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 811-9123
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AMIDEX Funds, Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
2621 Van Buren Avenue Norristown, PA 19403
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(Address of principal executive offices) (Zip code)
InCap Service Company, Willow Grove, PA 19090
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(Name and address of agent for service)
Registrant's telephone number, including area code: 610 666-1330
--------------
Date of fiscal year end: 05/31/2004
------------
Date of reporting period: 11/30/2003
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1.
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
November 30, 2003
Dear AMIDEX(TM) Funds, Inc. Shareholder,
Enclosed please find the Semi-Annual Report for the AMIDEX(TM) Funds, Inc.
for the period ending on November 30, 2003.
Our Israel-related fund, the AMIDEX35(TM) Mutual Fund, saw some positive
indications as Israel and most of the rest of the world begin to emerge from
recession. Share prices in Tel Aviv began to recover, and US markets started to
perk up. Although the political situation in Israel remains volatile, there was
some stabilization of share prices and, in general, a lower level of terrorist
assaults than in previous periods.
The Cancer Innovations & Healthcare Mutual Fund also saw improvement, as
US markets began to show optimism for the first time in almost three years.
Our primary investment strategies and objectives remain unchanged. Our
Funds are based on indices, and there has been no change in the underlying
indices or portfolios, other than routine maintenance as outlined in the
prospectuses.
We continue to believe in the merits of investing in our AMIDEX35(TM)
Mutual Fund and our AMIDEX(TM) Cancer Innovations & Healthcare Fund, and we
remain committed to the index methodology as the best method of holding
portfolios of stocks in our specialty niches. We encourage our investors to
remain focused on the long-term prospects for the Funds, and to persevere
through transient periods of uncertainty.
Let's hope that these results mark a lasting reversal in the previous
downward trends. As always, our greatest hope is that the year ahead brings
comfort to those who are suffering, calm to regions too long plagued by
violence, and security, both physical and economic, to all Americans.
Best regards,
Cliff Goldstein
President, AMIDEX(TM) Funds, Inc.
This report is intended for the Funds' shareholders. It may not be
distributed to prospective investors unless it is preceded or accompanied by the
current Fund prospectus.
1
AMIDEX(TM) FUNDS, INC.
THE AMIDEX35(TM) MUTUAL FUND SEMI-ANNUAL REPORT
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SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2003 (UNAUDITED)
SHARES VALUE
---------- -----------
ISRAEL - 34.01%
COMMON STOCK - 34.01%
BANKING & INSURANCE - 15.58%
Bank Hapoalim Ltd. 214,628 $ 500,718
Bank Leumi Le-Israel 243,116 422,787
Israel Discount Bank Cl A* 174,810 155,500
Clal Insurance Enterprise* 8,756 151,088
Migdal Insurance Holdings 178,216 251,387
Tefahot Israel Mortgage 8,072 70,641
United Mizrahi Bank Ltd.* 38,915 121,691
-----------
1,673,812
-----------
CHEMICALS - 4.34%
Israel Chemicals Ltd. 195,835 259,057
Makhteshim-Agan Industries Ltd. 63,487 207,100
-----------
466,157
-----------
DIVERSIFIED HOLDINGS - 7.37%
Clal Industries & Investments 26,851 127,520
Discount Investment Corp. 7,860 202,468
IDB Development Corp. Ltd. 9,829 224,442
IDB Holding Corp. Ltd. 6,490 126,588
Israel Corp. Ltd. 1,005 110,720
-----------
791,738
-----------
FOOD - 1.33%
Osem Investment Ltd. 13,670 142,697
-----------
OIL COMPANIES - 1.18%
Delek Group Ltd. 1,564 126,668
-----------
TELECOMMUNICATIONS - 4.21%
Bezeq Israeli Telecommunications Corp. Ltd. 414,590 452,831
-----------
Total Common Stock (Cost $4,733,406) 3,653,903
-----------
Total Israel (Cost $4,733,406) $ 3,653,903
-----------
UNITED STATES - 61.39%
COMMON STOCK - 58.11%
COMPUTER SOFTWARE - 21.49%
Amdocs Ltd.* 32,603 815,727
Check Point Software Technologies Ltd.* 39,495 697,482
DSP Group, Inc.* 4,705 113,343
Mercury Interactive Corp.* 14,586 682,625
-----------
2,309,177
-----------
2
AMIDEX(TM) FUNDS, INC.
