30, 2005.
ADR--AMERICAN DEPOSITORY RECEIPT.
16 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) September 30, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN HEDGED
STRATEGIES EQUITY
FUND FUND
- ---------------------------------------------------------------------------------------------------------
ASSETS
Securities at Value* (Notes 1, 2, and 5) $ 2,870,214 $ 1,646,427
Segregated Cash with Broker 30,368 26,889
Cash in Custodian Bank -- 10
Receivable for Futures Contracts Settlement (Note 1) 380 2,920
Receivable for Securities Sold (Note 1) 153,523 506,069
Receivable for Shares Purchased 28,105 22,046
Investment Income Receivable (Note 1) 918 812
- ---------------------------------------------------------------------------------------------------------
TOTAL ASSETS 3,083,508 2,205,173
=========================================================================================================
LIABILITIES
Short Sales at Market Value** 155,209 514,075
Written Options at Market Value*** (Note 7) -- 2,950
Investment Advisory Fees Payable (Note 3) 1,040 623
Distribution and Service Fees Payable (Note 3) 193 116
Cash Payable to Custodian Bank 5,739 --
Short Sales Dividends Payable 17 45
- ---------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 162,198 517,809
=========================================================================================================
NET ASSETS $ 2,921,310 $ 1,687,364
=========================================================================================================
NET ASSETS CONSIST OF
Paid-In Capital $ 2,924,475 $ 1,678,497
Undistributed Net Investment Income 1,590 683
Accumulated Net Realized Gain on Investments, Options,
and Futures Contracts 90 --
Net Unrealized Appreciation (Depreciation) on Investments, Options,
and Futures Contracts (4,845) 8,184
=========================================================================================================
NET ASSETS $ 2,921,310 $ 1,687,364
=========================================================================================================
A-Class $ 188,350 $ 36,748
C-Class 73,789 44,627
H-Class 2,659,171 1,605,989
SHARES OUTSTANDING
A-Class 7,554 1,463
C-Class 2,960 1,778
H-Class 106,647 63,952
NET ASSET VALUE
A-Class $ 24.93 $ 25.11
A-Class Maximum Offering Price+ 26.17 26.36
C-Class 24.93 25.11
H-Class 24.93 25.11
* THE COST OF SECURITIES AT VALUE IS $2,871,083 AND $1,634,001,
RESPECTIVELY.
** THE PROCEEDS OF SHORT SALES AT MARKET VALUE IS $153,523 AND $506,069,
RESPECTIVELY.
*** THE PREMIUMS RECEIVED FOR WRITTEN OPTIONS AT MARKET VALUE ARE $0 AND
$4,245, RESPECTIVELY.
+ NET ASSET VALUE ADJUSTED FOR SALES CHARGE OF 4.75% OF OFFERING PRICE.
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 17
STATEMENTS OF OPERATIONS (UNAUDITED) Period Ended September 30, 2005
- --------------------------------------------------------------------------------
ABSOLUTE RETURN HEDGED
STRATEGIES EQUITY
FUND* FUND*
- ---------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest (Note 1) $ 2,750 $ 1,373
Dividends (Note 1) 133 123
- ---------------------------------------------------------------------------------------------------------
Total Income 2,883 1,496
- ---------------------------------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees (Note 3) 1,040 623
Distribution & Service Fees (Note 3):
A-Class 8 2
C-Class 14 13
H-Class 214 130
Short Sales Dividend Expense (Note 1) 17 45
- ---------------------------------------------------------------------------------------------------------
Total Expenses 1,293 813
- ---------------------------------------------------------------------------------------------------------
Net Investment Income 1,590 683
=========================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)
Net Realized Gain on:
Investment Securities 28 --
Futures Contracts 62 --
- ---------------------------------------------------------------------------------------------------------
Total Net Realized Gain 90 --
- ---------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities (869) 12,426
Futures Contracts (2,290) 2,469
Securities Sold Short (1,686) (6,711)
- ---------------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) (4,845) 8,184
- ---------------------------------------------------------------------------------------------------------
Net Gain (Loss) on Investments (4,755) 8,184
- ---------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (3,165) $ 8,867
=========================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 19, 2005.
