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 811-01136
SECURITY EQUITY FUND
(Exact name of registrant as specified in charter)
ONE SECURITY BENEFIT PLACE, TOPEKA, KANSAS 66636-0001
(Address of principal executive offices) (Zip code)
MICHAEL G. ODLUM, PRESIDENT
SECURITY EQUITY FUND
ONE SECURITY BENEFIT PLACE
TOPEKA, KANSAS 66636-0001
(Name and address of agent for service)
Registrant's telephone number, including area code: (785) 438-3000
Date of fiscal year end: September 30
Date of reporting period: March 31, 2004
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
[IMAGE]
SECURITY
FUNDS(SM)
SEMI-ANNUAL REPORT
MARCH 31, 2004
- SECURITY EQUITY
FUND
- ALPHA OPPORTUNITY
SERIES
- ENHANCED INDEX
SERIES
- EQUITY SERIES
- GLOBAL SERIES
- LARGE CAP GROWTH
SERIES
- MID CAP VALUE
SERIES
- SELECT 25(R) SERIES
- SMALL CAP GROWTH
SERIES
- SOCIAL AWARENESS
SERIES
- SECURITY LARGE
CAP VALUE FUND
- SECURITY MID
CAP GROWTH
FUND
[SECURITY DISTRIBUTORS, INC. LOGO]
A Member of The Security Benefit
Group of Companies
SECURITY EQUITY FUND
MARCH 31, 2004
SEMI-ANNUAL REPORT
TABLE OF CONTENTS
Chairman's Letter.................................................... 2
Security Equity Fund
Alpha Opportunity Series .................................... 5
Enhanced Index Series ....................................... 9
Equity Series ............................................... 17
Global Series ............................................... 21
Large Cap Growth Series ..................................... 27
Mid Cap Value Series ........................................ 31
Select 25(R) Series ......................................... 35
Small Cap Growth Series ..................................... 39
Social Awareness Series ..................................... 43
Security Large Cap Value Fund ....................................... 47
Security Mid Cap Growth Fund ........................................ 51
Statements of Assets and Liabilities ................................ 55
Statements of Operations ............................................ 58
Statements of Changes in Net Assets ................................. 61
Financial Highlights ................................................ 67
Notes to Financial Statements ....................................... 90
Director Disclosure ................................................. 101
1
CHAIRMAN'S LETTER
May 15, 2004
[PHOTO OF JOHN CLELAND]
John Cleland
Chairman of the Board
TO OUR CONTRACTHOLDERS:
The markets over the past six months have provided a positive backdrop for the
Security Funds, and the funds overall have performed well on a relative basis.
While both stock funds and bond funds on average benefited from positive market
trends over the six month period ended March 31, 2004, most of the returns for
equity funds came in the fourth quarter of 2003, and for bond funds in the first
quarter of 2004. The market returns are illustrated in the following table,
which shows the performance of the major indexes in each quarter and for the
six-month period as a whole.
RETURN %
--------------------------
SIX MONTHS
4TH Q 1ST Q 9/30/03-
INDEX 2003 2004 3/31/04
- --------------------- ----- ----- ----------
S&P 500 12.17 1.56 13.92
S&P MIDCAP 400 13.18 4.90 18.73
RUSSELL 2000 14.53 7.42 23.03
MSCI EAFE ($US) 17.08 4.34 22.16
LEHMAN AGGREGATE BOND .32 2.93 3.26
Interest rates generally declined, although were volatile over certain periods
of time during each quarter. Interest rates on US Treasury Securities of varying
maturities are summarized below.
% RATES
--------------------------
US TREASURY MATURITY 9/30/03 12/31/03 3/31/04
- -------------------- ------- -------- -------
3 MONTH .95 .95 .95
1 YEAR 1.15 1.26 1.20
10 YEAR 3.96 4.27 3.86
LONG TERM (25+ YEARS) 4.97 5.15 4.83
The major trends influencing the markets during this six-month period centered
on an unusual confluence of a strengthening economy, corporate profit growth and
a weak labor market. The latter factor was key to keeping up investor
expectations that the Federal Reserve's accommodative monetary policy would
remain in place for some time. While stock prices were up only modestly in the
first quarter after a good run up in the previous quarter, the interest rate
environment remained positive.
As we look ahead to see how these and other factors may play out, some of the
current developments suggest a strengthening in the labor markets, some evidence
of increasing, though still modest, inflation, as well as continued positive
corporate earnings scenario. The risks of a rising rate environment and negative
global political events are concerns that weigh on investors' minds and can
impact the markets, at least over the short run. While cognizant of these and
other investment risks, investors need to remain focused on their investment
plans over the long run.
I am pleased to announce several recent changes in both the directors and
officers of the Security Funds. First, Harry W. Craig, Jr. was elected to the
Board as an independent director in February, 2004, and Michael G. Odlum was
elected as an internal director to the Board in May 2004. Mike was also named
President of the Security Funds and replaces James R. Schmank, who served ably
in both positions over the past several years. Jim has taken on new
responsibilities at Security Benefit, and we wish him the best in his new role.
2
CHAIRMAN'S LETTER (CONTINUED)
May 15, 2004
Harry W. Craig Jr. is Chairman and Chief Executive Officer of Martin Tractor
Company, Inc. and is very active as a leader in community, educational,
religious and charitable activities in Kansas. He holds degrees in Arts and in
Law from the University of Kansas, and brings to the Board a wealth of business
and management experience, as well as independent perspective.
Mike Odlum, CFA, joined Security Benefit Group in February as the new Senior
Vice President and Chief Investment Officer. Mike is a graduate of Princeton
University and the Wharton Graduate School of Finance at the University of
Pennsylvania. During his career, he has worked for a variety of well-regarded
companies including The Vanguard Group and Chase Investors Management
Corporation. Most recently, he was President and Chief Operating Officer of
Allied Investment Advisors, Inc., an investment management firm in Baltimore,
MD.
I would also like to note that one of Security Fund's portfolio managers, Terry
A. Milberger, recently retired. Terry's role as manager of the Security Equity
Fund-Equity Series has been assumed by Mark Mitchell, who manages our Large Cap
Growth and Social Awareness Series.
The Security Benefit Equity Team, directed by Cindy Shields, Head of Equity
Asset Management, has assumed fund management responsibilities for the Select 25
Series Fund. In addition to Cindy, the team includes Mark Mitchell and Jim
Schier who manages the Security Fund-Mid Cap Series. We wish Terry well in his
retirement and welcome the experienced team of managers in their new roles.
Overall, through the use of disciplined and professional management, the
Security Funds are designed to provide shareholders over the long run the
benefits of well-defined and diversified investment strategies. We appreciate
your investment in the Funds and welcome any comments or questions you may have.
Sincerely,
/s/ John Cleland
John Cleland
Chairman, the Security Funds
3
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4
SECURITY EQUITY FUND
ALPHA OPPORTUNITY SERIES
ADVISED BY:
[SECURITY FUNDS LOGO]
AND
[MAINSTREAM LOGO]
MAINSTREAM
INVESTMENT ADVISERS
SUBADVISOR,
MAINSTREAM INVESTMENT ADVISERS
5
SCHEDULE OF INVESTMENTS
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
ALPHA OPPORTUNITY SERIES
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- --------------------------------------------------- --------- ---------
AGRICULTURAL PRODUCTS - 1.1%
Archer-Daniels-Midland Company 2,000 $ 33,740
Delta & Pine Land Company ......................... 2,800 69,860
---------
103,600
ALUMINUM - 1.9%
Alcan, Inc......................................... 3,000 134,370
Alcoa, Inc......................................... 1,400 48,566
Imco Recycling, Inc.*.............................. 300 2,826
---------
185,762
AUTO PARTS & EQUIPMENT - 0.1%
Sauer-Danfoss, Inc................................. 900 12,303
COMMODITY CHEMICALS - 1.7%
Georgia Gulf Corporation........................... 2,480 74,772
Kronos Worldwide, Inc.............................. 100 3,029
Millennium Chemicals, Inc.......................... 3,700 55,278
NL Industires, Inc................................. 200 2,780
Nova Chemicals Corporation......................... 800 20,072
Spartech Corporation............................... 200 4,980
Wellman, Inc....................................... 800 6,680
---------
167,591
CONSTRUCTION, ENGINEERING - 0.8%
Fluor Corporation.................................. 2,100 81,249
CONSTRUCTION, FARM MACHINERY & HEAVY TRUCKS - 4.7%
CNH Global N.V..................................... 8,900 166,608
Cummins, Inc....................................... 1,100 64,295
Deere & Company ................................... 2,500 173,275
Lindsay Manufacturing Company 2,100 50,568
---------
454,746
CONSTRUCTION MATERIALS - 0.1%
Amcol International Corporation.................... 300 5,235
DIVERSIFIED CHEMICALS - 2.8%
Cabot Corporation ................................. 700 22,960
Dow Chemical Company............................... 1,100 44,308
E.I. du Pont de Nemours & Company 1,900 80,218
Eastman Chemical Company........................... 1,200 51,216
Engelhard Corporation ............................. 2,500 74,725
---------
273,427
DIVERSIFIED METALS & MINING - 9.0%
Alumina, Ltd. ADR ................................. 3,300 54,351
Anglo American plc ADR ............................ 1,700 41,344
Arch Coal, Inc. ................................... 800 25,112
BHP Billiton, Ltd. ADR ............................ 3,500 65,730
Brush Engineered Materials, Inc.* ................. 500 10,135
Cameco Corporation ................................ 200 9,952
Consol Energy, Inc. ............................... 3,300 88,440
Fording Canadian Coal Trust ....................... 1,100 44,385
Freeport-McMoran Copper & Gold,
Inc. (Cl.B) .................................... 5,900 230,631
Massey Energy Company ............................. 1,500 33,105
Noranda, Inc. ..................................... 3,200 57,472
Penn Virginia Resource Partners, L.P. ............. 800 28,240
Phelps Dodge Corporation* ......................... 300 24,498
RTI International Metals, Inc.* ................... 2,800 44,324
Rio Tinto plc ADR ................................. 600 60,348
Southern Peru Copper Corporation .................. 1,200 48,540
-------
866,607
ELECTRICAL COMPONENTS & EQUIPMENT - 0.5%
Regal-Beloit Corporation .......................... 800 15,984
Thomas & Betts Corporation* ....................... 1,400 30,548
-------
46,532
ENVIRONMENTAL SERVICES - 1.2%
Waste Management, Inc. ............................ 3,700 111,666
FERTILIZERS & AGRICULTURAL CHEMICALS - 1.4%
IMC Global, Inc. .................................. 2,200 31,460
Potash Corporation of Saskatchewan, Inc. .......... 1,200 99,804
Sociedad Quimica y Minera de
Chile S.A. ADR ................................. 200 8,190
-------
139,454
FOREST PRODUCTS - 1.3%
Louisiana-Pacific Corporation ..................... 1,200 30,960
Weyerhaeuser Company .............................. 1,500 98,250
-------
129,210
GOLD - 0.5%
Coeur d' Alene Mines Corporation* ................. 3,500 24,500
Placer Dome, Inc. ................................. 1,200 21,564
-------
46,064
HOME FURNISHINGS - 1.4%
Kimball International, Inc. (Cl.B) ................ 7,400 115,958
Mohawk Industries, Inc. ........................... 200 16,470
-------
132,428
HOTELS, RESORTS & CRUISE LINES - 0.1%
Prime Hospitality Corporation* .................... 800 9,104
6 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
ALPHA OPPORTUNITY SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- -------------------------------------------------- --------- --------
INDUSTRIAL MACHINERY - 4.9%
Ampco-Pittsburgh Corporation ..................... 800 $ 10,328
Flowserve Corporation* ........................... 800 16,760
Gardner Denver, Inc. ............................. 1,100 29,788
Idex Corporation ................................. 1,500 65,220
Joy Global, Inc. ................................. 3,300 92,631
Kennametal, Inc. ................................. 3,300 136,191
Lincoln Electric Holdings, Inc. .................. 3,000 84,450
Metso Corporation ADR ............................ 1,100 14,597
Valmont Industries, Inc. ......................... 900 17,982
---------
467,947
INTEGRATED OIL & GAS - 0.7%
Marathon Oil Corporation ......................... 1,400 47,138
Norsk Hydro ASA ADR .............................. 300 21,141
---------
68,279
MARINE - 2.0%
Alexander & Baldwin, Inc. ........................ 4,356 144,097
Kirby Corporation* ............................... 1,500 50,685
---------
194,782
METAL & GLASS CONTAINERS - 0.2%
Crown Holdings, Inc.* ............................ 2,000 18,640
OIL & GAS DRILLING - 2.9%
Ensco International, Inc. ........................ 3,200 90,144
Rowan Companies, Inc.* ........................... 7,570 159,651
Transocean, Inc.* ................................ 1,000 27,890
---------
277,685
OIL & GAS EQUIPMENT & SERVICES - 1.8%
Compagnie Generale de Geophysique
S.A. ADR* .................................... 1,300 11,570
Hydril* .......................................... 2,353 61,649
Schlumberger, Ltd. ............................... 500 31,925
Technip S.A. ADR ................................. 200 6,920
Tetra Technologies, Inc.* ........................ 2,200 57,486
---------
169,550
PACKAGED FOODS & MEATS - 0.9%
Cal-Maine Foods, Inc. ............................ 700 24,920
Cresud S.A. ADR .................................. 1,000 12,400
Hormel Foods Corporation ......................... 800 23,464
Pilgrim's Pride Corporation ...................... 700 15,701
Tyson Foods, Inc. ................................ 300 5,415
---------
81,900
PAPER PACKAGING - 1.0%
Longview Fibre Company ........................... 4,200 46,872
Smurfit-Stone Container Corporation* ............. 900 15,831
Temple-Inland, Inc. .............................. 500 31,670
---------
94,373
PAPER PRODUCTS - 5.3%
Aracruz Celulose S.A. ADR ........................ 2,400 91,800
Bowater, Inc. .................................... 2,500 109,075
International Paper Company ...................... 4,500 190,170
Pope & Talbot, Inc. .............................. 3,400 58,446
Potlatch Corporation ............................. 1,500 61,125
---------
510,616
PRECIOUS METALS & MINERALS - 0.1%
Lionore Mining International, Ltd.* .............. 2,700 12,819
REAL ESTATE INVESTMENT TRUSTS - 0.7%
Plum Creek Timber Company, Inc. .................. 800 25,984
Rayonier, Inc. ................................... 1,000 43,710
---------
69,694
SEMICONDUCTOR EQUIPMENT - 0.1%
Mykrolis Corporation* ............................ 1,000 14,260
SEMICONDUCTORS - 0.2%
Transmeta Corporation* ........................... 5,100 20,196
SPECIALTY CHEMICALS - 2.6%
Ferro Corporation ................................ 1,420 37,133
Minerals Technologies, Inc. ...................... 800 45,680
OM Group, Inc.* .................................. 1,800 54,720
Rohm & Haas Company .............................. 400 15,936
Valspar Corporation .............................. 1,900 93,537
---------
247,006
STEEL - 3.0%
AK Steel Holding Corporation* .................... 4,160 24,419
Gibraltar Steel Corporation ...................... 2,400 58,992
Grupo Imsa S.A. de C.V. ADR ...................... 500 8,730
International Steel Group, Inc.* ................. 700 27,090
NN, Inc. ......................................... 7,013 81,842
United States Steel Corporation .................. 1,670 62,241
Wheeling-Pittsburgh Corporation* ................. 1,200 26,364
---------
289,678
TRUCKING - 0.9%
Quality Distribution, Inc.* ...................... 6,400 90,240
---------
Total common stocks
(cost $5,394,902) - 55.9% ................. 5,392,643
7 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
ALPHA OPPORTUNITY SERIES (CONTINUED)
PRINCIPAL
AMOUNT OR
NUMBER MARKET
U.S. GOVERNMENT AGENCIES OF SHARES VALUE
- ---------------------------------------------------- --------- ----------
Federal Farm Credit Bank:
1.081%, 04-01-04................................ $ 250,000 $ 250,000
1.00%, 04-08-04................................. $ 300,000 299,943
Federal Home Loan Bank, 1.00%,
05-26-04 ....................................... $ 300,000 299,546
Federal Home Loan Mortgage
Corporation, 0.99%, 05-04-04.................... $ 100,000 99,909
Federal National Mortgage Association:
1.019%, 04-13-04................................ $ 250,000 249,918
1.01%, 04-21-04................................. $ 200,000 199,891
1.04%, 04-28-04(2).............................. $ 250,000 249,816
0.98%, 05-10-04................................. $ 150,000 149,841
1.014%, 05-19-04................................ $ 450,000 449,403
1.05%, 06-02-04................................. $ 600,000 598,967
----------
Total U.S. government agencies
(cost $2,847,227) - 29.5%................... 2,847,234
ASSET BACKED SECURITIES
AUTO - 4.2%
Ford Credit Auto Owner Trust,
1.21% - 2006(1)................................. $ 400,000 400,557
CREDIT CARDS - 4.1%
First USA Credit Card Master Trust,
1.23% - 2007(1)................................. $ 400,000 400,216
----------
Total asset backed securities
(cost $801,049) - 8.3%................... 800,773
REPURCHASE AGREEMENT
State Street, 0.25%, 4-01-04
(Collateralized by FHLMC bond, 08-26-05
with a value of $362,150 and a
repurchase amount of $353,699) $ 353,697 353,697
----------
Total repurchase agreement
(cost $353,697) -3.6%.................... 353,697
----------
Total long positions (cost $9,496,875) - 97.3%.. 9,394,347
SHORT POSITIONS
EXCHANGE TRADED FUNDS - (0.7%)
iShares Lehman 20+ Year Treasury
Bond Fund ...................................... (700) (62,650)
MANAGED HEALTH CARE - (0.4%)
Anthem, Inc.*....................................... (300) (27,192)
Oxford Health Plans, Inc............................ (300) (14,655)
----------
(41,847)
REAL ESTATE INVESTMENT TRUSTS - (0.1%)
Novastar Financial, Inc............................. (200) (13,190)
----------
Total short positions
(proceeds $114,693) - (1.2%) ............ (117,687)
----------
Total investments
(cost $9,282,182) - 96.1%................ 9,276,660
Cash & other assets, less liabilities - 3.9%... 372,963
----------
Total net assets - 100.0%....................... $9,649,623
==========
The identified cost of investments owned at March 31, 2004 was the same for
federal income tax and financial statement purposes.
*Non income producing security
ADR (American Depositary Receipt)
L.P. (Limited Partnership)
plc (public limited company)
(1) Variable rate security. Rate indicated is rate effective at March 31, 2004.
(2)Security is segregated as collateral for open futures contracts.
The Alpha Opportunity Fund's hybrid structure combines an actively managed
long/short component with a passively managed Standard & Poor's 500 Index
component. Approximately 50 percent of the portfolio is invested in a long/short
strategy managed by Mainstream Investment Advisers, LLC; the remainder is
invested in an index strategy managed by Security Management Company, LLC.
PERFORMANCE
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2004
SINCE INCEPTION
---------------
A Shares 20.76% (7-07-03)
A Shares with sales charge 13.81% (7-07-03)
B Shares 20.15% (7-07-03)
B Shares with CDSC 15.15% (7-07-03)
C Shares 20.15% (7-07-03)
C Shares with CDSC 19.15% (7-07-03)
The performance data above represents past performance that is not predictive of
future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. The figures do not reflect the
deduction of taxes that a shareholder would pay on distributions or redemption
of fund shares. Such figures would be lower if the maximum sales charge and any
applicable taxes were deducted. Fee waivers reduced expenses of the Fund and in
the absence of such waiver, the performance quoted would be reduced.
8 See accompanying notes.
SECURITY EQUITY FUND
ENHANCED INDEX SERIES
[NORTHERN TRUST LOGO]
SUBADVISOR,
NORTHERN TRUST
9
SCHEDULE OF INVESTMENTS
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
ENHANCED INDEX SERIES
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ----------------------------------------------- --------- --------
ADVERTISING - 0.2%
Interpublic Group of Companies, Inc.* ......... 781 $ 12,012
Omnicom Group, Inc. ........................... 188 15,087
--------
27,099
AEROSPACE & DEFENSE - 1.5%
Boeing Company ................................ 947 38,893
General Dynamics Corporation .................. 591 52,794
Goodrich Corporation .......................... 1,043 29,277
Honeywell International, Inc. ................. 585 19,802
Lockheed Martin Corporation ................... 988 45,092
Northrop Grumman Corporation .................. 90 8,858
United Technologies Corporation ............... 740 63,862
--------
258,578
AGRICULTURAL PRODUCTS - 0.1%
Archer-Daniels-Midland Company ................ 1,066 17,983
AIR FREIGHT & LOGISTICS - 1.1%
FedEx Corporation ............................. 858 64,487
United Parcel Service, Inc. ................... 1,658 115,795
--------
180,282
AIRLINES - 0.2%
Southwest Airlines Company .................... 2,333 33,152
ALUMINUM - 0.2%
Alcoa, Inc. ................................... 774 26,850
APPAREL RETAIL - 0.4%
Gap, Inc. ..................................... 786 17,229
Limited Brands ................................ 1,345 26,900
TJX Companies, Inc. ........................... 659 16,185
--------
60,314
APPAREL, ACCESSORIES & LUXURY GOODS - 0.3%
Jones Apparel Group, Inc. ..................... 143 5,169
Liz Claiborne, Inc. ........................... 174 6,384
V.F. Corporation .............................. 701 32,737
--------
44,290
APPLICATION SOFTWARE - 0.5%
Citrix Systems, Inc.* ......................... 1,553 33,576
Compuware Corporation* ........................ 2,075 15,459
Parametric Technology Corporation* ............ 5,993 27,088
Siebel Systems, Inc.* ......................... 556 6,400
--------
82,523
ASSET MANAGEMENT & CUSTODY BANKS - 0.4%
Bank of New York Company, Inc. ................ 436 13,734
Federated Investors, Inc. (Cl.B) .............. 71 2,232
Mellon Financial Corporation .................. 1,311 41,021
State Street Corporation ...................... 58 3,024
--------
60,011
AUTO PARTS & EQUIPMENT - 0.0%
Visteon Corporation ........................... 649 6,211
AUTOMOBILE MANUFACTURERS - 0.5%
Ford Motor Company ............................ 2,607 35,377
General Motors Corporation .................... 859 40,459
--------
75,836
BIOTECHNOLOGY - 1.1%
Amgen, Inc.* .................................. 1,864 108,429
Biogen, Inc.* ................................. 100 5,560
Chiron Corporation* ........................... 542 23,853
Genzyme Corporation* .......................... 816 38,385
Medimmune, Inc.* .............................. 401 9,255
--------
185,482
BREWERS - 0.6%
Adolph Coors Company .......................... 466 32,364
Anheuser-Busch Companies, Inc. ................ 1,324 67,524
--------
99,888
BROADCASTING & CABLE TV - 0.8%
Clear Channel Communications, Inc. ............ 636 26,935
Comcast Corporation* .......................... 3,779 108,608
--------
135,543
BUILDING PRODUCTS - 0.3%
Masco Corporation ............................. 1,604 48,810
CASINOS & GAMING - 0.1%
Harrah's Entertainment, Inc. .................. 361 19,815
COMMERCIAL PRINTING - 0.2%
R. R. Donnelley & Sons Company ................ 969 29,312
COMMUNICATIONS EQUIPMENT - 2.6%
Avaya, Inc.* .................................. 275 4,367
Cisco Systems, Inc.* .......................... 10,702 251,711
Comverse Technology, Inc.* .................... 1,000 18,140
Corning, Inc.* ................................ 100 1,118
JDS Uniphase Corporation* ..................... 3,445 14,021
Lucent Technologies, Inc.* .................... 5,871 24,130
Motorola, Inc. ................................ 2,253 39,653
Qlogic Corporation* ........................... 120 3,961
Qualcomm, Inc. ................................ 929 61,704
Scientific-Atlanta, Inc. ...................... 643 20,795
--------
439,600
COMPUTER & ELECTRONICS RETAIL - 0.3%
Best Buy Company, Inc. ........................ 689 35,635
RadioShack Corporation ........................ 662 21,952
--------
57,587
10 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
ENHANCED INDEX SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- ---------------------------------------------- --------- --------
COMPUTER HARDWARE - 3.4%
Apple Computer, Inc.* ........................ 550 $ 14,878
Dell Computer Corporation* ................... 3,984 133,942
Gateway, Inc.* ............................... 800 4,224
Hewlett-Packard Company ...................... 4,708 107,531
International Business Machines
Corporation .............................. 2,963 272,122
NCR Corporation* ............................. 435 19,166
Sun Microsystems, Inc.* ...................... 3,665 15,246
--------
567,109
COMPUTER STORAGE & PERIPHERALS - 0.5%
EMC Corporation* ............................. 3,510 47,771
Lexmark International, Inc.* ................. 101 9,292
Network Appliance, Inc.* ..................... 981 21,042
--------
78,105
CONSTRUCTION & ENGINEERING - 0.0%
Fluor Corporation ............................ 54 2,089
CONSTRUCTION & FARM MACHINERY - 0.7%
Caterpillar, Inc. ............................ 593 46,889
Cummins, Inc. ................................ 500 29,225
Paccar, Inc. ................................. 698 39,256
--------
115,370
CONSTRUCTION MATERIALS - 0.2%
Vulcan Materials Company ..................... 643 30,504
CONSUMER FINANCE - 1.4%
American Express Company ..................... 1,723 89,338
Capital One Financial Corporation ............ 238 17,952
MBNA Corporation ............................. 2,748 75,927
Providian Financial Corporation* ............. 500 6,550
SLM Corporation .............................. 913 38,209
--------
227,976
DATA PROCESSING & OUTSOURCED SERVICES - 1.2%
Automatic Data Processing, Inc. .............. 917 38,514
Computer Sciences Corporation* ............... 882 35,571
Convergys Corporation* ....................... 1,694 25,749
First Data Corporation ....................... 1,249 52,658
Sabre Holdings Corporation ................... 805 19,972
Sungard Data Systems, Inc.* .................. 1,056 28,934
--------
201,398
DEPARTMENT STORES - 0.6%
Federated Department Stores, Inc. ............ 582 31,457
Kohl's Corporation* .......................... 19 918
May Department Stores Company ................ 875 30,257
Nordstrom, Inc. .............................. 100 3,990
Sears, Roebuck & Company ..................... 892 38,320
--------
104,942
DISTRIBUTORS - 0.1%
Genuine Parts Company ........................ 462 15,117
DIVERSIFIED BANKS - 4.3%
Bank of America Corporation .................. 2,240 181,395
Bank One Corporation ......................... 1,778 96,937
Comerica, Inc. ............................... 259 14,069
Fleetboston Financial Corporation ............ 1,633 73,322
U.S. Bancorp ................................. 2,134 59,005
Wachovia Corporation ......................... 2,597 122,059
Wells Fargo & Company ........................ 3,106 176,017
--------
722,804
DIVERSIFIED CAPITAL MARKETS - 0.9%
J.P. Morgan Chase & Company .................. 3,789 158,949
DIVERSIFIED CHEMICALS - 1.0%
Dow Chemical Company ......................... 841 33,875
E.I. du Pont de Nemours &
Company ................................... 1,574 66,454
Engelhard Corporation ........................ 1,059 31,654
Hercules, Inc.* .............................. 220 2,526
PPG Industries, Inc. ......................... 439 25,594
--------
160,103
DIVERSIFIED COMMERCIAL SERVICES - 0.6%
Cendant Corporation .......................... 2,617 63,829
Cintas Corporation ........................... 200 8,698
Deluxe Corporation ........................... 624 25,022
Equifax, Inc. ................................ 225 5,810
--------
103,359
DIVERSIFIED METALS & MINING - 0.1%
Freeport-McMoran Copper & Gold, Inc.