THE AMIDEX35(TM) MUTUAL FUND SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2003 (UNAUDITED)
SHARES VALUE
---------- -----------
DIGITAL IMAGING - 4.45%
Creo Products, Inc.* 8,600 $ 91,246
Electronics for Imaging, Inc.* 9,428 260,213
Orbotech Ltd.* 5,382 126,746
-----------
478,205
-----------
ELECTRONIC DESIGN AUTOMATION - 0.10%
Verisity Ltd.* 800 10,256
-----------
ELECTRONIC EQUIPMENT - 0.82%
Zoran Corp.* 4,800 88,128
-----------
MEDICAL PRODUCTS - 0.66%
Given Imaging Ltd.* 4,000 71,040
-----------
PHARMACEUTICALS - 23.06%
Taro Pharmaceutical Industries Ltd.* 5,000 344,700
Teva Pharmaceutical Industries ADR 35,408 2,132,833
-----------
2,477,533
-----------
TELECOMMUNICATIONS - 7.53%
Comverse Technology, Inc.* 29,977 576,458
NDS Group Plc. ADR* 1,300 26,910
Partner Communications ADR* 30,600 205,326
-----------
808,694
-----------
Total Common Stock (Cost $11,358,427) 6,243,033
-----------
SHORT-TERM INVESTMENTS - 3.28%
First American Treasury Obligations
Fund, 0.31%** (Cost $352,048) 352,048 352,048
-----------
Total United States (Cost $11,710,475) $ 6,595,081
-----------
TOTAL INVESTMENTS (COST $16,443,881) - 95.40% $10,248,984
OTHER ASSETS IN EXCESS OF LIABILITIES - 4.60% 493,858
-----------
NET ASSETS - 100% $10,742,842
===========
* Non-income producing security.
ADR - American Depository Receipt
** Variable rate security; the rate shown represents the rate at November 30,
2003.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
3
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX(TM) CANCER INNOVATIONS & HEALTHCARE FUND
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SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2003 (UNAUDITED)
SHARES VALUE
---------- -----------
COMMON STOCK - 101.61%
BIOTECHNOLOGY - 37.17%
Amgen, Inc.* 680 $ 39,107
Biogen, Inc.* 1,175 44,861
Chiron Corp.* 800 42,896
Enzon Pharmaceuticals, Inc.* 100 1,079
Genentech, Inc.* 2,000 168,600
Genzyme Corp.* 900 42,066
Human Genome Sciences, Inc.* 300 3,840
Immunomedics, Inc.* 100 386
Millennium Pharmaceuticals, Inc.* 900 14,193
Myriad Genetics, Inc.* 100 1,182
Protein Design Labs, Inc.* 200 2,772
---------
360,982
---------
HEALTHCARE PRODUCTS - 14.70%
Amersham Plc. ADR 800 51,824
Beckman Coulter, Inc. 300 15,345
Cytyc Corp.* 200 2,578
Johnson & Johnson 1,200 59,148
Varian Medical Systems, Inc.* 200 13,802
---------
142,697
---------
PHARMACEUTICALS - 49.74%
Abbott Laboratories 500 22,100
Abgenix, Inc.* 200 2,254
AstraZeneca Plc. ADR 600 27,570
Aventis SA ADR 300 17,295
Bristol-Myers Squibb Co. 600 15,810
Celgene Corp.* 200 9,146
Cell Therapeutics, Inc.* 100 900
Celltech Group Plc. ADR* 600 7,350
Elan Corp. Plc. ADR* 100 546
Eli Lilly & Co. 400 27,424
Gilead Sciences, Inc.* 800 46,944
GlaxoSmithKline Plc. ADR 1,100 50,468
ICN Pharmaceuticals, Inc. 200 4,782
Ilex Oncology, Inc.* 100 2,087
ImClone Systems* 300 11,790
Medarex, Inc.* 200 1,360
Medimmune, Inc.* 1,100 26,180
Merck & Co., Inc. 900 36,540
Novartis AG ADR 1,000 42,200
Pfizer, Inc. 2,700 90,585
4
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX(TM) CANCER INNOVATIONS & HEALTHCARE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2003 (UNAUDITED)
SHARES VALUE
---------- -----------
QLT, Inc.* 100 $ 1,628
Schering-Plough Corp. 600 9,630
SICOR, Inc.* 200 5,528
Tularik, Inc.* 100 1,498
Vertex Pharmaceuticals, Inc.* 200 1,748
Wyeth 500 19,700
---------
483,063
---------
TOTAL COMMON STOCK (Cost $1,063,443) $ 986,742
---------
TOTAL INVESTMENTS (COST $ 1,063,443) - 101.61% $ 986,742
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.61)% (15,631)
---------
NET ASSETS - 100% $ 971,111
---------
* Non-income producing security.
