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 811-4556
----------------------------------------------
IDEX Mutual Funds
------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
570 Carillon Parkway, St. Petersburg, Florida 33716
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(Address of principal executive offices) (Zip code)
John K. Carter, Esq., P.O. Box 5068, Clearwater, Florida 33758-5068
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(Name and address of agent for service)
Registrant's telephone number, including area code: (727) 299-1800
------------------
Date of fiscal year end: 11/30/03
-----------------
Date of reporting period: 11/01/02 - 04/30/03
----------------------------
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 (REPORT TO SHAREHOLDERS): The Semi-Annual Report is attached.
IDEX Mutual Funds
Semi-Annual Report
April 30, 2003
We are pleased to present our semi-annual report covering the period of
November 1st, 2002 through April 30th, 2003. The Securities and Exchange
Commission requires this report to be sent to our shareholders on a semi-annual
basis. The following pages provide a comprehensive view of the investments of
each fund as well as the detailed performance and accounting data. The report
also provides a discussion of the accounting policies for the funds in addition
to any matters presented to the shareholders which may have required their
vote.
Please contact your financial representative if you have any questions about
the contents of this report. We thank you for your continued trust and support
in IDEX Mutual Funds.
[LOGO] IDEX MUTUAL FUNDS
P.O. Box 9015 Clearwater, FL 33758-9015
Customer Service 1-888-233-IDEX (4339)
www.idexfunds.com
Distributor: AFSG Securities Corporation
[This Page Intentionally Left Blank]
IDEX Asset Allocation-Conservative Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- -------------------------------------------------------------------------------
MUTUAL FUNDS (98.1%) (b)
Aggressive (16.6%)
IDEX Great Companies-America(SM)(a) 409,795 $ 3,266
IDEX Great Companies-Technology(SM)(a) 1,279,961 3,661
IDEX Isabelle Small Cap Value (a) 168,902 1,586
IDEX Janus Growth (a) 87,379 1,495
IDEX T. Rowe Price Health Sciences (a) 24,637 216
IDEX T. Rowe Price Tax-Efficient Growth (a) 660,665 5,642
IDEX Transamerica Equity (a) 490,659 2,890
IDEX Transamerica Growth
Opportunities (a) 724,007 3,562
Balanced (3.2%)
IDEX Clarion Real Estate Securities (a) 401,616 4,257
Conservative (14.6%)
IDEX Janus Growth & Income (a) 506,137 3,827
IDEX Marsico Growth (a) 447,931 3,346
IDEX Salomon All Cap (a) 313,992 3,545
IDEX Salomon Investors Value 841,797 8,948
Fixed-Income (55.3%)
IDEX Janus Flexible Income 1,326,308 $ 13,621
IDEX PIMCO Real Return TIPS 778,727 7,616
IDEX PIMCO Total Return 795,475 8,408
IDEX Transamerica Conservative
High-Yield Bond 2,767,693 24,273
IDEX Transamerica Convertible Securities 2,008,134 20,302
International (3.9%)
IDEX American Century International (a) 101,329 688
IDEX Great Companies-Global2 (a) 748,581 4,514
Money Market (4.5%)
IDEX Transamerica Money Market 6,090,838 6,091
---------
Total Mutual Funds (cost: $126,813) 131,754
---------
Total Investment Securities (cost: $126,813) $ 131,754
=========
SUMMARY:
Investments, at market value 98.1% $ 131,754
Other assets in excess of liabilities 1.9% 2,544
--------- ---------
Net assets 100.0% $ 134,298
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) The fund invests its assets in Class A shares of underlying IDEX Mutual
Funds, which are affiliates of the fund.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Conservative Portfolio 1
IDEX Asset Allocation-Conservative Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $126,813) $131,754
Cash 800
Receivables:
Shares of beneficial interest sold 2,752
Due from investment adviser 21
Other 1
--------
135,328
--------
Liabilities:
Investment securities purchased 800
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 137
Distribution fees 55
Transfer agent fees and expenses 24
Other 14
--------
1,030
--------
Net Assets $134,298
========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $129,660
Undistributed net investment income (loss) 212
Accumulated net realized gain (loss) from investments (515)
Net unrealized appreciation (depreciation) of
investments 4,941
--------
Net Assets $134,298
========
Shares Outstanding:
Class A 2,447
Class B 6,236
Class C 1,698
Class L 2,867
Class M 698
Net Asset Value Per Share:
Class A $ 9.64
Class B 9.63
Class C 9.63
Class L 9.63
Class M 9.63
Maximum Offering Price Per Share (1):
Class A $ 10.20
Class M 9.73
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 1
Dividends 1,114
-------
1,115
-------
Expenses:
Management and advisory fees 41
Transfer agent fees and expenses 69
Custody fees 14
Administration fees 16
Registration fees 61
Trustees fees and expenses 2
Professional fees 11
Other 9
Distribution and service fees:
Class A -
Class B 124
Class C 46
Class L 31
Class M 16
-------
Total Expenses 440
Less reimbursements by the investment adviser (36)
-------
Net Expenses 404
-------
Net Investment Income (Loss) 711
-------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (357)
Net unrealized appreciation (depreciation) on
investment securities 5,712
-------
Net Gain (Loss) on Investments 5,355
-------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 6,066
=======
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Conservative Portfolio 2
IDEX Asset Allocation-Conservative Portfolio
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002 (a)
--------------- ---------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 711 $ 95
Net realized gain (loss) on investment