18 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
ABSOLUTE RETURN HEDGED
STRATEGIES EQUITY
FUND FUND
- ---------------------------------------------------------------------------------------------------------
PERIOD PERIOD
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
2005*+ 2005*+
- ---------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net Investment Income $ 1,590 $ 683
Net Realized Gain on Investments 90 --
Net Change in Unrealized Appreciation (Depreciation)
on Investments (4,845) 8,184
- ---------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations (3,165) 8,867
- ---------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1) -- --
=========================================================================================================
SHARE TRANSACTIONS
PROCEEDS FROM SHARES PURCHASED
A-Class 187,963 36,431
C-Class 73,676 44,149
H-Class 2,667,482 1,603,031
VALUE OF SHARES PURCHASED THROUGH DIVIDEND REINVESTMENT
A-Class -- --
C-Class -- --
H-Class -- --
COST OF SHARES REDEEMED
A-Class -- --
C-Class -- --
H-Class (4,646) (5,114)
=========================================================================================================
NET INCREASE IN NET ASSETS
FROM SHARE TRANSACTIONS 2,924,475 1,678,497
- ---------------------------------------------------------------------------------------------------------
Net Increase in Net Assets 2,921,310 1,687,364
NET ASSETS--BEGINNING OF PERIOD -- --
- ---------------------------------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $ 2,921,310 $ 1,687,364
=========================================================================================================
UNDISTRIBUTED NET INVESTMENT INCOME $ 1,590 $ 683
=========================================================================================================
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 19, 2005.
+ UNAUDITED
See Notes to Financial Statements.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 19
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 AND (DECREASE) DISTRIBUTIONS DISTRIBUTIONS
VALUE, NET UNREALIZED IN NET ASSET FROM NET FROM NET
BEGINNING INVESTMENT GAINS (LOSSES) VALUE RESULTING INVESTMENT REALIZED
OF PERIOD INCOME+ ON SECURITIES FROM OPERATIONS INCOME CAPITAL GAINS
- ----------------------------------------------------------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND A-CLASS
SEPTEMBER 30, 2005 *@ $ 25.00 $ .02 $ (.09) $ (.07) $ -- $ --
ABSOLUTE RETURN STRATEGIES FUND C-CLASS
SEPTEMBER 30, 2005 *@ 25.00 .01 (.08) (.07) -- --
ABSOLUTE RETURN STRATEGIES FUND H-CLASS
SEPTEMBER 30, 2005 *@ 25.00 .02 (.09) (.07) -- --
HEDGED EQUITY FUND A-CLASS
SEPTEMBER 30, 2005 *@ 25.00 .01 .10 .11 -- --
HEDGED EQUITY FUND C-CLASS
SEPTEMBER 30, 2005 *@ 25.00 .01 .10 .11 -- --
HEDGED EQUITY FUND H-CLASS
SEPTEMBER 30, 2005 *@ 25.00 .01 .10 .11 -- --
NET INCREASE NET ASSET
(DECREASE) IN VALUE, TOTAL
TOTAL NET ASSET END OF INVESTMENT
DISTRIBUTIONS VALUE PERIOD RETURN
- ------------------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND A-CLASS
SEPTEMBER 30, 2005 *@ $ -- $ (.07) $ 24.93 (0.28)%
ABSOLUTE RETURN STRATEGIES FUND C-CLASS
SEPTEMBER 30, 2005 *@ -- (.07) 24.93 (0.28)%
ABSOLUTE RETURN STRATEGIES FUND H-CLASS
SEPTEMBER 30, 2005 *@ -- (.07) 24.93 (0.28)%
HEDGED EQUITY FUND A-CLASS
SEPTEMBER 30, 2005 *@ -- .11 25.11 0.44%
HEDGED EQUITY FUND C-CLASS
SEPTEMBER 30, 2005 *@ -- .11 25.11 0.44%
HEDGED EQUITY FUND H-CLASS
SEPTEMBER 30, 2005 *@ -- .11 25.11 0.44%
RATIOS 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)
- ---------------------------------------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND A-CLASS
SEPTEMBER 30, 2005 *@ 1.41%** 1.41%** 1.39%** 1.93%** 3% $ 188
ABSOLUTE RETURN STRATEGIES FUND C-CLASS
SEPTEMBER 30, 2005 *@ 2.17%** 2.17%** 2.15%** 1.23%** 3% 74
ABSOLUTE RETURN STRATEGIES FUND H-CLASS
SEPTEMBER 30, 2005 *@ 1.42%** 1.42%** 1.40%** 1.76%** 3% 2,659
HEDGED EQUITY FUND A-CLASS
SEPTEMBER 30, 2005 *@ 1.44%** 1.44%** 1.36%** 1.47%** -- 37
HEDGED EQUITY FUND C-CLASS
SEPTEMBER 30, 2005 *@ 2.19%** 2.19%** 2.11%** 0.75%** -- 45
HEDGED EQUITY FUND H-CLASS
SEPTEMBER 30, 2005 *@ 1.48%** 1.48%** 1.40%** 1.27%** -- 1,606
* SINCE THE COMMENCEMENT OF OPERATIONS: SEPTEMBER 19, 2005.