ADR - American Depository Receipt
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
5
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES - NOVEMBER 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
AMIDEX35(TM)
MUTUAL FUND
------------
ASSETS:
Investments, at market (identified cost: $16,443,881) $ 10,248,984
Cash 886
Receivables:
Dividends 2,583
Interest 19
Investments sold 537,585
Fund shares sold 16,276
Prepaid expenses 13,090
------------
Total assets 10,819,423
------------
LIABILITIES:
Payables:
Investment advisory and administrative fees 9,214
Distribution fees 23,589
Fund accounting fees 10,062
Fund shares redeemed 11,134
Other liabilities and accrued expenses 22,582
------------
Total liabilities 76,581
------------
NET ASSETS $ 10,742,842
============
NET ASSETS CONSIST OF:
Common stock $ 134
Additional paid-in capital 22,110,985
Accumulated net investment loss (118,912)
Accumulated realized loss on investments (5,054,468)
Net unrealized loss on investments (6,194,897)
------------
Total Net Assets (1,342,335 shares outstanding; 500,000,000
shares of $0.0001 par value authorized) $ 10,742,842
============
NO-LOAD CLASS SHARES:
Net Assets applicable to 873,706 shares outstanding (Note 2) $ 7,721,608
============
Net Asset Value, offering and redemption price per share $ 8.84
============
CLASS A SHARES:
Net Assets applicable to 354,742 shares outstanding (Note 2) $ 2,429,945
============
Net Asset Value and redemption price per share $ 6.85
============
Offering price per share Class A $ 7.14
============
Class C shares:
Net Assets applicable to 113,887 shares outstanding (Note 2) $ 591,289
============
Net Asset Value and offering price per share $ 5.19
============
Redemption price per share Class C $ 5.14
============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
6
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES - NOVEMBER 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
AMIDEX(TM) CANCER
INNOVATIONS
& HEALTHCARE FUND
-----------------
ASSETS:
Investments, at market (identified cost: $1,063,443) $ 986,742
Receivables:
Fund shares sold 2,835
Dividends 1,272
Interest 2
Prepaid expenses 2,148
-----------
Total assets 992,999
-----------
LIABILITIES:
Payables:
Due to custodian 19,252
Investment advisory and administrative fees 718
Distribution fees 577
Fund accounting fees 938
Other liabilities 403
-----------
Total liabilities 21,888
-----------
NET ASSETS $ 971,111
===========
NET ASSETS CONSIST OF:
Common stock $ 11
Additional paid-in capital 1,068,517
Accumulated net investment loss (12,967)
Accumulated realized loss on investments (7,749)
Net unrealized loss on investments (76,701)
-----------
Total Net Assets (106,883 shares outstanding; 500,000,000
shares of $0.0001 par value authorized) $ 971,111
===========
CLASS A SHARES:
Net Assets applicable to 106,883 shares outstanding (Note 2) $ 971,111
===========
Net Asset Value and redemption price per share $ 9.09
===========
Offering price per share Class A $ 9.62
===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
7
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
STATEMENT OF OPERATIONS
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AMIDEX35(TM)
MUTUAL FUND
FOR THE PERIOD ENDED
NOVEMBER 30, 2003
--------------------
(UNAUDITED)
INVESTMENT INCOME:
Interest $ 198
Dividends (net of foreign taxes: $13,914) 46,979
-----------
Total investment income 47,177
-----------
EXPENSES:
Investment advisory fees 13,308
Distribution fees - No-load Class 9,034
Distribution fees - Class A 2,768
Distribution fees - Class C 2,687
Accounting and transfer agent fees 48,756
Consulting fees 21,852
Audit fees 13,603
Out of pocket expenses 10,455
Insurance fees 10,252
Custody fees 8,107
Registration fees 6,921
Legal fees 2,217
Administrative fees 1,696
Printing fees 502
Miscellaneous 13,931
-----------
Total expenses 166,089
-----------
Net investment loss (118,912)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments (605,465)
Net change in unrealized appreciation on investments 2,000,112
-----------
1,394,647
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,275,735
===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
AMIDEX(TM) CANCER INNOVATIONS
& HEALTHCARE FUND
FOR THE PERIOD ENDED
NOVEMBER 30, 2003
-----------------------------
(UNAUDITED)
INVESTMENT INCOME:
Interest $ 17
Dividends 4,389
--------
Total investment income 4,406
--------
EXPENSES:
Investment advisory fees 1,363
Distribution fees - Class A 1,217
Accounting and transfer agent fees 5,200
Consulting fees 2,148
Custody fees 1,862
Registration fees 1,459
Insurance fees 1,250
Audit fees 890
Out of pocket expenses 694
Legal fees 384
Administrative fees 163
Printing fees 146
Miscellaneous 597
--------
Total expenses 17,373
--------
Net investment loss (12,967)
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments (127)
Net change in unrealized appreciation on investments 76,677
--------
76,550
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 63,583
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