(Cl.B) .................................... 449 17,551
Phelps Dodge Corporation* .................... 100 8,166
--------
25,717
DRUG RETAIL - 0.3%
CVS Corporation .............................. 298 10,519
Walgreen Company ............................. 1,355 44,647
--------
55,166
ELECTRIC UTILITIES - 2.0%
Centerpoint Energy, Inc. ..................... 2,678 30,610
Consolidated Edison, Inc. .................... 341 15,038
Dominion Resources, Inc. ..................... 870 55,941
Edison International ......................... 994 24,144
Entergy Corporation .......................... 346 20,587
Exelon Corporation ........................... 847 58,333
FPL Group, Inc. .............................. 682 45,592
PG&E Corporation* ............................ 632 18,309
PPL Corporation .............................. 162 7,387
Progress Energy, Inc. ........................ 870 40,960
Progress Energy, Inc. - Contingent
Value Obligation* ......................... 400 116
Southern Company ............................. 361 11,010
Teco Energy, Inc. ............................ 900 13,167
--------
341,194
11 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
ENHANCED INDEX SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- ----------------------------------------------- --------- --------
ELECTRICAL COMPONENTS & EQUIPMENT - 0.3%
Cooper Industries, Inc. ....................... 200 $ 11,436
Emerson Electric Company ...................... 238 14,261
Power-One, Inc.* .............................. 1,634 18,072
--------
43,769
ELECTRONIC EQUIPMENT MANUFACTURERS - 0.7%
Agilent Technologies, Inc.* ................... 994 31,440
Perkinelmer, Inc. ............................. 123 2,545
Tektronix, Inc. ............................... 1,000 32,710
Thermo Electron Corporation* .................. 1,099 31,080
Waters Corporation* ........................... 592 24,177
--------
121,952
ELECTRONIC MANUFACTURING SERVICES - 0.5%
Jabil Circuit, Inc.* .......................... 857 25,222
Molex, Inc. ................................... 1,000 30,390
Sanmina-Sci Corporation* ...................... 632 6,958
Solectron Corporation* ........................ 3,128 17,298
--------
79,868
EMPLOYMENT SERVICES - 0.2%
Monster Worldwide, Inc.* ...................... 171 4,480
Robert Half International, Inc.* .............. 1,444 34,107
--------
38,587
ENVIRONMENTAL SERVICES - 0.2%
Waste Management, Inc. ........................ 873 26,347
FOOD DISTRIBUTORS - 0.1%
Sysco Corporation ............................. 381 14,878
FOOD RETAIL - 0.5%
Kroger Company* ............................... 1,920 31,949
Safeway, Inc.* ................................ 1,098 22,597
Supervalu, Inc. ............................... 1,069 32,647
--------
87,193
FOOTWEAR - 0.2%
Nike, Inc. (Cl.B) ............................. 412 32,082
Reebok International, Ltd. .................... 100 4,135
--------
36,217
FOREST PRODUCTS - 0.2%
Louisiana-Pacific Corporation ................. 1,013 26,135
Weyerhaeuser Company .......................... 160 10,480
--------
36,615
GAS UTILITIES - 0.2%
Nicor, Inc. ................................... 554 19,517
Nisource, Inc. ................................ 401 8,521
Peoples Energy Corporation .................... 75 3,349
--------
31,387
GENERAL MERCHANDISE STORES - 0.5%
Big Lots, Inc.* ............................... 158 2,291
Dollar General Corporation .................... 1,200 23,040
Family Dollar Stores, Inc. .................... 600 21,570
Target Corporation ............................ 806 36,302
--------
83,203
GOLD - 0.0%
Newmont Mining Corporation Holding
Company .................................... 114 5,316
HEALTH CARE DISTRIBUTORS - 0.4%
Amerisourcebergen Corporation ................. 180 9,842
Cardinal Health, Inc. ......................... 282 19,430
McKesson Corporation .......................... 1,342 40,381
--------
69,653
HEALTH CARE EQUIPMENT - 1.5%
Applera Corporation - Applied
Biosystems Group ........................... 500 9,890
Baxter International, Inc. .................... 112 3,460
Becton, Dickinson & Company ................... 299 14,496
Biomet, Inc. .................................. 1,000 38,360
Boston Scientific Corporation* ................ 899 38,100
Guidant Corporation ........................... 484 30,671
Medtronic, Inc. ............................... 1,893 90,391
St. Jude Medical, Inc.* ....................... 70 5,047
Stryker Corporation ........................... 36 3,187
Zimmer Holdings, Inc.* ........................ 204 15,051
--------
248,653
HEALTH CARE FACILITIES - 0.5%
HCA, Inc. ..................................... 223 9,058
Health Management Association, Inc. ........... 1,127 26,158
Manor Care, Inc. .............................. 848 29,926
Tenet Healthcare Corporation* ................. 2,057 22,956
--------
88,098
HEALTH CARE SERVICES - 0.5%
Express Scripts, Inc.* ........................ 22 1,641
IMS Health, Inc. .............................. 1,389 32,308
Medco Health Solutions, Inc.* ................. 1,219 41,446
Quest Diagnostics, Inc. ....................... 115 9,525
--------
84,920
HEALTH CARE SUPPLIES - 0.3%
Bausch & Lomb, Inc. ........................... 500 29,985
Caremark Rx, Inc. ............................. 581 19,302
--------
49,287
HOME IMPROVEMENT RETAIL - 1.6%
Home Depot, Inc. .............................. 4,308 160,947
Lowe's Companies, Inc. ........................ 1,372 77,010
Sherwin-Williams Company ...................... 700 26,901
--------
264,858
12 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
ENHANCED INDEX SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- --------------------------------------------- --------- --------
HOTELS, RESORTS & CRUISE LINES - 0.3%
Carnival Corporation ........................ 428 $ 19,221
Marriott International, Inc. ................ 351 14,935
Starwood Hotels & Resorts
Worldwide, Inc. ......................... 512 20,736
--------
54,892
HOUSEHOLD APPLIANCES - 0.3%
Black & Decker Corporation .................. 600 34,164
Snap-On, Inc. ............................... 89 2,878
Whirlpool Corporation ....................... 108 7,438
--------
44,480
HOUSEHOLD PRODUCTS - 2.2%
Clorox Company .............................. 349 17,070
Colgate-Palmolive Company ................... 943 51,959
Kimberly-Clark Corporation .................. 1,196 75,468
Procter & Gamble Company .................... 2,062 216,263
--------
360,760
HOUSEWARES & SPECIALTIES - 0.1%
Fortune Brands, Inc. ........................ 216 16,552
HYPERMARKETS & SUPERCENTERS - 2.6%
Costco Wholesale Corporation* ............... 1,353 50,819
Wal-Mart Stores, Inc. ....................... 6,483 386,970
--------
437,789
INDUSTRIAL CONGLOMERATES - 4.1%
3M Company .................................. 1,227 100,454
General Electric Company .................... 16,541 504,831
Textron, Inc. ............................... 209 11,108
Tyco International, Ltd. .................... 2,279 65,293
--------
681,686
INDUSTRIAL GASES - 0.3%
Air Products & Chemicals, Inc. .............. 870 43,604
INDUSTRIAL MACHINERY - 0.5%
Crane Company ............................... 673 22,209
Dover Corporation ........................... 400 15,508
Illinois Tool Works, Inc. ................... 192 15,212
Pall Corporation ............................ 1,156 26,230
--------
79,159
INSURANCE BROKERS - 0.3%
Marsh & McLennan Companies, Inc. ............ 1,125 52,088
INTEGRATED OIL & GAS - 4.3%
ChevronTexaco Corporation ................... 1,882 165,202
ConocoPhillips .............................. 749 52,288
Exxon Mobil Corporation ..................... 11,015 458,114
Marathon Oil Corporation .................... 1,153 38,822
Occidental Petroleum Corporation ............ 219 10,085
--------
724,511
INTEGRATED TELECOMMUNICATION SERVICES - 2.7%
AT&T Corporation ........................... 1,855 36,302
Alltel Corporation ......................... 505 25,194
Bellsouth Corporation ...................... 3,821 105,803
Citizens Communications Company* ........... 344 4,451
Qwest Communications
International, Inc.* .................... 6,238 26,886
SBC Communications, Inc. ................... 4,644 113,964
Sprint Corporation (FON Group) ............. 300 5,529
Verizon Communications, Inc. ............... 3,730 136,294
--------
454,423
INTERNET RETAIL - 0.4%
Ebay, Inc.* ................................ 1,036 71,826
INTERNET SOFTWARE & SERVICES - 0.2%
Yahoo!, Inc.* .............................. 592 28,765
INVESTMENT BANKING & BROKERAGE - 2.4%
Bear Stearns Companies, Inc. ............... 393 34,458
Charles Schwab Corporation ................. 4,234 49,157
Goldman Sachs Group, Inc. .................. 938 97,880
Lehman Brothers Holdings, Inc. ............. 153 12,679
Merrill Lynch & Company, Inc. .............. 1,925 114,653
Morgan Stanley ............................. 1,482 84,919
--------
393,746
LEISURE PRODUCTS - 0.2%
Hasbro, Inc. ............................... 1,300 28,275
Mattel, Inc. ............................... 48 885
--------
29,160
LIFE & HEALTH INSURANCE - 1.1%
Aflac, Inc. ................................ 171 6,864
Jefferson-Pilot Corporation ................ 732 40,267
John Hancock Financial
Services, Inc. .......................... 465 20,316
Lincoln National Corporation ............... 826 39,086
Metlife, Inc. .............................. 1,913 68,256
Prudential Financial, Inc. ................. 267 11,956
Unumprovident Corporation .................. 129 1,887
--------
188,632
MANAGED HEALTH CARE - 0.8%
Aetna, Inc. ................................ 300 26,916
Anthem, Inc.* .............................. 19 1,722
Cigna Corporation .......................... 700 41,314
Humana, Inc.* .............................. 1,393 26,495
Unitedhealth Group, Inc. ................... 616 39,695
Wellpoint Health Networks, Inc.* ........... 19 2,161
--------
138,303
13 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
ENHANCED INDEX SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- ------------------------- ---------- -----------
METAL & GLASS CONTAINERS - 0.2%
Pactiv Corporation* ................................ 1,270 $ 28,257
MOTORCYCLE MANUFACTURERS - 0.3%
Harley-Davidson, Inc. .............................. 847 45,179
MOVIES & ENTERTAINMENT - 2.1%
Time Warner, Inc.* ................................. 8,413 141,843
Viacom, Inc. (Cl.B)................................. 3,113 122,061
Walt Disney Company................................. 3,233 80,793
-----------
344,697
MULTI-LINE INSURANCE - 1.7%
American International Group, Inc. ................. 3,819 272,486
Hartford Financial Group, Inc. ..................... 73 4,650
Loews Corporation................................... 100 5,906
-----------
283,042
MULTI-UTILITIES & UNREGULATED POWER - 0.6%
AES Corporation* ................................... 2,500 21,325
Calpine Corporation* ............................... 237 1,107
Constellation Energy Group, Inc. ................... 813 32,479
Duke Energy Corporation............................. 290 6,554
Public Service Enterprise Group, Inc. .............. 389 18,275
Williams Companies, Inc. ........................... 1,343 12,853
-----------
92,593
OFFICE ELECTRONICS - 0.0%
Xerox Corporation* ................................. 294 4,284
OFFICE SERVICES & SUPPLIES - 0.2%
Pitney Bowes, Inc. ................................. 943 40,181
OIL & GAS DRILLING - 0.2%
Noble Corporation* ................................. 240 9,221
Rowan Companies, Inc.* ............................. 1,200 25,308
-----------
34,529
OIL & GAS EQUIPMENT & SERVICES - 0.6%
BJ Services Company* ............................... 473 20,467
Baker Hughes, Inc. ................................. 555 20,246
Schlumberger, Ltd. ................................. 883 56,380
-----------
97,093
OIL & GAS EXPLORATION & PRODUCTION - 0.8%
Apache Corporation.................................. 534 23,053
Burlington Resources, Inc. ......................... 331 21,062
EOG Resources, Inc. ................................ 723 33,178
Kerr-McGee Group.................................... 659 33,939
Unocal Corporation.................................. 670 24,978
-----------
136,210
OIL & GAS REFINING,MARKETING & TRANSPORTATION - 0.0%
Ashland, Inc. ...................................... 44 2,046
Sunoco, Inc. ....................................... 44 2,745
-----------
4,791
OTHER DIVERSIFIED FINANCIAL SERVICES - 2.9%
Citigroup, Inc. .................................... 8,627 446,016
Principal Financial Group, Inc. .................... 1,192 42,471
-----------
488,487
PACKAGED FOODS & MEATS - 1.0%
Campbell Soup Company............................... 911 24,843
General Mills, Inc. ................................ 581 27,121
Hershey Foods Corporation........................... 500 41,425
Kellogg Company..................................... 4 157
McCormick & Company, Inc. .......................... 1,000 33,520
Sara Lee Corporation................................ 119 2,601
Wm. Wrigley Jr. Company............................. 751 44,399
-----------
174,066
PAPER PACKAGING - 0.1%
Sealed Air Corporation* ............................ 361 17,953
PAPER PRODUCTS - 0.2%
Georgia-Pacific Corporation......................... 739 24,897
International Paper Company......................... 240 10,142
-----------
35,039
PERSONAL PRODUCTS - 0.3%
Avon Products, Inc. ................................ 123 9,332
Gillette Company.................................... 967 37,810
-----------
47,142
PHARMACEUTICALS - 7.9%
Abbott Laboratories................................. 3,003 123,423
Bristol-Myers Squibb Company........................ 2,987 72,375
Eli Lilly & Company................................. 1,643 109,917
Forest Laboratories, Inc.* ......................... 238 17,046
Johnson & Johnson................................... 5,147 261,056
Merck & Company, Inc. .............................. 3,576 158,023
Pfizer, Inc. ....................................... 12,680 444,434
Schering-Plough Corporation......................... 927 15,036
Watson Pharmaceuticals, Inc.* ...................... 674 28,841
Wyeth............................................... 2,460 92,373
-----------
1,322,524
PROPERTY & CASUALTY INSURANCE - 1.4%
Ace, Ltd. .......................................... 234 9,982
Allstate Corporation................................ 1,110 50,461
Ambac Financial Group, Inc. ........................ 177 13,059
Chubb Financial Corporation......................... 607 42,211
MBIA, Inc. ......................................... 635 39,814
Progressive Corporation............................. 29 2,540
St. Paul Companies, Inc. ........................... 366 14,644
Travelers Property Casualty
Corporation (Cl.B)................................ 2,578 44,522
XL Capital, Ltd. ................................... 303 23,040
-----------
240,273
14 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
ENHANCED INDEX SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- ------------------------- ---------- -----------
PUBLISHING - 0.5%
Dow Jones & Company, Inc. ...................... 600 $ 28,746
Gannett Company, Inc. .......................... 420 37,019
Knight-Ridder, Inc. ............................ 130 9,522
New York Times Company.......................... 100 4,420
-----------
79,707
RAILROADS - 0.5%
Burlington Northern Santa Fe
Corporation................................... 1,424 44,856
CSX Corporation................................. 73 2,211
Union Pacific Corporation....................... 563 33,679
-----------
80,746
REAL ESTATE INVESTMENT TRUSTS - 0.3%
Apartment Investment &
Management Company............................ 884 27,484
Equity Office Properties Trust.................. 904 26,117
-----------
53,601
REGIONAL BANKS - 1.9%
BB&T Corporation................................ 860 30,358
Fifth Third Bancorp............................. 589 32,613
First Tennessee National Corporation............ 707 33,724
M&T Bank Corporation............................ 200 17,970
National City Corporation....................... 962 34,228
PNC Financial Services.......................... 426 23,609
Regions Financial Corporation................... 1,059 38,675
Southtrust Corporation.......................... 547 18,139
Suntrust Banks, Inc. ........................... 107 7,459
Synovus Financial Corporation................... 450 11,002
Union Planters Corporation...................... 1,125 33,581
Zions Bancorporation............................ 530 30,316
-----------
311,674
RESTAURANTS - 0.6%
McDonald's Corporation.......................... 2,887 82,482
Wendy's International, Inc. .................... 28 1,139
Yum! Brands, Inc.* ............................. 286 10,865
-----------
94,486
SEMICONDUCTOR EQUIPMENT - 0.4%
Applied Materials, Inc.* ....................... 2,543 54,369
Teradyne, Inc.* ................................ 685 16,324
-----------
70,693
SEMICONDUCTORS - 3.4%
Altera Corporation* ............................ 579 11,841
Analog Devices, Inc. ........................... 458 21,989
Applied Micro Circuits Corporation* ............ 2,620 15,065
Broadcom Corporation* .......................... 682 26,714
Intel Corporation............................... 11,223 305,266
LSI Logic Corporation* ......................... 2,905 27,133
Maxim Integrated Products, Inc. ................ 94 4,426
Micron Technology, Inc.* ....................... 2,589 43,262
National Semiconductor Corporation* ............ 610 27,102
Texas Instruments, Inc. ........................ 2,525 73,780
Xilinx, Inc.* .................................. 120 4,560
-----------
561,138
SOFT DRINKS - 2.2%
Coca-Cola Company .............................. 3,515 176,804
Coca-Cola Enterprises, Inc. .................... 530 12,810
Pepsico, Inc. .................................. 3,236 174,259
-----------
363,873
SPECIALTY CHEMICALS - 0.3%
Ecolab, Inc. ................................... 423 12,068
International Flavors & Fragrances, Inc. ....... 100 3,550
Rohm & Haas Company............................. 161 6,414
Sigma-Aldrich Corporation....................... 517 28,611
-----------
643
SPECIALTY STORES - 0.6%
Autonation, Inc.* .............................. 1,809 30,843
Autozone, Inc.* ................................ 343 29,488
Staples, Inc.* ................................. 1,136 28,843
Toys 'R' Us, Inc.* ............................. 322 5,410
-----------
94,584
STEEL - 0.1%
Nucor Corporation............................... 300 18,444
SYSTEMS SOFTWARE - 3.6%
Adobe Systems, Inc. ............................ 300 11,829
Computer Associates
International, Inc. .......................... 1,183 31,775
Microsoft Corporation........................... 17,705 442,094
Oracle Corporation* ............................ 7,006 84,142
Symantec Corporation* .......................... 293 13,566
Veritas Software Corporation* .................. 717 19,294
-----------
602,700
THRIFTS & MORTGAGE FINANCE - 1.6%
Fannie Mae...................................... 1,821 135,391
Freddie Mac..................................... 655 38,684
Golden West Financial Corporation............... 15 1,679
MGIC Investment Corporation..................... 400 25,692
Washington Mututal, Inc. ....................... 1,625 69,404
-----------
270,850
15 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
ENHANCED INDEX SERIES (CONTINUED)
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- ------------------------- ---------- -----------
TIRES & RUBBER - 0.0%
Cooper Tire & Rubber Company.......................... 95 $ 1,914
TOBACCO - 1.2%
Alteria Group, Inc. .................................. 3,381 184,095
R.J. Reynolds Tobacco Holdings, Inc. ................. 200 12,100
-----------
196,195
TRADING COMPANIES & DISTRIBUTORS - 0.2%
W.W. Grainger, Inc. .................................. 646 31,008
WIRELESS TELECOMMUNICATION SERVICES - 0.7%
AT&T Wireless Services* .............................. 3,902 53,106
Nextel Communications, Inc.* ......................... 962 23,790
Sprint Corporation (PCS Group)* ...................... 3,578 32,918
-----------
109,814
-----------
Total common stocks
(cost $15,001,586) - 98.5%...................... 16,438,655
U.S. GOVERNMENT SECURITIES
U.S. Treasury Bill, 0.875%, 04-22-04(1)............... $ 50,000 49,973
-----------
Total U.S. government securities
(cost $49,975) - 0.3%........................ 49,973
REPURCHASE AGREEMENT
United Missouri Bank, 0.65%, 04-01-04
(Collateralized by FNMA bond,
04-01-04 with a value of $351,000
and a repurchase amount of $347,006)............. $ 347,000 347,000
-----------
Total repurchase agreement
(cost $347,000) - 2.1%....................... 347,000
-----------
Total investments (cost $15,398,561) - 100.9%.... 16,835,628
Liabilities, less cash & other assets - (0.9%)... (149,336)
-----------
Total net assets - 100.0%........................ $16,686,292
===========
The identified cost of investments owned at March 31, 2004 was the same for
federal income tax and financial statement purposes.
* Non-income producing security
(1) Security is segregated as collateral for futures contracts.
PERFORMANCE
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2004
1 YEAR 5 YEARS SINCE INCEPTION
------ ------- ---------------
A Shares 33.59% (2.30%) (2.19%) (1-29-99)
A Shares with
sales charge 25.90% (3.45%) (3.30%) (1-29-99)
B Shares 32.39% (3.10%) (3.00%) (1-29-99)
B Shares with
CDSC 27.39% (3.49%) (3.00%) (1-29-99)
C Shares 32.65% (3.07%) (2.93%) (1-29-99)
C Shares with
CDSC 31.65% (3.07%) (2.93%) (1-29-99)
The performance data above represents past performance that is not predictive of
future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. The figures do not reflect the
deduction of taxes that a shareholder would pay on distributions or redemption
of fund shares. Such figures would be lower if the maximum sales charge and any
applicable taxes were deducted. Fee waivers reduced expenses of the Fund and in
the absence of such waiver, the performance quoted would be reduced.
16 See accompanying notes.
SECURITY EQUITY FUND
EQUITY SERIES
[SECURITY FUNDS LOGO]
ADVISOR,
SECURITY MANAGEMENT COMPANY, LLC
17
SCHEDULE OF INVESTMENTS
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
EQUITY SERIES
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- -----------------------------------------------------------------------------
ADVERTISING - 1.3%
Omnicom Group, Inc. ............................ 79,100 $ 6,347,775
AEROSPACE & DEFENSE - 3.2%
General Dynamics Corporation ................... 88,400 7,896,772
L-3 Communications Holdings, Inc. 50,000 2,974,000
United Technologies Corporation 54,200 4,677,460
-----------
15,548,232
AIR FREIGHT & LOGISTICS - 1.9%
FedEx Corporation .............................. 125,000 9,395,000
AIRLINES - 0.5%
Southwest Airlines Company ..................... 179,500 2,550,695
ALUMINUM - 1.0%
Alcoa, Inc. .................................... 145,000 5,030,050
APPLICATIONS SOFTWARE - 0.5%
Intuit, Inc.* .................................. 51,800 2,324,784
ASSET MANAGEMENT & CUSTODY BANKS - 1.3%
Bank of New York Company, Inc. 200,000 6,300,000
BIOTECHNOLOGY - 2.2%
Amgen, Inc.* ................................... 185,000 10,761,450
BREWERS - 1.5%
Anheuser-Busch Companies, Inc. 140,000 7,140,000
BROADCASTING & CABLE TV- 0.9%
Comcast Corporation* ........................... 150,000 4,311,000
COMMUNICATIONS EQUIPMENT - 3.3%
ADC Telecommunications, Inc.* .................. 1,500,000 4,350,000
Cisco Systems, Inc.* ........................... 500,000 11,760,000
-----------
16,110,000
COMPUTER HARDWARE - 2.8%
Dell, Inc.* .................................... 200,900 6,754,258
International Business
Machines Corporation ......................... 77,000 7,071,680
-----------
13,825,938
CONSUMER FINANCE - 1.3%
MBNA Corporation ............................... 230,000 6,354,900
DATA PROCESSING & OUTSOURCED SERVICE - 2.4%
Computer Sciences Corporation* 55,000 2,218,150
First Data Corporation ......................... 230,000 9,696,800
-----------
11,914,950
DEPARTMENT STORES - 1.9%
Kohl's Corporation* ............................ 190,300 9,197,199
DIVERSIFIED BANKS - 2.8%
Bank of America Corporation .................... 60,000 4,858,800
Wells Fargo & Company .......................... 160,000 9,067,200
-----------
13,926,000
DIVERSIFIED CHEMICALS - 0.6%
E.I. du Pont de Nemours & Company 75,000 3,166,500
DRUG RETAIL - 1.0%
CVS Corporation ................................ 145,000 5,118,500
ELECTRONIC MANUFACTURING SERVICES - 0.5%
Molex, Inc. .................................... 85,000 2,583,150
GENERAL MERCHANDISE STORES - 1.0%
Target Corporation ............................. 107,500 4,841,800
HEALTH CARE DISTRIBUTORS - 2.2%
Cardinal Health, Inc. .......................... 160,000 11,024,000
HEALTH CARE EQUIPMENT - 1.4%
Medtronic, Inc. ................................ 146,200 6,981,050
HOME IMPROVEMENT RETAIL - 1.8%
Home Depot, Inc. ............................... 240,000 8,966,400
HOTELS, RESORTS & CRUISE LINES - 1.4%
Carnival Corporation ........................... 155,000 6,961,050
HOUSEHOLD PRODUCTS - 3.5%
Colgate-Palmolive Company ...................... 100,000 5,510,000
Procter & Gamble Company ....................... 110,000 11,536,800
-----------
17,046,800
HYPERMARKETS & SUPERCENTERS - 2.7%
Wal-Mart Store, Inc. ........................... 220,000 13,131,800
INDUSTRIAL CONGLOMERATES - 5.1%
3M Company ..................................... 64,000 5,239,680
General Electric Company ....................... 550,000 16,786,000
Tyco International, Inc. ....................... 100,000 2,865,000
-----------
24,890,680
INDUSTRIAL GASES - 1.2%
Praxair, Inc. .................................. 160,000 5,939,200
INTEGRATED OIL & GAS - 3.4%
Chevrontexaco Corporation ...................... 60,000 5,266,800
Exxon Mobil Corporation ........................ 275,000 11,437,250
-----------
16,704,050
INTEGRATED TELECOMMUNICATIONS SERVICES - 1.6%
SBC Communications, Inc. ....................... 170,000 4,171,800
Verizon Communications, Inc. ................... 100,000 3,654,000
-----------
7,825,800
INVESTMENT BANKING & BROKERAGE - 3.2%
Goldman Sachs Group, Inc. ...................... 50,000 5,217,500
Merrill Lynch & Company, Inc. .................. 90,500 5,390,180
Morgan Stanley ................................. 90,000 5,157,000
-----------
15,764,680
LIFE & HEALTH INSURANCE - 1.3%
Aflac, Inc. .................................... 160,000 6,422,400
18 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
EQUITY SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- ----------------------------------------------------------------------------
MANAGED HEALTH CARE - 1.9%
Anthem, Inc.* ................................ 55,000 $ 4,985,200
Unitedhealth Group, Inc. ..................... 70,000 4,510,800
------------
9,496,000
MOTORCYCLE MANUFACTURERS - 2.1%
Harley-Davidson, Inc. ........................ 198,000 10,561,320
MOVIES & ENTERTAINMENT - 3.4%
Time Warner, Inc* ............................ 460,000 7,755,600
Viacom, Inc. (Cl.B) .......................... 233,400 9,151,614
------------
16,907,214
MULTI-LINE INSURANCE - 3.2%
American International Group, Inc. ........... 220,000 15,697,000
OIL & GAS EQUIPMENT & SERVICES - 0.6%
BJ Services Company* ......................... 54,000 2,336,580
Haliburton Company ........................... 17,000 516,630
------------
2,853,210
OIL & GAS EXPLORATION & PRODUCTION - 1.5%
Anadarko Petroleum Corporation ............... 50,000 2,593,000
Devon Energy Corporation ..................... 80,000 4,652,000
------------
7,245,000
OTHER DIVERSIFIED FINANCIAL SERVICES - 3.7%
Citigroup, Inc. .............................. 350,000 18,095,000
PACKAGED FOODS & MEATS - 0.7%
General Mills, Inc. .......................... 70,000 3,267,600
PHARMACEUTICALS - 8.3%
Abbott Laboratories .......................... 130,000 5,343,000
Eli Lilly & Company .......................... 50,000 3,345,000
Johnson & Johnson ............................ 200,000 10,144,000
Pfizer, Inc .................................. 560,000 19,628,000
Wyeth ........................................ 60,000 2,253,000
------------
40,713,000
PROPERTY & CASUALTY INSURANCE - 1.7%
Chubb Corporation ............................ 80,000 5,563,200
Safeco Corporation ........................... 60,000 2,590,200
------------
8,153,400
PUBLISHING - 1.1%
Belo Corporation ............................. 190,000 5,274,400
SEMICONDUCTOR EQUIPMENT - 0.9%
Applied Materials, Inc.* ..................... 203,500 4,350,830
SEMICONDUCTORS - 3.3%
Analog Devices, Inc. ......................... 80,000 3,840,800
Intel Corporation ............................ 350,000 9,520,000
Texas Instruments, Inc. ...................... 100,000 2,922,000
------------
16,282,800
SOFT DRINKS - 2.2%
Pepsico, Inc. ................................ 200,000 10,770,000
SYSTEMS SOFTWARE - 3.0%
Microsoft Corporation ........................ 600,900 15,004,473
THRIFTS & MORTGAGE FINANCE - 0.9%
Fannie Mae ................................... 58,900 4,379,215
------------
Total common stocks
(cost $402,245,794) - 99.2% ............... 487,456,295
U. S. GOVERNMENT AGENCIES
Federal Home Loan Bank,
0.98%, 04-02-04 ............................. $2,800,000 2,799,924
Federal National Mortgage Association,
1.00%, 04-07-04 ............................. $1,500,000 1,499,750
------------
Total U. S. government agencies
(cost $4,299,674) - 0.9% .................. 4,299,674
REPURCHASE AGREEMENT
United Missouri Bank, 0.65%, 04-01-04
(Collateralized by FNMA bond,
04-01-04 with a value of $1,030,000
and a repurchase amount of
$1,009,010) ................................ $1,009,000 1,009,000
------------
Total repurchase agreement
(cost $1,009,000) - 0.2% .................. 1,009,000
------------
Total investments
(cost $407,554,468) - 100.3% .............. 492,764,969
Liabilities, less cash & other
assets - (0.3%) ........................... (1,317,006)
------------
Total net assets - 100.0% .................. $491,447,963
============
The identified cost of investments owned at March 31, 2004 was the same for
federal income tax and financial statement purposes.
*Non-income producing security
19 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
EQUITY SERIES (CONTINUED)
PERFORMANCE
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2004
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
A Shares 25.72% (4.58%) 8.43% N/A
A Shares with sales charge 18.50% (5.69%) 7.79% N/A
B Shares 24.74% (5.46%) 7.56% N/A
B Shares with CDSC 19.74% (5.84%) 7.56% N/A
C Shares 24.95% (5.47%) N/A (5.42%)
(1-29-99)
C Shares with CDSC 23.95% (5.47%) N/A (5.42%)
(1-29-99)
The performance data above represents past performance that is not predictive of
future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. The figures do not reflect the
deduction of taxes that a shareholder would pay on distributions or redemption
of fund shares. Such figures would be lower if the maximum sales charge and any
applicable taxes were deducted.
20 See accompanying notes.
SECURITY EQUITY FUND
GLOBAL SERIES
[OPPENHEIMERFUNDS LOGO]
SUBADVISOR,
OPPENHEIMERFUNDS, INC.
21
SCHEDULE OF INVESTMENTS
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
GLOBAL SERIES
PRINCIPAL
AMOUNT OR
NUMBER MARKET
CONVERTIBLE BOND OF SHARES VALUE
- --------------------------------------------------- ----------- -----------
Nektar Therapeutics, 3.00% - 2010 ................. $ 10,308 $ 177,964
-----------
Total convertible bond (cost $117,000) - 0.2% ... 177,964
FOREIGN BOND
INDIA - 0.0%
Hindustan Lever, Ltd., 9.00% - 2005(1) ............ 1,036,800 1,574
-----------
Total foreign bond (cost $9,180) - 0.0% ......... 1,574
COMMON STOCKS
AUSTRALIA - 0.5%
Australia & New Zealand
Banking Group, Ltd. ............................. 35,781 517,923
Leighton Holdings, Ltd. ........................... 9,935 78,883
-----------
596,806
BERMUDA - 0.8%
Ace, Ltd. ......................................... 21,340 910,364
BRAZIL - 1.3%
Companhia de Bebidas das
Americas ADR .................................... 23,757 475,140
Empresa Brasileira de Aeronautica
S.A. ADR ........................................ 33,968 1,090,373
-----------
1,565,513
CANADA - 2.3%
Alcan, Inc. ....................................... 687 30,470
Bombardier, Inc. (Cl.B) ........................... 64,500 288,084
EnCana Corporation ................................ 13,908 599,920
Husky Energy, Inc. ................................ 58,180 1,159,837
Manulife Financial Corporation .................... 15,773 582,794
-----------
2,661,105
FINLAND - 0.1%
Stora Enso Oyj (Cl.R) ............................. 11,180 140,688
FRANCE - 7.4%
Alcatel S.A.* ..................................... 45,080 711,321
Aventis S.A. ...................................... 7,350 564,977
Axa ............................................... 6,750 140,850
Carrefour S.A. .................................... 7,860 387,718
Essilor International S.A. ........................ 7,500 456,137
France Telecom S.A.* .............................. 39,485 1,010,251
JC Decaux S.A.* ................................... 20,730 463,392
Sanofi-Synthelabo S.A. ............................ 24,094 1,573,724
Societe BIC S.A. .................................. 5,230 221,737
Societe Generale .................................. 12,350 1,054,795
Societe Television Francaise1 ..................... 14,950 474,734
Technip S.A. ...................................... 7,740 1,046,285
Total S.A. ........................................ 2,455 450,732
-----------
8,556,653
GERMANY - 1.5%
Allianz AG* ....................................... 9,597 1,045,044
BASF AG ........................................... 2,885 146,530
Deutsche Post AG .................................. 10,396 232,517
MLP AG* ........................................... 14,734 269,788
Muenchener Rueckversicherungs-
Gesellschaft AG ................................. 771 85,624
-----------
1,779,503
HONG KONG - 1.7%
Hong Kong & China Gas Company,
Ltd. ............................................ 340,400 587,642
Hutchison Whampoa, Ltd. ........................... 61,082 439,038
Television Broadcasts, Ltd. ....................... 206,991 977,688
-----------
2,004,368
INDIA - 2.8%
Gail India, Ltd. .................................. 14,490 71,115
Hindustan Lever, Ltd. ............................. 186,000 660,767
Icici Bank, Ltd. ADR .............................. 52,350 834,983
Infosys Technologies, Ltd. ........................ 8,008 910,749
Oil & Natural Gas Corporation, Ltd. ............... 8,520 164,916
Zee Telefilms, Ltd. ............................... 207,000 639,784
-----------
3,282,314
IRELAND - 0.5%
Anglo Irish Bank Corporation plc .................. 33,300 524,625
ISRAEL - 0.4%
Teva Pharmaceutical Industries,
Ltd. ADR ........................................ 7,470 473,673
ITALY - 0.4%
Eni SpA ........................................... 22,789 458,168
JAPAN - 9.6%
Canon, Inc. ....................................... 9,000 466,285
Chugai Pharmaceutical
Company, Ltd. ................................... 31,200 496,633
Credit Saison Company, Ltd. ....................... 20,600 619,772
JGC Corporation ................................... 20,000 220,503
KDDI Corporation .................................. 381 2,149,728
Keyence Corporation ............................... 2,100 511,905
Murata Manufacturing
Company, Ltd. ................................... 9,500 603,595
NEC Corporation ................................... 16,750 137,819
NTT Docomo, Inc. .................................. 545 1,204,883
Nippon Telegraph & Telephone
Corporation ..................................... 28 158,793
Resona Holdings, Inc.* ............................ 255,000 426,491
Seven-Eleven Japan Company, Ltd. .................. 14,000 511,366
Sharp Corporation ................................. 54,000 964,925
Shionogi & Company, Ltd. .......................... 54,000 954,025
Shiseido Company, Ltd. ............................ 30,000 391,022
Sony Corporation .................................. 3,200 134,109
Trend Micro, Inc. ................................. 23,000 795,886
Yahoo Japan Corporation* .......................... 34 415,053
-----------
11,162,793
KOREA - 2.1%
Hyundai Heavy Industries
Company, Ltd. ................................... 15,100 416,207
SK Telecom Company, Ltd. .......................... 2,040 381,683
SK Telecom Company, Ltd. ADR ...................... 14,700 313,110
Samsung Electronics Company, Ltd. ................. 2,752 1,373,059
-----------
2,484,059
22 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
GLOBAL SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- ----------------------------------------------- ----------- -----------
MEXICO - 1.8%
Fomento Economico Mexicano
S.A. de C.V ................................. 120,300 $ 591,269
Grupo Modelo, S.A. de C.V. (Cl.C) ............. 162,000 440,895
Grupo Televisa S.A. ADR ....................... 17,964 850,416
Telefonos de Mexico S.A
de C.V. ADR ................................. 4,850 169,314
-----------
2,051,894
NETHERLANDS - 3.1%
ABN Amro Holding N.V. ......................... 49,000 1,092,922
Aegon N.V. .................................... 71,273 910,909
Ing Group N.V ................................. 7,142 156,929
Koninklijke (Royal) Philips
Electronics N.V. ............................ 7,680 222,075
Qiagen N.V.* .................................. 35,761 468,032
Unilever N.V. ................................. 3,140 216,669
Wolters Kluwer N.V. ........................... 31,328 535,521
-----------
3,603,057
NORWAY - 0.9%
Tandberg ASA* ................................. 113,700 1,088,835
SINGAPORE - 0.6%
Singapore Press Holdings, Ltd. ................ 59,729 673,455
SPAIN - 0.8%
Amadeus Global Travel
Distribution S.A. ........................... 62,172 352,219
Antena 3 Television S.A.* ..................... 62 2,857
Endesa S.A. ................................... 6,380 116,038
Iberdrola S.A. ................................ 7,380 152,364
Telefonica S.A. ............................... 18,503 279,909
-----------
903,387
SWEDEN - 3.4%
Hennes & Mauritz AB (Cl.B) .................... 86,400 2,325,753
Telefonaktiebolaget LM Ericsson
(Cl.B)* ..................................... 565,700 1,567,784
-----------
3,893,537
SWITZERLAND - 2.1%
Nestle S.A. ................................... 851 216,974
Novartis AG ................................... 17,339 736,345
Roche Holding AG .............................. 13,610 1,329,469
Swiss Re ...................................... 2,061 142,026
-----------
2,424,814
TAIWAN - 1.1%
Taiwan Semiconductor Manufacturing
Company, Ltd. ADR* .......................... 121,300 1,266,372
UNITED KINGDOM - 11.0%
3i Group plc** ................................ 39,584 457,594
Astrazeneca plc ............................... 11,470 531,852
BAE Systems plc ............................... 52,255 193,274
BP plc ADR .................................... 17,567 899,430
Boots Group plc ............................... 42,122 479,966
Cable & Wireless plc .......................... 40,260 96,004
Cadbury Schweppes plc ......................... 143,030 1,127,702
Diageo plc .................................... 17,400 226,728
Dixons Group plc .............................. 388,313 1,097,254
Lloyds TSB Group plc .......................... 14,880 113,081
Pearson plc ................................... 84,670 962,453
Reckitt Benckiser plc ......................... 81,740 2,025,045
Reed Elsevier plc ............................. 63,765 564,272
Rentokil Initial plc .......................... 126,737 425,086
Royal Bank of Scotland Group plc .............. 39,799 1,214,932
Shell Transport & Trading
Company plc ................................. 21,262 138,916
Smith & Nephew plc ............................ 57,360 564,519
Vodafone Group plc ............................ 472,100 1,119,267
WPP Group plc ................................. 47,330 479,290
-----------
12,716,665
UNITED STATES - 40.2%
Advanced Micro Devices, Inc.* ................. 83,100 1,348,713
Affymetrix, Inc.* ............................. 18,000 607,500
Amazon.com, Inc.* ............................. 12,000 519,360
Amdocs, Ltd.* ................................. 17,700 491,883
American Express Company* ..................... 18,200 943,670
Amgen, Inc.* .................................. 11,700 680,589
Applera Corporation - Applied
Biosystems Group ............................ 21,000 415,380
BEA Systems, Inc.* ............................ 36,600 467,016
Bank One Corporation .......................... 40,659 2,216,729
Berkshire Hathaway, Inc. (Cl.B)* .............. 310 964,413
Boeing Company ................................ 12,200 501,054
Burlington Resources, Inc. .................... 7,100 451,773
Cadence Design Systems, Inc.* ................. 118,464 1,746,159
Charles Schwab Corporation .................... 38,600 448,146
ChevronTexaco Corporation ..................... 10,083 885,086
Circuit City Stores, Inc. ..................... 55,071 622,302
Cisco Systems, Inc.* .......................... 40,000 940,800
Citigroup, Inc. ............................... 8,666 448,032
Coach, Inc.* .................................. 7,000 286,930
Commerce Bancorp, Inc. ........................ 3,800 250,344
Electronic Arts, Inc.* ........................ 3,328 179,579
Eli Lilly & Company ........................... 6,900 461,610
Everest Re Group, Ltd. ........................ 5,400 461,376
Express Scripts, Inc.* ........................ 7,100 529,589
Gap, Inc. ..................................... 22,800 499,776
Genentech, Inc.* .............................. 5,600 592,592
Genzyme Corporation ........................... 10,600 498,624
23 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
GLOBAL SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- ----------------------------------------------- ----------- ------------
UNITED STATES (CONTINUED)
Gilead Sciences, Inc.* ........................ 15,200 $ 847,704
Gillette Company .............................. 22,400 875,840
Global Santa Fe Corporation ................... 39,000 1,083,030
Human Genome Sciences, Inc.* .................. 13,300 166,649
IMS Health, Inc. .............................. 23,000 534,980
International Business Machines
Corporation ................................. 4,667 428,617
International Flavors &
Fragrances, Inc. ............................ 13,702 486,421
International Game Technology ................. 18,200 818,272
JDS Uniphase Corporation* ..................... 196,400 799,348
Juniper Networks, Inc.* ....................... 18,100 470,781
Lockheed Martin Corporation ................... 10,200 465,528
MBNA Corporation .............................. 42,000 1,160,460
Millennium Pharmaceuticals, Inc.* ............. 12,600 212,940
Mylan Laboratories, Inc. ...................... 18,850 428,461
National Semiconductor Corporation* ........... 22,600 1,004,118
Northern Trust Corporation .................... 8,400 391,356
Northrop Gruman Corporation ................... 5,400 531,468
Novell, Inc.* ................................. 58,800 669,144
Panera Bread Company* ......................... 4,800 186,816
Pfizer, Inc. .................................. 28,738 1,007,267
Qualcomm, Inc. ................................ 45,620 3,030,080
Quest Diagnostics, Inc. ....................... 12,000 993,960
RadioShack Corporation ........................ 13,600 450,976
Raytheon Company .............................. 25,200 789,768
Red Hat, Inc.* ................................ 26,700 610,362
Schering-Plough Corporation ................... 33,500 543,370
Scientific-Atlanta, Inc. ...................... 13,700 443,058
Sirius Satellite Radio, Inc.* ................. 1,116,796 3,797,106
Starbucks Corporation* ........................ 14,600 551,150
Sun Microsystems, Inc.* ....................... 129,400 538,304
Sybase, Inc.* ................................. 24,762 519,754
Symantec Corporation* ......................... 13,600 629,680
Transocean, Inc.* ............................. 39,700 1,107,233
Veritas Software Corporation* ................. 13,500 363,285
Wachovia Corporation .......................... 26,008 1,222,376
------------
46,618,687
------------
Total common stocks
(cost $89,733,878) - 96.4% ................. 111,841,335
PREFERRED STOCKS
BRAZIL - 0.7%
Tele Norte Leste Participacoes S.A ............ 60,974,067 772,567
GERMANY - 1.3%
Fresenius AG .................................. 6,581 460,900
Porsche AG .................................... 1,784 1,076,491
------------
1,537,391
------------
Total preferred stocks
(cost $2,271,011) - 2.0% ................... 2,309,958
State Street, 0.25%, 04-01-04
(Collateralized by FHLMC bond,
2.00%, 2-23-06 with a value of
$2,645,904 and a repurchase
amount of $2,593,336) ....................... 2,593,318 2,593,318
------------
Total repurchase agreement
(cost $2,593,318) - 2.2% ................... 2,593,318
------------
Total investments
(cost $94,724,387) - 100.8% ................ 116,924,149
Liabilities, less cash & other
assets - (0.8%) ........................... (897,368)
------------
Total net assets - 100.0% ................... $116,026,781
============
24 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
GLOBAL SERIES (CONTINUED)
INVESTMENT CONCENTRATION
AT MARCH 31, 2004, GLOBAL SERIES' INVESTMENT CONCENTRATION BY
INDUSTRY WAS AS FOLLOWS:
Aerospace/Defense ............................................ 0.4%
Air Freight & Logistics ...................................... 3.1%
Automobiles .................................................. 0.9%
Beverages .................................................... 2.5%
Biotechnology ................................................ 3.5%
Capital Markets .............................................. 1.1%
Chemicals .................................................... 0.8%
Commercial Banks ............................................. 2.1%
Commercial Services & Supplies ............................... 0.6%
Communications Equipment ..................................... 7.9%
Computers & Peripherals ...................................... 0.8%
Construction & Engineering ................................... 0.3%
Consumer Finance ............................................. 2.4%
Diversified Financial Services ............................... 7.3%
Diversified Telecommunications ............................... 3.9%
Electric Utilities ........................................... 0.2%
Electronic Equipment & Instruments ........................... 1.1%
Energy Equipment & Services .................................. 0.9%
Food & Staples Retailing ..................................... 1.2%
Food Products ................................................ 0.4%
Gas Utilities ................................................ 0.5%
Health Care Equipment & Services ............................. 1.2%
Health Care Providers & Services ............................. 1.8%
Hotels, Restaurants & Leisure Products ....................... 1.6%
Household Durables ........................................... 3.3%
Household Products ........................................... 2.3%
IT Services .................................................. 0.8%
Insurance .................................................... 4.5%
Internet & Catalog Retail .................................... 0.5%
Internet Software & Services ................................. 1.6%
Machinery .................................................... 0.4%
Media ........................................................ 9.0%
Metals & Mining .............................................. 0.0%
Oil & Gas .................................................... 5.5%
Paper & Forest Products ...................................... 1.1%
Personal Products ............................................ 1.1%
Pharmaceuticals .............................................. 8.4%
Semiconductors & Semiconductor Equipment ..................... 3.1%
Software ..................................................... 4.3%
Specialty Retail ............................................. 0.9%
Textiles, Apparel & Luxury Goods ............................. 2.7%
Wireless Telecommunications .................................. 2.6%
Repurchase Agreement ......................................... 2.2%
Liabilities, less cash & other assets ........................ (0.8%)
-----
100.0%
=====
The identified cost of investments owned at March 31, 2004 was the same for
federal income tax and financial statement purposes.