** 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.
++ OPERATING EXPENSES EXCLUDES SHORT DIVIDENDS EXPENSE.
@ UNAUDITED
20 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Rydex Series Funds (the "Trust") is registered with the SEC 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. C-Class Shares have a 1% Contingent Deferred Sales Charge ("CDSC") if
Shares are redeemed within 12 months of purchase. 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. 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 September 30, 2005, the Trust consisted of forty-eight separate series:
twenty-four Benchmark Funds, one Money Market Fund, one Absolute Return
Strategies Fund, one Hedged Equity Fund, nineteen Sector Funds, and two
Strategic Funds. This report covers the Absolute Return Strategies Fund and the
Hedged Equity Fund (the "Funds"), while the Sector Funds, the Strategic Funds,
the Benchmark Funds and the Money Market Fund are contained in separate reports.
At September 30, 2005, only A-Class, C-Class, and H-Class Shares had been issued
by the Funds. All share classes are subject to a 1% redemption fee when shares
are redeemed after being held for less than 30 days.
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 the Official Settlement
Price listed by the exchange, usually as of 4:00 p.m., Eastern Time. In the
event that a settlement price is not available, fair valuation is enacted.
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. In the event that the exchange for a specific futures contract
closes earlier than 4:00 p.m., Eastern Time, the futures contract is valued at
the Official Settlement Price of the exchange. However, the underlying
securities from which the futures contract value is derived are monitored until
4:00 p.m., Eastern Time, to determine if fair valuation would provide a more
accurate valuation. Short-term securities, if any, are valued at amortized cost,
which approximates market value.
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 agreements.
Investments 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 Rydex Global Advisors (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.
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
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 21
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
of premiums and accretion of discount, is accrued on a daily basis.
C. Distributions of net investment income and net realized capital gains are
recorded on the ex-dividend date and are determined in accordance with income
tax regulations which may differ from accounting principles generally accepted
in the United States of America. These differences are primarily due to
differing treatments for items such as deferral of wash sales and post-October
losses and regulated futures contracts and options. Net investment income and
loss, net realized gains and losses, and net assets are not affected by these
differences.
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. Fees paid to brokers to borrow securities in connection with
short sales are considered part of the cost of short sale transactions. In
addition, the Fund must pay out the dividend rate of the equity or coupon rate
of the treasury obligation to the purchaser and records this as an expense.
Short Dividends or Interest Expense is not a fee charged to the shareholder by
the Advisor or other service providers, rather it is more similar to the
transaction costs or capital expenditures associated with the day-to-day
management of any mutual fund in pursuit of its investment objective.
E. The Funds may also purchase American Depository Receipts ("ADR"), U.S.
Government securities, enter into repurchase agreements, and engage in futures,
options and equity swap transactions.
F. 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).
G. 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 the contract is
closed, the Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed.
H. The Fund may leave Cash in Custodian Bank overnight in its cash account with
the custodian, U.S. Bank. Periodically, a 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.
I. 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.
J. 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 related 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.
22 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
K. 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, options on futures, and swap
agreements. These investments involve, to varying degrees, elements of market
risk and risks in excess of the amounts recognized in the Statements of Assets
and Liabilities.