securities (357) (158)
Net unrealized appreciation (depreciation)
on investment securities 5,712 (771)
---------- --------
6,066 (834)
---------- --------
Distributions to Shareholders:
From net investment income:
Class A (187) --
Class B (229) --
Class C (98) --
Class L (35) --
Class M (48) --
---------- --------
(597) --
---------- --------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
---------- --------
-- --
---------- --------
Capital Share Transactions:
Proceeds from shares sold:
Class A 17,728 10,560
Class B 38,050 25,680
Class C 7,020 12,651
Class L 27,642 --
Class M 2,276 5,738
---------- --------
92,716 54,629
---------- --------
Dividends and distributions reinvested:
Class A 165 --
Class B 194 --
Class C 76 --
Class L 26 --
Class M 43 --
---------- --------
504 --
---------- --------
Cost of shares redeemed:
Class A (4,753) (883)
Class B (3,850) (2,125)
Class C (3,450) (495)
Class L (1,070) --
Class M (991) (569)
---------- --------
(14,114) (4,072)
---------- --------
79,106 50,557
---------- --------
Net increase (decrease) in net assets 84,575 49,723
---------- --------
Net Assets:
Beginning of period 49,723 --
---------- --------
End of period $ 134,298 $ 49,723
========== ========
Undistributed Net Investment Income (Loss) $ 212 $ 98
========== ========
Share Activity:
Shares issued during the period:
Class A 1,912 1,124
Class B 4,103 2,765
Class C 760 1,355
Class L 2,979 --
Class M 247 615
---------- --------
10,001 5,859
---------- --------
Shares issued-reinvested from distributions:
Class A 18 --
Class B 21 --
Class C 8 --
Class L 3 --
Class M 5 --
---------- --------
55 --
---------- --------
Shares redeemed during the period:
Class A (512) (95)
Class B (420) (233)
Class C (371) (54)
Class L (115) --
Class M (106) (63)
---------- --------
(1,524) (445)
---------- --------
Net increase (decrease) in shares outstanding 8,532 5,414
========== ========
(a) Commenced operations on March 1, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Conservative Portfolio 3
IDEX Asset Allocation-Conservative Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout each
period
-------------------------------------------------------------
Investment Operations
-------------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) (a) Gain (Loss) Operations
-------------- ----------- ------------------- ---------------- ------------
Class A 04/30/2003 $ 9.22 $ 0.10 $ 0.45 $ 0.55
10/31/2002 10.00 0.07 (0.85) (0.78)
- ------------------------------------------------------------------------------------
Class B 04/30/2003 9.18 0.07 0.44 0.51
10/31/2002 10.00 0.03 (0.85) (0.82)
- ------------------------------------------------------------------------------------
Class C 04/30/2003 9.18 0.07 0.44 0.51
10/31/2002 10.00 0.03 (0.85) (0.82)
- ------------------------------------------------------------------------------------
Class L 04/30/2003 9.19 0.06 0.44 0.50
- ------------------------------------------------------------------------------------
Class M 04/30/2003 9.18 0.07 0.46 0.53
10/31/2002 10.00 0.04 (0.86) (0.82)
- ------------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ (0.13) $ -- $ (0.13) $ 9.64
-- -- -- 9.22
- -----------------------------------------------------------
Class B (0.06) -- (0.06) 9.63
-- -- -- 9.18
- -----------------------------------------------------------
Class C (0.06) -- (0.06) 9.63
-- -- -- 9.18
- -----------------------------------------------------------
Class L (0.06) -- (0.06) 9.63
- -----------------------------------------------------------
Class M (0.08) -- (0.08) 9.63
-- -- -- 9.18
- -----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 6.04% $ 23,578 0.45% 0.54% 2.24% 18.56%
10/31/2002 (7.80) 9,482 0.45 1.21 1.27 8.33
- --------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 5.64 60,046 1.10 1.19 1.59 18.56
10/31/2002 (8.20) 23,229 1.10 1.86 0.62 8.33
- --------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 5.64 16,345 1.10 1.19 1.59 18.56
10/31/2002 (8.20) 11,940 1.10 1.86 0.62 8.33
- --------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 5.52 27,612 1.10 1.19 1.59 18.56
- --------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 5.75 6,717 1.00 1.09 1.69 18.56
10/31/2002 (8.20) 5,072 1.00 1.76 0.72 8.33
- --------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Conservative Portfolio 4
IDEX Asset Allocation-Conservative Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Recognition of net investment income is affected by the timing of dividend
declarations by the investee funds. Expenses of the investee funds are
excluded from the expense ratios. Ratios of Expenses and Net Investment
Income (Loss) to Average Net Assets are annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Asset Allocation-Conservative Portfolio ("the Fund") commenced
operations on March 1, 2002. The inception date for the Fund's offering of
share Class L is November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Conservative Portfolio 5
IDEX Asset Allocation-Conservative Portfolio
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Asset Allocation-Conservative Portfolio
("the Fund"), part of IDEX Mutual Funds, began operations on March 1, 2002. On
March 3, 2003, the Fund changed its name from IDEX Conservative Asset
Allocation to IDEX Asset Allocation-Conservative Portfolio.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: The Fund's investments are valued at the net asset values
of the underlying portfolios of the Fund. The net asset values of the
underlying portfolios are determined after the close of the New York Stock
Exchange (generally 4:00 p.m. eastern time) on the valuation date.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date.