9
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
AMIDEX35(TM) MUTUAL FUND
PERIOD ENDED
NOVEMBER 30, 2003 YEAR ENDED
(UNAUDITED) MAY 31, 2003
----------------- ------------
INCREASE IN NET ASSETS
Operations:
Net investment loss $ (118,912) $ (210,432)
Net realized loss on investments (605,465) (1,143,686)
Net change in unrealized appreciation on investments 2,000,112 2,918,399
------------ ------------
Net increase in net assets resulting from operations 1,275,735 1,564,281
------------ ------------
Increase in net assets from Fund share transactions (Note 2) 36,629 39,165
------------ ------------
Total increase in net assets 1,312,364 1,603,446
NET ASSETS:
Beginning of period 9,430,478 7,827,032
------------ ------------
End of period $ 10,742,842 $ 9,430,478
============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
AMIDEX(TM) CANCER INNOVATIONS & HEALTHCARE FUND
PERIOD ENDED
NOVEMBER 30, 2003 YEAR ENDED
(UNAUDITED) MAY 31, 2003
----------- ------------
INCREASE IN NET ASSETS
Operations:
Net investment loss $ (12,967) $ (19,769)
Net realized loss on investments (127) (7,622)
Net change in unrealized appreciation on investments 76,677 56,156
----------- -----------
Net increase in net assets resulting from operations 63,583 28,765
----------- -----------
Decrease in net assets from Fund share transactions (Note 2) (38,264) (121,334)
----------- -----------
Total increase (decrease) in net assets 25,319 (92,569)
NET ASSETS:
Beginning of period 945,792 1,038,361
----------- -----------
End of period $ 971,111 $ 945,792
=========== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
11
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH FISCAL YEAR OR PERIOD
- --------------------------------------------------------------------------------
AMIDEX35(TM) MUTUAL FUND
NO-LOAD CLASS
----------------------------------------------------------------------------------
FOR THE PERIOD
ENDED FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE PERIOD
NOVEMBER 30, 2004 ENDED ENDED ENDED ENDED
(UNAUDITED) MAY 31, 2003 MAY 31, 2002 MAY 31, 2001 MAY 31, 2000(1)
----------------- ------------ ------------ ------------ ---------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.76 $ 6.39 $ 12.41 $ 17.05 $ 10.00
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Net investment loss (0.10) (0.18) (0.14) (0.22) (0.23)
Net realized and unrealized gain (loss) on
investments 1.18 1.55 (5.88) (4.22) 7.28
------- ------- ------- ------- -------
Total from investment operations 1.08 1.37 (6.02) (4.44) 7.05
------- ------- ------- ------- -------
DISTRIBUTIONS:
From net realized capital gain -- -- -- (0.20) --
------- ------- ------- ------- -------
Total distributions -- -- -- (0.20) --
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 8.84 $ 7.76 $ 6.39 $ 12.41 $ 17.05
======= ======= ======= ======= =======
TOTAL RETURN 13.92% 21.44% (48.51)% (26.37)% 70.50%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $ 7,722 $ 6,799 $ 5,360 $11,462 $10,981
Ratio of expenses to average net assets: 3.29%(2) 3.53% 2.20% 2.20% 2.85%(2)
Ratio of net investment loss to
average net assets: (2.45)(2) (3.02)% (1.61)% (1.36)% (1.50)(2)
Portfolio turnover rate 5.26% 8.72% 27.70% 41.60% 18.16%
(1) The AMIDEX35(TM) Mutual Fund No-load Class shares commenced operations on
June 8, 1999.
(2) Annualized
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH FISCAL YEAR OR PERIOD
- --------------------------------------------------------------------------------
AMIDEX35(TM) MUTUAL FUND
CLASS A
--------------------------------------------------------------------------------
FOR THE PERIOD
ENDED FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE PERIOD
NOVEMBER 30, 2003 ENDED ENDED ENDED ENDED
(UNAUDITED) MAY 31, 2003 MAY 31, 2002 MAY 31, 2001 MAY 31, 2000(1)
----------------- ------------ ------------ ------------ ---------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 6.02 $ 4.95 $ 9.62 $ 13.33 $ 9.60
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Net investment loss (0.07) (0.14) (0.11) (0.20) (0.10)
Net realized and unrealized gain
(loss) on investments 0.90 1.21 (4.56) (3.31) 3.83
------- ------- ------- ------- -------
Total from investment operations 0.83 1.07 (4.67) (3.51) 3.73
------- ------- ------- ------- -------
DISTRIBUTIONS:
From net realized capital gain -- -- -- (0.20) --
------- ------- ------- ------- -------
Total distributions -- -- -- (0.20) --
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 6.85 $ 6.02 $ 4.95 $ 9.62 $ 13.33
======= ======= ======= ======= =======
TOTAL RETURN 13.79% 21.62% (48.54)% (26.75)% 38.85%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $ 2,430 $ 2,142 $ 2,003 $ 3,930 $ 645
Ratio of expenses to average net assets: 3.29%(2) 3.47% 2.20% 2.20% 2.70%(2)
Ratio of net investment loss to
average net assets: (2.37)(2) (2.98)% (1.61)% (1.60)% (1.48)(2)
Portfolio turnover rate 5.26% 8.72% 27.70% 41.60% 18.16%
(1) The AMIDEX35(TM) Mutual Fund Class A shares commenced operations on November
19, 1999.