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 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 the Trust 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.
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.
In conjunction with the use of options, futures, options on futures, swap
agreements, as well as short sales of securities, the Funds are required to
maintain collateral in various forms. The Funds use, where appropriate,
depending on the financial instrument utilized and the broker involved, margin
deposits at the broker, cash segregated at the custodian bank, discount notes,
or the repurchase agreements allocated to each Fund.
The risks inherent in the use of options, futures contracts, options on futures
contracts, swap agreements as well as short sales of securities include i)
adverse changes in the value of such instruments; ii) imperfect correlation
between the price of the instruments and movements in the price of the
underlying securities, indices, or futures contracts; iii) the possible absence
of a liquid secondary market for any particular instrument at any time; and iv)
the potential of counterparty default.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory contract, the Trust pays the Advisor,
an affiliated entity, investment advisory fees calculated at an annualized rate
of 1.15% of the average daily net assets of the Funds. The Advisor has
contractually agreed to pay all operating expenses of the Fund, excluding
interest expense and taxes (expected to be de minimis), brokerage commissions
and other expenses connected with the execution of portfolio transactions, short
dividend expenses, and extraordinary expenses. Certain officers and trustees of
the Trust are also officers of the Advisor.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 23
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
The Trust has adopted 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.
The Trust has adopted a separate Distribution and Shareholder Services Plan
applicable to its C-Class Shares that allows the Funds to pay annual
distribution and service fees of 1.00% of the Funds' C-Class Shares average
daily net assets. The annual 0.25% service fee compensates the shareholder's
financial advisor for providing on-going services to the shareholder. The annual
0.75% distribution fee reimburses the Distributor for paying the shareholder's
financial advisor an on-going sales commission. The Distributor advances the
first year's service and distribution fees 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, capital loss
carryforward expired, 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.
At September 30, 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)
- ---------------------------------------------------------------------------------------
Absolute Return Strategies Fund $ 2,717,560 $ 4,383 $ (9,228) $ (4,845)
Hedged Equity Fund 1,123,687 28,032 (19,848) 8,184
24 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
5. REPURCHASE AGREEMENTS
The Trust 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 Large-Cap Growth Fund, the
Strengthening Dollar Fund, the Weakening Dollar Fund, the U.S. Government Money
Market Fund, the Nova Master Portfolio, the Ursa Master Portfolio, the Arktos
Master Portfolio, the Juno Master Portfolio, the Core Equity Fund, the Sector
Rotation Fund, and the Commodities 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 Trust's custodian and is
evaluated daily to ensure that its market value exceeds by, at a minimum, 102%
of the delivery value of the repurchase agreement at maturity.
The repurchase agreements executed by the joint account and outstanding as of
September 30, 2005, were as follows:
COUNTERPARTY TERMS OF AGREEMENT FACE VALUE MARKET VALUE MATURITY VALUE
- ----------------------------------------------------------------------------------------------------------
Bear Stearns Cos., Inc. 3.25% due 10/03/05 $ 525,000,000 $ 525,000,000 $ 525,142,188
Citigroup, Inc. 3.24% due 10/03/05 375,000,000 375,000,000 375,101,250
Lehman Brothers, Inc. 3.25% due 10/03/05 295,619,135 295,619,135 295,699,198
Morgan Stanley 3.24% due 10/03/05 250,000,000 250,000,000 250,067,500
- ----------------------------------------------------------------------------------------------------------
$1,445,619,135 $1,446,010,136
- ----------------------------------------------------------------------------------------------------------
As of September 30, 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 6.125% - 8.000% $ 203,611,000 $ 257,500,263
U.S. Treasury Notes 3.000% - 3.875% 1,033,367,912 1,027,768,192
U.S. Currency 0.000% 188,000,000 188,000,000
- --------------------------------------------------------------------------------------
$1,473,268,455
- --------------------------------------------------------------------------------------
In the event of counterparty default, the Trust has the right to collect the
collateral to offset losses incurred. There is potential loss to the Trust in
the event the Trust is delayed or prevented from exercising its rights to
dispose of the collateral securities, including the risk of a possible decline
in the value of the underlying securities during the period while the Trust
seeks to assert its rights. The Trust's investment advisor, acting under the
supervision of the Board of Trustees, reviews the value of the collateral and
the credit worthiness of those banks and dealers with which the Trust enters
into repurchase agreements to evaluate potential risks.