*Non-income producing security
**Passive Foreign Investment Company
ADR (American Depositary Receipt)
plc (public limited company)
(1)Principal amount on foreign bond is reflected in local currency
(e.g. Indian Rupee) while market value is reflected in U.S. dollars.
PERFORMANCE
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2004
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
A Shares 60.84% 8.73% 9.91% N/A
A Shares with
sales charge 51.60% 7.45% 9.27% N/A
B Shares 59.93% 8.28% 9.17% N/A
B Shares with
CDSC 54.93% 7.98% 9.17% N/A
C Shares 59.76% 7.82% N/A 7.48%
(1-29-99)
C Shares with
CDSC 58.76% 7.82% N/A 7.48%
(1-29-99)
The performance data above represents past performance that is not predictive of
future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. The figures do not reflect the
deduction of taxes that a shareholder would pay on distributions or redemption
of fund shares. Such figures would be lower if the maximum sales charge and any
applicable taxes were deducted.
25 See accompanying notes.
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26
SECURITY EQUITY FUND
LARGE CAP GROWTH SERIES
[SECURITY FUNDS LOGO]
ADVISOR,
SECURITY MANAGEMENT COMPANY, LLC
27
SCHEDULE OF INVESTMENTS
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
LARGE CAP GROWTH SERIES
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ----------------------------------------------- --------- ------------
ADVERTISING - 1.6%
Omnicom Group, Inc. ............................. 5,800 $ 465,450
AEROSPACE & DEFENSE - 2.8%
General Dynamics Corporation .................... 5,000 446,650
United Technologies Corporation ................. 4,200 362,460
------------
809,110
AIR FREIGHT & LOGISTICS - 1.9%
FedEx Corporation ............................... 7,600 571,216
AIRLINES - 0.7%
Southwest Airlines Company ...................... 14,800 210,308
APPLICATION SOFTWARE - 0.8%
Intuit, Inc.* ................................... 5,500 246,840
BIOTECHNOLOGY - 3.3%
Amgen, Inc.* .................................... 16,900 983,073
BREWERS - 1.5%
Anheuser-Busch Companies, Inc. .................. 8,700 443,700
BROADCASTING & CABLE TV- 1.2%
Comcast Corporation* ............................ 12,000 344,880
COMMUNICATIONS EQUIPMENT - 6.2%
ADC Telecommunications, Inc.* ................... 112,500 326,250
Cisco Systems, Inc.* ............................ 50,800 1,194,816
Emulex Corporation* ............................. 5,700 121,353
Finisar Corporation* ............................ 22,100 48,178
Qualcomm, Inc. .................................. 1,800 119,556
------------
1,810,153
COMPUTER HARDWARE - 2.5%
Dell, Inc.* ..................................... 16,700 561,454
International Business Machines
Corporation ................................... 1,800 165,312
------------
726,766
CONSUMER FINANCE - 0.8%
MBNA Corporation ................................ 8,100 223,803
DATA PROCESSING & OUTSOURCED SERVICE - 2.9%
First Data Corporation .......................... 19,900 838,984
DEPARTMENT STORES - 1.2%
Kohl's Corporation* ............................. 7,050 340,727
DRUG RETAIL - 1.0%
CVS Corporation ................................. 8,300 292,990
ELECTRONIC MANUFACTURING SERVICES - 0.7%
Molex, Inc. ..................................... 6,800 206,652
EXCHANGE TRADED FUNDS - 1.5%
iShares Russell 1000 Growth
Index Fund .................................... 9,300 436,821
GENERAL MERCHANDISE STORES - 1.2%
Target Corporation .............................. 7,600 342,304
HEALTH CARE DISTRIBUTORS - 3.1%
Cardinal Health, Inc. ........................... 13,100 902,590
HEALTH CARE EQUIPMENT - 1.8%
Medtronic, Inc. ................................. 11,100 530,025
HOME IMPROVEMENT RETAIL - 3.3%
Home Depot, Inc. ................................ 20,800 777,088
Lowe's Companies, Inc. .......................... 3,200 179,616
------------
956,704
HOTELS, RESORTS & CRUISE LINES - 1.2%
Carnival Corporation ............................ 8,100 363,771
HOUSEHOLD PRODUCTS - 1.4%
Colgate-Palmolive Company ....................... 3,900 214,890
Procter & Gamble Company ........................ 2,000 209,760
------------
424,650
HYPERMARKETS & SUPERCENTERS - 2.9%
Wal-Mart Stores, Inc. ........................... 14,200 847,598
INDUSTRIAL CONGLOMERATES - 6.8%
3M Company ...................................... 2,900 237,423
General Electric Company ........................ 57,900 1,767,108
------------
2,004,531
INSURANCE BROKERS - 0.6%
Marsh & McLennan Companies, Inc. ................ 4,000 185,200
INVESTMENT BANKING & BROKERAGE - 1.0%
Goldman Sachs Group, Inc. ....................... 2,800 292,180
LIFE & HEALTH INSURANCE - 1.3%
Aflac, Inc. ..................................... 9,500 381,330
MOTORCYCLE MANUFACTURERS - 1.8%
Harley-Davidson, Inc. ........................... 10,200 544,068
MOVIES & ENTERTAINMENT - 2.9%
AOL Time Warner, Inc.* .......................... 7,700 129,822
Viacom, Inc. (Cl. B) ............................ 18,700 733,227
------------
863,049
MULTI-LINE INSURANCE - 2.5%
American International Group, Inc. .............. 10,200 727,770
OIL & GAS EQUIPMENT & SERVICES - 1.1%
BJ Services Company* ............................ 7,200 311,544
OIL & GAS EXPLORATION & PRODUCTION - 0.7%
Devon Energy Corporation ........................ 3,300 191,895
OTHER DIVERSIFIED FINANCIAL SERVICES - 1.0%
Citigroup, Inc. ................................. 5,800 299,860
PERSONAL PRODUCTS - 0.8%
Avon Products, Inc. ............................. 3,300 250,371
PHARMACEUTICALS - 13.7%
Abbott Laboratories ............................. 10,500 431,550
Eli Lilly & Company ............................. 4,500 301,050
Johnson & Johnson ............................... 17,600 892,672
Pfizer, Inc. .................................... 61,000 2,138,050
Wyeth ........................................... 6,700 251,585
------------
4,014,907
28 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
LARGE CAP GROWTH SERIES (CONTINUED)
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- ----------------------------------------------- ----------- ------------
PROPERTY & CASUALTY INSURANCE - 0.9%
Chubb Corporation ............................. 3,700 $ 257,298
SEMICONDUCTOR EQUIPMENT - 1.2%
Applied Materials, Inc.* ...................... 15,900 339,942
SEMICONDUCTORS - 5.0%
Analog Devices, Inc. .......................... 10,300 494,503
Intel Corporation ............................. 22,100 601,120
Texas Instruments, Inc. ....................... 13,200 385,704
------------
1,481,327
SOFT DRINKS - 4.1%
Coca-Cola Company ............................. 7,300 367,190
Pepsico, Inc. ................................. 15,600 840,060
------------
1,207,250
SYSTEMS SOFTWARE - 5.2%
Microsoft Corporation ......................... 50,100 1,250,997
Oracle Corporation* ........................... 11,500 138,115
Veritas Software Corporation* ................. 4,800 129,168
------------
1,518,280
THRIFTS & MORTGAGE FINANCE - 0.9%
Fannie Mae .................................... 3,400 252,790
------------
Total common stocks
(cost $25,982,836) - 97.0% ................. 28,442,707
REPURCHASE AGREEMENT
State Street, 0.25%, 04-01-04
(Collateralized by FFCB bond
2.00%, 11-19-04 with a value of
$1,179,771 and a repurchase
amount of $1,156,328) ....................... $ 1,156,320 1,156,320
------------
Total repurchase agreement
(cost $1,156,320) - 4.0% ................... 1,156,320
------------
Total investments
(cost $27,139,156) - 101.0% ................ 29,599,027
Liabilities, less cash & other
assets - (1.0%) ............................ (285,804)
------------
Total net assets - 100.0% ................... $ 29,313,223
============
The identified cost of investments owned at March 31, 2004 was the same for
federal income tax and financial statement purposes.
*Non-income producing security
PERFORMANCE
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2004
1 YEAR SINCE INCEPTION
------ -----------------
A Shares 24.29% (11.88%) (5-1-00)
A Shares with sales charge 17.12% (13.20%) (5-1-00)
B Shares 23.48% (12.63%) (5-1-00)
B Shares with CDSC 18.48% (13.31%) (5-1-00)
C Shares 23.59% (12.52%) (5-1-00)
C Shares with CDSC 22.59% (12.52%) (5-1-00)
The performance data above represents past performance that is not predictive of
future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. The figures do not reflect the
deduction of taxes that a shareholder would pay on distributions or redemption
of fund shares. Such figures would be lower if the maximum sales charge and any
applicable taxes were deducted. Fee waivers reduced expenses of the Fund and in
the absence of such waiver, the performance quoted would be reduced.
29 See accompanying notes.
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30
SECURITY EQUITY FUND
MID CAP VALUE SERIES
[SECURITY FUNDS LOGO]
ADVISOR,
SECURITY MANAGEMENT COMPANY, LLC
31
SCHEDULE OF INVESTMENTS
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
MID CAP VALUE SERIES
PRINCIPAL
AMOUNT OR
NUMBER MARKET
CONVERTIBLE BONDS OF SHARES VALUE
- ----------------------------------------------- ----------- -----------
PHARMACEUTICALS - 1.3%
Ligand Pharmaceuticals,
6.00% - 20072 ............................... $ 1,250,000 $ 4,167,188
TELECOMMUNICATIONS - 0.6%
Ciena Corporation, 3.75% - 2008 ............... $ 2,250,000 2,081,250
-----------
Total convertible bonds
(cost $2,885,930) - 1.9% ................... 6,248,438
PREFERRED STOCK
DIVERSIFIED METALS & MINING - 0.1%
Arch Coal, Inc., 5.00% - 2049 ................. 4,600 395,462
-----------
Total preferred stock
(cost $230,000) - 0.1% ..................... 395,462
COMMON STOCKS
AEROSPACE & DEFENSE - 0.6%
Curtiss-Wright Corporation .................... 40,000 1,874,800
AGRICULTURAL PRODUCTS - 3.6%
Archer-Daniels-Midland Company ................ 420,000 7,085,400
Corn Products International, Inc. ............. 116,000 4,640,000
-----------
11,725,400
AIR FREIGHT & LOGISTICS - 0.8%
Airnet Systems, Inc.* ......................... 168,000 829,920
Stonepath Group, Inc.* ........................ 480,000 1,862,400
-----------
2,692,320
APPAREL RETAIL - 0.4%
Wet Seal, Inc.* ............................... 154,000 1,270,500
APPLICATION SOFTWARE - 0.4%
Plato Learning, Inc.* ......................... 30,200 304,718
Ulticom, Inc.* ................................ 97,000 995,220
-----------
1,299,938
BIOTECHNOLOGY - 0.1%
Serologicals Corporation* ..................... 21,300 434,520
BUILDING PRODUCTS - 0.0%
Griffon Corporation* .......................... 7,500 162,000
CATALOG RETAIL - 2.9%
Coldwater Creek, Inc.* ........................ 438,000 9,338,160
COMMUNICATIONS EQUIPMENT - 4.2%
Adaptec, Inc.*(1) ............................. 312,600 2,738,376
Advanced Fibre
Communications, Inc.* ....................... 222,000 4,890,660
Avanex Corporation* ........................... 1,112,400 4,805,568
Ciena Corporation*(1) ......................... 250,000 1,242,500
-----------
13,677,104
CONSTRUCTION & ENGINEERING - 5.4%
Chicago Bridge & Iron Company N.V. ............ 137,200 3,818,276
Dycom Industries, Inc.* ....................... 100,000 2,652,000
Quanta Services, Inc.* ........................ 413,800 2,929,704
Shaw Group, Inc.* ............................. 742,000 8,043,280
-----------
17,443,260
DATA PROCESSING & OUTSOURCED SERVICES - 2.3%
Computer Sciences Corporation* ................ 182,000 7,340,060
DIVERSIFIED COMMERCIAL SERVICES - 1.1%
Angelica Corporation .......................... 99,300 2,267,019
FTI Consulting, Inc.* ......................... 80,000 1,332,800
-----------
................................................ 3,599,819
DIVERSIFIED METALS & MINING - 4.6%
Arch Coal, Inc. ............................... 185,100 5,810,289
Phelps Dodge Corporation* ..................... 50,000 4,083,000
Usec, Inc. .................................... 580,000 4,901,000
-----------
14,794,289
ELECTRIC UTILITES - 3.8%
Black Hills Corporation ....................... 91,400 2,912,918
KFX, Inc.* .................................... 910,500 9,460,095
-----------
12,373,013
ELECTRICAL EQUIPMENT MANUFACTURERS - 2.2%
Maxwell Technologies, Inc.* ................... 392,500 5,102,500
Powell Industries, Inc.* ...................... 105,300 1,870,128
-----------
6,972,628
ELECTRONIC COMPONENTS & EQUIPMENT - 1.5%
Electric City Corporation PIPE*(3,4) .......... 1,518,000 2,519,880
Preformed Line Products Company ............... 1,900 48,431
Thomas & Betts Corporation* ................... 100,000 2,182,000
-----------
4,750,311
EMPLOYMENT SERVICES - 0.9%
Labor Ready, Inc.* ............................ 226,000 3,055,520
ENVIRONMENTAL SERVICES - 1.2%
Republic Services, Inc ........................ 59,000 1,597,130
TRC Companies, Inc.* .......................... 120,000 2,245,200
-----------
3,842,330
EXCHANGE TRADED FUNDS - 5.7%
iShares Russell 2000 Index Fund ............... 35,000 4,110,050
iShares Russell 2000 Value Index Fund ......... 28,500 4,879,200
iShares S&P MidCap 400/Barra
Value Index Fund ............................ 42,000 4,851,000
iShares S&P MidCap 400 Index Fund ............. 39,000 4,703,400
-----------
18,543,650
32 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
MID CAP VALUE SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- ----------------------------------------------- --------- ------------
FERTILIZERS & AGRICULTURAL CHEMICALS - 1.2%
Potash Corporation of Saskatchewan,
Inc ......................................... 45,000 $ 3,742,650
FOOTWEAR - 1.3%
Brown Shoe Company, Inc. ...................... 115,000 4,189,450
HEALTH CARE FACILITIES - 1.1%
Triad Hospitals, Inc.* ........................ 112,000 3,451,840
HEALTH CARE SERVICES - 0.5%
NDCHealth Corporation ......................... 62,600 1,699,590
HOME FURNISHINGS - 1.9%
La-Z-Boy, Inc. ................................ 100,000 2,176,000
Mohawk Industries, Inc.* ...................... 18,000 1,482,300
Stanley Furniture Company, Inc. ............... 63,000 2,446,290
------------
6,104,590
INDUSTRIAL CONGLOMERATES - 0.9%
Alleghany Corporation* ........................ 11,526 2,850,380
INDUSTRIAL MACHINERY - 2.4%
Capstone Turbine Corporation* ................. 1,350,000 3,334,500
Quixote Corporation ........................... 65,100 1,369,053
SPX Corporation ............................... 62,000 2,819,760
Valmont Industries, Inc. ...................... 12,900 257,742
------------
7,781,055
INSURANCE BROKERS - 1.5%
Aon Corporation ............................... 154,300 4,306,513
Hub International, Ltd. ....................... 21,400 392,690
------------
4,699,203
INTEGRATED OIL & GAS - 2.3%
Murphy Oil Corporation ........................ 116,000 7,304,520
INTERNET SOFTWARE & SERVICES - 0.0%
S1 Corporation* ............................... 11,550 87,780
INVESTMENT BANKING & BROKERAGE - 1.1%
American Capital Strategies, Ltd. ............. 106,600 3,543,384
IT CONSULTING & OTHER SERVICES - 2.6%
Acxiom Corporation(1) ......................... 300,000 6,588,000
Keane, Inc.* .................................. 125,000 1,967,500
------------
8,555,500
MARINE - 0.5%
Frontline, Ltd. ............................... 53,000 1,529,050
MULTI-LINE INSURANCE - 1.4%
American Financial Group, Inc. ................ 155,000 4,623,650
MULTI-UTILITIES & UNREGULATED POWER - 1.9%
Williams Companies, Inc. ...................... 630,000 6,029,100
OIL & GAS DRILLING - 3.7%
Nabors Industries, Ltd.* ...................... 53,000 2,424,750
Pride International, Inc.* .................... 175,000 2,985,500
Transocean, Inc.* ............................. 235,000 6,554,150
------------
11,964,400
OIL & GAS EQUIPMENT & SERVICES - 1.5%
Key Energy Services, Inc.* .................... 438,000 4,818,000
OIL & GAS EXPLORATION & PRODUCTION - 6.6%
Burlington Resources, Inc. .................... 48,000 3,054,240
Denbury Resources, Inc.* ...................... 264,600 4,461,156
Devon Energy Corporation ...................... 70,770 4,115,275
Evergreen Resources, Inc.* .................... 130,000 4,465,500
Pioneer Natural Resources Company ............. 80,000 2,584,000
Unocal Corporation ............................ 75,000 2,796,000
------------
21,476,171
OTHER DIVERSIFIED FINANCIAL SERVICES - 1.8%
Principal Financial Group, Inc. ............... 160,000 5,700,800
PACKAGED FOODS - 2.7%
Hain Celestial Group, Inc.* ................... 110,000 2,429,900
Hormel Foods Corporation ...................... 220,000 6,452,600
------------
8,882,500
PAPER PACKAGING - 2.0%
Bemis Company, Inc. ........................... 116,000 3,016,000
Sonoco Products Company ....................... 145,000 3,520,600
------------
6,536,600
PHARMACEUTICALS - 2.0%
Hollis-Eden Pharmaceuticals, Inc.* ............ 192,403 1,856,689
Ligand Pharmaceuticals, Inc.
(Cl.B)* ..................................... 226,800 4,558,680
------------
6,415,369
PROPERTY & CASUALTY INSURANCE - 2.2%
W.R. Berkley Corporation ...................... 180,000 7,178,400
REGIONAL BANKS - 4.6%
Corus Bankshares, Inc. ........................ 13,600 547,944
Iberiabank Corporation ........................ 20,100 1,182,885
M&T Bank Corporation .......................... 70,000 6,289,500
Mercantile Bankshares Corporation ............. 67,000 2,878,990
Wilmington Trust Corporation .................. 48,200 1,801,234
Zions Bankcorporation ......................... 38,000 2,173,600
------------
14,874,153
SEMICONDUCTORS - 1.1%
IXYS Corporation* ............................. 282,000 2,650,800
MIPS Technologies, Inc.* ...................... 6,300 36,162
Monolithic System
Technology, Inc.* ........................... 74,900 1,002,911
------------
3,689,873
SPECIALTY CHEMICALS - 1.4%
H.B. Fuller Company ........................... 100,000 2,844,000
Material Sciences Corporation* ................ 85,700 942,700
Minerals Technologies, Inc. ................... 15,000 856,500
------------
4,643,200
SPECIALTY STORES - 1.2%
Linens 'n Things, Inc.* ....................... 110,000 3,895,100
33 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
MID CAP VALUE SERIES (CONTINUED)
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- ----------------------------------------------- ----------- ------------
TIRES & RUBBER - 0.0%
Bandag, Inc. .................................. 1,400 $ 69,678
TRUCKING - 1.0%
SCS Transportation, Inc.* ..................... 11,000 239,800
Werner Enterprises, Inc. ...................... 150,000 2,842,500
------------
3,082,300
------------
Total common stocks
(cost $231,778,751) - 94.1% ................ 304,607,908
WARRANTS
Electric City Corporation ..................... 442,750 426,366
KFX, Inc. ..................................... 152,000 1,197,384
------------
Total warrants (cost $578,150) - 0.5% ....... 1,623,750
U.S. GOVERNMENT AGENCIES
Federal Home Loan Bank,
0.97%, 04-07-04 ............................. $ 2,000,000 1,999,677
Federal Home Loan Mortgage
Corporation, 0.98%, 04-27-04 . .............. $ 1,500,000 1,498,938
Federal National Mortgage
Corporation, 1.00%, 04-07-04 . .............. $ 2,000,000 1,999,667
------------
Total U.S. government agencies
(cost $5,498,282) - 1.7% ................... 5,498,282
------------
Total investments
(cost $240,971,113) - 98.3% ................ 318,373,840
Cash & other assets, less liabilities - 1.7%. 5,497,327
------------
Total net assets - 100.0% ................... $323,871,167
============
The identified cost of investments owned at March 31, 2004 was the same for
federal income tax and financial statement purposes.
*Non-income producing security
(1)Security is segregated as collateral for written option contracts.
(2)Security is a 144A Series. The total market value of 144A securities is
$4,167,188 (cost $1,250,000), or 1.3% of total net assets.
(3)PIPE (Private Investment in Public Equity) - Stock issued by a company in the
secondary market as a means of raising capital more quickly and less
expensively than through registration in a secondary public offering.
(4)Security is a restricted security. The total market value of restricted
securities is $2,519,880 (cost $2,621,436), or 0.78% of total net assets.
PERFORMANCE
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2004
1 YEAR 5 YEARS SINCE INCEPTION
------ ------- ---------------
A Shares 67.41% 19.38% 20.30% (5-1-97)
A Shares with
sales charge 57.80% 17.97% 19.27% (5-1-97)
B Shares 66.15% 18.29% 19.18% (5-1-97)
B Shares with
CDSC 61.15% 18.08% 19.18% (5-1-97)
C Shares 66.12% 18.27% 17.34% (1-29-99)
C Shares with
CDSC 65.12% 18.27% 17.34% (1-29-99)
The performance data above represents past performance that is not predictive of
future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. The figures do not reflect the
deduction of taxes that a shareholder would pay on distributions or redemption
of fund shares. Such figures would be lower if the maximum sales charge and any
applicable taxes were deducted.
34 See accompanying notes.
SECURITY EQUITY FUND
SELECT 25(R) SERIES
[SECURITY FUNDS LOGO]
ADVISOR,
SECURITY MANAGEMENT COMPANY, LLC
35
SCHEDULE OF INVESTMENTS
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
SELECT 25(R) SERIES
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- --------------------------------------------- --------- -----------
ADVERTISING - 3.7%
Omnicom Group, Inc. .............................. 12,000 $ 963,000
AEROSPACE & DEFENSE - 3.6%
L-3 Communications Holdings, Inc. ................ 16,000 951,680
AIR FREIGHT & LOGISTICS - 4.0%
FedEx Corporation ................................ 13,900 1,044,724
BIOTECHNOLOGY - 3.6%
Amgen, Inc.* ..................................... 16,100 936,537
BREWERS - 3.5%
Anheuser-Busch Companies, Inc. ................... 18,000 918,000
COMMUNICATIONS EQUIPMENT - 6.8%
ADC Telecommunications, Inc.* .................... 292,800 849,120
Cisco Systems, Inc.* ............................. 40,000 940,800
-----------
1,789,920
CONSTRUCTION & ENGINEERING - 2.8%
Shaw Group, Inc.* ................................ 68,000 737,120
DATA PROCESSING & OUTSOURCED SERVICES - 3.2%
First Data Corporation ........................... 20,000 843,200
DEPARTMENT STORES - 3.3%
Kohl's Corporation* .............................. 18,000 869,940
ELECTRIC UTILITIES - 2.3%
KFX, Inc.* ....................................... 57,000 592,230
HEALTH CARE DISTRIBUTORS - 3.9%
Cardinal Health, Inc. ............................ 15,000 1,033,500
HEALTH CARE EQUIPMENT - 3.3%
Medtronic, Inc. .................................. 18,000 859,500
HOME IMPROVEMENT RETAIL - 2.1%
Home Depot, Inc. ................................. 15,000 560,400
HOTELS, RESORTS & CRUISE LINES - 3.2%
Carnival Corporation ............................. 19,000 853,290
HYPERMARKETS & SUPERCENTERS - 3.6%
Wal-Mart Stores, Inc. ............................ 16,000 955,040
INDUSTRIAL CONGLOMERATES - 2.2%
3M Company ....................................... 7,000 573,090
INDUSTRIAL GASES - 2.8%
Praxair, Inc. .................................... 20,000 742,400
LIFE & HEALTH INSURANCE - 3.8%
Aflac, Inc. ...................................... 25,000 1,003,500
MOTORCYCLE MANUFACTURERS - 3.3%
Harley-Davidson, Inc. ............................ 16,000 853,440
MOVIES & ENTERTAINMENT - 5.9%
Time Warner, Inc.* ............................... 30,600 515,916
Viacom, Inc. (Cl.B) .............................. 26,100 1,023,381
-----------
1,539,297
MULTI-LINE INSURANCE - 3.8%
American International Group, Inc. ............... 14,000 998,900
MULTI-UTILITIES & UNREGULATED POWER - 3.0%
Williams Companies, Inc. ......................... 82,000 784,740
OIL & GAS EQUIPMENT & SERVICES - 4.0%
BJ Services Company* ............................. 24,000 1,038,480
OTHER DIVERSIFIED FINANCIAL SERVICES - 4.2%
Citigroup, Inc. .................................. 21,300 1,101,210
PHARMACEUTICALS - 6.2%
Johnson & Johnson ................................ 15,000 760,800
Pfizer, Inc. ..................................... 25,000 876,250
-----------
1,637,050
SEMICONDUCTORS - 3.7%
Analog Devices, Inc. ............................. 20,000 960,200
SOFT DRINKS - 4.1%
Pepsico, Inc. .................................... 20,000 1,077,000
-----------
Total common stocks
(cost $23,999,050) - 99.9% ..................... 26,217,388
REPURCHASE AGREEMENT
United Missouri Bank, 0.65%, 04-01-04
(Collateralized by FNMA bond, 04-01-04
with a value of $34,000 and a
repurchase amount of $33,001) .................. $ 33,000 33,000
-----------
Total repurchase agreement
(cost $33,000) - 0.1% ......................... 33,000
-----------
Total investments (cost $24,032,050) - 100.0% .. 26,250,388
Liabilities, less cash & other assets - 0.0% ... (13,274)
-----------
Total net assets - 100.0% ...................... $26,237,114
===========
The identified cost of investments owned at March 31, 2004 was the same for
federal income tax and financial statement purposes.
*Non-income producing security
36 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
SELECT 25(R) SERIES (CONTINUED)
PERFORMANCE
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2004
1 YEAR 5 YEARS SINCE INCEPTION
------ ------- -----------------
A Shares 25.04% (4.67%) (3.79%) (1-29-99)
A Shares with
sales charge 17.84% (5.78%) (4.88%) (1-29-99)
B Shares 24.21% (5.33%) (4.45%) (1-29-99)
B Shares with CDSC 19.21% (5.71%) (4.45%) (1-29-99)
C Shares 24.14% (5.30%) (4.41%) (1-29-99)
C Shares with CDSC 23.14% (5.30%) (4.41%) (1-29-99)
The performance data above represents past performance that is not predictive of
future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. The figures do not reflect the
deduction of taxes that a shareholder would pay on distributions or redemption
of fund shares. Such figures would be lower if the maximum sales charge and any
applicable taxes were deducted.
37 See accompanying notes.
This page left intentionally blank.
38
SECURITY EQUITY FUND
SMALL CAP GROWTH SERIES
RS INVESTMENTS
SUBADVISOR,
RS INVESTMENTS
39
SCHEDULE OF INVESTMENTS
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
SMALL CAP GROWTH SERIES
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- -------------------------------------------- --------- ----------
AEROSPACE & DEFENSE - 1.6%
Applied Signal Technologies, Inc. .......... 8,600 $ 234,952
EDO Corporation ............................ 11,300 272,104
----------
507,056
AIR FREIGHT & LOGISTICS - 1.9%
Dynamex, Inc.* ............................. 24,800 349,184
Stonepath Group, Inc.* ..................... 57,700 223,876
----------
573,060
AIRLINES - 0.8%
Pinnacle Airlines Corporation* ............. 19,150 254,695
APPAREL RETAIL - 2.7%
Casual Male Retail Group, Inc.* ............ 27,600 285,384
Charlotte Russe Holding, Inc.* ............. 15,900 290,970
Hot Topic, Inc.* ........................... 10,350 273,757
----------
850,111
APPAREL, ACCESSORIES & LUXURY GOODS - 4.0%
Ashworth, Inc.* ............................ 33,650 292,755
Guess?, Inc.* .............................. 15,600 281,268
Oxford Industries, Inc. .................... 6,500 300,235
Warnaco Group, Inc.* ....................... 17,800 357,602
----------
1,231,860
APPLICATION SOFTWARE - 0.7%
Synplicity, Inc.* .......................... 31,200 224,640
BIOTECHNOLOGY - 1.6%
Alexion Pharmaceuticals, Inc.* ............. 13,050 310,068
Genome Therapeutics Corporation* ........... 34,000 191,420
----------
501,488
CASINOS & GAMING - 2.6%
Multimedia Games, Inc.* .................... 9,960 246,410
Scientific Games Corporation* .............. 29,800 557,856
----------
804,266
COMMUNICATIONS EQUIPMENT - 1.9%
Ixia* ...................................... 23,100 249,942
Netsolve, Inc.* ............................ 21,000 217,350
Telular Corporation* ....................... 8,800 127,160
----------
594,452
COMPUTER STORAGE & PERIPHERALS - 1.6%
M-Systems Flash Dick Pioneers Ltd.* ........ 15,750 320,985
Synaptics, Inc.* ........................... 9,900 173,646
----------
494,631
CONSUMER FINANCE - 2.6%
Ezcorp, Inc.* .............................. 26,200 269,336
Saxon Capital, Inc.* ....................... 10,900 309,669
World Acceptance Corporation* .............. 11,450 223,390
----------
802,395
DATA PROCESSING & OUTSOURCED SERVICE - 0.7%
Per-Se Technologies, Inc.* ................. 18,300 204,960
DIVERSIFIED COMMERCIAL SERVICES - 2.2%
Marlin Business Services, Inc.* ............ 17,050 286,951
Sylvan Learning Systems, Inc.* ............. 11,550 405,521
----------
692,472
ELECTRONIC EQUIPMENT MANUFACTURERS - 0.6%
Sypris Solutions, Inc. ..................... 11,450 194,650
EMPLOYMENT SERVICES - 0.9%
Kforce, Inc.* .............................. 29,200 277,400
FOOD RETAIL - 0.5%
Wild Oats Market, Inc.* .................... 12,100 143,143
HEALTH CARE EQUIPMENT - 3.5%
Dade Behring Hldgs, Inc.* .................. 5,600 249,032
I-Flow Corporation* ........................ 14,050 197,824
Intuitive Surgical, Inc.* .................. 17,300 294,100
North American Scientific, Inc.* ........... 22,700 227,000
Thermogenesis Corporation* ................. 30,400 120,080
----------
1,088,036
HEALTH CARE FACILITIES - 2.3%
Kindred Healthcare, Inc.* .................. 7,100 357,130
Labone, Inc.* .............................. 12,050 366,320
----------
723,450
HEALTH CARE SERVICES - 5.3%
Allscripts Healthcare Solutions, Inc.* ..... 33,700 326,890
America Service Group, Inc.* ............... 9,100 312,130
Inveresk Research Group, Inc.* ............. 8,800 250,096
Matria Healthcare, Inc.* ................... 3,600 91,152
Merge Technologies, Inc.* .................. 19,700 288,211
Providence Service Corporation* ............ 21,450 382,239
----------
1,650,718
HEALTH CARE SUPPLIES - 1.0%
Tripath Imaging, Inc.* ..................... 32,600 298,616
HOME FURNISHINGS - 1.1%
Kirkland's, Inc.* .......................... 20,900 341,297
INTERNET SOFTWARE & SERVICES - 9.8%
Cnet Networks, Inc.* ....................... 32,300 333,659
Digitas, Inc.* ............................. 31,050 319,504
Embarcadero Technologies, Inc.* ............ 19,700 252,948
Equinix, Inc.* ............................. 9,400 340,383
Infospace, Inc.* ........................... 9,450 367,322
Keynote Systems, Inc.* ..................... 24,500 315,315
Radware Ltd.* .............................. 11,100 294,816
Tumbleweed Communications Corporation* ..... 28,850 202,238
United Online, Inc.* ....................... 17,000 283,220
Valueclick, Inc.* .......................... 32,100 346,680
----------
3,056,085
40 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
SMALL CAP GROWTH SERIES (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- -------------------------------------------- --------- ----------
IT CONSULTING & OTHER SERVICES - 2.0%
Lionbridge Technologies, Inc.* ............. 34,200 $ 332,766
Sapient Corporation* ....................... 45,500 274,365
----------
607,131
LEISURE PRODUCTS - 1.1%
K2, Inc.* .................................. 20,650 331,020
MANAGED HEALTH CARE - 1.6%
American Medical Security Group, Inc.* ..... 18,900 504,819
MOVIES & ENTERTAINMENT - 1.4%
Image Entertainment, Inc.* ................. 65,300 215,490
NTN Communications, Inc.* .................. 72,750 210,975
----------
426,465
OIL & GAS DRILLING - 2.0%
Grey Wolf, Inc.* ........................... 74,150 306,981
Unit Corporation* .......................... 11,900 326,298
----------
633,279
OIL & GAS EQUIPMENT & SERVICES - 3.2%
Cal Dive International, Inc.* .............. 12,700 328,041
Oil States International, Inc.* ............ 22,750 305,760
Superior Energy Services, Inc.* ............ 34,600 348,768
----------
982,569
PACKAGED FOODS & MEATS - 1.0%
Peets Coffee & Tea, Inc.* .................. 15,000 319,500
PHARMACEUTICALS - 5.9%
Atherogenics, Inc.* ........................ 10,450 238,991
Bradley Pharmaceuticals, Inc.* ............. 11,000 276,980
Corgentech, Inc.* .......................... 10,200 191,760
Discovery Labratories, Inc.* ............... 18,200 221,858
Durect Corporation* ........................ 62,600 212,840
Penwest Pharmaceuticals, Company* .......... 12,250 178,973
Pozen, Inc.* ............................... 16,850 232,867
Salix Pharmaceuticals, Ltd.* ............... 9,920 287,878
----------
1,842,147
PROPERTY & CASUALTY INSURANCE - 2.4%
Infinity Property & Casualty Corporation ... 13,350 419,591
Proassurance Corporation* .................. 8,850 309,750
----------
729,341
REGIONAL BANKS - 1.3%
First Community Bancorp .................... 1,250 46,737
Nara Bancorp, Inc. ......................... 7,550 223,631
Privatebancorp, Inc. ....................... 2,830 145,971
----------
416,339
REINSURANCE - 1.0%
Scottish Reinsurance Group, Ltd. ........... 13,350 322,937
RESTAURANTS - 1.9%
Buffalo Wild Wings, Inc.* .................. 10,300 294,889
Rare Hospitality International, Inc.* ...... 10,800 299,700
----------
594,589
SEMICONDUCTOR EQUIPMENT - 2.8%
Genus, Inc.* ............................... 57,450 217,161
Logicvision, Inc.* ......................... 49,500 207,405
Mykrolis Corporation* ...................... 16,300 232,438
Ultratech, Inc.* ........................... 9,250 215,617
----------
872,621
SEMICONDUCTORS - 7.5%
Artisan Components, Inc.* .................. 11,400 254,106
Chippac, Inc.* ............................. 34,800 275,268
Exar Corporation* .......................... 15,150 280,275
O2Micro International Ltd.* ................ 20,800 358,384
PLX Technology, Inc.* ...................... 32,850 353,795
Power Integrations, Inc.* .................. 8,100 237,573
SRS Labs, Inc.* ............................ 28,500 173,280
Semtech Corporation* ....................... 3,100 70,773
Trident Microsystems, Inc.* ................ 5,800 92,510
Zoran Corporation* ......................... 13,600 236,096
----------
2,332,060
SPECIALTY STORES - 4.8%
Aaron Rents, Inc. .......................... 16,050 399,484
Cost Plus, Inc.* ........................... 6,250 260,938
Guitar Center, Inc.* ....................... 13,100 486,534
TBC Corporation* ........................... 11,950 350,972
----------
1,497,928
STEEL - 1.0%
Graftech International, Ltd.* .............. 20,200 301,990
SYSTEMS SOFTWARE - 1.7%
Citadel Security Software, Inc.* ........... 51,100 244,769
Clicksoftware Company* ..................... 68,100 271,038
----------
515,807
THRIFTS & MORTGAGE FINANCE - 1.0%
Franklin Bank Corporation* ................. 15,950 296,511
TRUCKING - 2.0%
Old Dominion Freight Line, Inc.* ........... 9,900 333,630
Vitran Corporation, Inc.* .................. 20,150 292,175
----------
625,805
----------
Total common stocks
(cost $22,999,676) - 95.5% 29,662,339
41 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
SMALL CAP GROWTH SERIES (CONTINUED)
PRINCIPAL MARKET
REPURCHASE AGREEMENT AMOUNT VALUE
- -------------------------------------------------- ---------- -----------
United Missouri Bank, 0.65%, 04-01-04
(Collateralized by FNMA bond,
04-01-04 with a value of $1,481,000
and a repurchase amount of $1,451,025)............ $1,451,000 $ 1,451,000
-----------
Total repurchase agreement
(cost $1,451,000) - 4.7%......................... 1,451,000
-----------
Total investments
(cost $24,450,676) - 100.2%...................... 31,113,339
Liabilities, less cash & other assets - (0.2%).... (42,274)
-----------
Total net assets - 100.0%......................... $31,071,065
===========
The identified cost of investments owned at March 31, 2004 was the same for
federal income tax and financial statement purposes.