(2) Annualized
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
13
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH FISCAL YEAR OR PERIOD
- --------------------------------------------------------------------------------
AMIDEX35(TM) MUTUAL FUND
CLASS C
----------------------------------------------------------------------------------
FOR THE PERIOD
ENDED FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE PERIOD
NOVEMBER 30, 2003 ENDED ENDED ENDED ENDED
(UNAUDITED) MAY 31, 2003 MAY 31, 2002 MAY 31, 2001 MAY 31, 2000(1)
----------------- ------------ ------------ ------------ ---------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 4.58 $ 3.80 $ 7.43 $ 10.42 $ 10.00
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Net investment loss (0.07) (0.13) (0.12) (0.23) (0.01)
Net realized and unrealized gain
(loss) on investments 0.68 0.91 (3.51) (2.56) 0.43
------- ------- ------- ------- -------
Total from investment operations 0.61 0.78 (3.63) (2.79) 0.42
------- ------- ------- ------- -------
DISTRIBUTIONS:
From net realized capital gain -- -- -- (0.20) --
------- ------- ------- ------- -------
Total distributions -- -- -- (0.20) --
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 5.19 $ 4.58 $ 3.80 $ 7.43 $ 10.42
======= ======= ======= ======= =======
TOTAL RETURN 13.32% 20.53% (48.86)% (27.32)% 4.20%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $ 591 $ 489 $ 464 $ 1,305 $ 38
Ratio of expenses to average net assets: 4.04%(2) 4.22% 2.95% 2.95% 2.51%(2)
Ratio of net investment loss to
average net assets: (3.05)(2) (3.73)% (2.31)% (2.39)% (2.14)(2)
Portfolio turnover rate 5.26% 8.72% 27.70% 41.60% 18.16%
(1) The AMIDEX35(TM) Mutual Fund Class C shares commenced operations on May 19,
2000.
(2) Annualized
14
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
AMIDEX(TM) CANCER INNOVATIONS & HEALTHCARE FUND
CLASS A
---------------------------------------------------
FOR THE PERIOD
ENDED FOR THE YEAR FOR THE PERIOD
NOVEMBER 30, 2003 ENDED ENDED
(UNAUDITED) MAY 31, 2003 MAY 31, 2002(1)
----------------- ------------ ---------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.50 $ 8.12 $ 10.00
------- ------- -------
INVESTMENT OPERATIONS:
Net investment loss (0.12) (0.16) (0.02)
Net realized and unrealized loss on
investments 0.71 0.54 (1.86)
------- ------- -------
Total from investment operations 0.59 0.38 (1.88)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 9.09 $ 8.50 $ 8.12
======= ======= =======
TOTAL RETURN 6.94% 4.68% (18.80)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $ 971 $ 946 $ 1,023
Ratio of expenses to average net assets: 3.57%(2) 3.43% 1.24%(2)
Ratio of net investment loss to
average net assets: (2.66)(2) (2.22)% (0.29)(2)
Portfolio turnover rate 0.00% 0.00% 0.00%
(1) The AMIDEX(TM) Cancer Innovations & Healthcare Fund Class A shares
commenced operations on November 1, 2001.
(2) Annualized
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
15
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2003 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
AMIDEX(TM) Funds, Inc. (the "Company") was incorporated under the laws of
the state of Maryland on April 27, 1999, and currently consists of two active
portfolios, The AMIDEX35(TM) Mutual Fund, and the AMIDEX(TM) Cancer Innovations
& Healthcare Fund (each a "Fund" and collectively the "Funds"). The Funds are
non-diversified Funds. The Company is registered as an open-end management
investment company under the Investment Company Act of 1940 (the "1940 Act").
The Funds were registered to offer four classes of shares, Class A, Class B,
Class C and No-load class, with only the Class A, Class C and No-load shares
currently being offered in the AMIDEX35(TM) Mutual Fund and only Class A shares
being offered in the AMIDEX(TM) Cancer Innovations & Healthcare Fund. Each class
differs as to sales charges, minimum investment amounts and ongoing fees. Income
and realized/unrealized gains or losses are allocated to each class based on
relative share balances. The Funds' investment strategies are capital growth.
The AMIDEX35(TM) Mutual Fund became effective with the SEC on April 27, 1999 and
commenced operations on June 8, 1999. The AMIDEX(TM) Cancer Innovations &
Healthcare Fund became effective with the SEC on August 1, 2001 and commenced
operations on November 1, 2001.
The costs incurred in connection with the organization, initial
registration and public offering of shares were paid by TransNations
Investments, LLC. Accordingly, no organization costs have been recorded by the
Funds.
The following is a summary of significant accounting policies consistently
followed by the Funds.
a) Investment Valuation--Common stocks and other equity securities listed on a
securities exchange or quoted on a national market system are valued at 4:00
p.m., New York time, on the day of valuation. Price information on listed stocks
is taken from the exchange where the security is primarily traded. Securities
that are listed on an exchange but which are not traded on the valuation date
are valued at the most recent bid quotation. Other assets and securities for
which no quotations are readily available are valued at fair value as determined
in good faith by the Adviser under the supervision of the Board of Directors. At
November 30, 2003, no securities were valued as determined by the Board of
Directors. Short-term instruments (those with remaining maturities of 60 days or
less) are valued at amortized cost, which approximates fair market value.