6. SECURITIES TRANSACTIONS
During the period ended September 30, 2005, cost of purchases and proceeds from
sales of investment securities, excluding short-term and temporary cash
investments, were:
ABSOLUTE HEDGED
RETURN STRATEGIES EQUITY
FUND FUND
- --------------------------------------------------------------------------------
Purchases $ 358,593 $ 732,181
Sales $ 13,325 $ --
7. CALL OPTIONS WRITTEN
As of September 30, 2005, S&P 500 Index Mini Futures Contracts were held in the
Fund as cover for call options written by the Fund.
Transactions in options written during the period ended September 30, 2005, were
as follows:
NUMBER OF PREMIUMS
HEDGED EQUITY FUND CONTRACTS RECEIVED
- --------------------------------------------------------------------------------
Options outstanding at September 19, 2005 -- $ --
Options written 1 4,245
- --------------------------------------------------------------------------------
Options outstanding at September 30, 2005 1 $ 4,245
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 25
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
8. SHARE TRANSACTIONS
The Trust is authorized to distribute an unlimited number of no par value
shares. Transactions in shares for the period presented were:
PURCHASED THROUGH NET SHARES
SHARES PURCHASED DIVIDEND REINVESTMENT SHARES REDEEMED PURCHASED
- ---------------------------------------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2005+ 2005+ 2005+ 2005+
- ---------------------------------------------------------------------------------------------------------------------------
ABSOLUTE RETURN STRATEGIES FUND*
A-Class 7,554 -- -- 7,554
C-Class 2,960 -- -- 2,960
H-Class 106,834 -- (187) 106,647
HEDGED EQUITY FUND*
A-Class 1,463 -- -- 1,463
C-Class 1,778 -- -- 1,778
H-Class 64,158 -- (206) 63,952
* SINCE THE COMMENCEMENT OF OPERATIONS. SEPTEMBER 19, 2005.
+ UNAUDITED
26 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
OTHER INFORMATION
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to securities held in the Funds' portfolios is
available, without charge and upon request, by calling 1-800-820-0888. This
information is also available from the EDGAR database on the SEC's site at
http://www.sec.gov.
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 Funds' Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request, by calling 1-800-820-0888.
RYDEX INVESTMENTS BOARD REVIEW AND APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
The 1940 Act requires that the initial approval of, as well as the continuation
of, a fund's investment advisory agreement must be specifically approved (1) by
the vote of the trustees or by a vote of the shareholders of the fund, and (2)
by the vote of a majority of the trustees who are not parties to the investment
advisory agreement or "interested persons" of any party (the "Independent
Trustees"), cast in person at a meeting called for the purpose of voting on such
approval. In connection with such approvals, the fund's trustees must request
and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. In addition, the SEC takes the position that, as part of their
fiduciary duties with respect to fund fees, fund boards are required to evaluate
the material factors applicable to a decision to approve an investment advisory
agreement.
Consistent with these responsibilities, the Rydex Series Funds Board of Trustees
(the "Board") calls and holds one meeting each year that is dedicated to
considering whether to renew the investment advisory agreement (the "Advisory
Agreement") between the Trust and PADCO Advisors, Inc., which does business
under the name Rydex Investments ("Rydex Investments") with respect to existing
funds in the Trust, including the funds discussed in this Semi-Annual Report
(each a "Fund" and collectively, the "Funds"), and to reviewing certain other
agreements pursuant to which Rydex Investments provides investment advisory
services to certain other registered investment companies. In preparation for
the meeting, the Board requests and reviews a wide variety of materials provided
by Rydex Investments, including information about Rydex Investments' affiliates,
personnel and operations. The Board also receives data provided by third
parties. This information is in addition to the detailed information about the
Funds that the Board reviews during the course of each year, including
information that relates to Fund operations and performance. The Board also
receives a memorandum from Fund counsel regarding the responsibilities of the
Board for the approval of investment advisory agreements. In addition, the
Independent Trustees receive advice from independent counsel to the Independent
Trustees, meet in executive session outside the presence of fund management, if
necessary, and participate in question and answer sessions with representatives
of Rydex Investments.