*Non-income producing security
PERFORMANCE
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2004
1 YEAR 5 YEARS SINCE INCEPTION
------ ------- -----------------
A Shares 75.22% 7.61% 6.84% (10-15-97)
A Shares with sales charge 65.15% 6.34% 5.86% (10-15-97)
B Shares 74.02% 6.66% 5.83% (10-15-97)
B Shares with CDSC 69.02% 6.34% 5.83% (10-15-97)
C Shares 73.98% 6.68% 5.42% (1-29-99)
C Shares with CDSC 72.98% 6.68% 5.42% (1-29-99)
The performance data above represents past performance that is not predictive of
future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. The figures do not reflect the
deduction of taxes that a shareholder would pay on distributions or redemption
of fund shares. Such figures would be lower if the maximum sales charge and any
applicable taxes were deducted. Fee waivers reduced expenses for the Fund and in
the absence of such waiver, the performance quoted would be reduced.
42 See accompanying notes.
SECURITY EQUITY FUND
SOCIAL AWARENESS SERIES
[SECURITY FUNDS LOGO]
ADVISOR,
SECURITY MANAGEMENT COMPANY, LLC
43
SCHEDULE OF INVESTMENTS
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
SOCIAL AWARENESS SERIES
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- -------------------------------------------- --------- ----------
ADVERTISING - 1.9%
Omnicom Group, Inc. ........................ 4,400 $ 353,100
AIR FREIGHT & LOGISTICS - 2.1%
FedEx Corporation .......................... 5,200 390,832
AIRLINES - 0.6%
Southwest Airlines Company ................. 7,300 103,733
APPLICATION SOFTWARE - 0.7%
Intuit, Inc.* .............................. 2,900 130,152
ASSET MANAGEMENT & CUSTODY BANKS - 0.8%
Bank of New York Company, Inc. ............. 4,700 148,050
BIOTECHNOLOGY - 3.0%
Amgen, Inc.* ............................... 9,500 552,615
BROADCASTING & CABLE TV - 2.0%
Comcast Corporation* ....................... 12,737 366,061
COMMUNICATIONS EQUIPMENT - 6.2%
ADC Telecommunications, Inc.* .............. 77,500 224,750
Cisco Systems, Inc.* ....................... 33,300 783,216
Qualcomm, Inc. ............................. 1,900 126,198
----------
1,134,164
COMPUTER HARDWARE - 2.2%
Dell Computer Corporation* ................. 11,700 393,354
CONSUMER FINANCE - 3.5%
American Express Company ................... 6,200 321,470
MBNA Corporation ........................... 11,900 328,797
----------
650,267
DEPARTMENT STORES - 1.3%
Kohl's Corporation* ........................ 4,800 231,984
DIVERSIFIED BANKS - 4.7%
Bank of America Corporation ................ 5,000 404,900
Wells Fargo & Company ...................... 8,200 464,694
----------
869,594
DIVERSIFIED CAPITAL MARKETS - 1.2%
J.P. Morgan Chase & Company ................ 5,300 222,335
DRUG RETAIL - 1.1%
CVS Corporation ............................ 5,900 208,270
ELECTRONIC MANUFACTURING SERVICES - 1.0%
Molex, Inc. ................................ 6,100 185,379
GENERAL MERCHANDISE STORES - 1.9%
Target Corporation ......................... 7,900 355,816
HEALTH CARE DISTRIBUTORS - 2.5%
Cardinal Health, Inc. ...................... 6,612 455,567
HEALTH CARE EQUIPMENT - 2.3%
Medtronic, Inc. ............................ 9,000 429,750
HOME IMPROVEMENT RETAIL - 3.3%
Home Depot, Inc. ........................... 12,600 470,736
Lowe's Companies, Inc. ..................... 2,300 129,099
----------
599,835
HOUSEHOLD PRODUCTS - 4.9%
Colgate-Palmolive Company .................. 5,300 292,030
Procter & Gamble Company ................... 5,700 597,816
----------
889,846
INDUSTRIAL CONGLOMERATES - 1.4%
3M Company ................................. 3,200 261,984
INDUSTRIAL GASES - 1.5%
Praxair, Inc. .............................. 7,400 274,688
INSURANCE BROKERS - 0.8%
Marsh & McLennan Companies, Inc. ........... 3,000 138,900
INTEGRATED TELECOMMUNICATION SERVICES - 3.8%
SBC Communications, Inc. ................... 10,948 268,664
Verizon Communications, Inc. ............... 11,500 420,210
----------
688,874
INVESTMENT BANKING & BROKERAGE - 1.8%
Goldman Sachs Group, Inc. .................. 1,800 187,830
Merrill Lynch & Company, Inc. .............. 2,500 148,900
----------
336,730
LIFE & HEALTH INSURANCE - 1.5%
Aflac, Inc. ................................ 6,700 268,938
MOTORCYCLE MANUFACTURERS - 2.0%
Harley-Davidson, Inc. ...................... 6,700 357,378
MOVIES & ENTERTAINMENT - 3.9%
Time Warner, Inc.* ......................... 18,500 311,910
Viacom, Inc. (Cl.B) ........................ 10,300 403,863
----------
715,773
MULTI-LINE INSURANCE - 4.9%
American International Group, Inc. ......... 12,654 902,863
OIL & GAS EQUIPMENT & SERVICES - 1.2%
BJ Services Company* ....................... 5,100 220,677
OIL & GAS EXPLORATION & PRODUCTION - 0.8%
Devon Energy Corporation ................... 2,400 139,560
PERSONAL PRODUCTS - 0.6%
Avon Products, Inc. ........................ 1,400 106,218
PHARMACEUTICALS - 5.5%
Johnson & Johnson .......................... 13,204 669,707
Merck & Company, Inc. ...................... 7,600 335,844
----------
1,005,551
44 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND -
SOCIAL AWARENESS SERIES (CONTINUED)
PRINCIPAL
AMOUNT OR
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- -------------------------------------------- --------- -----------
PROPERTY & CASUALTY INSURANCE - 2.4%
Chubb Corporation .......................... 6,400 $ 445,056
SEMICONDUCTOR EQUIPMENT - 0.7%
Applied Materials, Inc.* ................... 6,200 132,556
SEMICONDUCTORS - 4.6%
Analog Devices, Inc. ....................... 4,500 216,045
Intel Corporation .......................... 15,800 429,760
Texas Instruments, Inc. .................... 6,900 201,618
-----------
847,423
SOFT DRINKS - 5.6%
Coca-Cola Company .......................... 9,300 467,790
Pepsico, Inc. .............................. 10,300 554,655
-----------
1,022,445
SYSTEMS SOFTWARE - 5.7%
Microsoft Corporation ...................... 38,900 971,333
Veritas Software Corporation* .............. 3,000 80,730
-----------
1,052,063
THRIFTS & MORTGAGE FINANCE -0.8%
Fannie Mae ................................. 2,000 148,700
-----------
Total common stocks
(cost $18,054,419) - 96.7% ............... 17,737,081
REPURCHASE AGREEMENT
United Missouri Bank, 0.65%, 04-01-04
(Collateralized by FNMA bond,
04-01-04, with a value of
$624,000 and a repurchase
amount of $611,009) ....................... $ 611,000 611,000
-----------
Total repurchase agreement
(cost $611,000) - 3.4% ................... 611,000
-----------
Total investments
(cost $18,665,419) - 100.1% .............. 18,348,081
Liabilities, less cash & other assets - (0.1%) (12,678)
-----------
Total net assets - 100.0% $18,335,403
===========
The identified cost of investments owned at March 31, 2004 was the same fo
federal income tax and financial statement purposes.
*Non-income producing security
PERFORMANCE
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2004
1 YEAR 5 YEARS SINCE INCEPTION
------ ------- ------------------
A Shares 26.49% (3.59%) 4.31% (11-1-96)
A Shares with sales charge 19.22% (4.73%) 3.48% (11-1-96)
B Shares 25.54% (4.52%) 3.27% (11-1-96)
B Shares with CDSC 20.54% (4.90%) 3.27% (11-1-96)
C Shares 25.58% (4.53%) (4.61%) (1-29-99)
C Shares with CDSC 24.58% (4.53%) (4.61%) (1-29-99)
The performance data above represents past performance that is not predictive of
future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. The figures do not reflect the
deduction of taxes that a shareholder would pay on distributions or redemption
of fund shares. Such figures would be lower if the maximum sales charge and any
applicable taxes were deducted. Fee waivers reduced expenses of the Fund and in
the absence of such waiver, the performance quoted would be reduced.
45 See accompanying notes.
This page left intentionally blank.
46
SECURITY LARGE CAP
VALUE FUND
YOU, YOUR ADVISOR AND
[DREYFUS LOGO]
SUBADVISOR,
THE DREYFUS CORPORATION
47
SCHEDULE OF INVESTMENTS
MARCH 31, 2004
(UNAUDITED)
SECURITY LARGE CAP VALUE FUND
PRINCIPAL AMOUNT
OR NUMBER MARKET
CORPORATE BONDS OF SHARES VALUE
- --------------- --------- -----
HEALTH CARE - 0.0%
Alderwoods Group, Inc.,
12.25% - 2009 ................................... $ 10,200 $ 11,424
Multicare Companies, Inc.,
0.00% - 2007*(2) ................................ $ 200,000 -
------------
11,424
REFINING - 0.2%
Crown Central Petroleum,
10.875% - 2005 .................................. $ 200,000 138,000
SERVICES - 0.0%
American Eco Corporation,
9.625% - 2008*(1) ............................... $ 125,000 12
------------
Total corporate bonds
(cost $424,918) - 0.2% ......................... 149,436
PREFERRED STOCK
MOVIES & ENTERTAINMENT - 1.7%
News Corporation, Ltd. ADR ........................ 36,700 1,163,757
------------
Total preferred stock
(cost $882,830) - 1.7% ......................... 1,163,757
COMMON STOCKS
ADVERTISING - 1.5%
Interpublic Group of Companies,
Inc.* ........................................... 22,000 338,360
Omnicom Group, Inc. ............................... 8,700 698,175
------------
1,036,535
AEROSPACE & DEFENSE - 4.7%
Boeing Corporation ................................ 16,100 661,227
Rockwell Collins, Inc. ............................ 16,100 508,921
United Technologies Corporation 23,900 2,062,570
------------
3,232,718
ALUMINUM - 1.2%
Alcoa, Inc. ....................................... 23,200 804,808
APPAREL RETAIL - 2.5%
Abercrombie & Fitch Company ....................... 28,700 971,208
Limited Brands .................................... 38,400 768,000
------------
1,739,208
APPAREL, ACCESSORIES & LUXURY GOODS - 1.1%
Jones Apparel Group, Inc. ......................... 20,300 733,845
BROADCASTING & CABLE TV- 2.7%
Clear Channel Communications,
Inc.* ........................................... 16,800 711,480
Liberty Media Corporation* ........................ 109,500 1,199,025
------------
1,910,505
COMMUNICATIONS EQUIPMENT - 5.5%
Comverse Technology, Inc.* ........................ 50,100 908,814
Nokia Oyj ADR ..................................... 90,600 1,837,368
Telefonaktiebolaget LM
Ericsson ADR* ................................... 24,600 682,650
Tellabs, Inc.* .................................... 41,300 356,419
------------
3,785,251
COMPUTER HARDWARE - 2.0%
International Business Machines
Corporation ..................................... 8,900 817,376
NCR Corporation* .................................. 12,400 546,344
------------
1,363,720
CONSTRUCTION & FARM MACHINERY - 0.7%
Deer & Company .................................... 6,700 464,377
CONSUMER ELECTRONICS - 1.9%
Koninklijke (Royal) Philips Electronics
N.V. ADR ........................................ 44,500 1,289,610
CONSUMER FINANCE - 0.9%
American Express Company .......................... 12,600 653,310
DATA PROCESSING & OUTSOURCED SERVICE - 3.4%
Automatic Data Processing, Inc. ................... 25,700 1,079,400
DST Systems, Inc.* ................................ 13,200 598,620
Sungard Data Systems, Inc.* ....................... 23,600 646,640
------------
2,324,660
DIVERSIFIED BANKS - 6.5%
Bank of America Corporation ....................... 12,300 996,054
Comerica, Inc. .................................... 6,800 369,376
Fleetboston Financial Corporation 32,100 1,441,290
U.S. Bancorp ...................................... 37,300 1,031,345
Wachovia Corporation .............................. 14,800 695,600
------------
4,533,665
DIVERSIFIED CAPITAL MARKETS - 3.2%
J.P. Morgan Chase & Company ....................... 52,900 2,219,155
ELECTRICAL COMPONENTS & EQUIPMENT - 1.0%
Emerson Electric Company .......................... 11,800 707,056
FOOD RETAIL - 1.2%
Kroger Company* ................................... 17,900 297,856
Safeway, Inc* ..................................... 27,500 565,950
------------
863,806
HEALTH CARE EQUIPMENT - 0.8%
Boston Scientific Corporation* .................... 12,500 529,750
HEALTH CARE FACILITIES - 0.0%
Genesis Healthcare Corporation* 113 2,752
48 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY LARGE CAP VALUE FUND (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- ------------------------- --------- -----
HEALTH CARE SERVICES - 0.0%
Neighborcare, Inc. ................................ 227 $ 5,505
HOUSEHOLD APPLIANCES - 0.6%
Black & Decker Corporation ........................ 7,300 415,662
INDUSTRIAL MACHINERY - 1.3%
Eaton Corporation ................................. 15,500 870,945
INSURANCE BROKERS - 0.8%
Marsh & McLennan Companies,
Inc. ............................................ 12,300 569,490
INTEGRATED OIL & GAS - 4.9%
BP plc ADR ........................................ 19,700 1,008,640
Exxon Mobil Corporation ........................... 32,200 1,339,198
Total S.A. ........................................ 11,500 1,058,000
------------
3,405,838
INTEGRATED TELECOMMUNICATION SERVICES - 3.6%
Alltel Corporation ................................ 13,900 693,471
Sprint Corporation (FON Group) .................... 44,800 825,664
Verizon Communications, Inc. ...................... 26,200 957,348
------------
2,476,483
INVESTMENT BANKING & BROKERAGE - 10.3%
Goldman Sachs Group, Inc. ......................... 22,700 2,368,745
Lehman Brothers Holdings, Inc. .................... 10,100 836,987
Merrill Lynch & Company, Inc. ..................... 28,700 1,709,372
Morgan Stanley .................................... 38,500 2,206,050
------------
7,121,154
MANAGED HEALTH CARE - 0.1%
Pacificare Health Systems, Inc. ................... 2,200 87,010
MOVIES & ENTERTAINMENT - 3.0%
Viacom, Inc. (Cl.B) ............................... 36,000 1,411,560
Walt Disney Company ............................... 27,200 679,728
------------
2,091,288
MULTI-LINE INSURANCE - 2.1%
American International
Group, Inc. ..................................... 15,000 1,070,250
Hartford Financial Services
Group, Inc. ..................................... 6,000 382,200
------------
1,452,450
OFFICE ELECTRONICS - 1.3%
Xerox Corporation* ................................ 61,500 896,055
OIL & GAS EQUIPMENT & SERVICES - 1.6%
Schlumberger, Ltd. ................................ 17,300 1,104,605
OIL & GAS EXPLORATION & PRODUCTION - 1.0%
Anadarko Petroleum Corporation 13,800 715,668
OTHER DIVERSIFIED FINANACIAL SERVICES - 5.5%
Citigroup, Inc. ................................... 60,666 3,136,432
Principal Financial Group, Inc. ................... 19,400 691,222
------------
3,827,654
PAPER PRODUCTS - 0.5%
International Paper Company ....................... 7,500 316,950
PHARMACEUTICALS - 3.4%
Novartis AG - ADR ................................. 16,100 677,166
Pfizer, Inc. ...................................... 23,860 836,293
Wyeth ............................................. 22,800 856,140
------------
2,369,599
PROPERTY & CASUALTY INSURANCE - 2.9%
Allstate Corporation .............................. 30,000 1,363,800
Travelers Property Casualty
Corporation ..................................... 36,000 617,400
------------
1,981,200
PUBLISHING - 1.5%
Gannett Company, Inc .............................. 12,000 1,057,680
RAILROADS - 1.0%
Union Pacific Corporation ......................... 11,100 664,002
RESTAURANTS - 1.7%
Brinker International, Inc.* ...................... 10,000 379,300
McDonald's Corporation ............................ 27,200 777,104
------------
1,156,404
SEMICONDUCTORS - 2.8%
Agere Systems, Inc.* .............................. 142,500 457,425
Intel Corporation ................................. 33,600 913,920
Stmicroelectronics N.V.* .......................... 23,200 547,520
------------
1,918,865
SYSTEMS SOFTWARE - 3.3%
BMC Software, Inc.* ............................... 16,500 322,575
Microsoft Corporation ............................. 78,600 1,962,642
------------
2,285,217
THRIFTS & MORTGAGE FINANCE - 1.1%
Fannie Mae ........................................ 10,700 795,545
WIRELESS TELECOMMUNICATION SERVICES - 1.2%
Sprint Corporation (PCS Group)* ................... 89,400 822,480
------------
Total common stocks
(cost $58,636,654) - 96.3% ..................... 66,602,480
less liabilities - 1.8% ........................ 1,259,789
Total investments
(cost $59,944,402) - 98.2% ..................... 67,915,673
Cash & other assets,
less liabilities - 1.8% ........................ 1,259,789
------------
Total net assets - 100.0% .......................
$ 69,175,462
============
49 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY LARGE CAP VALUE FUND (CONTINUED)
The identified cost of investments owned at March 31, 2004 was the same for
federal income tax and financial statement purposes.
*Non-income producing security
ADR (American Depositary Receipt)
plc (public limited company)
(1)Security is in default due to bankruptcy.
(2)Security is fair valued by the Board of Directors. The total market value of
fair valued securities amounts to $0 or 0.0% of total assets.
PERFORMANCE
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2004
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
A Shares 38.29% (2.22%) 5.38% N/A
A Shares with
sales charge 30.39% (3.36%) 4.76% N/A
B Shares 37.23% (3.13%) 4.51% N/A
B Shares with
CDSC 32.23% (3.52%) 4.51% N/A
C Shares 37.32% (3.16%) N/A (2.79%)
(1-29-99)
C Shares with
CDSC 36.32% (3.16%) N/A (2.79%)
(1-29-99)
The performance data above represents past performance that is not predictive of
future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. The figures do not reflect the
deduction of taxes that a shareholder would pay on distributions or redemption
of fund shares. Such figures would be lower if the maximum sales charge and any
applicable taxes were deducted.
50
SECURITY MID CAP
GROWTH FUND
[SECURITY FUNDS LOGO]
ADVISOR,
SECURITY MANAGEMENT COMPANY, LLC
51
SCHEDULE OF INVESTMENTS
MARCH 31, 2004
(UNAUDITED)
SECURITY MID CAP GROWTH FUND
NUMBER MARKET
COMMON STOCKS OF SHARES VALUE
- ------------- --------- -----
APPLICATION SOFTWARE - 2.3%
Cognos, Inc.* ................................ 4,100 $ 127,346
Hyperion Solutions Corporation* .............. 50,000 2,072,500
Intelidata Technologies Corporation* ......... 393,250 487,630
Tibco Software, Inc.* ........................ 289,600 2,366,032
-----------
5,053,508
ASSET MANAGEMENT & CUSTODY BANKS - 1.8%
Northern Trust Corporation ................... 49,000 2,282,910
Waddell & Reed Financial, Inc. ............... 70,000 1,716,400
-----------
3,999,310
BIOTECHNOLOGY - 4.4%
Cell Genesys, Inc.* .......................... 54,000 650,160
Charles River Laboratories
International, Inc.* ....................... 34,000 1,456,900
Exact Sciences Corporation* .................. 168,100 1,306,137
Kosan Biosciences, Inc. ...................... 169,100 1,787,387
Novavax, Inc.* ............................... 126,000 738,360
Sciclone Pharmaceuticals, Inc.* .............. 339,367 1,832,582
Strategic Diagnostics, Inc.* ................. 206,300 814,885
Vical, Inc.* ................................. 156,000 951,600
-----------
9,538,011
CASINOS & GAMING - 0.8%
Gtech Holdings Corporation ................... 30,000 1,774,200
COMMUNICATIONS EQUIPMENT - 10.9%
ADC Telecommunications, Inc.* ................ 1,035,000 3,001,500
Adaptec, Inc.* ............................... 213,500 1,870,260
Advanced Fibre
Communications, Inc.* ...................... 51,500 1,134,545
Avici Systems, Inc.* ......................... 68,000 926,160
Ciena Corporation* ........................... 280,000 1,391,600
Cisco Systems, Inc.* ......................... 39,700 933,744
Commscope, Inc.* ............................. 160,000 2,664,000
EFJ, Inc.* ................................... 255,650 1,188,772
Extreme Networks, Inc.* ...................... 250,000 1,802,500
Finisar Corporation* ......................... 1,000,000 2,180,000
Harmonic, Inc.* .............................. 98,800 953,420
Harris Corporation ........................... 53,700 2,599,617
Symmetricom, Inc.* ........................... 126,000 1,130,220
Terayon Communication
Systems, Inc.* ............................. 580,000 1,983,600
-----------
23,759,938
COMPUTER STORAGE & PERIPHERALS - 1.2%
Maxtor Corporation* .......................... 38,867 316,766
Storage Technology Corporation* .............. 80,000 2,226,400
-----------
2,543,166
CONSTRUCTION & ENGINEERING - 1.3%
Shaw Group, Inc.* ............................ 253,700 2,750,108
DATA PROCESSING & OUTSOURCED SERVICE - 1.3%
Computer Sciences Corporation* ............... 64,500 2,601,285
Sabre Holdings Corporation ................... 6,700 166,227
-----------
2,767,512
DIVERSIFIED COMMERCIAL SERVICES - 1.6%
Cendant Corporation .......................... 20,000 487,800
Choicepoint, Inc.* ........................... 47,000 1,787,410
Navigant Consulting, Inc.* ................... 64,800 1,310,904
-----------
3,586,114
ELECTRIC UTILITIES - 3.7%
KFX, Inc.* ................................... 780,000 8,104,200
ELECTRICAL COMPONENTS & EQUIPMENT - 5.0%
American Power Conversion
Corporation ................................ 2,600 59,826
Electric City Corporation*(2,3) .............. 1,068,000 1,772,880
Plug Power, Inc.* ............................ 504,000 3,890,880
Power-One, Inc.* ............................. 470,000 5,198,200
-----------
10,921,786
ELECTRONIC EQUIPMENT MANUFACTURERS - 3.6%
Aeroflex, Inc.* .............................. 180,000 2,422,800
Identix, Inc.* ............................... 59,400 343,273
Maxwell Technologies, Inc.* .................. 310,000 4,030,000
Universal Display Corporation* ............... 92,900 1,191,907
-----------
7,987,980
EXCHANGE TRADED FUNDS - 5.7%
iShares Russell 2000 Growth
Index Fund ................................. 34,900 2,177,760
iShares Russell 2000 Index Fund .............. 19,000 2,231,170
iShares S&P MidCap 400/BARRA
Growth Index Fund .......................... 30,000 3,721,200
iShares S&P MidCap 400
Index Fund ................................. 18,200 2,194,920
Midcap SPDR Trust, Series 1 .................. 20,000 2,205,200
-----------
12,530,250
HEALTH CARE EQUIPMENT - 0.4%
Bioject Medical Technologies, Inc.* .......... 300,000 909,000
HEALTH CARE FACILITIES - 3.3%
Amsurg Corporation* .......................... 82,950 1,883,794
Lifepoint Hospitals, Inc.* ................... 72,000 2,328,480
U.S. Physical Therapy, Inc.* ................. 97,000 1,338,600
United Surgical Partners
International, Inc.* ....................... 50,000 1,697,000
-----------
7,247,874
HEALTH CARE SERVICES - 3.0%
Hooper Holmes, Inc. .......................... 568,000 3,544,320
NDCHealth Corporation ........................ 59,400 1,612,710
Providence Service Corporation* .............. 78,900 1,405,998
-----------
6,563,028
HEALTH CARE SUPPLIES - 1.2%
Orthovita, Inc* .............................. 375,000 1,507,500
Staar Surgical Company* ...................... 128,700 1,154,439
-----------
2,661,939
52 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY MID CAP GROWTH FUND (CONTINUED)
NUMBER MARKET
COMMON STOCKS (CONTINUED) OF SHARES VALUE
- ----------------------------------------------------- --------- ------------
INDUSTRIAL MACHINERY - 1.9%
Flowserve Corporation*............................... 72,000 $ 1,508,400
Pall Corporation..................................... 88,000 1,996,720
Tennant Company...................................... 17,100 678,357
------------
4,183,477
INSURANCE BROKERS - 0.7%
Arthur J. Gallagher & Company........................ 50,000 1,628,500
INTERNET SOFTWARE & SERVICES - 0.5%
At Road, Inc.* ...................................... 81,200 996,324
IT CONSULTING & OTHER SERVICES - 5.3%
Accenture, Ltd.* .................................... 10,300 255,440
Acxiom Corporation................................... 383,800 8,428,248
Keane, Inc.* ........................................ 182,000 2,864,680
------------
11,548,368
LEISURE PRODUCTS - 1.0%
Mattel, Inc.......................................... 115,000 2,120,600
METAL & GLASS CONTAINERS - 1.2%
Pactiv Corporation*.................................. 114,400 2,545,400
MOVIES & ENTERTAINMENT - 1.7%
Lions Gate Entertainment
Corporation*...................................... 608,300 3,801,875
MULTI-UTILITIES & UNREGULATED POWER - 0.8%
Williams Companies, Inc.............................. 190,000 1,818,300
OIL & GAS DRILLING - 2.6%
Ensco International, Inc............................. 82,300 2,318,391
Rowan Companies, Inc.* .............................. 160,000 3,374,400
------------
5,692,791
OIL & GAS EQUIPMENT & SERVICES - 1.7%
BJ Services Company*................................. 86,000 3,721,220
OIL & GAS EXPLORATION & PRODUCTION - 4.5%
EOG Resources, Inc. ................................. 66,000 3,028,740
Evergreen Resources, Inc.*........................... 162,000 5,564,700
Rentech, Inc.*....................................... 1,139,300 1,036,763
Syntroleum Corporation*.............................. 35,350 252,753
------------
9,882,956
OIL & GAS REFINING, MARKETING & TRANSPORTATION - 0.9%
Western Gas Resources, Inc. ........................ 40,000 2,034,000
PHARMACEUTICALS - 5.8%
Hollis Eden Pharmaceuticals, Inc.* 257,744 2,487,230
Ligand Pharmaceuticals, Inc. (Cl.B)* 512,200 10,295,220
------------
12,782,450
PUBLISHING - 2.0%
E.W. Scripps Company(1) ............................. 43,000 4,347,730
REGIONAL BANKS - 2.3%
Boston Private Financial
Holdings, Inc. ................................... 65,000 1,820,000
Southwest Bancorporation of
Texas, Inc. ...................................... 84,800 3,199,504
------------
5,019,504
RESTAURANTS - 0.8%
Rare Hospitality International, Inc.* ............... 60,000 1,665,000
SEMICONDUCTOR EQUIPMENT - 0.1%
Ultratech, Inc.*..................................... 12,200 284,382
SEMICONDUCTORS - 7.9%
Applied Micro Circuits Corporation* 500,000 2,875,000
Fairchild Semiconductor
International, Inc.* .............................. 16,600 398,898
Hi/fn,Inc.* ......................................... 152,800 1,764,840
Ixys Corporation*.................................... 298,900 2,809,660
LSI Logic Corporation*.............................. 173,300 1,618,622
Microsemi Corporation*............................... 320,000 4,377,600
Omnivision Technologies, Inc.* ...................... 50,000 1,365,500
Xicor, Inc.*......................................... 132,800 2,021,216
------------
17,231,336
SPECIALTY STORES - 1.7%
Cost Plus, Inc.*(1).................................. 27,450 1,146,037
Hibbett Sporting Goods, Inc.*...................... 69,000 2,631,660
------------
3,777,697
SYSTEMS SOFTWARE - 2.5%
Microsoft Corporation................................ 40,400 1,008,788
Network Associates, Inc.*........................... 8,100 145,800
Radvision, Ltd.* .................................... 151,500 1,931,625
Red Hat, Inc.*...................................... 17,000 388,620
Wind River Systems, Inc.*........................... 186,000 2,059,020
------------
5,533,853
TRADING COMPANIES & DISTRIBUTORS - 1.8%
MSC Industrial Direct Company, Inc. 130,000 3,893,500
------------
Total common stocks
(cost $164,255,065) - 99.2%................... 217,207,187
WARRANTS
Bioject Medical Technology,Inc. ..................... 5,625 1,370
Electric City Corporation............................ 311,500 299,973
Hollis Eden Pharmaceuticals.......................... 8,143 28,593
KFX, Inc............................................. 144,000 1,134,364
Orthovita, Inc. ..................................... 75,000 141,576
------------
Total warrants (cost $633,959) - 0.7%.............. 1,605,876
REPURCHASE AGREEMENT
United Missouri Bank, 0.65%, 04-01-04
(Collateralized by FNMA bond,
04-01-04 with a value of $ 685,000
and a repurchase amount of
$671,008).......................................... $ 671,000 671,000
------------
Total repurchase agreement
(cost $671,000) - 0.3%......................... 671,000
------------
Total investments
(cost $165,560,024) - 100.2%................... 219,484,063
Liabilities, less cash & other assets - (0.2%)..... (562,948)
------------
Total net assets - 100.0%......................... $218,921,115
============
53 See accompanying notes.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY MID CAP GROWTH FUND (CONTINUED)
The identified cost of investments owned at March 31, 2004 was the same for
federal income tax and financial statement purposes.
*Non-income producing security
(1) Security is segregated as collateral for written option contracts.
(2) PIPE (Private Investment in Public Equity) - Stock issued by a company in
the secondary market as a means of raising capital more quickly and less
expensively than through registration in a secondary public offering.
(3) Security is a restricted security. The total market value of restricted
securities is $1,772,880 (cost $1,844,330), or 0.81% of total net assets.
PERFORMANCE
AVERAGE ANNUAL RETURNS
AS OF MARCH 31, 2004
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
A Shares 66.70% 13.68% 13.74% N/A
A Shares with
sales charge 57.11% 12.34% 13.07% N/A
B Shares 65.61% 12.65% 12.84% N/A
B Shares with
CDSC 60.61% 12.40% 12.84% N/A
C Shares 65.73% 12.65% N/A 11.29%
(1-29-99)
C Shares with
CDSC 64.73% 12.65% N/A 11.29%
(1-29-99)
The performance data above represents past performance that is not predictive of
future results. The investment return and principal value of an investment in
the fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. The figures above do not reflect
deduction of the maximum front-end sales charge of 5.75% for Class A shares or
the contingent deferred sales charge of 5% for Class B shares and 1% for Class C
shares, as applicable, except where noted. The figures do not reflect the
deduction of taxes that a shareholder would pay on distributions or redemption
of fund shares. Such figures would be lower if the maximum sales charge and any
applicable taxes were deducted.