b) Foreign Currency Translation--Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollars
based on the exchange rate of such currencies against U.S. dollars on the date
of valuation. Purchases and sales of securities and income items denominated in
foreign currencies are translated into U.S. dollars at the exchange rate in
effect on the transaction date. The Fund does not separately report the effect
of changes in foreign exchange rates from changes in market prices on securities
held. Such changes are included in net realized and unrealized gain or loss from
investments. Realized foreign exchange gains or losses arise from sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions and the difference between the
recorded amounts of dividends, interest and foreign withholding taxes, and the
U.S. dollar equivalent of the amounts actually received or paid. Net unrealized
foreign exchange gains or losses arise from changes in foreign exchange rates on
foreign currency denominated assets and liabilities other than investments in
securities held at the end of the reporting period.
c) Federal Income Taxes--No provision for federal income taxes has been made
since the AMIDEX35(TM) Mutual Fund and the AMIDEX(TM) Cancer Innovations and
Healthcare Fund has complied to date with the provision of the Internal Revenue
Code applicable to regulated investment companies and intends to so comply in
the future and to distribute substantially all of its net investment income and
realized capital gains in order to relieve the Fund from all federal income
taxes.
d) Distributions to Shareholders--Dividends from net investment income and
distributions of net realized capital gains, if any, will be declared and paid
at least annually. Income and capital gain distributions are determined in
accordance with income tax regulations that may differ from accounting
principles generally accepted in the United States of America.
16
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2003 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
e) Use of Estimates--The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.
f) Other--Investment and shareholder transactions are recorded on trade date.
The Funds determine the gain or loss realized from the investment transactions
by comparing the original cost of the security lot sold with the net sales
proceeds. Dividend income is recognized on the ex-dividend date or as soon as
information is available to the Fund and interest income is recognized on an
accrual basis. Accounting principles generally accepted in the United States of
America require that permanent financial reporting tax differences relating to
shareholder distributions be reclassified to paid-in-capital for both The
AMIDEX35(TM) Mutual Fund and The AMIDEX(TM) Cancer Innovations & Healthcare
Fund.
2. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the AMIDEX35(TM) Mutual Fund
for the six month period ended November 30, 2003 were as follows:
NO-LOAD
--------------------------
SHARES AMOUNT
-------- ---------
Sold 122,190 $ 993,458
Redeemed (124,082) (987,573)
-------- ---------
Net Increase (Decrease) (1,892) $ 5,885
======== =========
CLASS A
--------------------------
SHARES AMOUNT
-------- ---------
Sold 42,535 $ 267,145
Redeemed (43,764) (267,448)
-------- ---------
Net Decrease (1,229) $ (303)
======== =========
CLASS C
--------------------------
SHARES AMOUNT
-------- ---------
Sold 16,658 $ 75,793
Redeemed (9,548) (44,746)
-------- ---------
Net Increase 7,110 $ 31,047
======== =========
Transactions in shares of the AMIDEX(TM) Cancer Innovations & Healthcare
Fund for the six month period ended November 30, 2003 were as follows:
CLASS A
--------------------------
SHARES AMOUNT
-------- ---------
Sold 7,229 $ 64,932
Redeemed (11,599) (103,196)
-------- ---------
Net Decrease (4,370) $ (38,264)
======== =========
17
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2003 (UNAUDITED)
2. CAPITAL SHARE TRANSACTIONS (continued)
Transactions in shares of capital stock for the AMIDEX35(TM) Mutual Fund
for the year ended May 31, 2003 were as follows:
NO-LOAD
---------------------------
SHARES AMOUNT
--------- ----------
Sold 162,832 $1,043,883
Redeemed (126,203) (759,597)
------- ----------
Net Increase 36,629 $ 284,286
======= ==========
CLASS A
---------------------------
SHARES AMOUNT
--------- ----------
Sold 30,559 $ 161,957
Redeemed (79,192) (355,694)
------- ----------
Net Decrease (48,633) $ (193,737)
======= ==========
CLASS C
---------------------------
SHARES AMOUNT
--------- ----------
Sold 16,468 $ 62,034
Redeemed (31,920) (113,418)
------- ----------
Net Decrease (15,452) $ (51,384)
======= ==========
Transactions in shares of the AMIDEX(TM) Cancer Innovations & Healthcare
Fund for the year ended May 31, 2003 were as follows:
CLASS A
---------------------------
SHARES AMOUNT
--------- ----------
Sold 12,278 $ 90,359
Redeemed (26,983) (197,875)
------- ----------
Net Decrease (14,705) $ (107,516)
======= ==========
CLASS C
---------------------------
SHARES AMOUNT
--------- ----------
Sold -- $ --
Redeemed (1,897) (13,818)
------- ----------
Net Decrease (1,897) $ (13,818)
======= ==========
3. INVESTMENT TRANSACTIONS
For the six month period ended November 30, 2003, aggregate purchases and
sales of investment securities (excluding short-term investments) for each Fund
were as follows:
PURCHASES SALES
---------- ----------
AMIDEX35(TM) Mutual Fund $ 514,140 $1,338,415
AMIDEX(TM) Cancer Innovations & Healthcare Fund -- 2,835
There were no government securities purchased or sold during the period.
18
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2003 (UNAUDITED)
4. ADVISORY FEES AND OTHER RELATED PARTY TRANSACTIONS
The Board of Directors, comprised of a sole Director, Clifford A.