At a meeting held on August 28 and 29, 2005, the Board approved the selection of
Rydex Investments and the continuance of the Advisory Agreement for an
additional one-year period, based on its review of qualitative and quantitative
information provided by Rydex Investments. The Board's approval of the Advisory
Agreement was based on consideration and evaluation of a variety of specific
factors discussed at that meeting and at prior meetings, including:
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY RYDEX INVESTMENTS
The Board reviewed the scope of services to be provided by Rydex Investments
under the Advisory Agreement and noted that there would be no significant
differences between the scope of services required to be provided by Rydex
Investments for the past year and the scope of services required to be provided
by Rydex Investments for the upcoming year. In reviewing the scope of services
provided to the Funds by Rydex Investments, the Board reviewed and discussed
Rydex Investments' investment experience, noting that Rydex Investments and its
affiliates have committed significant resources over time to the support of the
Funds. The Board also considered Rydex Investments' compliance program and its
compliance record with respect to the Funds. In that regard, the Board noted
that Rydex Investments provides information regarding the portfolio management
and compliance to the Board on a periodic basis in connection with regularly
scheduled meetings of the Board. In addition to the above considerations, the
Board reviewed and considered Rydex Investments' investment processes and
strategies, and matters related to Rydex Investments' portfolio transaction
policies and procedures. In particular, the Board noted the substantial volume
of portfolio trades and shareholder transaction activity,
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 27
OTHER INFORMATION (CONTINUED)
- --------------------------------------------------------------------------------
in general, processed by Rydex Investments due to the unlimited exchange policy
of the majority of the Funds. The Board further noted that the Funds had met
their investment objectives consistently since their relevant inception dates.
Based on this review, the Board concluded that the nature, extent and quality of
services to be provided by Rydex Investments to the Funds under the Advisory
Agreement were appropriate and continued to support the Board's original
selection of Rydex Investments as investment adviser to the Funds.
FUND EXPENSES AND PERFORMANCE OF THE FUNDS AND RYDEX INVESTMENTS
The Board reviewed statistical information prepared by Rydex Investments
regarding the expense ratio components, including actual advisory fees,
waivers/reimbursements, and gross and net total expenses of each Fund in
comparison with the same information for other funds registered under the 1940
Act determined by Rydex Investments to comprise each Fund's applicable peer
group. Because few funds seek to provide unlimited exchange privileges similar
to those of the Funds (other than the Core Equity Fund, Sector Rotation Fund,
Absolute Return Strategies Fund, and Hedged Equity Fund), each Fund's applicable
peer group is generally limited to the funds of two unaffiliated mutual fund
families. In addition, the Board reviewed statistical information prepared by
Rydex Investments relating to the performance of each Fund, as well as each
Fund's ability to successfully track its benchmark over time, and a comparison
of each Fund's performance to funds with similar investment objectives for the
same periods and to appropriate indices/benchmarks, in light of total return,
yield and market trends. The Board further noted that despite the unique nature
of the Funds, the peer fund information presented to the Board was meaningful
because the peer funds' investment objectives and strategies were closely
aligned with those of the Funds. The Board noted that most of the Funds either
outperformed their peer funds or performed in line with them over relevant
periods. The Board also noted that the investment advisory fees and overall
expenses for the Funds were generally lower than or in line with the investment
advisory fee rates and overall expenses of the peer funds. Based on this review,
the Board concluded that the investment advisory fees and expense levels and the
historical performance of the Funds, as managed by Rydex Investments, as
compared to the investment advisory fees and expense levels and performance of
the peer funds, were satisfactory for the purposes of approving the continuance
of the Advisory Agreement.