54 See accompanying notes.
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND
------------------------------------------
SECURITY SOCIAL
LARGE CAP EQUITY GLOBAL AWARENESS
VALUE FUND SERIES SERIES SERIES
----------- ------------ ------------ -----------
ASSETS
Investments, at value(1).................................... $67,915,673 $492,764,969 $116,924,149 $18,348,081
Cash........................................................ 1,088,836 549 - 27,429
Cash denominated in a foreign currency, at value(2)......... - - 29,679 -
Receivables:
Fund shares sold......................................... 13,750 1,842 6,342 168
Securities sold.......................................... 825,492 804,808 506,468 25,483
Interest................................................. 3,642 - 1,287 -
Dividends................................................ 104,179 268,797 167,077 12,572
Foreign taxes recoverable................................... - - 9,875 -
Prepaid expenses............................................ 29,201 42,614 25,904 20,613
----------- ------------ ------------ -----------
Total assets........................................... 69,980,773 493,883,579 117,670,781 18,434,346
----------- ------------ ------------ -----------
LIABILITIES
Cash overdraft.............................................. - - 119,985 -
Payable for:
Securities purchased..................................... 689,974 1,737,088 1,203,790 56,561
Fund shares redeemed..................................... 200 57,166 12,800 339
Management fees.......................................... 44,146 313,908 97,071 11,629
Custodian fees........................................... 202 2,097 7,753 530
Transfer and administration fees......................... 22,202 100,472 34,166 5,687
Professional fees........................................ 2,933 19,819 3,940 3,474
12b-1 distribution plan fees............................. 41,856 165,477 163,051 19,521
Other.................................................... 3,798 39,589 1,444 1,202
----------- ------------ ------------ -----------
Total liabilities...................................... 805,311 2,435,616 1,644,000 98,943
----------- ------------ ------------ -----------
NET ASSETS.................................................. $69,175,462 $491,447,963 $116,026,781 $18,335,403
=========== ============ ============ ===========
NET ASSETS CONSIST OF:
Paid in capital............................................. $78,548,513 $400,142,799 $114,052,231 $20,728,869
Accumulated undistributed net investment income (loss)...... 66,750 (21,301) (840,811) (76,957)
Accumulated undistributed net realized gain (loss)
on sale of investments, futures, options and foreign
currency transactions.................................... (17,411,072) 6,115,964 (19,371,536) (1,999,171)
Net unrealized appreciation (depreciation)
in value of investments, futures, options and translation
of assets and liabilities in foreign currency............ 7,971,271 85,210,501 22,186,897 (317,338)
----------- ------------ ------------ -----------
Total net assets............................................ $69,175,462 $491,447,963 $116,026,781 $18,335,403
=========== ============ ============ ===========
CLASS "A" SHARES
Capital shares outstanding.................................. 8,714,664 64,782,675 5,844,967 535,431
Net assets.................................................. $51,616,623 $426,673,130 $ 83,314,190 $10,428,382
Net asset value per share................................... $ 5.92 $ 6.59 $ 14.25 $ 19.48
=========== ============ ============ ===========
Offering price per share (net asset value
divided by 94.25%)....................................... $ 6.28 $ 6.99 $ 15.12 $ 20.67
=========== ============ ============ ===========
CLASS "B" SHARES
Capital shares outstanding.................................. 2,549,306 9,760,039 1,859,945 342,185
Net assets.................................................. $14,374,330 $ 58,045,831 $ 24,711,185 $ 6,190,465
Net asset value per share .................................. $ 5.64 $ 5.95 $ 13.29 $ 18.09
=========== ============ ============ ===========
CLASS "C" SHARES
Capital shares outstanding.................................. 554,904 1,075,386 589,161 92,754
Net assets.................................................. $ 3,184,509 $ 6,729,002 $ 8,001,406 $ 1,716,556
Net asset value per share................................... $ 5.74 $ 6.26 $ 13.58 $ 18.51
=========== ============ ============ ===========
(1) Investments, including repurchase agreements, at cost... $59,944,402 $407,554,468 $ 94,724,387 $18,665,419
(2) Cash denominated in a foreign currency, at cost......... - - 29,555 -
55 See accompanying notes.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND
----------------------------------------------------------------
MID CAP SMALL CAP ENHANCED
VALUE GROWTH INDEX SELECT 25 (R)
SERIES SERIES SERIES SERIES
------------- ------------- ------------- -------------
ASSETS
Investments, at value(1) ..................................... $ 318,373,840 $ 31,113,339 $ 16,835,628 $ 26,250,388
Cash ......................................................... 1,067,719 963 - 523
Receivables:
Fund shares sold .......................................... 3,750,119 141 - -
Securities sold ........................................... 1,744,829 467,455 - -
Interest .................................................. 42,136 - - -
Dividends ................................................. 138,031 1,030 20,736 9,029
Prepaid expenses ............................................. 29,505 20,565 23,079 23,542
------------- ------------- ------------- -------------
Total assets ............................................ 325,146,179 31,603,493 16,879,443 26,283,482
------------- ------------- ------------- -------------
LIABILITIES
Cash overdraft ............................................... - - 17,961 -
Payable for:
Securities purchased ...................................... - 447,276 -
Fund shares redeemed ...................................... 334,683 - 7,886 1,450
Written options, at value ................................. 377,355 - - -
Variation margin .......................................... - - 220 -
Management fees ........................................... 241,598 26,206 7,050 16,605
Custodian fees ............................................ 823 1,401 3,028 331
Transfer and administration fees .......................... 66,102 16,412 6,921 7,354
Professional fees ......................................... 6,837 3,473 3,454 3,533
12b-1 distribution plan fees .............................. 238,353 36,801 145,410 15,253
Other ..................................................... 9,261 859 1,221 1,842
------------- ------------- ------------- -------------
Total liabilities ....................................... 1,275,012 532,428 193,151 46,368
------------- ------------- ------------- -------------
NET ASSETS ................................................... $ 323,871,167 $ 31,071,065 $ 16,686,292 $ 26,237,114
============= ============= ============= =============
NET ASSETS CONSIST OF:
Paid in capital .............................................. $ 236,489,494 $ 34,743,255 $ 21,587,421 $ 36,056,272
Accumulated undistributed net investment income (loss) ....... (615,550) (314,746) (20,073) (142,604)
Accumulated undistributed net realized gain (loss)
on sale of investments, futures, options and foreign
currency transactions ..................................... 10,278,696 (10,020,107) (6,319,733) (11,894,892)
Net unrealized appreciation (depreciation)
in value of investments, futures, options and translation
of assets and liabilities in foreign currency ............. 77,718,527 6,662,663 1,438,677 2,218,338
------------- ------------- ------------- -------------
Total net assets ............................................. $ 323,871,167 $ 31,071,065 $ 16,686,292 $ 26,237,114
============= ============= ============= =============
CLASS "A" SHARES
Capital shares outstanding ................................... 6,753,877 1,324,771 843,714 1,329,938
Net assets ................................................... $ 200,472,305 $ 18,274,366 $ 7,378,553 $ 10,897,968
Net asset value per share .................................... $ 29.68 $ 13.79 $ 8.75 $ 8.19
============= ============= ============= =============
Offering price per share (net asset value
divided by 94.25%) ........................................ $ 31.49 $ 14.63 $ 9.28 $ 8.69
============= ============= ============= =============
CLASS "B" SHARES
Capital shares outstanding ................................... 2,673,041 649,029 672,601 1,078,773
Net assets ................................................... $ 74,195,778 $ 8,390,017 $ 5,638,133 $ 8,518,305
Net asset value per share .................................... $ 27.76 $ 12.93 $ 8.38 $ 7.90
============= ============= ============= =============
CLASS "C" SHARES
Capital shares outstanding ................................... 1,743,255 334,579 436,574 861,253
Net assets ................................................... $ 49,203,084 $ 4,406,682 $ 3,669,606 $ 6,820,841
Net asset value per share .................................... $ 28.22 $ 13.17 $ 8.41 $ 7.92
============= ============= ============= =============
(1) Investments, including repurchase agreements, at cost .... $ 240,971,113 $ 24,450,676 $ 15,398,561 $ 24,032,050
56 See accompanying notes.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND
----------------------------
LARGE CAP ALPHA SECURITY
GROWTH OPPORTUNITY MID CAP GROWTH
SERIES SERIES FUND
----------- ----------- --------------
ASSETS
Investments, at value(1)............................................ $29,599,027 $ 9,394,347 $ 219,484,063
Cash................................................................ 289,982 217,084 342
Restricted cash..................................................... - 15,002 -
Receivables:
Fund shares sold................................................. 3,206 - 135,206
Securities sold.................................................. 44,595 463,740 173,774
Deposit for short sales.......................................... - 134,186 -
Interest......................................................... - 406 -
Dividends........................................................ 24,296 6,848 42,924
Security Management Company...................................... - 7,248 -
Prepaid expenses.................................................... 13,038 35,080 46,906
----------- ----------- --------------
Total assets.................................................. 29,974,144 10,273,941 219,883,215
----------- ----------- --------------
LIABILITIES
Securities sold short, at value(2).................................. - 117,687 -
Payable for:
Securities purchased............................................. 549,242 467,700 317,808
Fund shares redeemed............................................. - - 46,417
Written options, at value........................................ - - 216,170
Variation margin................................................. - 4,500 -
Management fees.................................................. 18,604 16,048 139,551
Custodian fees................................................... 1,097 170 270
Transfer and administration fees................................. 15,146 3,693 53,220
Professional fees................................................ 3,460 1,109 4,884
12b-1 distribution plan fees..................................... 72,827 12,967 176,081
Other............................................................ 545 444 7,699
----------- ----------- --------------
Total liabilities............................................. 660,921 624,318 962,100
----------- ----------- --------------
NET ASSETS.......................................................... $29,313,223 $ 9,649,623 $ 218,921,115
=========== =========== ==============
NET ASSETS CONSIST OF:
Paid in capital..................................................... $30,616,413 $ 8,717,983 $ 162,808,611
Accumulated undistributed net investment income (loss).............. (138,265) (82,975) (1,297,805)
Accumulated undistributed net realized gain (loss)
on sale of investments, futures, options and foreign
currency transactions............................................ (3,624,796) 1,066,584 3,410,764
Net unrealized appreciation (depreciation)
in value of investments, short positions, futures, options
and translation of assets and liabilities in foreign currency.... 2,459,871 (51,969) 53,999,545
----------- ----------- --------------
Total net assets.................................................... $29,313,223 $ 9,649,623 $ 218,921,115
=========== =========== ==============
CLASS "A" SHARES
Capital shares outstanding.......................................... 2,990,900 420,788 13,698,535
Net assets.......................................................... $18,229,313 $ 4,821,449 $ 169,856,931
Net asset value per share........................................... $ 6.09 $ 11.46 $ 12.40
=========== =========== ==============
Offering price per share (net asset value
divided by 94.25%)............................................... $ 6.46 $ 12.16 $ 13.16
=========== =========== ==============
CLASS "B" SHARES
Capital shares outstanding.......................................... 1,285,762 187,813 2,926,614
Net assets.......................................................... $ 7,577,950 $ 2,140,228 $ 31,787,002
Net asset value per share........................................... $ 5.89 $ 11.40 $ 10.86
=========== =========== ==============
CLASS "C" SHARES
Capital shares outstanding.......................................... 591,921 235,863 1,466,154
Net assets.......................................................... $ 3,505,960 $ 2,687,946 $ 17,277,182
Net asset value per share........................................... $ 5.92 $ 11.40 $ 11.78
=========== =========== ==============
(1) Investments, including repurchase agreements, at cost........... $27,139,156 $ 9,396,875 $ 165,560,024
(2) Securities sold short, at proceeds.............................. - $ 114,693 -
57 See accompanying notes.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND
--------------------------------------------
SECURITY SOCIAL
LARGE CAP EQUITY GLOBAL AWARENESS
VALUE FUND SERIES SERIES SERIES
------------ ------------ ------------ ------------
INVESTMENT INCOME:
Dividends ................................... $ 566,224 $ 3,467,211 $ 548,281 $ 112,259
Interest .................................... 17,695 34,663 3,095 1,652
------------ ------------ ------------ ------------
583,919 3,501,874 551,376 113,911
Less: Foreign tax expense ................... - - (32,533) -
------------ ------------ ------------ ------------
Total investment income .................. 583,919 3,501,874 518,843 113,911
EXPENSES:
Management fees ............................. 254,547 1,897,057 530,033 90,570
Custodian fees .............................. 3,281 9,969 53,342 2,379
Transfer/maintenance fees ................... 80,724 323,248 116,080 23,675
Administration fees ......................... 32,270 228,911 83,145 9,992
Directors' fees ............................. 12,822 6,223 962 213
Professional fees ........................... 4,817 24,167 15,689 3,433
Reports to shareholders ..................... 3,461 31,589 4,942 1,066
Registration fees ........................... 19,837 24,856 28,447 14,451
Other expenses .............................. 2,405 9,327 1,590 630
12b-1 distribution plan fees - Class A ...... 64,511 546,062 92,790 12,547
12b-1 distribution plan fees - Class B ...... 67,991 309,496 119,169 31,876
12b-1 distribution plan fees - Class C ...... 13,358 35,665 39,703 8,503
------------ ------------ ------------ ------------
Total expenses ........................... 560,024 3,446,570 1,085,892 199,335
Less: Expenses waived .................... - - - (7,568)
Earnings credits ................... (826) (826) (833) (899)
------------ ------------ ------------ ------------
Net expenses ............................. 559,198 3,445,744 1,085,059 190,868
------------ ------------ ------------ ------------
Net investment income (loss) ............. 24,721 56,130 (566,216) (76,957)
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) during the period on:
Investments ................................. 3,144,370 30,972,555 3,033,826 261,093
Foreign currency transactions ............... - - (53,259) -
------------ ------------ ------------ ------------
Net realized gain (loss) ................. 3,144,370 30,972,555 2,980,567 261,093
Net change in unrealized appreciation
(depreciation) during the period on:
Investments ................................. 6,686,925 18,695,082 16,540,682 1,339,651
Translation of assets and liabilities
in foreign currencies .................... - - (19,183) -
------------ ------------ ------------ ------------
Net unrealized appreciation
(depreciation) ....................... 6,686,925 18,695,082 16,521,499 1,339,651
------------ ------------ ------------ ------------
Net gain (loss) .......................... 9,831,295 49,667,637 19,502,066 1,600,744
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations .......... $ 9,856,016 $ 49,723,767 $ 18,935,850 $ 1,523,787
============ ============ ============ ============
58 See accompanying notes.
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND
-----------------------------------------------------------
MID CAP SMALL CAP ENHANCED
VALUE GROWTH INDEX SELECT 25(R)
SERIES SERIES SERIES SERIES
----------- ---------- ---------- -------------
INVESTMENT INCOME:
Dividends............................................. $ 1,472,112 $ 12,276 $ 135,293 $ 104,516
Interest.............................................. 178,208 8,398 1,567 4,027
----------- ---------- ---------- -------------
Total investment income............................. 1,650,320 20,674 136,860 108,543
EXPENSES:
Management fees....................................... 1,287,383 145,831 59,870 97,287
Custodian fees........................................ 6,467 11,353 14,089 1,742
Transfer/maintenance fees............................. 218,910 63,289 15,573 31,291
Administration fees................................... 121,375 15,378 16,659 12,555
Directors' fees....................................... 3,277 371 180 340
Professional fees..................................... 7,695 3,457 3,396 3,538
Reports to shareholders............................... 11,883 1,447 732 1,368
Registration fees..................................... 23,142 13,572 13,563 13,693
Other expenses........................................ 3,741 644 504 780
12b-1 distribution plan fees - Class A................ 200,060 21,235 8,889 13,446
12b-1 distribution plan fees - Class B................ 322,780 39,673 27,073 42,916
12b-1 distribution plan fees - Class C................ 207,087 21,219 17,197 33,017
----------- ---------- ---------- -------------
Total expenses...................................... 2,413,800 337,469 177,725 251,973
Less: Expenses waived............................... - - (19,956) -
Earnings credits.............................. (970) (2,049) (836) (826)
----------- ---------- ---------- -------------
Net expenses ....................................... 2,412,830 335,420 156,933 251,147
----------- ---------- ---------- -------------
Net investment income (loss)........................ (762,510) (314,746) (20,073) (142,604)
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) during the period on:
Investments........................................... 10,347,943 3,089,209 621,976 477,740
Futures............................................... - - 21,895 -
Options written and purchased......................... 294,816 - - -
----------- ---------- ---------- -------------
Net realized gain (loss)............................ 10,642,759 3,089,209 643,871 477,740
Net change in unrealized appreciation
(depreciation) during the period on:
Investments........................................... 40,600,996 1,878,317 1,297,844 2,672,539
Futures............................................... - - 9,763 -
Options written and purchased......................... 211,973 - - -
----------- ---------- ---------- -------------
Net unrealized appreciation (depreciation).......... 40,812,969 1,878,317 1,307,607 2,672,539
----------- ---------- ---------- -------------
Net gain (loss)..................................... 51,455,728 4,967,526 1,951,478 3,150,279
----------- ---------- ---------- -------------
Net increase (decrease) in net assets
resulting from operations....................... $50,693,218 $4,652,780 $1,931,405 $ 3,007,675
=========== ========== ========== =============
59 See accompanying notes.
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND
------------------------------
LARGE CAP ALPHA SECURITY
GROWTH OPPORTUNITY MID CAP GROWTH
SERIES SERIES FUND
-------------- ----------- --------------
INVESTMENT INCOME:
Dividends............................................. $ 151,548 $ 27,512 $ 324,586
Interest.............................................. 917 19,745 29,292
-------------- ----------- --------------
Total investment income............................ 152,465 47,257 353,878
EXPENSES:
Management fees....................................... 138,916 83,148 796,470
Custodian fees........................................ 4,289 - 7,698
Transfer/maintenance fees............................. 52,038 3,288 230,519
Administration fees................................... 13,857 8,843 97,520
Directors' fees....................................... 390 140 12,292
Professional fees..................................... 3,474 7,576 9,487
Reports to shareholders............................... 1,087 368 11,198
Registration fees..................................... 13,246 24,297 36,033
Other expenses........................................ 668 332 4,676
12b-1 distribution plan fees - Class A................ 21,088 5,032 206,346
12b-1 distribution plan fees - Class B................ 36,693 9,845 156,223
12b-1 distribution plan fees - Class C................ 17,871 11,602 80,353
-------------- ----------- --------------
Total expenses..................................... 303,617 154,471 1,648,815
Less: Reimbursement of expenses - Class A.......... - (11,343) -
Reimbursement of expenses - Class B.......... - (5,586) -
Reimbursement of expenses - Class C.......... - (6,562) -
Expenses waived.............................. (12,059) - -
Earnings credits............................. (828) (826) (826)
-------------- ----------- --------------
Net expenses ...................................... 290,730 130,154 1,647,989
-------------- ----------- --------------
Net investment income (loss)....................... (138,265) (82,897) (1,294,111)
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) during the period on:
Investments........................................... 395,270 832,763 12,368,465
Securities sold short................................. - (20,238) -
Futures............................................... - 394,147 -
Options written and purchased......................... - - 101,632
-------------- ----------- --------------
Net realized gain (loss)........................... 395,270 1,206,672 12,470,097
Net change in unrealized appreciation
(depreciation) during the period on:
Investments........................................... 1,874,986 74,715 24,143,704
Securities sold short................................. - (4,517) -
Futures............................................... - 43,631 -
Options written and purchased......................... - - 75,506
-------------- ----------- --------------
Net unrealized appreciation (depreciation)......... 1,874,986 113,829 24,219,210
-------------- ----------- --------------
Net gain (loss).................................... 2,270,256 1,320,501 36,689,307
-------------- ----------- --------------
Net increase (decrease) in net assets
resulting from operations................... $ 2,131,991 $ 1,237,604 $ 35,395,196
============== =========== ==============
60 See accompanying notes.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND
-------------------------------------------
SECURITY SOCIAL
LARGE CAP EQUITY GLOBAL AWARENESS
VALUE FUND SERIES SERIES SERIES
------------- ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)............................... $ 24,721 $ 56,130 $ (566,216) $ (76,957)
Net realized gain (loss) during the period on
investments, futures, options written and
purchased and foreign currency transactions............. 3,144,370 30,972,555 2,980,567 261,093
Net change in unrealized appreciation
(depreciation) during the period on investments,
futures, options written and purchased and
translation of assets and liabilities in
foreign currencies...................................... 6,686,925 18,695,082 16,521,499 1,339,651
------------- ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............................ 9,856,016 49,723,767 18,935,850 1,523,787
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A................................................. (112,367) (684,512) - -
Class B................................................. - - - -
Class C................................................. - - - -
------------- ------------ ------------ ------------
Total distributions to shareholders.................. (112,367) (684,512) - -
INTERNATIONAL SERIES MERGER (NOTE 9).......................... - - 9,345,535 -
NET INCREASE (DECREASE) FROM CAPITAL SHARE
TRANSACTIONS (NOTE 6)...................................... (242,953) (56,136,242) 23,247,993 (133,372)
------------- ------------ ------------ ------------
Total increase (decrease) in net assets.............. 9,500,696 (7,096,987) 51,529,378 1,390,415
------------- ------------ ------------ ------------
NET ASSETS:
Beginning of period........................................ 59,674,766 498,544,950 64,497,403 16,944,988
------------- ------------ ------------ ------------
End of period.............................................. $ 69,175,462 $491,447,963 $116,026,781 $ 18,335,403
============= ============ ============ ============
Undistributed net investment income (loss)
at end of period........................................ $ 66,750 $ (21,301) $ (840,811) $ (76,957)
============= ============ ============ ============
61 See accompanying notes.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE SIX MONTHS ENDED MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND
----------------------------------------------------------------
MID CAP SMALL CAP ENHANCED
VALUE GROWTH INDEX SELECT 25(R)
SERIES SERIES SERIES SERIES
------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ...................... $ (762,510) $ (314,746) $ (20,073) $ (142,604)
Net realized gain (loss) during the period on
investments, futures, options written and
purchased and foreign currency transactions .... 10,642,759 3,089,209 643,871 477,740
Net change in unrealized appreciation
(depreciation) during the period on investments,
futures, options written and purchased and
translation of assets and liabilities in
foreign currencies ............................. 40,812,969 1,878,317 1,307,607 2,672,539
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations .................... 50,693,218 4,652,780 1,931,405 3,007,675
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain
Class A ........................................ (1,472,634) - - -
Class B ........................................ (633,165) - - -
Class C ........................................ (407,446) - - -
------------- ------------- ------------- -------------
Total distributions to shareholders .......... (2,513,245) - - -
NET INCREASE (DECREASE) FROM CAPITAL SHARE
TRANSACTIONS (NOTE 6) ............................. 74,923,438 1,641,238 457,508 (1,594,223)
------------- ------------- ------------- -------------
Total increase (decrease) in net assets ...... 123,103,411 6,294,018 2,388,913 1,413,452
------------- ------------- ------------- -------------
NET ASSETS:
Beginning of period ............................... 200,767,756 24,777,047 14,297,379 24,823,662
------------- ------------- ------------- -------------
End of period ..................................... $ 323,871,167 $ 31,071,065 $ 16,686,292 $ 26,237,114
============= ============= ============= =============
Undistributed net investment income (loss)
at end of period ............................. $ (615,550) $ (314,746) $ (20,073) $ (142,604)
============= ============= ============= =============
62 See accompanying notes.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE SIX MONTHS ENDED MARCH 31, 2004
(UNAUDITED)
SECURITY EQUITY FUND
------------------------------
LARGE CAP ALPHA SECURITY
GROWTH OPPORTUNITY MID CAP GROWTH
SERIES SERIES FUND
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ..................................... $ (138,265) $ (82,897) $ (1,294,111)
Net realized gain (loss) during the period on
investments, futures, options written and
purchased and foreign currency transactions .................... 395,270 1,206,672 12,470,097
Net change in unrealized appreciation
(depreciation) during the period on investments,
futures, options written and
purchased and translation of assets and liabilities in
foreign currencies ............................................. 1,874,986 113,829 24,219,210
------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations ................................. 2,131,991 1,237,604 35,395,196
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain
Class A ........................................................ - (199,700) (5,436,468)
Class B ........................................................ - (101,286) (1,171,731)
Class C ........................................................ - (121,452) (553,046)
------------- ------------- -------------
Total distributions to shareholders ....................... - (422,438) (7,161,245)
TECHNOLOGY SERIES MERGER (NOTE 10) ................................. - - 11,962,769
NET INCREASE (DECREASE) FROM CAPITAL SHARE
TRANSACTIONS (NOTE 6) ............................................ 1,014,077 2,445,246 6,777,231
------------- ------------- -------------
Total increase (decrease) in net assets ................... 3,146,068 3,260,412 46,973,951
------------- ------------- -------------
Net assets:
Beginning of period .............................................. 26,167,155 6,389,211 171,947,164
------------- ------------- -------------
End of period .................................................... $ 29,313,223 $ 9,649,623 $ 218,921,115
============= ============= =============
Undistributed net investment income (loss)
at end of period ............................................... $ (138,265) $ (82,975) $ (1,297,805)
============= ============= =============
63 See accompanying notes.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 2003
SECURITY EQUITY FUND
---------------------------------------------------------
SECURITY SOCIAL MID CAP
LARGE CAP EQUITY GLOBAL AWARENESS VALUE
VALUE FUND SERIES SERIES SERIES SERIES
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ......................... $ 117,302 $ 607,081 $ (219,964) $ (179,491) $ (994,030)
Net realized gain (loss) during the period on
investments, futures, options written and
purchased and foreign currency transactions ......... (4,625,189) (8,071,790) (8,868,831) (902,119) 2,854,877
Net change in unrealized appreciation
(depreciation) during the period on investments,
options written and purchased and
translation of assets and liabilities in
foreign currencies .................................. 12,145,945 89,930,127 22,337,055 3,990,064 53,000,947
----------- ------------ ------------ ------------ -------------
Net increase (decrease) in net assets resulting
from operations ................................... 7,638,058 82,465,418 13,248,260 2,908,454 54,861,794
NET INCREASE (DECREASE) FROM CAPITAL
SHARE TRANSACTIONS (NOTE 6) ........................... 12,624,901 (67,957,739) (22,741,341) (440,061) 21,441,016
----------- ------------ ------------ ------------ -------------
Total increase (decrease) in net assets ............. 20,262,959 14,507,679 (9,493,081) 2,468,393 76,302,810
----------- ------------ ------------ ------------ -------------
NET ASSETS:
Beginning of period .................................. 39,411,807 484,037,271 73,990,484 14,476,595 124,464,946
----------- ------------ ------------ ------------ -------------
End of period ........................................ $59,674,766 $498,544,950 $ 64,497,403 $ 16,944,988 $ 200,767,756
=========== ============ ============ ============ =============
Undistributed net investment income (loss)
at end of period .................................... $ 154,396 $ 607,081 $ (277,637) $ - $ 146,960
=========== ============ ============ ============ =============
64 See accompanying notes.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED SEPTEMBER 30, 2003
SECURITY EQUITY FUND
--------------------------------------------------------
SMALL CAP ENHANCED LARGE CAP
GROWTH INDEX SELECT 25(R) GROWTH
SERIES SERIES SERIES SERIES
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ........................... $ (414,114) $ (56,631) $ (281,129) $ (183,113)
Net realized gain (loss) during the period on
investments, futures, and foreign currency
transactions .......................................... 2,366,986 (2,930,280) (3,750,965) (2,266,684)
Net change in unrealized appreciation
(depreciation) during the period on investments,
futures, and translation of assets and liabilities in
foreign currencies .................................... 5,227,406 6,120,571 6,658,939 5,276,183
------------ ------------ ----------- -----------
Net increase (decrease) in net assets resulting
from operations ...................................... 7,180,278 3,133,660 2,626,845 2,826,386
NET INCREASE (DECREASE) FROM CAPITAL
SHARE TRANSACTIONS (NOTE 6) ............................ 2,791,333 (6,261,504) (2,256,498) 9,601,678
------------ ------------ ----------- -----------
Total increase (decrease) in net assets ............... 9,971,611 (3,127,844) 370,347 12,428,064
------------ ------------ ----------- -----------
NET ASSETS:
Beginning of period .................................... 14,805,436 17,425,223 24,453,315 13,739,091
------------ ------------ ----------- -----------
End of period .......................................... $ 24,777,047 $ 14,297,379 $24,823,662 $26,167,155
============ ============ =========== ===========
Undistributed net investment income (loss)
at end of period ...................................... $ - $ - $ - $ -
============ ============ =========== ===========
65 See accompanying notes.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED SEPTEMBER 30, 2003
(EXCEPT AS NOTED)
SECURITY
EQUITY FUND
-------------
ALPHA SECURITY
OPPORTUNITY MID CAP
SERIES* GROWTH FUND
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ............................... $ (24,944) $ (1,782,165)
Net realized gain (loss) during the period on
investments, futures, options written and
purchased and foreign currency transactions ............... 307,216 7,985,872
Net change in unrealized appreciation
(depreciation) during the period on investments,
securities sold short, futures, options written and
purchased and translation of assets and liabilities
in foreign currencies ..................................... (165,798) 52,286,497
------------- -------------
Net increase (decrease) in net assets resulting
from operations .......................................... 116,474 58,490,204
NET INCREASE (DECREASE) FROM CAPITAL
SHARE TRANSACTIONS (NOTE 6) ................................. 6,272,737 (876,048)
------------- -------------
Total increase (decrease) in net assets ................... 6,389,211 57,614,156
------------- -------------
NET ASSETS:
Beginning of period ........................................ - 114,333,008
------------- -------------
End of period .............................................. $ 6,389,211 $ 171,947,164
============= =============
Undistributed net investment income (loss)
at end of period .......................................... $ (78) $ -
============= =============
*For the period beginning July 7, 2003 (commencement of operations) to September
30, 2003.