Goldstein, from September 1, 2002 to September 30, 2003, was managing the Funds'
portfolios. A Special Meeting of Shareholders was held on September 15, 2003 and
another investment adviser was appointed and a new Board of Directors was
established. During the interim, the Board had contracted Gadi Beer to serve as
a consultant to assist in the management of the Funds. For his services, Mr.
Beer was receiving $6,000 per month. For the period from June 1, 2003 to
September 30, 2003, Mr. Beer earned $24,000 of consulting fees, with $0
remaining payable at November 30, 2003 for both Funds.
Effective October 1, 2003, the Funds have entered into an Advisory
Agreement with Index Investments, LLC ("II") to provide investment management
services to the Funds. Pursuant to the Advisory Agreement, II is entitled to
receive a fee, calculated daily and payable monthly at the annual rate of 0.80%
as applied to the Funds' daily net assets. For the period from October 1, 2003
to November 30, 2003, the AMIDEX35(TM) Mutual Fund incurred $13,308 of advisory
fees, with $8,361 remaining payable at November 30, 2003. For the period from
October 1, 2003 to November 30, 2003, the AMIDEX(TM) Cancer Innovations &
Healthcare Fund incurred $1,363 of advisory fees, with $638 remaining payable at
November 30, 2003.
Effective October 1, 2003, the Funds have entered into an Administrative
Services Agreement ("ASA") with II to provide administrative services to the
Funds. The ASA was approved at the Special Meeting of Shareholders on September
15, 2003. Pursuant to the ASA, II is entitled to receive a fee, calculated daily
and payable monthly at the annual rate of 0.10% as applied to the Funds' daily
net assets. For the period from October 1, 2003 to November 30, 2003, the
AMIDEX35(TM) Mutual Fund incurred $1,696 of administrative fees, with $853
remaining payable at November 30, 2003. For the period from October 1, 2003 to
November 30, 2003, the AMIDEX(TM) Cancer Innovations & Healthcare Fund incurred
$163 of administrative fees, with $80 remaining payable at November 30, 2003.
Directors of the Funds are also Officers of II.
The Funds and the Funds' sole Director had entered into an Investment
Company Services Agreement ("ICSA") with InCap Service Company ("ISC") to
provide day-to-day operational services to the Funds including, but not limited
to, accounting, administrative, transfer agent, dividend disbursement, registrar
and record keeping services. For its services, ISC received $8,000 per month. A
new ISCA between the Funds and ISC was approved by the Funds' sole Director,
Clifford A. Goldstein, prior to the establishment of the new Board of Directors
and became effective October 1, 2003. At its first formal meeting in January
2004, the new Board ratified and approved Mr. Goldstein's actions with regard to
the ICSA with ISC. Under the new ISCA, ISC receives $11,000 per month. For the
period from June 1, 2003 to November 30, 2003, ISC earned $53,956, with $11,000
remaining payable at November 30, 2003 for both Funds. Officers of the Funds are
also employees of ISC.
The Funds and the Adviser have entered into a Distribution Agreement with
InCap Securities, Inc. to provide distribution services to the Funds. InCap
Securities, Inc. serves as underwriter/distributor of the Funds.
A separate plan of distribution has been adopted under Rule 12b-1 of the
Investment Company Act of 1940 for each class of shares. With respect to Class A
and the No-load class of shares, the plan provides that the Funds may pay a
servicing or Rule 12b-1 fee of 0.25% annually of the Funds' average net assets
attributable to each class of shares respectively and 1.00% annually of the
Funds' average net assets attributable to Class C shares to persons or
institutions for performing certain servicing functions for the Funds'
shareholders. The distribution plans are compensation plans, which also allow
the Funds to pay or reimburse expenditures in connection with sales, and
promotional services related to distribution of the Funds' shares, including
personal services provided to prospective and existing shareholders.
19
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2003 (UNAUDITED)
4. ADVISORY FEES AND OTHER RELATED PARTY TRANSACTIONS - continued
The distribution plans for the shares in the AMIDEX35(TM) Mutual Fund
Class A, the No-load class and Class C took effect November 19, 1999, June 8,
1999 and May 19, 2000, respectively. The distribution plan for the Class A
shares in the AMIDEX(TM) Cancer Innovations & Healthcare Fund took effect
November 1, 2001. For the six month period ended November 30, 2003, the
AMIDEX35(TM) Mutual Fund incurred $14,489 in 12b-1 fees. For the six month
period ended November 30, 2003, the AMIDEX(TM) Cancer Innovations & Healthcare
Fund incurred $1,217 in 12b-1 fees. InCap Securities, Inc. received $0 in 12b-1
fees from the AMIDEX35(TM) Mutual Fund and $612 from the AMIDEX(TM) Cancer
Innovations & Healthcare Fund.