COSTS OF SERVICES PROVIDED TO THE FUNDS AND PROFITS REALIZED BY RYDEX
INVESTMENTS AND ITS AFFILIATES
The Board reviewed information about the profitability of the Funds to Rydex
Investments based on the advisory fees payable under the Advisory Agreement for
the last calendar year. Rydex Investments also presented the Board with material
discussing its methodology for determining the level of advisory fees assessable
to the Funds. The Board analyzed the Funds' expenses, including the investment
advisory fees paid to Rydex Investments. The Board also reviewed information
regarding direct revenue received by Rydex Investments and ancillary revenue
received by Rydex Investments and/or its affiliates in connection with the
services provided to the Funds by Rydex Investments (as discussed below). The
Board also discussed Rydex Investments' profit margin as reflected in Rydex
Investments' profitability analysis and reviewed information regarding economies
of scale (as discussed below). Based on this review, the Board concluded that
the profits to be realized by Rydex Investments and its affiliates under the
Advisory Agreement and from other relationships between the Funds and Rydex
Investments and/or its affiliates, if any, were within the range the Board
considered reasonable and appropriate.
ECONOMIES OF SCALE
In connection with its review of the Funds' profitability analysis, the Board
reviewed information regarding economies of scale or other efficiencies that may
result from increases in the Funds' asset levels. The Board noted that the
Advisory Agreement for the Funds did not provide for any breakpoints in the
investment advisory fee rates as a result of increases in the asset levels of
such Funds. The Board also noted that though Rydex Investments' assets under
management were significant, the amount is spread among more than 95 Funds.
Further limiting the realization of economies of scale, is the ability of
shareholders of a majority of the Funds to engage in unlimited trading. The
Board also reviewed Rydex Investments' historic profitability as investment
adviser to the Funds and determined that reductions in fee rates or additions of
breakpoints were not warranted at this juncture. Based on this review, the
Board, recognizing its responsibility to consider this issue at least annually,
concluded that there are limited economies of scale to share with the Funds'
shareholders.
28 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
OTHER INFORMATION (CONCLUDED)
- --------------------------------------------------------------------------------
OTHER BENEFITS TO RYDEX INVESTMENTS AND/OR ITS AFFILIATES
The Board noted that Rydex Investments reports its use of soft dollars to the
Board on a quarterly basis, as well as any portfolio transactions on behalf of
the Funds placed through an affiliate of the Funds or Rydex Investments pursuant
to Rule 17e-1 under the 1940 Act. The Board concluded that any such ancillary
benefits would not be disadvantageous to the Funds' shareholders.
Based on the above analysis, the Board determined that the Advisory Agreement,
including the investment advisory fee rates thereunder, are fair and reasonable
in light of all relevant circumstances and concluded that it is in the best
interest of the Funds and their shareholders to continue the Advisory Agreement.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 29
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
A Board of Trustees oversees all Rydex Investments, in which its members have no
stated term of service, and continue to serve after election until resignation.
The Statement of Additional Information includes further information about Fund
Trustees and Officers, and can be obtained without charge by calling
1-800-820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEES AND OFFICERS
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE NUMBER OF
YEAR OF BIRTH (YEAR BEGAN) FUNDS OVERSEEN
- ------------------------------ ----------------------------------- -----------------------
CARL G. VERBONCOEUR* Rydex Series Funds - 2004 110
Trustee, President (1952) Rydex Variable Trust - 2004
Rydex Dynamic Funds - 2004
Rydex ETF Trust - 2004
Rydex Capital Partners SPhinX Fund - 2005
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)
-----------------------------------
MICHAEL P. BYRUM* Rydex Series Funds - 2005 110
Trustee, Vice President and Rydex Variable Trust - 2005
Secretary (1970) Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Secretary of Rydex Series Funds, 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)
- -----------------------------------------------------------------------------------------------------
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 110
Trustee (1945) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of Marketing/Co-Owner, Schield
Management Company
-----------------------------------
J. KENNETH DALTON Rydex Series Funds - 1995 110
Trustee (1941) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and Investor, The Dalton
Group
-----------------------------------
JOHN O. DEMARET Rydex Series Funds - 1997 110
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
-----------------------------------
30 | THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT
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
- ------------------------------ ----------------------------------- -----------------------
WERNER E. KELLER Rydex Series Funds - 2005 110
Trustee (1940) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired (2001 to present); Chairman, Centurion Capital
Management (1991 to 2001)
-----------------------------------
THOMAS F. LYDON, JR. Rydex Series Funds - 2005 110
Trustee (1960) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
Rydex Capital Partners SPhinX Fund - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends Investments
-----------------------------------
PATRICK T. MCCARVILLE Rydex Series Funds - 1997 110
Trustee (1942) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive Officer, Par Industries,
Inc.