66 See accompanying notes.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY LARGE CAP VALUE FUND (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------------------------
2004(c)(r) 2003(c) 2002(c)(i)(m) 2001(c)(h) 2000(c) 1999(c)
---------- ------- ------------- ---------- ------- -------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 5.11 $ 4.25 $ 5.37 $ 6.42 $ 7.17 $ 7.68
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... 0.01 0.02 0.01 0.03 0.07 0.12
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 0.81 0.84 (1.10) (1.03) (0.58) 0.75
------- ------- ------- ------- ------- -------
Total from Investment Operations ............ 0.82 0.86 (1.09) (1.00) (0.51) 0.87
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ......... (0.01) -- (0.03) (0.05) (0.13) (0.04)
Distributions (from Realized Gains) ............ -- -- -- -- (0.11) (1.34)
------- ------- ------- ------- ------- -------
Total Distributions ......................... (0.01) -- (0.03) (0.05) (0.24) (1.38)
------- ------- ------- ------- ------- -------
NET ASSET VALUE END OF PERIOD .................. $ 5.92 $ 5.11 $ 4.25 $ 5.37 $ 6.42 $ 7.17
======= ======= ======= ======= ======= =======
TOTAL RETURN (a) ............................... 16.10% 20.24% (20.51%) (15.68%) (7.28%) 12.00%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $51,617 $45,858 $32,997 $45,006 $60,448 $74,796
Ratio of Expenses to Average Net Assets ........ 1.47% 1.45% 1.37% 1.32% 1.27% 1.22%
Ratio of Net Investment Income (Loss) to
Average Net Assets .......................... 0.25% 0.41% 0.20% 0.49% 0.99% 1.63%
Portfolio Turnover Rate ........................ 58% 76% 68% 180% 144% 98%
SECURITY LARGE CAP VALUE FUND (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------------------------
2004(c)(r) 2003(c) 2002(c)(i)(m) 2001(c)(h) 2000(c) 1999(c)
---------- ------- ------------- ---------- ------- --------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 4.87 $ 4.08 $ 5.18 $ 6.21 $ 6.95 $ 7.54
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.01) (0.02) (0.04) (0.03) -- 0.05
Net Gain (Loss) on Securities
(realized and unrealized) ..................... 0.78 0.81 (1.06) (1.00) (0.58) 0.73
------- ------- ------- ------- ------- -------
Total from Investment Operations ............ 0.77 0.79 (1.10) (1.03) (0.58) 0.78
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ......... -- -- -- -- (0.05) (0.03)
Distributions (from Realized Gains) ............ -- -- -- -- (0.11) (1.34)
------- ------- ------- ------- ------- -------
Total Distributions ......................... -- -- -- -- (0.16) (1.37)
------- ------- ------- ------- ------- -------
NET ASSET VALUE END OF PERIOD .................. $ 5.64 $ 4.87 $ 4.08 $ 5.18 $ 6.21 $ 6.95
======= ======= ======= ======= ======= =======
TOTAL RETURN (a) ............................... 15.81% 19.36% (21.24%) (16.59%) (8.36%) 10.93%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $14,374 $11,687 $ 4,905 $ 5,657 $ 7,152 $ 9,829
Ratio of Expenses to Average Net Assets ........ 2.23% 2.20% 2.27% 2.32% 2.27% 2.22%
Ratio of Net Investment Income (Loss) to
Average Net Assets .......................... (0.50%) (0.42%) (0.71%) (0.51%) 0.01% 0.63%
Portfolio Turnover Rate ........................ 58% 76% 68% 180% 144% 98%
67 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY LARGE CAP VALUE FUND (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------------------------------------------------------
2004(c)(r) 2003(c) 2002(c)(i)(k)(m) 2001(c)(h) 2000(c) 1999(c)(e)
---------- ------- ---------------- ---------- ------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ...... $ 4.96 $ 4.16 $ 5.28 $ 6.32 $ 7.11 $6.87
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ............. (0.01) (0.02) (0.04) (0.03) (0.01) 0.03
Net Gain (Loss) on Securities
(realized and unrealized) ............... 0.79 0.82 (1.08) (1.01) (0.56) 0.21
------- ------- ------- ------- ------ -----
Total from Investment Operations ....... 0.78 0.80 (1.12) (1.04) (0.57) 0.24
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ... -- -- -- -- (0.11) --
Distributions (from Realized Gains) ...... -- -- -- -- (0.11) --
------- ------- ------- ------- ------ -----
Total Distributions .................... -- -- -- -- (0.22) --
------- ------- ------- ------- ------ -----
NET ASSET VALUE END OF PERIOD ............ $ 5.74 $ 4.96 $ 4.16 $ 5.28 $ 6.32 $7.11
======= ======= ======= ======= ====== =====
TOTAL RETURN (a) ......................... 15.73% 19.23% (21.21%) (16.46%) (8.10%) 3.49%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ..... $ 3,184 $ 2,130 $ 1,510 $ 904 $ 483 $ 297
Ratio of Expenses to Average Net Assets .. 2.23% 2.20% 2.25% 2.33% 2.28% 2.22%
Ratio of Net Investment Income (Loss) to
Average Net Assets ..................... (0.50%) (0.33%) (0.72%) (0.55%) (0.10%) 0.62%
Portfolio Turnover Rate .................. 58% 76% 68% 180% 144% 90%
68 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - EQUITY SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------------------------------
2004(c)(r) 2003(c) 2002(c)(j)(m) 2001(c) 2000(c) 1999(c)
---------- -------- ------------- -------- -------- --------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ...... $ 5.98 $ 5.09 $ 6.36 $ 10.26 $ 9.96 $ 8.86
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ............. -- 0.01 0.01 -- -- 0.02
Net Gain (Loss) on Securities
(realized and unrealized) ............... 0.62 0.88 (1.28) (2.49) 0.66 1.80
-------- -------- -------- -------- -------- --------
Total from Investment Operations ....... 0.62 0.89 (1.27) (2.49) 0.66 1.82
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ... (0.01) -- -- -- -- (0.04)
Distributions (from Realized Gains) ...... -- -- -- (1.40) (0.36) (0.68)
Return of Capital ........................ -- -- -- (0.01) -- --
-------- -------- -------- -------- -------- --------
Total Distributions .................... (0.01) -- -- (1.41) (0.36) (0.72)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE END OF PERIOD ............ $ 6.59 $ 5.98 $ 5.09 $ 6.36 $ 10.26 $ 9.96
======== ======== ======== ======== ======== ========
TOTAL RETURN (a) ......................... 10.37% 17.49% (19.97%) (27.66%) 6.64% 20.66%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ..... $426,673 $430,161 $412,791 $563,553 $853,126 $917,179
Ratio of Expenses to Average Net Assets .. 1.27% 1.25% 1.11% 1.02% 1.02% 1.02%
Ratio of Net Investment Income (Loss) to
Average Net Assets ..................... 0.12% 0.23% 0.13% 0.03% 0.03% 0.19%
Portfolio Turnover Rate .................. 37% 54% 30% 23% 54% 36%
SECURITY EQUITY FUND - EQUITY SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------------------------------
2004(c)(r) 2003(c) 2002(c)(j)(m) 2001(c) 2000(c) 1999(c)
---------- ------- ------------- ------- -------- --------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ...... $ 5.41 $ 4.64 $ 5.86 $ 9.65 $ 9.47 $ 8.52
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ............. (0.02) (0.03) (0.05) (0.07) (0.10) (0.08)
Net Gain (Loss) on Securities
(realized and unrealized) ............... 0.56 0.80 (1.17) (2.31) 0.64 1.71
-------- ------- -------- ------- -------- --------
Total from Investment Operations ....... 0.54 0.77 (1.22) (2.38) 0.54 1.63
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ... -- -- -- -- -- --
Distributions (from Realized Gains) ...... -- -- -- (1.40) (0.36) (0.68)
Return of Capital ........................ -- -- -- (0.01) -- --
-------- ------- -------- ------- -------- --------
Total Distributions .................... -- -- -- (1.41) (0.36) (0.68)
-------- ------- -------- ------- -------- --------
NET ASSET VALUE END OF PERIOD ............ $ 5.95 $ 5.41 $ 4.64 $ 5.86 $ 9.65 $ 9.47
======== ======= ======== ======= ======== ========
TOTAL RETURN (a) ......................... 9.98% 16.59% (20.82%) (28.34%) 5.69% 19.23%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ..... $ 58,046 $61,733 $ 66,267 $96,067 $156,633 $159,872
Ratio of Expenses to Average Net Assets .. 2.02% 2.00% 2.02% 2.02% 2.02% 2.02%
Ratio of Net Investment Income (Loss) to
Average Net Assets ..................... (0.63%) (0.52%) (0.78%) (0.97%) (0.97%) (0.82%)
Portfolio Turnover Rate .................. 37% 54% 30% 23% 54% 36%
69 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - EQUITY SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------------------------------------------------------
2004(c)(r) 2003(c) 2002(c)(j)(k)(m) 2001(c) 2000(c) 1999(c)(e)
---------- ------- ---------------- ------- ------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ...... $ 5.69 $ 4.88 $ 6.16 $ 10.07 $ 9.89 $10.13
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ............. (0.02) (0.03) (0.05) (0.07) (0.10) (0.05)
Net Gain (Loss) on Securities
(realized and unrealized) ............... 0.59 0.84 (1.23) (2.43) 0.64 (0.19)
------- ------- ------- ------- ------ ------
Total from Investment Operations ....... 0.57 0.81 (1.28) (2.50) 0.54 (0.24)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ... -- -- -- -- -- --
Distributions (from Realized Gains) ...... -- -- -- (1.40) (0.36) --
Return of Capital ........................ -- -- -- (0.01) -- --
------- ------- ------- ------- ------ ------
Total Distributions .................... -- -- -- (1.41) (0.36) --
------- ------- ------- ------- ------ ------
NET ASSET VALUE END OF PERIOD ............ $ 6.26 $ 5.69 $ 4.88 $ 6.16 $10.07 $ 9.89
======= ======= ======= ======= ====== ======
TOTAL RETURN (a) ......................... 10.02% 16.60% (20.78%) (28.35%) 5.55% (2.37%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ..... $ 6,729 $ 6,651 $ 4,979 $ 4,230 $5,426 $4,507
Ratio of Expenses to Average Net Assets .. 2.02% 2.00% 2.02% 2.02% 2.02% 2.02%
Ratio of Net Investment Income (Loss) to
Average Net Assets ..................... (0.63%) (0.52%) (0.76%) (0.97%) (0.96%) (0.89%)
Portfolio Turnover Rate .................. 37% 54% 30% 23% 54% 45%
70 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - GLOBAL SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------------------------------
2004(c)(p)(r) 2003(c) 2002(c)(i)(m) 2001(c) 2000(c) 1999(c)
------------- ------- ------------- ------- ------- -------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ...... $ 11.68 $ 9.49 $ 11.04 $ 18.86 $ 13.99 $ 11.23
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ............. (0.05) (0.03) (0.05) (0.08) (0.11) 0.01
Net Gain (Loss) on Securities
(realized and unrealized) ............... 2.62 2.22 (1.50) (4.33) 6.47 3.71
------- ------- ------- ------- ------- -------
Total from Investment Operations ....... 2.57 2.19 (1.55) (4.41) 6.36 3.72
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ... -- -- -- -- -- (0.01)
Distributions (from Realized Gains) ...... -- -- -- (3.41) (1.49) (0.91)
In Excess of Net Investment Income ....... -- -- -- -- -- (0.04)
------- ------- ------- ------- ------- -------
Total Distributions .................... -- -- -- (3.41) (1.49) (0.96)
------- ------- ------- ------- ------- -------
NET ASSET VALUE END OF PERIOD ............ $ 14.25 $ 11.68 $ 9.49 $ 11.04 $ 18.86 $ 13.99
======= ======= ======= ======= ======= =======
TOTAL RETURN (a) ......................... 22.00% 23.08% (14.04%) (27.60%) 47.04% 34.39%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ..... $83,314 $42,711 $50,893 $48,089 $60,909 $28,292
Ratio of Expenses to Average Net Assets .. 1.83% 2.00% 1.85% 1.90% 1.92% 2.00%
Ratio of Net Investment Income (Loss) to
Average Net Assets ..................... (0.84%) (0.26%) (0.46%) (0.57%) (0.62%) 0.11%
Portfolio Turnover Rate .................. 33% 62% 36% 38% 92% 141%
SECURITY EQUITY FUND - GLOBAL SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------------------------------
2004(c)(p)(r) 2003(c) 2002(c)(i)(m) 2001(c) 2000(c) 1999(c)
------------- ------- ------------- ------- ------- -------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ...... $ 10.93 $ 8.89 $ 10.38 $ 18.00 $ 13.45 $ 10.89
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ............. (0.10) (0.04) (0.10) (0.14) (0.17) (0.11)
Net Gain (Loss) on Securities
(realized and unrealized) ............... 2.46 2.08 (1.39) (4.07) 6.21 3.58
------- ------- ------- ------- ------- -------
Total from Investment Operations ....... 2.36 2.04 (1.49) (4.21) 6.04 3.47
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ... -- -- -- -- -- --
Distributions (from Realized Gains) ...... -- -- -- (3.41) (1.49) (0.91)
------- ------- ------- ------- ------- -------
Total Distributions .................... -- -- -- (3.41) (1.49) (0.91)
------- ------- ------- ------- ------- -------
NET ASSET VALUE END OF PERIOD ............ $ 13.29 $ 10.93 $ 8.89 $ 10.38 $ 18.00 $ 13.45
======= ======= ======= ======= ======= =======
TOTAL RETURN (a) ......................... 21.59% 22.95% (14.35%) (27.86%) 46.53% 33.04%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ..... $24,711 $16,461 $19,021 $23,533 $30,951 $20,591
Ratio of Expenses to Average Net Assets .. 2.58% 2.18% 2.28% 2.39% 2.29% 3.00%
Ratio of Net Investment Income (Loss) to
Average Net Assets ..................... (1.61%) (0.42%) (0.89%) (1.07%) (0.96%) (0.87%)
Portfolio Turnover Rate .................. 33% 62% 36% 38% 92% 141%
71 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - GLOBAL SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
---------------------------------------------------------------------------------
2004(c)(p)(r) 2003(c) 2002(c)(i)(k)(m) 2001(c) 2000(c) 1999(c)(e)
------------- ------- ---------------- ------- ------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ...... $ 11.17 $ 9.14 $ 10.72 $ 18.55 $13.90 $ 12.68
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ............. (0.10) (0.09) (0.15) (0.21) (0.26) (0.03)
Net Gain (Loss) on Securities
(realized and unrealized) ............... 2.51 2.12 (1.43) (4.21) 6.40 1.25
------- ------- ------- ------- ------ -------
Total from Investment Operations ....... 2.41 2.03 (1.58) (4.42) 6.14 1.22
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ... -- -- -- -- -- --
Distributions (from Realized Gains) ...... -- -- -- (3.41) (1.49) --
------- ------- ------- ------- ------ -------
Total Distributions .................... -- -- -- (3.41) (1.49) --
------- ------- ------- ------- ------ -------
NET ASSET VALUE END OF PERIOD ............ $ 13.58 $ 11.17 $ 9.14 $ 10.72 $18.55 $ 13.90
======= ======= ======= ======= ====== =======
TOTAL RETURN (a) ......................... 21.58% 22.21% (14.74%) (28.20%) 45.67% 9.62%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ..... $ 8,001 $ 5,326 $ 4,076 $ 3,569 $2,691 $ 202
Ratio of Expenses to Average Net Assets .. 2.58% 2.77% 2.74% 2.91% 2.92% 3.00%
Ratio of Net Investment Income (Loss) to
Average Net Assets ..................... (1.62%) (0.96%) (1.33%) (1.57%) (1.53%) (0.49%)
Portfolio Turnover Rate .................. 33% 62% 36% 38% 92% 90%
72 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
-----------------------------------------------------------------------
2004 (b)(c)(g)(r) 2003(c) 2002(c) 2001(c) 2000(c) 1999(c)
----------------- -------- ------- -------- -------- --------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..... $ 17.84 $ 14.75 $ 17.95 $ 26.04 $ 24.05 $ 19.37
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............ (0.05) (0.13) (0.11) (0.07) (0.13) (0.05)
Net Gain (Loss) on Securities
(realized and unrealized)............ 1.69 3.22 (3.09) (7.55) 2.50 5.09
----------------- -------- ------- -------- -------- --------
Total from Investment Operations..... 1.64 3.09 (3.20) (7.62) 2.37 5.04
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).. -- -- -- -- -- --
Distributions (from Realized Gains)..... -- -- -- (0.47) (0.38) (0.36)
----------------- -------- ------- -------- -------- --------
Total Distributions.................. -- -- -- (0.47) (0.38) (0.36)
----------------- -------- ------- -------- -------- --------
NET ASSET VALUE END OF PERIOD........... $ 19.48 $ 17.84 $ 14.75 $ 17.95 $ 26.04 $ 24.05
================= ======== ======= ======== ======== ========
TOTAL RETURN (a)........................ 9.19% 20.95% (17.83%) (29.71%) 9.88% 26.12%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).... $ 10,428 $ 9,243 $ 7,355 $ 10,909 $ 17,702 $ 13,403
Ratio of Expenses to Average Net Assets. 1.79% 2.05% 1.66% 1.43% 1.42% 1.42%
Ratio of Net Investment Income (Loss) to
Average Net Assets.................... (0.52%) (0.76%) (0.58%) (0.30%) (0.51%) (0.22%)
Portfolio Turnover Rate................. 26% 26% 3% 17% 26% 26%
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------------------------------------
2004(b)(c)(g)(r) 2003(c) 2002(c) 2001(c) 2000(c) 1999(c)
---------------- -------- ------- -------- -------- --------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..... $ 16.63 $ 13.85 $ 17.01 $ 24.96 $ 23.35 $ 19.01
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............ (0.11) (0.24) (0.26) (0.28) (0.38) (0.30)
Net Gain (Loss) on Securities
(realized and unrealized).............. 1.57 3.02 (2.90) (7.20) 2.37 5.00
---------------- -------- -------- -------- -------- --------
Total from Investment Operations..... 1.46 2.78 (3.16) (7.48) 1.99 4.70
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).. -- -- -- -- -- --
Distributions (from Realized Gains)..... -- -- -- (0.47) (0.38) (0.36)
---------------- -------- -------- -------- -------- --------
Total Distributions.................. -- -- -- (0.47) (0.38) (0.36)
---------------- -------- -------- -------- -------- --------
NET ASSET VALUE END OF PERIOD........... $ 18.09 $ 16.63 $ 13.85 $ 17.01 $ 24.96 $ 23.35
================ ======== ======== ======== ======== ========
TOTAL RETURN (a)....................... 8.78% 20.07% (18.58%) (30.44%) 8.53% 24.81%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).... $ 6,190 $ 6,153 $ 5,999 $ 8,969 $ 12,633 $ 9,136
Ratio of Expenses to Average Net Assets. 2.54% 2.80% 2.57% 2.43% 2.43% 2.51%
Ratio of Net Investment Income (Loss) to
Average Net Assets.................... (1.27%) (1.51%) (1.49%) (1.31%) (1.52%) (1.30%)
Portfolio Turnover Rate................. 26% 26% 3% 17% 26% 26%
73 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------------------------------------------------
2004(b)(c)(g)(r) 2003(c) 2002(c)(k) 2001(c) 2000(c) 1999(c)(e)
---------------- -------- ---------- ------- ------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..... $ 17.01 $ 14.17 $ 17.40 $ 25.50 $ 23.87 $ 24.47
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............ (0.12) (0.24) (0.26) (0.28) (0.41) (0.22)
Net Gain (Loss) on Securities
(realized and unrealized).............. 1.62 3.08 (2.97) (7.35) 2.42 (0.38)
---------------- -------- ---------- ------- ------- ----------
Total from Investment Operations..... 1.50 2.84 (3.23) (7.63) 2.01 (0.60)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).. -- -- -- -- -- --
Distributions (from Realized Gains)..... -- -- -- (0.47) (0.38) --
---------------- -------- ---------- ------- ------- ----------
Total Distributions.................. -- -- -- (0.47) (0.38) --
---------------- -------- ---------- ------- ------- ----------
NET ASSET VALUE END OF PERIOD........... $ 18.51 $ 17.01 $ 14.17 $ 17.40 $ 25.50 $ 23.87
================ ======== ========== ======= ======= ==========
TOTAL RETURN (a)....................... 8.82% 20.04% (18.56%) (30.39%) 8.43% (2.45%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).... $ 1,717 $ 1,548 $ 1,123 $ 1,126 $ 918 $ 405
Ratio of Expenses to Average Net Assets. 2.54% 2.80% 2.57% 2.45% 2.55% 2.66%
Ratio of Net Investment Income (Loss) to
Average Net Assets.................... (1.27%) (1.51%) (1.48%) (1.33%) (1.64%) (1.46%)
Portfolio Turnover Rate................. 26% 26% 3% 17% 26% 33%
74 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - MID CAP VALUE SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------------------------------
2004(c)(r) 2003(c) 2002(c) 2001(c) 2000(c) 1999(c)
---------- --------- -------- -------- -------- --------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..... $ 24.48 $ 16.90 $ 18.04 $ 20.75 $ 16.60 $ 12.07
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............ (0.04) (0.07) (0.04) -- (0.04) (0.07)
Net Gain (Loss) on Securities
(realized and unrealized).............. 5.50 7.65 (0.78) (0.90) 4.89 4.65
---------- --------- -------- -------- -------- --------
Total from Investment Operations..... 5.46 7.58 (0.82) (0.90) 4.85 4.58
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).. -- -- -- -- -- --
Distributions (from Realized Gains)..... (0.26) -- (0.21) (1.81) (0.70) (0.05)
Return of Capital....................... -- -- (0.11) -- -- --
---------- --------- -------- -------- -------- --------
Total Distributions.................. (0.26) -- (0.32) (1.81) (0.70) (0.05)
---------- --------- -------- -------- -------- --------
NET ASSET VALUE END OF PERIOD........... $ 29.68 $ 24.48 $ 16.90 $ 18.04 $ 20.75 $ 16.60
========== ========= ======== ======== ======== ========
TOTAL RETURN (a)........................ 22.41% 44.85% (4.89%) (4.54%) 30.46% 38.06%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).... $ 200,472 $ 113,822 $ 68,544 $ 50,541 $ 34,458 $ 22,804
Ratio of Expenses to Average Net Assets. 1.52% 1.65% 1.45% 1.30% 1.29% 1.33%
Ratio of Net Investment Income (Loss) to
Average Net Assets.................... (0.27%) (0.33%) (0.20%) 0.01% (0.25%) (0.44%)
Portfolio Turnover Rate................. 31% 52% 51% 55% 69% 79%
SECURITY EQUITY FUND - MID CAP VALUE SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------------------------------
2004(c)(r) 2003(c) 2002(c) 2001(c) 2000(c) 1999(c)
---------- --------- -------- -------- -------- --------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..... $ 22.99 $ 15.99 $ 17.26 $ 20.11 $ 16.26 $ 11.94
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............ (0.13) (0.20) (0.21) (0.19) (0.22) (0.22)
Net Gain (Loss) on Securities
(realized and unrealized).............. 5.16 7.20 (0.74) (0.85) 4.77 4.59
---------- --------- -------- -------- -------- --------
Total from Investment Operations..... 5.03 7.00 (0.95) (1.04) 4.55 4.37
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).. -- -- -- -- -- --
Distributions (from Realized Gains)..... (0.26) -- (0.21) (1.81) (0.70) (0.05)
Return of Capital -- -- (0.11) -- -- --
---------- --------- -------- -------- -------- --------
Total Distributions.................. (0.26) -- (0.32) (1.81) (0.70) (0.05)
---------- --------- -------- -------- -------- --------
NET ASSET VALUE END OF PERIOD........... $ 27.76 $ 22.99 $ 15.99 $ 17.26 $ 20.11 $ 16.26
========== ========= ======== ======== ======== ========
TOTAL RETURN (a)........................ 21.99% 43.78% (5.88%) (5.45%) 29.21% 36.71%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).... $ 74,196 $ 53,947 $ 37,136 $ 26,967 $ 14,041 $ 9,682
Ratio of Expenses to Average Net Assets. 2.27% 2.40% 2.34% 2.30% 2.32% 2.37%
Ratio of Net Investment Income (Loss) to
Average Net Assets.................... (1.04%) (1.08%) (1.09%) (0.98%) (1.27%) (1.50%)
Portfolio Turnover Rate................. 31% 52% 51% 55% 69% 79%
75 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - MID CAP VALUE SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------------------------------------------
2004(c)(r) 2003(c) 2002(c)(k) 2001(c) 2000(c) 1999(c)(e)
---------- --------- ---------- ------- ------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..... $ 23.37 $ 16.26 $ 17.53 $ 20.39 $ 16.51 $ 14.54
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............ (0.13) (0.21) (0.21) (0.19) (0.22) (0.13)
Net Gain (Loss) on Securities
(realized and unrealized).............. 5.24 7.32 (0.74) (0.86) 4.80 2.10
---------- --------- ---------- ------- ------- ----------
Total from Investment Operations..... 5.11 7.11 (0.95) (1.05) 4.58 1.97
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).. -- -- -- -- -- --
Distributions (from Realized Gains)..... (0.26) -- (0.21) (1.81) (0.70) --
Return of Capital....................... -- -- (0.11) -- -- --
---------- --------- ---------- ------- ------- ----------
Total Distributions.................. (0.26) -- (0.32) (1.81) (0.70) --
---------- --------- ---------- ------- ------- ----------
NET ASSET VALUE END OF PERIOD........... $ 28.22 $ 23.37 $ 16.26 $ 17.53 $ 20.39 $ 16.51
========== ========= ========== ======= ======= ==========
TOTAL RETURN (a)........................ 21.98% 43.73% (5.79%) (5.42%) 28.93% 13.55%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).... $ 49,203 $ 32,999 $ 18,785 $ 6,976 $ 3,069 $ 1,138
Ratio of Expenses to Average Net Assets. 2.27% 2.40% 2.35% 2.30% 2.36% 2.38%
Ratio of Net Investment Income (Loss) to
Average Net Assets.................... (1.04%) (1.08%) (1.06%) (0.98%) (1.28%) (1.36%)
Portfolio Turnover Rate................. 31% 52% 51% 55% 69% 92%
76 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - SMALL CAP GROWTH SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
-----------------------------------------------------------------------------
2004(c)(g)(r) 2003(b)(c) 2002(c)(l) 2001(c) 2000(b)(c) 1999(b)(c)
------------- ---------- ---------- -------- ---------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..... $ 11.63 $ 7.88 $ 9.80 $ 22.08 $ 12.98 $ 8.70
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............ (0.12) (0.18) (0.20) (0.18) (0.19) --
Net Gain (Loss) on Securities
(realized and unrealized).............. 2.28 3.93 (1.72) (10.78) 9.75 4.28
------------- ---------- ---------- -------- ---------- ----------
Total from Investment Operations..... 2.16 3.75 (1.92) (10.96) 9.56 4.28
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).. -- -- -- -- -- --
Distributions (from Realized Gains)..... -- -- -- (1.32) (0.46) --
------------- ---------- ---------- -------- ---------- ----------
Total Distributions.................. -- -- -- (1.32) (0.46) --
------------- ---------- ---------- -------- ---------- ----------
NET ASSET VALUE END OF PERIOD........... $ 13.79 $ 11.63 $ 7.88 $ 9.80 $ 22.08 $ 12.98
============= ========== ========== ======== ========== ==========
TOTAL RETURN (a)....................... 18.57% 47.59% (19.59%) (51.94%) 74.58% 49.20%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).... $ 18,274 $ 14,406 $ 8,350 $ 17,235 $ 38,172 $ 16,877
Ratio of Expenses to Average Net Assets. 2.01% 2.25% 2.14% 1.91% 1.55% 0.49%
Ratio of Net Investment Income (Loss) to
Average Net Assets.................... (1.85%) (2.01%) (1.93%) (1.32%) (0.97%) 0.03%
Portfolio Turnover Rate................. 167% 206% 302% 394% 318% 361%
SECURITY EQUITY FUND - SMALL CAP GROWTH SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
-----------------------------------------------------------------------------
2004(c)(g)(r) 2003(b)(c) 2002(c)(l) 2001(c) 2000(b)(c) 1999(b)(c)
------------- ---------- ---------- -------- ---------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..... $ 10.94 $ 7.47 $ 9.37 $ 21.34 $ 12.69 $ 8.63
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............ (0.16) (0.24) (0.26) (0.28) (0.31) (0.14)
Net Gain (Loss) on Securities
(realized and unrealized).............. 2.15 3.71 (1.64) (10.37) 9.42 4.20
------------- ---------- ---------- -------- ---------- ----------
Total from Investment Operations..... 1.99 3.47 (1.90) (10.65) 9.11 4.06
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).. -- -- -- -- -- --
Distributions (from Realized Gains)..... -- -- -- (1.32) (0.46) --
------------- ---------- ---------- -------- ---------- ----------
Total Distributions.................. -- -- -- (1.32) (0.46) --
------------- ---------- ---------- -------- ---------- ----------
NET ASSET VALUE END OF PERIOD........... $ 12.93 $ 10.94 $ 7.47 $ 9.37 $ 21.34 $ 12.69
============= ========== ========== ======== ========== ==========
TOTAL RETURN (a)....................... 18.19% 46.45% (20.28%) (52.31%) 72.70% 47.05%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).... $ 8,390 $ 6,838 $ 4,292 $ 6,173 $ 11,688 $ 2,430
Ratio of Expenses to Average Net Assets. 2.76% 3.00% 2.90% 2.67% 2.44% 1.94%
Ratio of Net Investment Income (Loss) to
Average Net Assets.................... (2.60%) (2.76%) (2.69%) (2.07%) (1.81%) (1.41%)
Portfolio Turnover Rate................. 167% 206% 302% 394% 318% 361%
77 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - SMALL CAP GROWTH SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
---------------------------------------------------------------------------------
2004(c)(g)(r) 2003(b)(c) 2002(c)(k)(l) 2001(c) 2000(b)(c) 1999(b)(c)(e)
------------- ---------- -------------- ------- ---------- -------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD..... $ 11.15 $ 7.61 $ 9.53 $ 21.74 $ 12.86 $ 11.16
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss)............ (0.16) (0.24) (0.26) (0.28) (0.35) (0.07)
Net Gain (Loss) on Securities
(realized and unrealized).............. 2.18 3.78 (1.66) (10.61) 9.69 1.77
------------- ---------- ------------- ------- ---------- -------------
Total from Investment Operations..... 2.02 3.54 (1.92) (10.89) 9.34 1.70
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).. -- -- -- -- -- --
Distributions (from Realized Gains)..... -- -- -- (1.32) (0.46) --
------------- ---------- ------------- ------- ---------- -------------
Total Distributions.................. -- -- -- (1.32) (0.46) --
------------- ---------- ------------- ------- ---------- -------------
NET ASSET VALUE END OF PERIOD........... $ 13.17 $ 11.15 $ 7.61 $ 9.53 $ 21.74 $ 12.86
============= ========== ============= ======= ========== =============
TOTAL RETURN (a)....................... 18.22% 46.52% (20.15%) (52.46%) 73.54% 15.23%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands).... $ 4,407 $ 3,533 $ 2,164 $ 2,339 $ 3,741 $ 890
Ratio of Expenses to Average Net Assets. 2.76% 3.00% 2.91% 2.68% 2.39% 1.47%
Ratio of Net Investment Income (Loss) to
Average Net Assets.................... (2.60%) (2.76%) (2.69%) (2.09%) (1.81%) (0.95%)
Portfolio Turnover Rate................. 167% 206% 302% 394% 318% 374%
78 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
------------------------------------------------------------------------------
2004 (b)(c)(g)(r) 2003(b)(c)(o) 2002(c) 2001(c) 2000(c) 1999(c)(d)
----------------- ------------- -------- -------- ------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ......... $ 7.69 $ 6.30 $ 8.03 $ 11.29 $10.04 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................ 0.01 -- (0.01) -- -- 0.03
Net Gain (Loss) on Securities
(realized and unrealized) ................ 1.05 1.39 (1.72) (3.17) 1.37 0.01
------ ---------- ------- -------- ------ ---------
Total from Investment Operations ..... 1.06 1.39 (1.73) (3.17) 1.37 0.04
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ...... -- -- -- -- -- --
Distributions (from Realized Gains) ......... -- -- -- (0.09) (0.12) --
------ ---------- ------- -------- ------ ---------
Total Distributions .................. -- -- -- (0.09) (0.12) --
------ ---------- ------- -------- ------ ---------
NET ASSET VALUE END OF PERIOD ............... $ 8.75 $ 7.69 $ 6.30 $ 8.03 $11.29 $ 10.04
====== ========== ======= ======== ====== =========
TOTAL RETURN (a) ............................ 13.78% 22.06% (21.54%) (28.27%) 13.65% 0.40%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........ $7,379 $ 6,377 $ 7,171 $ 6,699 $8,219 $ 7,589
Ratio of Expenses to Average Net Assets ..... 1.57% 1.73% 1.61% 1.42% 1.44% 1.48%
Ratio of Net Investment Income (Loss) to
Average Net Assets ....................... 0.16% 0.00% (0.10%) 0.02% (0.05%) 0.39%
Portfolio Turnover Rate ..................... 66% 60% 62% 40% 73% 68%
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------------------------------
2004 (b)(c)(g)(r) 2003(b)(c)(o) 2002(c) 2001(c) 2000(c) 1999(c)(d)
----------------- ------------- -------- -------- ------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ......... $ 7.40 $ 6.11 $ 7.87 $ 11.15 $ 9.99 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................ (0.02) (0.05) (0.07) (0.08) (0.09) (0.02)
Net Gain (Loss) on Securities
(realized and unrealized) ................ 1.00 1.34 (1.69) (3.11) 1.37 0.01
------ ---------- ------- -------- ------- ---------
Total from Investment Operations ..... 0.98 1.29 (1.76) (3.19) 1.28 (0.01)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ...... -- -- -- -- -- --
Distributions (from Realized Gains) ......... -- -- -- (0.09) (0.12) --
------ ---------- ------- -------- ------- ---------
Total Distributions .................. -- -- -- (0.09) (0.12) --
------ ---------- ------- -------- ------- ---------
NET ASSET VALUE END OF PERIOD ............... $ 8.38 $ 7.40 $ 6.11 $ 7.87 $ 11.15 $ 9.99
====== ========== ======= ======== ======= =========
TOTAL RETURN (a) ............................ 13.24% 21.11% (22.36%) (28.81%) 12.82% (0.10%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........ $5,638 $ 4,929 $ 6,125 $ 7,360 $10,960 $ 9,591
Ratio of Expenses to Average Net Assets ..... 2.32% 2.48% 2.35% 2.17% 2.18% 2.20%
Ratio of Net Investment Income (Loss) to
Average Net Assets ....................... (0.59%) (0.75%) (0.84%) (0.74%) (0.79%) (0.33%)
Portfolio Turnover Rate ..................... 66% 60% 62% 40% 73% 68%
79 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
-----------------------------------------------------------------------------
2004(b)(c)(g)(r) 2003(b)(c)(o) 2002(c)(k) 2001(c) 2000(c) 1999(c)(d)
---------------- ------------- ---------- ------- -------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ......... $ 7.42 $ 6.12 $ 7.88 $ 11.16 $ 10.00 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................ (0.02) (0.05) (0.07) (0.08) (0.09) (0.01)
Net Gain (Loss) on Securities
(realized and unrealized) ................ 1.01 1.35 (1.69) (3.11) 1.37 0.01
------ ---------- -------- ------- ------- --------
Total from Investment Operations ..... 0.99 1.30 (1.76) (3.19) 1.28 --
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ...... -- -- -- -- -- --
Distributions (from Realized Gains) ......... -- -- -- (0.09) (0.12) --
------ ---------- -------- ------- ------- --------
Total Distributions .................. -- -- -- (0.09) (0.12) --
------ ---------- -------- ------- ------- --------
NET ASSET VALUE END OF PERIOD ............... $ 8.41 $ 7.42 $ 6.12 $ 7.88 $ 11.16 $ 10.00
====== ========== ======== ======= ======= ========
TOTAL RETURN (a) ............................ 13.34% 21.24% (22.34%) (28.78%) 12.69% 0.00%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........ $3,670 $ 2,991 $ 4,129 $ 4,840 $ 7,092 $ 5,205
Ratio of Expenses to Average Net Assets ..... 2.32% 2.47% 2.35% 2.17% 2.15% 2.05%
Ratio of Net Investment Income (Loss) to
Average Net Assets .................... (0.59%) (0.74%) (0.85%) (0.74%) (0.77%) (0.18%)
Portfolio Turnover Rate ..................... 66% 60% 62% 40% 73% 68%
80 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - SELECT 25(R) SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
-----------------------------------------------------------------------
2004(c)(r) 2003(c) 2002(c) 2001(c) 2000(c) 1999(c)(d)
---------- ------- ------- ------- ------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ......... $ 7.27 $ 6.52 $ 7.58 $ 11.34 $ 10.53 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................ (0.03) (0.05) (0.07) (0.06) (0.09) (0.05)
Net Gain (Loss) on Securities
(realized and unrealized) ................ 0.95 0.80 (0.99) (3.70) 0.90 0.58
------- ------- ------- ------- ------- --------
Total from Investment Operations ..... 0.92 0.75 (1.06) (3.76) 0.81 0.53
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ...... -- -- -- -- -- --
Distributions (from Realized Gains) ......... -- -- -- -- -- --
------- ------- ------- ------- ------- --------
Total Distributions .................. -- -- -- -- -- --
------- ------- ------- ------- ------- --------
NET ASSET VALUE END OF PERIOD ............... $ 8.19 $ 7.27 $ 6.52 $ 7.58 $ 11.34 $ 10.53
======= ======= ======= ======= ======= ========
TOTAL RETURN (a) ............................ 12.66% 11.50% (13.98%) (33.16%) 7.69% 5.30%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........ $10,898 $10,396 $11,933 $14,347 $22,006 $ 13,975
Ratio of Expenses to Average Net Assets ..... 1.50% 1.63% 1.46% 1.39% 1.35% 1.48%
Ratio of Net Investment Income (Loss) to
Average Net Assets ....................... (0.66%) (0.70%) (0.81%) (0.60%) (0.74%) (0.75%)
Portfolio Turnover Rate ..................... 69% 54% 33% 44% 89% 14%
SECURITY EQUITY FUND - SELECT 25(R) SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
-----------------------------------------------------------------------
2004(c)(r) 2003(c) 2002(c) 2001(c) 2000(c) 1999(c)(d)
---------- ------- ------- ------- ------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ......... $ 7.04 $ 6.36 $ 7.44 $ 11.22 $ 10.52 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................ (0.05) (0.10) (0.13) (0.13) (0.17) (0.09)
Net Gain (Loss) on Securities
(realized and unrealized) ................ 0.91 0.78 (0.95) (3.65) 0.87 0.61
------- ------- ------- ------- ------- --------
Total from Investment Operations ..... 0.86 0.68 (1.08) (3.78) 0.70 0.52
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ...... -- -- -- -- -- --
Distributions (from Realized Gains) ......... -- -- -- -- -- --
------- ------- ------- ------- ------- --------
Total Distributions .................. -- -- -- -- -- --
------- ------- ------- ------- ------- --------
NET ASSET VALUE END OF PERIOD ............... $ 7.90 $ 7.04 $ 6.36 $ 7.44 $ 11.22 $ 10.52
======= ======= ======= ======= ======= ========
TOTAL RETURN (a) ............................ 12.22% 10.69% (14.52%) (33.69%) 6.65% 5.20%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........ $ 8,518 $ 8,203 $ 8,566 $11,519 $18,199 $ 12,938
Ratio of Expenses to Average Net Assets ..... 2.26% 2.38% 2.21% 2.14% 2.11% 2.19%
Ratio of Net Investment Income (Loss) to
Average Net Assets .................... (1.42%) (1.45%) (1.56%) (1.35%) (1.49%) (1.47%)
Portfolio Turnover Rate ..................... 69% 54% 33% 44% 89% 14%
81 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - SELECT 25(R) SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
-----------------------------------------------------------------------
2004(c)(r) 2003(c) 2002(c)(k) 2001(c) 2000(c) 1999(c)(d)
---------- ------- ---------- ------- ------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ......... $ 7.06 $ 6.38 $ 7.47 $ 11.26 $ 10.55 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................ (0.05) (0.10) (0.13) (0.13) (0.17) (0.09)
Net Gain (Loss) on Securities
(realized and unrealized) ................. 0.91 0.78 (0.96) (3.66) 0.88 0.64
------- ------- -------- ------- ------- --------
Total from Investment Operations ..... 0.86 0.68 (1.09) (3.79) 0.71 0.55
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ...... -- -- -- -- -- --
Distributions (from Realized Gains) ......... -- -- -- -- -- --
------- ------- -------- ------- ------- --------
Total Distributions .................. -- -- -- -- -- --
------- ------- -------- ------- ------- --------
NET ASSET VALUE END OF PERIOD ............... $ 7.92 $ 7.06 $ 6.38 $ 7.47 $ 11.26 $ 10.55
======= ======= ======== ======= ======= ========
TOTAL RETURN (a) ............................ 12.18% 10.66% (14.59%) (33.66%) 6.73% 5.50%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........ $ 6,821 $ 6,225 $ 3,954 $ 4,531 $ 7,294 $ 4,442
Ratio of Expenses to Average Net Assets ..... 2.26% 2.37% 2.21% 2.14% 2.10% 2.07%
Ratio of Net Investment Income (Loss) to
Average Net Assets ....................... (1.42%) (1.44%) (1.56%) (1.35%) (1.49%) (1.34%)
Portfolio Turnover Rate ..................... 69% 54% 33% 44% 89% 14%
82 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - LARGE CAP GROWTH SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------------------------
2004(b)(c)(g)(r) 2003(c) 2002(c) 2001(b)(c)(g) 2000(c)(f)(g)
---------------- ---------- --------- ------------- -------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 5.62 $ 4.60 $ 6.00 $ 9.71 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.02) (0.04) (0.05) (0.08) (0.05)
Net Gain (Loss) on Securities
(realized and unrealized) .................... 0.49 1.06 (1.35) (3.63) (0.24)
---------- -------- ------- --------- ---------
Total from Investment Operations ......... 0.47 1.02 (1.40) (3.71) (0.29)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ......... -- -- -- -- --
Distributions (from Realized Gains) ............ -- -- -- -- --
---------- -------- ------- --------- ---------
Total Distributions ...................... -- -- -- -- --
---------- -------- ------- --------- ---------
NET ASSET VALUE END OF PERIOD .................. $ 6.09 $ 5.62 $ 4.60 $ 6.00 $ 9.71
========== ======== ======= ========= =========
TOTAL RETURN (a) ............................... 8.36% 22.17% (23.33%) (38.21%) (2.90%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 18,229 $ 16,179 $ 9,243 $ 2,436 $ 2,405
Ratio of Expenses to Average Net Assets ........ 1.81% 1.83% 1.99% 2.00% 1.92%
Ratio of Net Investment Income (Loss) to
Average Net Assets .......................... (0.70%) (0.71%) (1.00%) (1.10%) (1.25%)