A new distribution plan was voted on and approved at a Special Meeting of
Shareholders in September 2003. The prior distribution plan should have been
renewed by August 3, 2002 by the Board of Directors of the Funds. Continuation
of the plans required that a majority of those Directors who are not "interested
persons" vote to continue the plans. Due to the fact that there were no
Independent Directors available to vote on the plans as of August 3, 2002, the
plans were approved and renewed by the sole Director, Clifford A. Goldstein.
5. TAX MATTERS
There were no distributions during the fiscal years 2003 and 2002 for the
AMIDEX35(TM) Mutual Fund or the AMIDEX(TM) Cancer Innovations & Healthcare Fund.
As of May 31, 2003, the components of distributable earnings on a tax
basis were as follows:
AMIDEX(TM)
CANCER
AMIDEX35(TM) INNOVATIONS &
MUTUAL FUND HEALTHCARE FUND
------------ ---------------
Cost of investments for tax purposes $ 20,176,002 $ 1,106,278
Unrealized Appreciation/ (Depreciation):
Gross Appreciation 1,364,331 52,520
Gross Depreciation (12,142,082) (213,520)
------------ ------------
Net Unrealized Depreciation $(10,777,751) $ (161,000)
Undistributed Ordinary Income: -- --
Undistributed Long-term Capital Gains/(Losses), Net (1,866,261) --
------------ ------------
Distributable Earnings, Net $(12,644,012) $ (161,000)
============ ============
The difference between book basis and tax-basis unrealized depreciation is
attributable primarily to the tax deferral of losses on wash sales and
post-October losses.
20
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2003 (UNAUDITED)
5. TAX MATTERS - continued
As of May 31, 2003 the Funds had capital loss carryforwards available for
federal income tax purposes as follows:
AMIDEX(TM) CANCER
AMIDEX35(TM) INNOVATIONS &
MUTUAL FUND HEALTHCARE FUND
----------- ---------------
Expiring in: 2010 $(1,795,267) $--
Expiring in: 2011 $ (100,824) $--
6. CONCENTRATION OF RISK
The AMIDEX35(TM) Mutual Fund invests exclusively in common stock of
Israeli companies. Investing in the companies from one geographic region may
pose additional risks inherent to a region's economical and political situation.
A large portion of investments held by AMIDEX35(TM) Mutual Fund are
considered investments in the technology sector of the market. All investments
in common stock held by AMIDEX(TM) Cancer Innovations & Healthcare Fund are
identified as belonging to the healthcare sector of the market. Investing in a
single market sector may be riskier than investing in a variety of market
sectors.
7. SPECIAL MEETING OF SHAREHOLDERS
As reported in the May 31, 2003 Annual Report, a Special Meeting of
Shareholders was held in September 2003 to consider six proposals, which were as
follows:
1. To approve a new Investment Advisory agreement between the Company
and Index Investments, LLC.
2. To approve amendments to the AMIDEX(TM) Articles of Incorporation
and the filing of Amended and Restated Articles of Incorporation.
3. To approve a new slate of Directors to serve on the Board of
Directors.
4. To approve McCurdy & Associates CPA's, Inc. to serve as independent
public accountants for the Company.
5. To approve a 12b-1 Distribution Plan.
6. To grant the authority to transact such other business as may
properly come before the shareholders of the Funds to the Board of
Directors.
Proposal two was not approved due to an insufficient amount of shareholder
votes. The proposal required the presence of two thirds of the outstanding
voting securities of the Company at the meeting. The meeting has been adjourned
for the interim in order to solicit more shareholder votes so that voting
requirements are met. All other proposals have been approved.
8. BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25%
of the voting securities of a fund creates a presumption of control of the fund,
under Section 2(a)(9) of the Investment Company Act of 1940. As of November 30,
2003, Wexford Clearing Corp. held 35.68% of Class A of AMIDEX35(TM) Mutual Fund
in an omnibus account for the benefit of others. As of November 30, 2003,
Merrill Lynch held 63.45% of Class C of AMIDEX35(TM) Mutual Fund in an omnibus
account for the benefit of others. As of November 30, 2003, Merrill Lynch held
36.43% of Class A of AMIDEX(TM) Cancer Innovations & Healthcare Fund in an
omnibus account for the benefit of others.
21
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [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 principal executive office and principal financial
officer has concluded that the registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company Act
of 1940, as amended (the "1940 Act") are effective based on their
evaluation of these controls and procedures as of a date within 90 days of
the filing date of this document.
(b) There were so significant changes in the registrant's internal controls or
in other factors that could 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) Not applicable at this time.
(b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
are attached hereto as EX-99.CERT. Certifications pursuant to Section 906
of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-906CERT.
SIGNATURES
Pursuant to the requirement 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, hereunder duly authorized.
AMIDEX Funds, Inc.
(Registrant)
By: /s/ Clifford A. Goldstein
--------------------------------
Clifford A. Goldstein, President
Date: February 18, 2004
Pursuant to the requirement 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: /s/ Clifford A. Goldstein
--------------------------------
Clifford A. Goldstein, President
Date: February 18, 2004
By: /s/ Larry E. Beaver
--------------------------------
Larry E. Beaver, Jr.,
Chief Accounting Officer
Date: February 18, 2004