-----------------------------------
ROGER SOMERS Rydex Series Funds - 1993 110
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
Rydex Capital Partners SPhinX Fund - 2005
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,
Vice President and Treasurer (1963) 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)
JOANNA M. HAIGNEY* Chief Compliance Officer of Rydex Series Funds, Rydex
Chief Compliance Officer and Assistant Variable Trust, and Rydex Dynamic Funds (2004 to
Secretary (1967) 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)
* OFFICERS OF THE FUND ARE DEEMED TO BE "INTERESTED PERSONS" OF THE TRUST,
WITHIN THE MEANING OF SECTION 2(a)(19) OF THE 1940 ACT, INASMUCH AS THIS
PERSON IS AFFILIATED WITH THE ADVISOR.
THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT | 31
- --------------------------------------------------------------------------------
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- --------------------------------------------------------------------------------
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[LOGO] RYDEXINVESTMENTS
Essential for modern markets(TM)
9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800-820-0888
RSER-SEMI-0905X0306
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule of Investments is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
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 November 30, 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 or 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)(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.
EX.-12(a)(2)(i)
CERTIFICATIONS
I, Carl G. Verboncoeur, certify that:
1. I have reviewed this report on Form N-CSR of Rydex Series Funds;
2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash
flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under
our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly
during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls
and procedures, as of a date within 90 days prior to the
filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant's
internal control over financial reporting 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; and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
trustees.
(a) All significant deficiencies and material weaknesses in the
design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the
registrant's ability to record, process, summarize, and report
financial information; and
(b) Any fraud, whether or not material, that involves management
or other employees who have a significant role in the
registrant's internal control over financial reporting.
Date: December 1, 2005
/S/ Carl G. Verboncoeur
-----------------------
Carl G. Verboncoeur,
President
EX.-12(a)(2)(ii)
CERTIFICATIONS
I, Nick Bonos, certify that:
1. I have reviewed this report on Form N-CSR of Rydex Series Funds;
2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash
flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under
our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly
during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls
and procedures, as of a date within 90 days prior to the
filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant's
internal control over financial reporting 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; and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
trustees:
(a) All significant deficiencies and material weaknesses in the
design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the
registrant's ability to record, process, summarize, and report
financial information; and
(b) Any fraud, whether or not material, that involves management
or other employees who have a significant role in the
registrant's internal control over financial reporting.
Date: December 1, 2005
/S/ Nick Bonos
--------------------------
Nick Bonos,
Vice President & Treasurer
EX.-12(b)(i)
CERTIFICATIONS
I, Carl G. Verboncoeur, President of Rydex Series Funds (the "Trust"),
certify that:
1. The Form N-CSR of the Trust (the "Report")fully complies
with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all
material respects, the financial condition and results of
operations of the Trust.
A signed original of this written statement required by Section 906 has been
provided to the Trust and will be retained by the Trust and furnished to the
Securities and Exchange Commission or its staff upon request.
Dated: December 1, 2005
/S/ Carl G. Verboncoeur
-----------------------
Carl G. Verboncoeur,
President
EX.-12(b)(ii)
CERTIFICATIONS
I, Nick Bonos, Vice President and Treasurer of Rydex Series Funds (the "Trust"),
certify that:
1. The Form N-CSR of the Trust (the "Report") fully complies with
the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all
material respects, the financial condition and results of
operations of the Trust.
A signed original of this written statement required by Section 906 has been
provided to the Trust and will be retained by the Trust and furnished to the
Securities and Exchange Commission or its staff upon request.
Dated: December 1, 2005
/S/ Nick Bonos
--------------------------
Nick Bonos,
Vice President & Treasurer
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 December 1, 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 December 1, 2005
----------------
By (Signature and Title)* /S/ Nick Bonos
---------------------------------------
Nick Bonos, Vice President & Treasurer
Date December 1, 2005
----------------
* Print the name and title of each signing officer under his or her signature.