Portfolio Turnover Rate ........................ 42% 39% 12% 6% 5%
SECURITY EQUITY FUND - LARGE CAP GROWTH SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------------------------
2004(b)(c)(g)(r) 2003(c) 2002(c) 2001(b)(c) 2000(c)(f)(g)
---------------- ---------- --------- ------------- -------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 5.45 $ 4.50 $ 5.92 $ 9.65 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.04) (0.07) (0.11) (0.14) (0.08)
Net Gain (Loss) on Securities
(realized and unrealized) .................... 0.48 1.02 (1.31) (3.59) (0.27)
----------- -------- ------- ----------- -----------
Total from Investment Operations ......... 0.44 0.95 (1.42) (3.73) (0.35)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ......... -- -- -- -- --
Distributions (from Realized Gains) ............ -- -- -- -- --
----------- -------- ------- ----------- -----------
Total Distributions ...................... -- -- -- -- --
----------- -------- ------- ----------- -----------
NET ASSET VALUE END OF PERIOD .................. $ 5.89 $ 5.45 $ 4.50 $ 5.92 $ 9.65
=========== ======== ======= =========== ===========
TOTAL RETURN (a) ............................... 8.07% 21.11% (23.99%) (38.65%) (3.50%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 7,578 $ 6,557 $ 1,949 $ 1,955 $ 2,039
Ratio of Expenses to Average Net Assets ........ 2.57% 2.59% 2.82% 2.75% 2.68%
Ratio of Net Investment Income (Loss) to
Average Net Assets .......................... (1.46%) (1.49%) (1.88%) (1.85%) (2.02%)
Portfolio Turnover Rate ........................ 42% 39% 12% 6% 5%
83 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - LARGE CAP GROWTH SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
-------------------------------------------------------------------------
2004(b)(c)(g)(r) 2003(c) 2002(c)(k) 2001(b)(c) 2000(c)(f)(g)
---------------- ------- ---------- ---------- -------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD............. $ 5.48 $ 4.52 $ 5.93 $ 9.65 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss).................... (0.04) (0.07) (0.11) (0.13) (0.08)
Net Gain (Loss) on Securities
(realized and unrealized)..................... 0.48 1.03 (1.30) (3.59) (0.27)
----------- ------ -------- ----------- -----------
Total from Investment Operations.......... 0.44 0.96 (1.41) (3.72) (0.35)
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income).......... -- -- -- -- --
Distributions (from Realized Gains)............. -- -- -- -- --
----------- ------ -------- ----------- -----------
Total Distributions....................... -- -- -- -- --
----------- ------ -------- ----------- -----------
NET ASSET VALUE END OF PERIOD................... $ 5.92 $ 5.48 $ 4.52 $ 5.93 $ 9.65
=========== ====== ======== =========== ===========
TOTAL RETURN (a)................................ 8.03% 21.24% (23.78%) (38.55%) (3.50%)
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands)............ $ 3,506 $3,432 $ 2,547 $ 2,577 $ 2,102
Ratio of Expenses to Average Net Assets......... 2.57% 2.58% 2.82% 2.75% 2.66%
Ratio of Net Investment Income (Loss) to Average
Net Assets.................................. (1.46%) (1.44%) (1.88%) (1.85%) (2.00%)
Portfolio Turnover Rate......................... 42% 39% 12% 6% 5%
84 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - ALPHA OPPORTUNITY SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
2004(b)(c)(g)(r) 2003(b)(c)(n)
---------------- -------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ........... $ 10.21 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) .................. (0.09) (0.03)
Net Gain (Loss) on Securities
(realized and unrealized) ................... 1.93 0.24
------------ ------------
Total from Investment Operations ....... 1.84 0.21
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ........ -- --
Distributions (from Realized Gains) ........... (0.59) --
------------ ------------
Total Distributions .................... (0.59) --
------------ ------------
NET ASSET VALUE END OF PERIOD ................. $ 11.46 $ 10.21
============ ============
TOTAL RETURN (a) .............................. 18.16% 2.10%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) .......... $ 4,821 $ 2,935
Ratio of Expenses to Average Net Assets ....... 2.77% 2.75%
Ratio of Net Investment Income (Loss) to
Average Net Assets ........................ (1.61%) (1.35%)
Portfolio Turnover Rate ....................... 904% 867%
SECURITY EQUITY FUND - ALPHA OPPORTUNITY SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
2004(b)(c)(g)(r) 2003(b)(c)(n)
---------------- -------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD .......... $ 10.20 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................. (0.13) (0.05)
Net Gain (Loss) on Securities
(realized and unrealized) ................. 1.92 0.25
------------ -----------
Total from Investment Operations .... 1.79 0.20
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ....... -- --
Distributions (from Realized Gains) .......... (0.59) --
------------ -----------
Total Distributions ................. (0.59) --
------------ -----------
NET ASSET VALUE END OF PERIOD ................ $ 11.40 $ 10.20
============ ===========
TOTAL RETURN (a) ............................. 17.79% 2.00%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ......... $ 2,140 $ 1,731
Ratio of Expenses to Average Net Assets ...... 3.52% 3.50%
Ratio of Net Investment Income (Loss) to
Average Net Assets ..................... (2.37%) (2.11%)
Portfolio Turnover Rate ...................... 904% 867%
85 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY EQUITY FUND - ALPHA OPPORTUNITY SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------
2004(b)(c)(g)(r) 2003(b)(c)(n)
---------------- -------------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 10.20 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.13) (0.05)
Net Gain (Loss) on Securities
(realized and unrealized) ................... 1.92 0.25
------------ ------------
Total from Investment Operations ...... 1.79 0.20
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ......... -- --
Distributions (from Realized Gains) ............ (0.59) --
------------ ------------
Total Distributions ................... (0.59) --
------------ ------------
NET ASSET VALUE END OF PERIOD .................. $ 11.40 $ 10.20
============ ============
TOTAL RETURN (a) ............................... 17.79% 2.00%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 2,688 $ 1,723
Ratio of Expenses to Average Net Assets ........ 3.52% 3.50%
Ratio of Net Investment Income (Loss) to Average
Net Assets ............................... (2.36%) (2.11%)
Portfolio Turnover Rate ........................ 904% 867%
86 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY MID CAP GROWTH FUND (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------------------------------------------------------
2004(c)(q)(r) 2003(c) 2002(c)(m) 2001(c) 2000(c) 1999(c)
------------- ----------- ----------- ---------- ---------- -----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 10.84 $ 7.03 $ 8.48 $ 15.28 $ 9.19 $ 7.65
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.06) (0.10) (0.09) (0.07) (0.08) (0.06)
Net Gain (Loss) on Securities
(realized and unrealized) ................... 2.02 3.91 (1.30) (5.38) 6.60 3.51
----------- --------- --------- -------- -------- ---------
Total from Investment Operations ...... 1.96 3.81 (1.39) (5.45) 6.52 3.45
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ......... -- -- -- -- -- --
Distributions (from Realized Gains) ............ (0.40) -- (0.06) (1.35) (0.43) (1.91)
----------- --------- --------- -------- -------- ---------
Total Distributions ................... (0.40) -- (0.06) (1.35) (0.43) (1.91)
----------- --------- --------- -------- -------- ---------
NET ASSET VALUE END OF PERIOD .................. $ 12.40 $ 10.84 $ 7.03 $ 8.48 $ 15.28 $ 9.19
=========== ========= ========= ======== ======== =========
TOTAL RETURN (a) ............................... 18.41% 54.20% (16.64%) (38.19%) 72.82% 50.91%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 169,857 $ 134,208 $ 90,948 $131,498 $204,787 $ 96,238
Ratio of Expenses to Average Net Assets ........ 1.39% 1.41% 1.20% 1.09% 1.11% 1.21%
Ratio of Net Investment Income (Loss) to
Average Net Assets ....................... (1.05%) (1.14%) (0.92%) (0.64%) (0.62%) (0.77%)
Portfolio Turnover Rate ........................ 55% 57% 47% 48% 35% 54%
SECURITY MID CAP GROWTH FUND (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30
--------------------------------------------------------------------------------
2004(c)(q)(r) 2003(c) 2002(c)(m) 2001(c) 2000(c) 1999(c)
------------- ----------- ---------- ---------- ---------- -----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 9.57 $ 6.26 $ 7.62 $ 14.02 $ 8.54 $ 7.28
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.09) (0.15) (0.16) (0.17) (0.19) (0.14)
Net Gain (Loss) on Securities
(realized and unrealized) ................... 1.78 3.46 (1.14) (4.88) 6.10 3.31
----------- --------- -------- -------- -------- --------
Total from Investment Operations ...... 1.69 3.31 (1.30) (5.05) 5.91 3.17
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ......... -- -- -- -- -- --
Distributions (from Realized Gains) ............ (0.40) -- (0.06) (1.35) (0.43) (1.91)
----------- --------- -------- -------- -------- --------
Total Distributions ................... (0.40) -- (0.06) (1.35) (0.43) (1.91)
----------- --------- -------- -------- -------- --------
NET ASSET VALUE END OF PERIOD .................. $ 10.86 $ 9.57 $ 6.26 $ 7.62 $ 14.02 $ 8.54
=========== ========= ======== ======== ======== ========
TOTAL RETURN (a) ............................... 18.02% 52.88% (17.35%) (38.83%) 71.17% 49.39%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 31,787 $ 26,459 $ 17,502 $ 28,580 $ 38,812 $ 7,818
Ratio of Expenses to Average Net Assets ........ 2.14% 2.16% 2.11% 2.09% 2.11% 2.21%
Ratio of Net Investment Income (Loss) to
Average Net Assets ....................... (1.81%) (1.89%) (1.84%) (1.64%) (1.61%) (1.77%)
Portfolio Turnover Rate ........................ 55% 57% 47% 48% 35% 54%
87 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
SECURITY MID CAP GROWTH FUND (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30
---------------------------------------------------------------------------------
2004(c)(q)(r) 2003(c) 2002(c)(k)(m) 2001(c) 2000(c) 1999(c)(e)
------------- ------- ------------- ------- ------- ----------
PER SHARE DATA
NET ASSET VALUE BEGINNING OF PERIOD ............ $ 10.34 $ 6.76 $ 8.22 $ 14.99 $ 9.11 $ 8.20
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income (Loss) ................... (0.10) (0.16) (0.16) (0.18) (0.20) (0.07)
Net Gain (Loss) on Securities
(realized and unrealized) ................... 1.94 3.74 (1.24) (5.24) 6.51 0.98
---------- --------- ----------- ------- ------- ----------
Total from Investment Operations ...... 1.84 3.58 (1.40) (5.42) 6.31 0.91
LESS DISTRIBUTIONS:
Dividends (from Net Investment Income) ......... -- -- -- -- -- --
Distributions (from Realized Gains) ............ (0.40) -- (0.06) (1.35) (0.43) --
---------- --------- ----------- ------- ------- ----------
Total Distributions ................... (0.40) -- (0.06) (1.35) (0.43) --
---------- --------- ----------- ------- ------- ----------
NET ASSET VALUE END OF PERIOD .................. $ 11.78 $ 10.34 $ 6.76 $ 8.22 $ 14.99 $ 9.11
========== ========= =========== ======= ======= ==========
TOTAL RETURN (a) ............................... 18.13% 52.96% (17.30%) (38.78%) 71.10% 11.10%
RATIOS/SUPPLEMENTAL DATA
Net Assets End of Period (thousands) ........... $ 17,277 $ 11,279 $ 5,883 $ 4,194 $ 3,017 $ 95
Ratio of Expenses to Average Net Assets ........ 2.14% 2.16% 2.12% 2.09% 2.11% 2.21%
Ratio of Net Investment Income (Loss) to
Average Net Assets ....................... (1.81%) (1.89%) (1.85%) (1.66%) (1.61%) (1.75%)
Portfolio Turnover Rate ........................ 55% 57% 47% 48% 35% 54%
88 See accompanying notes.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
(a) Total return information does not reflect deduction of any sales charges
imposed at the time of purchase for Class A shares or upon redemption for
Class B and C.
(b) Fund expenses were reduced by the Invest Management during the period and
expense ratios absent such reimbursement would have been as follows:
2004 2003 2002 2001 2000 1999
---- ---- ---- ---- ---- ----
Social Awareness Series Class A 1.87% * * * * *
Class B 2.63% * * * * *
Class C 2.63% * * * * *
Small Cap Growth Series Class A * 2.51% * * 1.64% 1.49%
Class B * 3.23% * * 2.48% 2.94%
Class C * 3.23% * * 2.47% 2.96%
Enhanced Index Series Class A 1.82% 1.83% * * * *
Class B 2.57% 2.58% * * * *
Class C 2.57% 2.57% * * * *
Large Cap Growth Series Class A 1.90% * * 2.15% * -
Class B 2.65% * * 2.92% * -
Class C 2.65% * * 2.92% * -
Alpha Opportunity Series Class A 3.34% 3.25% - - - -
Class B 4.09% 4.01% - - - -
Class C 4.09% 4.01% - - - -
*Ratio is as reported in the accompanying financial highlights.
(c) Net investment income (loss) was computed using average shares outstanding
throughout the period.
(d) Security Enhanced Index Series and Security Select 25(R) Series were
initially capitalized on January 29, 1999, with a net asset value of $10
per share. Percentage amounts for the period, except for total return,
have been annualized.
(e) Class "C" Shares were initially offered for sale January 29, 1999. on
Percentage amounts for the period, except total return, have been
annualized.
(f) Security Large Cap Growth Series initially capitalized on May 1, was 2000,
with a net asset value of $10 per share. Percentage amounts for the
period, except total return, have been annualized.
(g) Expense ratios, including reimbursements, were calculated without the
reduction for custodian fees earnings credits. Expense ratios with such
reductions would have been as follows:
2004 2003 2002 2001 2000 1999
---- ---- ---- ---- ---- ----
Security Large Cap
Value Fund Class A * * * * * *
Class B * * * * * *
Class C * * * * * *
Equity Series Class A * * * * * *
Class B * * * * * *
Class C * * * * * *
Global Series Class A * * * * * *
Class B * * * * * *
Class C * * * * * *
Social Awareness Series Class A 1.78% * * * * *
Class B 2.53% * * * * *
Class C 2.53% * * * * *
Mid Cap Value Series Class A * * * * * *
Class B * * * * * *
Class C * * * * * *
Small Cap Growth Series Class A 1.99% * * * * *
Class B 2.75% * * * * *
Class C 2.75% * * * * *
Enhanced Index Series Class A 1.56% * * * * *
Class B 2.31% * * * * *
Class C 2.31% * * * * *
Select 25(R) Series Class A * * * * * *
Class B * * * * * *
Class C * * * * * *
Large Cap Growth Series Class A 1.80% * * 1.99% 1.85% -
Class B 2.56% * * * 2.61% -
Class C 2.56% * * * 2.60% -
Alpha Opportunity Series Class A 2.75% * - - - -
Class B 3.50% * - - - -
Class C 3.50% * - - - -
Seccurity Mid Cap
Growth Fund Class A * * * * * *
Class B * * * * * *
Class C * * * * * *
*Ratio is as reported in the accompanying financial highlights.
(h) The Dreyfus Corporation became sub-advisor of Security Large Cap Value
Fund effective January 1, 2001. Prior to January 1, 2001, advisory
services were provided by the Investment Manager.
(i) As required, effective October 1, 2001, the Funds adopted the provisions
of the AICPA Audit and Accounting Guide for Investment Companies and began
amortizing premiums on fixed income securities. The effect of this change
for the period ended September 30, 2002, was to increase net investment
income per share by less than 1/2 of a cent, decrease net realized and
unrealized gains and losses per share by less than 1/2 of a cent and
increase the ratio of net investment income to average net assets from
0.06% to 0.07%. Per share, ratios and supplemental data for periods prior
to October 1, 2001 have not been restated to reflect this change in
presentation.
(j) The financial highlights for the Equity Series as set forth herein exclude
the historical financial highlights of the Total Return Series Class A, B
and C shares. The assets of the Total Return Series were acquired by the
Equity Series on August 27, 2002.
(k) The financial highlights for the Class C shares exclude the historical
financial highlights of the Class S shares. Class S shares were exchanged
for Class C shares on June 3, 2002.
(l) RS Investments, Inc., became the sub-advisor of Small Cap Growth Series
effective September 3, 2002. Prior to September 3, 2002, Security
Management Company, LLC (SMC) paid Strong Capital Management, Inc., for
sub-advisory services.
(m) Effective May 1, 2002 the fee structure for Security Large Cap Value Fund,
Equity, Global Series and Security Mid Cap Growth Fund changed.
Per share information reflects this change.
(n) Security Alpha Opportunity Series was initially capitalized on July 7,
2003, with a net asset value of $10 per share. Percentage amounts for the
period, except for total return, have been annualized.
(o) Northern Trust became the subadvisor of Enhanced Index effective May 1,
2003. Prior to May 1, 2003 Security Management Company, LLC (SMC) paid
Deutsche Asset Management, Inc. for subadvisory services.
(p) The financial highlights for the Global Series as set forth herein exclude
the historical financial highlights of the International Series Class A, B
and C shares. The assets of the International Series were acquired by the
Global Series on October 3, 2003.
(q) The financial highlights for the Security Mid Cap Growth Fund as set forth
herein exclude the historical financial highlights of the Technology
Series Class A, B and C shares. The assets of the Technology Series were
acquired by the Security Mid Cap Growth Fund on October 3, 2003.
(r) Unaudited figures for the six months ended March 31, 2004. Percentage
amounts for the period, except total return, have been annualized.
89 See accompanying notes.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2004
1. SIGNIFICANT ACCOUNTING POLICIES
Security Large Cap Value, Equity and Mid Cap Growth Funds (the Funds) are
registered under the Investment Company Act of 1940, as amended, as open-end
management investment companies. The shares of Security Equity Fund are
currently issued in multiple Series, with each Series, in effect, representing a
separate fund. The Fund is required to account for the assets of each Series
separately and to allocate general liabilities of the Fund to each Series based
on the relative net assets of each Series. Class "A" shares are generally sold
with a sales charge at the time of purchase. Class "A" shares are not subject to
a sales charge when they are redeemed, except that purchases of Class "A" shares
of $1 million or more sold without a front-end sales charge are subject to a
contingent deferred sales charge if redeemed within one year of purchase. Class
"B" shares are offered without a front-end sales charge but incur additional
class-specific expenses. Class B shares may be subject to a contingent deferred
sales charge for six years and automatically convert to Class A shares after
eight years. Redemptions of the shares within five years of acquisition incur a
contingent deferred sales charge. Class "C" shares are offered without a
front-end sales charge but incur additional class-specific expenses. Redemptions
of the shares within one year of acquisition incur a contingent deferred sales
charge. The following is a summary of the significant accounting policies
followed by the Funds in the preparation of their financial statements.
A. SECURITY VALUATION - Valuations of the Fund's securities are supplied
by pricing services approved by the Board of Directors. The Fund's officers,
under the general supervision of the Board of Directors, regularly review
procedures used by, and valuations provided by, the pricing services. Each
security owned by a Fund that is listed on a securities exchange is valued at
its last sale price on that exchange on the date as of which assets are valued.
Where the security is listed on more than one exchange, the Fund will use the
price of that exchange that it generally considers to be the principal exchange
on which the stock is traded. Fund securities listed on the Nasdaq Stock Market,
Inc. ("Nasdaq") will be valued at the Nasdaq Official Closing Price, which may
not necessarily represent the last sale price. If there has been no sale on such
exchange or Nasdaq on such day, the security is valued at the closing bid price
on such day. Securities for which market quotations are not readily available
are valued by a pricing service considering securities with similar yields,
quality, type of issue, coupon, duration and rating. If there is no bid price or
if the bid price is deemed to be unsatisfactory by the Board of Directors or by
the Fund's investment manager, then the securities are valued in good faith by
such method as the Board of Directors determines will reflect the fair value. If
events occur that will affect the value of a fund's portfolio securities before
the NAV has been calculated (a "significant event"), the security will generally
be priced using a fair value procedure. If the Valuation Committee determines a
significant event has occurred, it will evaluate the impact of that event on an
affected security or securities, to determine whether a fair value adjustment
would materially affect the fund's NAV per share. Some of the factors which may
be considered by the Board of Directors in determining fair value are
fundamental analytical data relating to the investment; the nature and duration
of any restrictions on disposition; trading in similar securities of the same
issuer or comparable companies; information from broker-dealers; and an
evaluation of the forces that influence the market in which the securities are
purchased and sold. The Fund generally will value short-term debt securities at
prices based on market quotations for such securities or securities of similar
type, yield, quality and duration, except those securities purchased with 60
days or less to maturity are valued on the basis of amortized cost which
approximates market value.
Generally, trading in foreign securities markets is substantially
completed each day at various times prior to the close of the New York Stock
Exchange. The values of foreign securities are determined as of the close of
such foreign markets or the close of the New York Stock Exchange, if earlier.
All investments quoted in foreign currency are valued in U.S. dollars on the
basis of the foreign currency exchange rates prevailing at the close of
business. Investments in foreign securities may involve risks not present in
domestic investments. Since foreign securities may be denominated in a foreign
currency and involve settlement and pay interest or dividends in foreign
currencies, changes in the relationship of these foreign currencies to the U.S.
dollar can significantly affect the value of the investments and earnings of the
Funds. Foreign investments may also subject the these Series to foreign
government exchange restrictions, expropriation, taxation or other political,
social or economic developments, all of which could affect the market and/or
credit risk of the investments.
B. REPURCHASE AGREEMENTS - In connection with transactions in repurchase
agreements, it is the Funds' policy that its custodian take possession of the
underlying collateral securities, the fair value of which exceeds the principal
amount of the repurchase transaction, including accrued interest, at all times.
If the seller defaults, and the fair value of the collateral declines,
realization of the collateral by the Funds may be delayed or limited.
C. FOREIGN CURRENCY TRANSACTIONS - The accounting records of the Funds are
maintained in U.S. dollars. All assets and liabilities initially expressed in
foreign currencies are converted into U.S. dollars at prevailing exchange rates.
Purchases and sales of investment securities, dividend and interest income, and
certain expenses are translated at the rates of exchange prevailing on the
respective dates of such transactions.
The Funds do not isolate that portion of the results of operations
resulting from changes in the foreign exchange rates on investments from the
fluctuations arising from changes in the market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss on
investments.
Net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales of foreign currencies, and the difference between
asset and liability amounts initially stated in foreign currencies and the U.S.
dollar value of the amounts actually received or paid. Net unrealized foreign
exchange gains or losses arise from changes in the value of portfolio securities
and other assets and liabilities at the end of the reporting period, resulting
from changes in the exchange rates.
D. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS - Global Series may enter
into forward foreign exchange contracts in order to manage foreign currency risk
from purchase or sale of securities denominated in foreign currency. The Series
may also enter into such contracts to manage changes in foreign currency
exchange rates on portfolio positions. These contracts are marked to market
daily, by recognizing the difference between the contract exchange rate and the
current market rate as unrealized gains or losses. Realized gains or losses are
recognized when contracts are settled and are reflected in the Statement of
Operations. These contracts involve market risk in
90
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2004
excess of the amount reflected in the Statement of Assets and Liabilities. The
face or contract amount in U.S. dollars reflects the total exposure these funds
have in that particular currency contract. Losses may arise due to changes in
the value of the foreign currency or if the counterparty does not perform under
the contract.
E. FUTURES - Large Cap Value Fund, Equity Series, Social Awareness Series,
Small Cap Growth Series, Enhanced Index Series, Alpha Opportunity Series and Mid
Cap Growth Fund utilize futures contracts to a limited extent, with the
objectives of maintaining full exposure to the underlying stock market,
enhancing returns, maintaining liquidity, and minimizing transaction costs.
These Funds or Series, as applicable, may purchase futures contracts to
immediately position incoming cash in the market, thereby simulating a fully
invested position in the underlying index while maintaining a cash balance for
liquidity. In the event of redemptions, the Funds or Series, as applicable, may
pay departing shareholders from its cash balances and reduce their futures
positions accordingly. Returns may be enhanced by purchasing futures contracts
instead of the underlying securities when futures are believed to be priced more
attractively than the underlying securities. The primary risks associated with
the use of futures contracts are imperfect correlation between changes in market
values of stocks contained in the indexes and the prices of futures contracts,
and the possibility of an illiquid market. Futures contracts are valued based
upon their quoted daily settlement prices. Upon entering into a futures
contract, the Funds are required to deposit and maintain as collateral either
cash or securities, representing the initial margin, equal to a certain
percentage of the contract value. Cash deposits are shown as restricted cash on
the Statement of Assets and Liabilities; securities are noted in the Schedule of
Investments. Subsequent changes in the value of the contract, or variation
margin, are recorded as unrealized gains or losses. The variation margin is paid
or received in cash daily by the Funds. The Funds realize a gain or loss when
the contract is closed or expires.
F. OPTIONS WRITTEN - The Fund may purchase put and call options and write
such options on a covered basis on securities that are traded on recognized
securities exchanges and over-the-counter markets. Call and put options on
securities give the holder the right to purchase or sell, respectively, (and the
writer the obligation to sell or purchase) a security at a specified price,
until a certain date. Options may be used to hedge the Fund's portfolio, to
increase returns or to maintain exposure to the equity markets. The primary
risks associated with the use of options are an imperfect correlation between
the change in market value of the securities held by the series and the price of
the option, the possibility of an illiquid market, and the inability of the
counterparty to meet the terms of the contract.
The premium received for a written option is recorded as an asset with an
equal liability which is marked to market based on the option's quoted daily
settlement price. Fluctuations in the value of such instruments are recorded as
unrealized appreciation (depreciation) until terminated, at which time realized
gains and losses are recognized.
G. SECURITY TRANSACTIONS AND INVESTMENT INCOME - Security transactions are
accounted for on the date the securities are purchased or sold (trade date).
Realized gains and losses are reported on an identified cost basis. Dividend
income less foreign taxes withheld (if any) plus foreign taxes recoverable (if
any) are recorded on the ex-dividend date. Interest income is recognized on the
accrual basis including the amortization of premiums and accretion of discounts
on debt securiities.
H. EXPENSES - Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses are allocated to the
Funds on the basis of relative net assets. Class specific expenses, such as
12b-1 fees, are borne by that class. Income, other expenses and realized and
unrealized gains and losses of a Fund are allocated to each respective class in
proportion to the relative net assets of each class.
I. DISTRIBUTIONS TO SHAREHOLDERS - Distributions to shareholders are
recorded on the ex-dividend date. The character of distributions made during the
year from net investment income or net realized gains may differ from their
ultimate characterization for federal income tax purposes.
J. TAXES - The Funds complied with the requirements of the Internal
Revenue Code applicable to regulated investment companies and distributed all of
their taxable net income and net realized gains sufficient to relieve them from
all, or substantially all, federal income, excise and state income taxes.
Therefore, no provision for federal or state income tax is required.
K. USE OF ESTIMATES - The preparation of financial statements in
conformity with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results could differ from those estimates.
L. SHORT SALES - Certain Funds may make short sales "against the box," in
which the Fund enters into a short sale of a security it owns. At no time will
more than 15% of the value of the Funds' net assets be in deposits on short
sales against the box. In a short sale that is not "against the box," a Fund
sells a security which it does not own, in anticipation of a decline in the
market value of the security. To complete the sale, the Fund must borrow the
security generally from the broker through which the short sale is made in order
to make delivery to the buyer. The Fund must replace the security borrowed by
purchasing it at the market price at the time of replacement. The Fund is said
to have a "short position" in securities sold until it delivers them to the
broker. For financial statement purposes, an amount equal to the settlement
amount is included in the Statement of Assets and Liabilities as an asset and an
equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the current value of the short position. Subsequent
fluctuations in the market prices of securities sold, but not yet purchased, may
require purchasing the securities at prices which differ from the market value
reflected on the Statement of Assets and Liabilities. The Funds are liable for
any dividends or interest payable on securities while those securities are in a
short position. As collateral for its short positions, the Funds are required
under the Investment Company Act of 1940 to maintain segregated assets
consisting of cash, cash equivalents or liquid securities. These segregated
assets are valued consistent with Note 1a above. These segregated assets are
required to be adjusted daily to reflect changes in the market value of the
securities sold short.
91
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2004
2. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees are payable to Security Management Company, LLC (SMC) at an
annual rate of 0.75% of the average daily net assets for Security Large Cap
Value Fund, Equity, Enhanced Index, Select 25 Series and Security Mid Cap Growth
Fund, 1.00% for Global, Social Awareness, Small Cap Growth and Large Cap Growth
Series. Prior to February 1, 2004 management fees were payable to SMC at an
annual rate of 0.75% of the average daily net assets for the Mid Cap Value
Series. Effective February 1, 2004, the Mid Cap Value Series began paying SMC an
annual fee equal to 1% on an annual basis, of the average daily net assets of
the Series of $200 million or less, plus an annual rate of 0.75% of the average
daily net assets of the Series in excess of $200 million. Effective February 1,
2004, SMC has voluntarily agreed to waive .25% of the management fees for the
Large Cap Growth Series and the Social Awareness Series.
SMC receives a management fee from Alpha Opportunity Fund that is composed
of two components. The first component is an annual base fee equal to 2.00% of
Alpha Opportunity Fund's average daily net assets. The second component is a
performance adjustment that either increases or decreases the base fee,
depending on how Alpha Opportunity Fund performed relative to the S&P 500 Index.
The illustration below demonstrates how the performance adjustment may affect
the Investment Manager's fee. The Investment Manager will receive the 2.00%
annual base fee for the first year of the Fund's investment operations, and
thereafter if the Fund's investment performance matches the investment record of
the S&P 500 Index over the prior 12 month period. If the investment performance
of the Fund's Class A shares exceeds the investment record of the S&P 500 Index,
the performance adjustment increases the fee paid to the Investment Manager
proportionately, reaching a maximum annual fee of 2.75% if the Fund outperforms
the investment record of the S&P 500 Index by 15 percentage points over the
measuring period. If the investment performance of the Fund's Class A shares
trails the investment record of the S&P 500 Index, the performance adjustment
decreases the fee paid to the Investment Manager proportionately, reaching a
minimum annual fee of 1.25% if the Fund underperforms the investment record of
the S&P 500 Index by 15 percentage points over the measuring period. The
performance adjustment is calculated on the basis of a "rolling" 12 month
measuring period, so that a fee rate calculated on the basis of investment
performance over a 12 month period will apply only for the next succeeding
month, and then will be subject to recalculation for the following month on the
basis of the Fund's investment performance over the prior 12 month period.
Performance adjustments will begin on August 1, 2004 based upon Alpha
Opportunity Fund's performance during the 12 months ended July 1, 2004.
SMC also acts as the administrative agent and transfer agent for the
Funds, and as such performs administrative functions, transfer agency and
dividend disbursing services, and the bookkeeping, accounting and pricing
functions for each fund. For these services, the Investment Manager receives,
from the Global Series an administrative fee equal to .045% of the average daily
net assets of the series plus the greater of .10% of the average net assets or
$60,000. For administrative services provided to the Security Large Cap Value
Fund, the Equity, Social Awareness, Mid Cap Value, Small Cap Growth, Enhanced
Index, Select 25, Large Cap Growth Series and the Security Mid Cap Growth Fund,
SMC receives an administrative fee equal to .09% of the average daily net assets
of each series. For Alpha Opportunity Series, SMC receives an administrative fee
equal to .145% of the average daily net assets of the Alpha Opportunity Fund.
Effective February 1, 2004, there is a minimum annual charge of $25,000 for the
administrative fees. Effective February 1, 2004 SMC is paid the following for
providing transfer agent services to the Funds:
Per account charge: $5.00 to $8.00
Transactions fees: $0.60 to $1.10
Minimum charge: $25,000
Plus certain out-of-pocket charges
Prior to February 1, 2004, SMC was paid the following for providing
transfer agent services to the Funds:
Per account charge: $8.00
Transactions fees: $1.00
SMC pays the Dreyfus Corporation an annual fee equal to .25% of the
average daily closing value of the combined net assets of Large Cap Value Fund
and another fund managed by SMC, SBL Series B, computed on a daily basis.
Beginning January 1, 2002, the Dreyfus Corporation agreed to waive .10% of the
average daily closing value of the combined net assets of these funds, computed
on a daily basis until December 31, 2006.
SMC pays OppenheimerFunds, Inc. an annual fee equal to a percentage of the
average daily closing value of the combined average daily net assets of Global
Series and another fund managed by SMC, SBL Series D, computed on a daily basis
as follows:
Combined Average Daily Net Assets Annual Fees
- --------------------------------- -----------
$0 to $300 Million.................... .35%
$300 Million to $750 Million.......... .30%
$750 Million or more.................. .25%
SMC pays RS Investments, an annual fee equal to a percentage of the
average daily closing value of the combined net assets of Small Cap Growth
Series and another fund managed by SMC, SBL Series X, computed on a daily basis
as follows:
Combined Average Daily Net Assets Annual Fees
- --------------------------------- -----------
$0 to $100 Million................... 0.55%
$100 Million to $400 Million......... 0.50%
Over $400 Million.................... 0.45%
92
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2004
SMC pays Northern Trust an annual fee equal to a percentage of the average
daily closing value of the combined net assets of Security Equity Fund Enhanced
Index Series and SBL Series H, computed on a daily basis as follows:
Combined Average Daily Net Assets Annual Fees
- --------------------------------- -----------
$0 to $100 Million............ .20%
$100 Million to $300 Million.. .15%
$300 Million or more.......... .13%
In addition, SMC has voluntarily agreed to waive .25% of the management
fees for Enhanced Index Series.
SMC pays Mainstream Investment Advisers, LLC an annual fee equal to 2.50%
of that portion of the Alpha Opportunity Fund's assets managed by Mainstream.
The sub-advisory fee will be adjusted upward or downward, depending on how that
portion of Alpha Opportunity Fund's assets performed relative to the S&P 500
Index.
The pro rata adjustment upward or downward will be determined based upon
the investment performance of that portion of Alpha Opportunity Fund's assets
managed by Mainstream relative to the investment record of the S&P 500 Index.
The amount of any upward adjustment in the Base Fee will be equal to 1.50%
multiplied by the ratio of the number of percentage points by which the
investment performance of the Alpha Opportunity Fund assets managed by
Mainstream exceeds the investment record of the S&P 500 Index as compared to 30
percentage points.
The maximum performance adjustment upward or downward is 1.50% annually.
Depending on the performance of that portion of the Fund's assets managed by
Mainstream, the Investment Manager may pay Mainstream a maximum of 4.00% or a
minimum of 1.00% in annual sub-advisory fees.
During its first 12 months of operations, the Investment Manager will pay
Mainstream the base fee of 2.50% without any adjustment for performance.
Performance adjustments will being on August 1, 2004 based upon the performance
during the 12 months ended July 1, 2004 of that portion of Alpha Opportunity
Fund's assets managed by Mainstream. Thereafter, the Investment Manager will
calculate the performance adjustment at the end of each calendar month based
upon the investment performance of the assets managed by Mainstream during the
twelve-month period ending on the last day of the prior month compared to the
investment record of the S&P 500 Index during the same period.
The Alpha Opportunity Fund's assets are reallocated between Mainstream and
the Investment Manager on a monthly basis to an approximately equal allocation.
This procedure ensures that the Investment Manager cannot make allocation
decisions that favor the Investment Manager over Mainstream.
SMC has agreed to limit the total expenses of the Enhanced Index and
Select 25 Series to 1.75%, Social Awareness, Mid Cap Value, Small Cap Growth and
Large Cap Growth Series to 2.00% in each case exclusive of interest, taxes,
extraordinary expenses, brokerage fees and commissions and 12b-1 fees. SMC has
agreed to limit the total other expenses for Alpha Opportunity to 0.50%. The
expense limits other than those for Enhanced Index, and Select 25 Series are
voluntary limits which may be terminated at any time without notice to
shareholders.
The Funds have adopted Distribution Plans related to the offering of Class
A, Class B and Class C shares pursuant to Rule 12b-1 under the Investment
Company Act of 1940. The plans provide for payments at an annual rate of 1.00%
of the average daily net assets of each Fund's Class B, Class C, and 0.25% of
the average daily net assets of each Fund's Class A shares.
Security Distributors, Inc. (SDI), a wholly-owned subsidiary of Security
Benefit Group, Inc. and the national distributor of the Funds, received net
underwriting commissions on sales of shares after allowances to brokers and
dealers. The net underwriting commissions received are presented in the
following table:
SDI UNDERWRITING COMMISSIONS
Security Large Cap Value Fund................. $ 2,294
Security Equity Fund:
Equity Series........................... 16,999
Global Series........................... 4,984
Social Awareness Series................. 1,674
Mid Cap Value Series.................... 35,510
Small Cap Growth Series................. 3,528
Enhanced Index Series................... 1,143
Select 25(R) Series..................... 2,302
Large Cap Growth Series................. 737
Alpha Opportunity Series................ 780
Security Mid Cap Growth Fund.................. 25,604
Certain officers and directors of the Funds are also officers and/or directors
of Security Benefit Life Insurance Company and its subsidiaries, which include
SMC and SDI.
93
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2004
3. UNREALIZED APPRECIATION/DEPRECIATION FOR FEDERAL INCOME TAX PURPOSES
For federal income tax purposes, the amounts of unrealized appreciation
(depreciation) for each Series' investments as of March 31, 2004 were as
follows:
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ --------------
Security Large Cap Value Fund.... $ 8,957,141 $ (985,869) $ 7,971,272
Security Equity Fund:
Equity Series.............. 102,464,586 (17,254,085) 85,210,501
Global Series.............. 24,672,450 (2,472,688) 22,199,762
Social Awareness Series.... 2,277,632 (2,594,970) (317,338)
Mid Cap Value Series....... 82,295,290 (4,892,563) 77,402,727
Small Cap Growth Series.... 7,116,965 (454,302) 6,662,663
Enhanced Index Series...... 1,998,628 (561,561) 1,437,067
Select 25(R) Series........ 3,017,345 (799,007) 2,218,338
Large Cap Growth Series.... 2,894,867 (434,996) 2,459,871
Alpha Opportunity Series... 142,618 (148,140) (5,522)
Security Mid Cap Growth Fund..... 66,516,328 (12,592,289) 53,924,039
4. INVESTMENT TRANSACTIONS
Investment transactions for the six months ended March 31, 2004,
(excluding overnight investments and short-term commercial paper) were as
follows:
PROCEEDS
PURCHASES FROM SALES
--------- ----------
Security Large Cap Value Fund.... $ 19,677,352 $ 19,102,429
Security Equity Fund:
Equity Series.............. 91,291,152 138,633,134
Global Series.............. 46,040,273 16,592,186
Social Awareness Series.... 2,297,428 2,550,516
Mid Cap Value Series....... 109,414,599 39,850,795
Small Cap Growth Series.... 23,616,601 21,882,919
Enhanced Index Series...... 5,740,831 5,105,409
Select 25(R) Series........ 8,489,919 9,183,069
Large Cap Growth Series.... 5,971,023 5,700,571
Alpha Opportunity Series... 21,405,325 20,386,946
Security Mid Cap Growth Fund..... 66,635,048 55,697,425
5. OPEN FUTURES CONTRACTS
NUMBER OF CONTRACT MARKET UNREALIZED
POSITION CONTRACTS EXPIRATION DATE AMOUNT VALUE GAIN/(LOSS)
-------- --------- --------------- ------ ----- -----------
ALPHA OPPORTUNITY SERIES
S&P 500 Index Future....... Long 15 6/18/2004 $4,264,822 $4,218,375 $(46,447)
ENHANCED INDEX SERIES
S&P 500 E-Mini Future...... Long 4 6/18/2004 $ 223,390 $ 225,000 $ 1,610
94
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2004
6. CAPITAL SHARE TRANSACTIONS
The Funds are authorized to issue an unlimited number of shares in an
unlimited number of classes. Transactions in the capital shares of the Funds for
the period ended March 31, 2004 and for the year ended September 30, 2003
(except as noted), respectively, were as follows:
2004 2004 2004 2004
Shares Amount Shares Amount
Sold Sold Reinvested Reinvested
--------- ----------- ------- ----------
Security Large Cap Value Fund:
Class A shares............... 1,050,793 $ 5,982,806 18,840 $ 105,691
Class B shares............... 576,208 3,150,846 - -
Class C shares............... 203,503 1,145,130 - -
--------- ----------- ------- ----------
Total..................... 1,830,504 $10,278,782 18,840 $ 105,691
========= =========== ======= ==========
Security Equity Fund:
Equity Series
Class A shares............... 3,699,286 $23,442,299 97,974 $ 627,027
Class B shares............... 882,829 5,128,343 - -
Class C shares............... 201,247 1,223,370 - -
--------- ----------- ------- ----------
Total..................... 4,783,362 $29,794,012 97,974 $ 627,027
========= =========== ======= ==========
Global Series
Class A shares............... 2,801,761 $35,791,072 - $ -
Class B shares............... 538,113 6,449,773 - -
Class C shares............... 91,388 1,077,812 - -
--------- ----------- ------- ----------
Total..................... 3,431,262 $43,318,657 - $ -
========= =========== ======= ==========
Social Awareness Series
Class A shares............... 54,653 $ 1,050,006 - $ -
Class B shares............... 13,861 246,531 - -
Class C shares............... 9,064 163,805 - -
--------- ----------- ------- ----------
Total..................... 77,578 $ 1,460,342 - $ -
========= =========== ======= ==========
Mid Cap Value Series
Class A shares............... 2,587,331 $71,310,794 50,055 $1,355,987
Class B shares............... 497,046 12,872,259 24,065 610,763
Class C shares............... 475,336 12,533,253 14,771 381,240
--------- ----------- ------- ----------
Total..................... 3,559,713 $96,716,306 88,891 $2,347,990
========= =========== ======= ==========
Small Cap Growth Series
Class A shares............... 371,178 $ 4,871,770 - $ -
Class B shares............... 140,658 1,736,517 - -
Class C shares............... 95,402 1,200,370 - -
--------- ----------- ------- ----------
Total..................... 607,236 $ 7,808,657 - $ -
========= =========== ======= ==========
Enhanced Index Series
Class A shares............... 101,536 $ 857,981 - $ -
Class B shares............... 68,995 569,800 - -
Class C shares............... 81,427 658,932 - -
--------- ----------- ------- ----------
Total..................... 251,958 $ 2,086,713 - $ -
========= =========== ======= ==========
Select 25(R) Series
Class A shares............... 67,973 $ 532,141 - $ -
Class B shares............... 51,412 385,679 - -
Class C shares............... 81,782 624,429 - -
--------- ----------- ------- ----------
Total..................... 201,167 $ 1,542,249 - $ -
========= =========== ======= ==========
Large Cap Growth Series
Class A shares............... 1,551,891 $ 9,205,304 - $ -
Class B shares............... 257,096 1,507,475 - -
Class C shares............... 74,153 437,823 - -
--------- ----------- ------- ----------
Total..................... 1,883,140 $11,150,602 - $ -
========= =========== ======= ==========
Alpha Opportunity Series
Class A shares............... 139,266 $ 1,570,833 18,034 $ 199,093
Class B shares............... 8,833 99,304 9,208 101,286
Class C shares............... 55,960 621,884 10,984 120,826
--------- ----------- ------- ----------
Total..................... 204,059 $ 2,292,021 38,226 $ 421,205
========= =========== ======= ==========
Security Mid Cap Growth Fund:
Class A shares............... 2,986,278 $34,093,857 458,007 $5,189,217
Class B shares............... 438,014 4,421,736 115,713 1,150,192
Class C shares............... 378,141 3,910,203 48,173 519,780
--------- ----------- ------- ----------
Total..................... 3,802,433 $42,425,796 621,893 $6,859,189
========= =========== ======= ==========
2004 Total
2004 2004 Increase/ Increase/
Shares Amount (Decrease) (Decrease)
Redeemed Redeemed Shares Amount
---------- ------------ ---------- ------------
Security Large Cap Value Fund:
Class A shares............... (1,336,403) $ (7,839,021) (266,770) $ (1,750,524)
Class B shares............... (427,622) (2,347,191) 148,586 803,655
Class C shares............... (78,427) (441,214) 125,076 703,916
---------- ------------ ---------- ------------
Total..................... (1,842,452) $(10,627,426) 6,892 $ (242,953)
========== ============ ========== ============
Security Equity Fund:
Equity Series
Class A shares............... (10,954,626) $(70,022,594) (7,157,366) $(45,953,268)
Class B shares............... (2,531,220) (14,742,699) (1,648,391) (9,614,356)
Class C shares............... (294,006) (1,791,988) (92,759) (568,618)
---------- ------------ ---------- ------------
Total..................... (13,779,852) $(86,557,281) (8,898,516) $(56,136,242)
========== ============ ========== ============
Global Series
Class A shares............... (980,254) $(12,719,425) 1,821,507 $ 23,071,647
Class B shares............... (382,507) (4,758,435) 155,606 1,691,338
Class C shares............... (207,280) (2,592,804) (115,892) (1,514,992)
---------- ------------ ---------- ------------
Total..................... (1,570,041) $(20,070,664) 1,861,221 $ 23,247,993
========== ============ ========== ============
Social Awareness Series
Class A shares............... (37,476) $ (716,310) 17,177 $ 333,696
Class B shares............... (41,705) (741,578) (27,844) (495,047)
Class C shares............... (7,338) (135,826) 1,726 27,979
---------- ------------ ---------- ------------
Total..................... (86,519) $ (1,593,714) (8,941) $ (133,372)
========== ============ ========== ============
Mid Cap Value Series
Class A shares............... (533,997) $(14,901,679) 2,103,389 $ 57,765,102
Class B shares............... (194,894) (5,024,601) 326,217 8,458,421
Class C shares............... (158,769) (4,214,578) 331,338 8,699,915
---------- ------------ ---------- ------------
Total..................... (887,660) $(24,140,858) 2,760,944 $ 74,923,438
========== ============ ========== ============
Small Cap Growth Series
Class A shares............... (284,953) $ (3,740,571) 86,225 $ 1,131,199
Class B shares............... (116,492) (1,442,132) 24,166 294,385
Class C shares............... (77,730) (984,716) 17,672 215,654
---------- ------------ ---------- ------------
Total..................... (479,175) $ (6,167,419) 128,063 $ 1,641,238
========== ============ ========== ============
Enhanced Index Series
Class A shares............... (87,144) $ (735,185) 14,392 $ 122,796
Class B shares............... (62,529) (507,592) 6,466 62,208
Class C shares............... (48,013) (386,428) 33,414 272,504
---------- ------------ ---------- ------------
Total..................... (197,686) $ (1,629,205) 54,272 $ 457,508
========== ============ ========== ============
Select 25(R) Series
Class A shares............... (167,351) $ (1,300,580) (99,378) $ (768,439)
Class B shares............... (138,610) (1,055,451) (87,198) (669,772)
Class C shares............... (102,678) (780,441) (20,896) (156,012)
---------- ------------ ---------- ------------
Total..................... (408,639) $ (3,136,472) (207,472) $ (1,594,223)
========== ============ ========== ============
Large Cap Growth Series
Class A shares............... (1,440,217) $ (8,477,110) 111,674 $ 728,194
Class B shares............... (173,716) (1,023,621) 83,380 483,854
Class C shares............... (108,476) (635,794) (34,323) (197,971)
---------- ------------ ---------- ------------
Total..................... (1,722,409) $(10,136,525) 160,731 $ 1,014,077
========== ============ ========== ============
Alpha Opportunity Series
Class A shares............... (23,917) $ (267,184) 133,383 $ 1,502,742
Class B shares............... - - 18,041 200,590
Class C shares............... (70) (796) 66,874 741,914
---------- ------------ ---------- ------------
Total..................... (23,987) $ (267,980) 218,298 $ 2,445,246
========== ============ ========== ============
Security Mid Cap Growth Fund:
Class A shares............... (2,818,485) $(33,419,781) 625,800 $ 5,863,293
Class B shares............... (568,773) (5,959,248) (15,046) (387,320)
Class C shares............... (275,650) (3,128,725) 150,664 1,301,258
---------- ------------ ---------- ------------
Total..................... (3,662,908) $(42,507,754) 761,418 $ 6,777,231
========== ============ ========== ============
95
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2004
6. CAPITAL SHARE TRANSACTIONS (CONTINUED)
2003 Total 2003 Total
2003 2003 2003 2003 Increase/ Increase/
Shares Amount Shares Amount (Decrease) (Decrease)
Sold Sold Redeemed Redeemed Shares Amount
---------- ------------ ----------- ------------- ----------- ------------
Security Large Cap Value Fund:
Class A shares.............. 3,275,684 $ 15,980,582 (2,059,730) $ (9,542,638) 1,215,954 $ 6,437,944
Class B shares.............. 1,770,126 8,414,192 (571,007) (2,539,716) 1,199,119 5,874,476
Class C shares.............. 207,972 955,668 (141,469) (643,187) 66,503 312,481
---------- ------------ ----------- ------------- ----------- ------------
Total...................... 5,253,782 $ 25,350,442 (2,772,206) $ (12,725,541) 2,481,576 $ 12,624,901
========== ============ =========== ============= =========== ============
Security Equity Fund:
Equity Series
Class A shares.............. 9,525,481 $ 52,599,625 (18,674,422) $(105,856,454) (9,148,941) $(53,256,829)
Class B shares.............. 3,963,505 19,942,502 (6,830,650) (35,443,343) (2,867,145) (15,500,841)
Class C shares.............. 647,916 3,455,973 (499,324) (2,656,042) 148,592 799,931
---------- ------------ ----------- ------------- ----------- ------------
Total...................... 14,136,902 $ 75,998,100 (26,004,396) $(143,955,839) (11,867,494) $(67,957,739)
========== ============ =========== ============= =========== ============
Global Series
Class A shares.............. 17,102,956 $170,505,008 (18,807,897) $(187,958,287) (1,704,941) $(17,453,279)
Class B shares.............. 259,359 2,446,819 (891,673) (8,037,983) (632,314) (5,591,164)
Class C shares.............. 135,732 1,296,276 (104,715) (993,174) 31,017 303,102
---------- ------------ ----------- ------------- ----------- ------------
Total...................... 17,498,047 $174,248,103 (19,804,285) $(196,989,444) (2,306,238) $(22,741,341)
========== ============ =========== ============= =========== ============
Social Awareness Series
Class A shares.............. 169,124 $ 2,824,966 (149,561) $ (2,475,626) 19,563 $ 349,340
Class B shares.............. 44,117 681,521 (107,048) (1,664,723) (62,931) (983,202)
Class C shares.............. 30,846 489,488 (19,076) (295,687) 11,770 193,801
---------- ------------ ----------- ------------- ----------- ------------
Total...................... 244,087 $ 3,995,975 (275,685) $ (4,436,036) (31,598) $ (440,061)
========== ============ =========== ============= =========== ============
Mid Cap Value Series
Class A shares.............. 3,192,088 $ 65,771,619 (2,597,504) $ (51,319,933) 594,584 $ 14,451,686
Class B shares.............. 756,268 14,474,911 (731,230) (13,136,730) 25,038 1,338,181
Class C shares.............. 540,730 10,825,157 (284,240) (5,174,008) 256,490 5,651,149
---------- ------------ ----------- ------------- ----------- ------------
Total...................... 4,489,086 $ 91,071,687 (3,612,974) $ (69,630,671) 876,112 $ 21,441,016
========== ============ =========== ============= =========== ============
Small Cap Growth Series
Class A shares.............. 655,128 $ 6,184,996 (476,304) $ (4,215,103) 178,824 $ 1,969,893
Class B shares.............. 304,029 2,757,770 (253,852) (2,226,918) 50,177 530,852
Class C shares.............. 130,394 1,133,518 (97,903) (842,930) 32,491 290,588
---------- ------------ ----------- ------------- ----------- ------------
Total...................... 1,089,551 $ 10,076,284 (828,059) $ (7,284,951) 261,492 $ 2,791,333
========== ============ =========== ============= =========== ============
Enhanced Index Series
Class A shares.............. 333,447 $ 2,367,320 (642,114) $ (4,508,312) (308,667) $ (2,140,992)
Class B shares.............. 177,203 1,206,524 (513,292) (3,498,690) (336,089) (2,292,166)
Class C shares.............. 159,884 1,120,893 (430,959) (2,949,239) (271,075) (1,828,346)
---------- ------------ ----------- ------------- ----------- ------------
Total...................... 670,534 $ 4,694,737 (1,586,365) $ (10,956,241) (915,831) $ (6,261,504)
========== ============ =========== ============= =========== ============
Select 25(R) Series
Class A shares.............. 308,267 $ 2,124,128 (707,984) $ (4,949,490) (399,717) $ (2,825,362)
Class B shares.............. 129,196 870,627 (310,636) (2,109,351) (181,440) (1,238,724)
Class C shares.............. 368,021 2,518,754 (105,802) (711,166) 262,219 1,807,588
---------- ------------ ----------- ------------- ----------- ------------
Total...................... 805,484 $ 5,513,509 (1,124,422) $ (7,770,007) (318,938) $ (2,256,498)
========== ============ =========== ============= =========== ============
Large Cap Growth Series
Class A shares.............. 1,662,989 $ 9,276,514 (793,945) $ (4,326,342) 869,044 $ 4,950,172
Class B shares.............. 1,088,511 5,959,453 (319,346) (1,646,003) 769,165 4,313,450
Class C shares.............. 152,477 790,028 (89,726) (451,972) 62,751 338,056
---------- ------------ ----------- ------------- ----------- ------------
Total...................... 2,903,977 $ 16,025,995 (1,203,017) (6,424,317) 1,700,960 $ 9,601,678
========== ============ =========== ============= =========== ============
Alpha Opportunity Series*
Class A shares.............. 318,546 $ 3,210,618 (31,141) $ (327,957) 287,405 $ 2,882,661
Class B shares.............. 169,772 1,699,668 - - 169,772 1,699,668
Class C shares.............. 168,989 1,690,408 - - 168,989 1,690,408
---------- ------------ ----------- ------------- ----------- ------------
Total...................... 657,307 $ 6,600,694 (31,141) $ (327,957) 626,166 $ 6,272,737
========== ============ =========== ============= =========== ============
Security Mid Cap Growth Fund
Class A shares.............. 4,578,400 $ 40,656,683 (5,138,315) $ (44,459,945) (559,915) $ (3,803,262)
Class B shares.............. 1,135,067 9,427,357 (1,168,642) (8,552,708) (33,575) 874,649
Class C shares.............. 497,073 4,322,997 (277,157) (2,270,432) 219,916 2,052,565
---------- ------------ ----------- ------------- ----------- ------------
Total...................... 6,210,540 $ 54,407,037 (6,584,114) $ (55,283,085) (373,574) $ (876,048)
========== ============ =========== ============= =========== ============
*For the period beginning July 7, 2003 (commencement of operations) to September
30, 2003.
96
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2004
7. OPTIONS WRITTEN
The following options written were outstanding for Mid Cap Value Series as of
March 31, 2004:
MID CAP VALUE SERIES - CALL OPTIONS WRITTEN OUTSTANDING
EXPIRATION EXERCISE NUMBER OF MARKET
COMMON STOCK DATE PRICE CONTRACTS VALUE
- ------------ ---------- -------- --------- -------
Adaptec, Inc. .............................................. 07/16/04 $10.00 1,430 $42,900
Ciena Corporation........................................... 07/16/04 7.50 855 12,825
----- -------
Total call options outstanding (premiums received, $253,033) 2,285 $55,725
===== =======
MID CAP VALUE SERIES - PUT OPTIONS WRITTEN OUTSTANDING
EXPIRATION EXERCISE NUMBER OF MARKET
COMMON STOCK DATE PRICE CONTRACTS VALUE
- ------------ ---------- -------- --------- --------
Computer Sciences Corporation................................. 06/18/04 $40.00 340 $ 69,700
IXYS Corporation.............................................. 07/16/04 7.50 793 15,860
Murphy Oil Corporation........................................ 07/16/04 60.00 107 22,470
Power One, Inc. .............................................. 07/16/04 10.00 1,500 97,500
Pride International, Inc. .................................... 07/16/04 17.50 860 116,100
----- --------
Total put options outstanding (premiums received, $440,122) 3,600 $321,630
===== ========
Transactions in options written for Mid Cap Value Series for the period ended
March 31, 2004 were as follows:
MID CAP VALUE SERIES - CALL OPTIONS WRITTEN
NUMBER OF PREMIUM
CONTRACTS AMOUNT
--------- ---------
Balance at September 30, 2003.. 810 $ 124,078
Opened......................... 2,733 356,587
Bought Back.................... (810) (124,078)
Expired........................ (150) (37,701)
Exercised...................... (298) (65,853)
------ ---------
Balance at March 31, 2004...... 2,285 $ 253,033
====== =========
MID CAP VALUE SERIES - PUT OPTIONS WRITTEN
NUMBER OF PREMIUM
CONTRACTS AMOUNT
--------- ---------
Balance at September 30, 2003.. - $ -
Opened......................... 5,800 609,014
Bought Back.................... - -
Expired........................ (1,462) (137,897)
Exercised...................... (738) (30,995)
------ ---------
Balance at March 31, 2004...... 3,600 $ 440,122
====== =========
The following options written were outstanding for Security Mid Cap Growth Fund
as of March 31, 2004:
MID CAP GROWTH FUND - PUT OPTIONS WRITTEN OUTSTANDING
EXPIRATION EXERCISE NUMBER OF MARKET
COMMON STOCK DATE PRICE CONTRACTS VALUE
- ------------ ---------- -------- --------- --------
Avici Systems Inc. ........................................ 06/18/2004 $12.50 535 $ 69,550
Finisar Corporation........................................ 04/16/2004 2.50 2,559 89,565
Ligand Pharmaceuticals..................................... 04/16/2004 17.50 620 3,100
Netopia, Inc. ............................................. 06/18/2004 7.50 30 150
Ultratech, Inc. ........................................... 05/21/2004 25.00 211 53,805
----- --------
Total put options outstanding (premiums received, $291,676) 3,955 $216,170
===== ========
97
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2004
7. OPTIONS WRITTEN (CONTINUED)
Transactions in options written for Security Mid Cap Growth Fund for the period
ended March 31, 2004 were as follows:
MID CAP GROWTH FUND - PUT OPTIONS WRITTEN
NUMBER OF PREMIUM
CONTRACTS AMOUNT
--------- ---------
Balance at September 30, 2003.. - $ -
Opened......................... 5,630 471,011
Bought Back.................... - -
Expired........................ (460) (61,944)
Exercised...................... (1,215) (117,391)
------ ---------
Balance at March 31, 2004...... 3,955 $ 291,676
====== =========
MID CAP GROWTH FUND - CALL OPTIONS WRITTEN
NUMBER OF PREMIUM
CONTRACTS AMOUNT
--------- ---------
Balance at September 30, 2003.. - $ -
Opened......................... 520 70,187
Bought Back.................... - -
Expired........................ (270) (39,688)
Exercised...................... (250) (30,499)
---- --------
Balance at March 31, 2004...... - $ -
==== ========
8. FEDERAL TAX MATTERS
As of September 30, 2003 the components of accumulated earnings/(deficit)
on a tax basis were the same as those reported in the Statement of Assets and
Liabilities, except as follows:
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED UNREALIZED TOTAL
ORDINARY LONG-TERM ACCUMULATED CAPITAL AND APPRECIATION ACCUMULATED
INCOME GAIN EARNINGS OTHER LOSSES* (DEPRECIATION)** EARNINGS/(DEFICIT)
------ ---- -------- ------------- ---------------- ------------------
Security Large Cap Value Fund $108,075 $ - $ 108,075 $(20,225,427) $ 1,000,652 $(19,116,700)
Security Equity Fund:
Global Series - - - (18,343,725) 4,392,418 (13,951,307)
Social Awareness Series - - - (2,242,893) (1,674,360) (3,917,253)
Mid Cap Value Series - 2,149,183 2,149,183 - 37,052,517 39,201,700
Small Cap Growth Series - - - (13,086,413) 4,761,443 (8,324,970)
Enhanced Index Series - - - (5,774,426) (1,058,107) (6,832,533)
Large Cap Growth Series - - - (3,659,331) 224,150 (3,435,181)
Alpha Opportunity Series 219,240 - 219,240 (20,248) (84,042) 114,950
Security Mid Cap Growth Fund - 6,427,140 6,427,140 - 28,897,463 35,324,603
*Certain Funds had net capital loss carryovers and deferred post October losses
as identified elsewhere in the Notes.
**The differences between book-basis and tax-basis unrealized appreciation
(depreciation) is attributable primarily to the tax deferral of wash sale losses
and the differences between book and tax basis passive foreign investment
companies and bond discount accretion.
In accordance with the provisions of the Internal Revenue Code, the
percentage of ordinary dividends (including short-term capital gains)
attributable to the fiscal year ended September 30, 2003, which qualify for the
dividends received deduction for corporate shareholders is 100% for the Security
Large Cap Value Fund and 5% for the Alpha Opportunity Series.
98
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2004
10. FEDERAL TAX MATTERS (CONTINUED)
As of September 30, 2003, the accumulated net realized loss on sales of
investments for federal income tax purposes which are available to offset future
taxable gains and post-October capital losses that are deferred to the first day
of the next fiscal year are as follows:
CAPITAL LOSS DEFERRED POST-
CARRYOVERS EXPIRES IN OCTOBER LOSSES
---------- ---------- --------------
Security Large Cap Value Fund $ 727,563 2008 $ 3,023,584
7,265,289 2009
56,003 2010
9,152,988 2011
-------------
17,201,843
Security Equity Fund:
Equity Series 1,653,201 2009 8,324,394
14,878,996 2010
-------------
16,532,197
Global Series 315,044 2009 6,638,758
6,677,469 2010
7,597,912 2011
-------------
14,590,425
Social Awareness Series 817,736 2009 274,407
132,011 2010
1,018,739 2011
-------------
1,968,486
Small Cap Growth Series 13,086,413 2010 -
Enhanced Index Series 138,713 2009 3,067,270
976,489 2010
1,591,954 2011
-------------
2,707,156
Select 25(R) Series 368,467 2008 3,420,733
2,259,072 2009
3,363,943 2010
2,960,418 2011
-------------
8,951,900
Large Cap Growth Series 58,405 2009 1,568,317
296,393 2010
1,736,216 2011
-------------
2,091,014
Alpha Opportunity Series - N/A 20,248
Security Mid Cap Growth Fund 78,037 2009 24,110
4,005,352 2010
3,092,993 2011
-------------
7,176,382
The Security Equity Fund - Global Series inherited approximately $2,885,458 of
capital losses (included above) from its merger with Security Equity Fund -
International Series (see Note 9), which may be applied against any realized net
taxable capital gains in future years or until September 30, 2011, the
respective date, whichever occurs first, subject to certain limitation imposed
by Section 382 of the Internal Revenue Code.
Security Mid Cap Growth fund inherited approximately $7,176,382 of capital
losses (included above) from its merger with Security Equity Fund - Technology
Series (see Note 10), which may be applied against any realized net taxable
capital gains in future years or until September 30, 2011, the respective date,
whichever occurs first, subject to certain limitation imposed by Section 382 of
the Internal Revenue Code.
99
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2004
9. ACQUISITION OF SECURITY EQUITY FUND - INTERNATIONAL SERIES
Pursuant to a plan of reorganization approved by Security Equity Fund
International Series shareholders, Security Equity Fund Global Series acquired
all the net assets of International Series, which totalled $9,345,535 on the
closing date of the reorganization, October 3, 2003. A total of 366,909 Class A
shares, 198,022 Class B shares and 228,231 Class C shares were issued in
exchange for International Series' Class A, B and C shares. In exchange for the
assets of International Series 793,162 shares of Global Series were distributed
to International shareholders of record as of immediately after the closing
date. A total of $4,450,969 in assets for Class A shares, $2,248,383 in assets
for Class B shares and $2,646,183 in assets for Class C shares were received in
exchange for International Series' assets. This exchange qualified as a tax-free
reorganization under Section 368(a)(1)(C) of the Internal Revenue Code.
International net assets included $432,828 of unrealized appreciation, $3,042 of
accumulated net investment income and $3,019,816 of accumulated realized loss on
sale of investments. The aggregate net assets of Global Series immediately
before the acquisition totalled $68,353,149. Following the acquisition, the
combined net assets of Global Series totalled $77,698,684.
10. ACQUISITION OF SECURITY EQUITY FUND-TECHNOLOGY SERIES
Pursuant to a plan of reorganization approved by Security Equity Fund
Technology Series shareholders, Security Mid Cap Growth Fund acquired all the
net assets of Technology Series, which totalled $11,962,769 on the closing date
of the reorganization October 3, 2003. A total of 694,178 Class A shares,
177,910 Class B shares and 225,079 Class C shares were issued in exchange for
Technology Series' Class A, B and C shares. In exchange for the assets of
Technology Series 1,097,167 shares of Mid Cap Growth Fund were distributed to
Technology shareholders of record as of immediately after the closing date. A
total of $7,786,451 in assets for Class A shares, $1,764,789 in assets for Class
B shares and $2,411,529 in assets for Class C shares were received in exchange
for Technology Series' assets. This exchange qualified as a tax-free
reorganization under Section 368(a)(i)(c) of the Internal Revenue Code.
Technology's net assets included $1,703,882 of unrealized appreciation, $3,694
of accumulated net investment loss and $7,442,356 of accumulated realized loss
on sale of investments. The aggregate net assets of Mid Cap Growth Fund
immediately before the acquisition totalled $178,458,228. Following the
acquisition, the combined net assets of Mid Cap Growth Fund totalled
$190,420,997.
100
DIRECTOR DISCLOSURE
MARCH 31, 2004
NUMBER OF
PRINCIPAL PORTFOLIOS IN
NAME, POSITION(S) TERM OF OCCUPATION(S) FUND COMPLEX
ADDRESS AND HELD WITH OFFICE AND LENGTH DURING THE PAST OVERSEEN BY
DATE OF BIRTH THE FUND OF TIME SERVED 5 YEARS THE DIRECTOR
- -----------------------------------------------------------------------------------------------------------------------
Donald A. Chubb, Jr. Director** 1994 to present*** Business broker, 35
One Security Benefit Place Griffith & Blair Realtors
Topeka, KS 66636-0001 Manager, Star Sign,Inc.
12/14/46
Harry W. Craig, Jr. Director 2004 to present*** Chairman, CEO, Secretary & Director, 35
One Security Benefit Place Martin Tractor Company, Inc.
Topeka, KS66636-0001 President & Director,
05/11/39 The Martin Tractor Company, Inc.
Penny A. Lumpkin Director** 1993 to present*** President, Vivian's Gift Shop 35
One Security Benefit Place Vice President, Palmer Companies, Inc.
Topeka, KS 66636-0001 Vice President, Bellairre Shopping
08/20/39 Center
Partner, Goodwin Ent.
Partner, PLB
Partner, Town Crier
Vice President and Treasurer, Palmer
News, Inc.
Vice President, M/S News, Inc.
Secretary, Kansas City Periodicals
Mark L. Morris, Jr., D.V.M. Director** 1991 to present*** Independent Investor, Morris Co. 35
One Security Benefit Place Partner, Mark Morris Associates
Topeka, KS 66636-0001
02/03/34
Maynard F. Oliverius Director** 1998 to present*** President & CEO, Stormont Vail 35
One Security Benefit Place HealthCare
Topeka, KS 66636-0001
12/18/43
John D. Cleland Chairman of February 2000 to Sr. Vice President and Managing Member 35
One Security Benefit Place the Board present 1991 to Representative, Security Management
Topeka, KS 66636-0001 Director* present*** Company, LLC
05/01/36 Sr. Vice President, Security Benefit
Group, Inc.
Sr. Vice President, Security Benefit
Life Insurance Co.
Director & Vice President, Security
Distributors, Inc.
James R. Schmank President February 2000 to President and Managing Member 35
One Security Benefit Place Director* present 1997 to Representative, Security Management
Topeka, KS 66636-0001 present*** Company, LLC
02/21/53 Sr. Vice President, Security Benefit
Group, Inc.
Sr. Vice President, Security Benefit
Life Insurance Co.
Director, Security Distributors, Inc.
*These directors are deemed to be "interested persons" of the Funds under the
Investment Company Act of 1940, as amended, by reason of their positions with
the Funds' Investment Manager and/or the parent of the Investment Manager.
**These directors serve on the Funds' joint audit committee, the purpose of
which is to meet with the independent auditors, to review the work of the
auditors, and to oversee the handling by Security Management Company, LLC of the
accounting function for the Funds.
***Term is until the next annual meeting, or until their successors shall have
been duly elected and qualified.
The statement of additional information ("SAI") includes additional information
about the Fund Directors and is available upon request without charge by calling
1-800-888-2461.
101
THE SECURITY GROUP
OF MUTUAL FUNDS
Security Large Cap Value Fund
Security Equity Fund
- Equity Series
- Global Series
- Social Awareness Series
- Mid Cap Value Series
- Small Cap Growth Series
- Enhanced Index Series
- Select 25(R) Series
- Large Cap Growth Series
- Alpha Opportunity Series
Security Mid Cap Growth Fund
Security Income Fund
- Diversified Income Series
- High Yield Series
- Income Opportunity Series
- Capital Preservation Series
Security Municipal Bond Fund
Security Cash Fund
SECURITY FUNDS
OFFICERS AND DIRECTORS
DIRECTORS
Donald A. Chubb, Jr.
John D. Cleland
Harry W. Craig, Jr.
Penny A. Lumpkin
Mark L. Morris, Jr., D.V.M.
Michael G. Odlum
Maynard F. Oliverius
OFFICERS
John D. Cleland, Chairman of the Board
Michael G. Odlum, President
Steve M. Bowser, Vice President,Equity Fund
Mark Lamb,Vice President,Equity Fund
Mark Mitchell, Vice President, Equity Fund
James P. Schier, Vice President,Equity and Mid Cap Growth Fund
Cindy L. Shields, Vice President,Equity Fund
Amy J. Lee, Secretary
Christopher D. Swickard, Assistant Secretary
Brenda M. Harwood, Treasurer
This report is submitted for the general information of the shareholders of the
Funds. The report is not authorized for distribution to prospective investors in
the Funds unless preceded or accompanied by an effective prospectus which
contains details concerning the sales charges and other pertinent information.
[SECURITY DISTRIBUTORS, INC. LOGO]
One Security Benefit Place
Topeka, KS 66636-0001
PRESORTED
STANDARD
US POSTAGE PAID
PERMIT #3602
BERWYN, IL 60402
ITEM 2. CODE OF ETHICS.
Not required at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not required at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not required at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. RESERVED.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. RESERVED.
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's President and Treasurer have concluded that
the registrant's disclosure controls and procedures (as
defined in rule 30a-3(c) under the Investment Company Act of
1940) are effective based on their evaluation of these
disclosure controls and procedures within 90 days of the
filing date of this report on Form N-CSR.
(b) There were no significant changes in the registrant's
internal controls, or in other factors that could
significantly affect these controls subsequent to the date
of their evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
(a) (1) Not required at this time.
(2) Certifications pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 and required by Rule
30a-2(a) under the Investment Company Act of 1940, are
attached hereto.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 and required by Rule 30a-2(a) under the
Investment Company Act of 1940, are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SECURITY EQUITY FUND
By: MICHAEL G. ODLUM
-------------------------------
Michael G. Odlum, President
Date: June 1, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: MICHAEL G. ODLUM
-------------------------------
Michael G. Odlum, President
Date: June 1, 2004
By: BRENDA M. HARWOOD
-------------------------------
Brenda M. Harwood, Treasurer
Date: June 1, 2004