Dividends and net realized gain (loss) from investment securities for the Fund
are from investments in shares of affiliated investment companies.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following rate:
0.10% of ANA
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
0.45% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The Fund is
authorized under the 12b-1 plan to pay fees on each class up to the following
limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
In addition, the underlying Fund's Class A shares in which the Fund invests
impose a 0.35% 12b-1 fee. To avoid duplication of 12b-1 fees, each class of
fund shares of the Fund has reduced the 12b-1 fees by the amount of the
underlying funds' Class A 12b-1 fees.
ATFA has entered into consultant agreements with Morningstar Associates, LLC to
provide investment services to the Fund. ATFA compensates Morningstar
Associates, LLC as described in the Prospectus. AEGON USA Investments
Management, Inc., Transamerica Investment
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Conservative Portfolio 6
IDEX Asset Allocation-Conservative Portfolio
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Management, LLC and Great Companies, LLC are affiliates of the Fund and are
sub-advisors to other funds within IDEX Mutual Funds.
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 436
Retained by Underwriter 57
Contingent Sales Charges 83
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $1 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 93,948
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 15,387
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforward is available to offset future realized capital
gains through the period listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 151 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 126,959
=========
Unrealized Appreciation $ 4,828
Unrealized (Depreciation) (33)
---------
Net Unrealized Appreciation (Depreciation) $ 4,795
=========
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Conservative Portfolio 7
IDEX Asset Allocation-Growth Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
MUTUAL FUNDS (97.4%) (b)
Aggressive (46.8%)
IDEX Great Companies-America(SM)(a) 538,331 $ 4,290
IDEX Great Companies-Technology(SM)(a) 740,095 2,117
IDEX Isabelle Small Cap Value (a) 714,958 6,713
IDEX Janus Growth (a) 172,109 2,945
IDEX T. Rowe Price Health Sciences (a) 328,806 2,884
IDEX T. Rowe Price Tax-Efficient Growth (a) 471,701 4,028
IDEX Transamerica Equity (a) 1,720,199 10,132
IDEX Transamerica Growth
Opportunities (a) 1,003,111 4,935
Balanced (3.3%)
IDEX Clarion Real Estate Securities (a) 254,324 2,696
Conservative (37.5%)
IDEX Janus Growth & Income (a) 376,543 $ 2,848
IDEX Marsico Growth (a) 694,513 5,188
IDEX Salomon All Cap (a) 358,447 4,047
IDEX Salomon Investors Value 1,735,010 18,443
International (9.8%)
IDEX American Century International (a) 764,424 5,190
IDEX Great Companies-Global2 (a) 457,035 2,756
--------
Total Mutual Funds (cost: $79,069) 79,212
--------
Total Investment Securities (cost: $79,069) $ 79,212
========
SUMMARY:
Investments, at market value 97.4% $ 79,212
Other assets in excess of liabilities 2.6% 2,125
--------- --------
Net assets 100.0% $ 81,337
========= ========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) The fund invests its assets in Class A shares of underlying IDEX Mutual
Funds, which are affiliates of the fund.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Growth 1
IDEX Asset Allocation-Growth Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value
(cost: $79,069) $ 79,212
Cash 777
Receivables:
Shares of beneficial interest sold 2,718
Due from investment adviser 48
--------
82,755
--------
Liabilities:
Investment securities purchased 777
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 564
Distribution fees 30
Transfer agent fees and expenses 33
Other 14
--------
1,418
--------
Net Assets $ 81,337
========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 82,294
Accumulated net investment income (loss) (148)
Accumulated net realized gain (loss) from investments (952)
Net unrealized appreciation (depreciation) of
investments 143
--------
Net Assets $ 81,337
========
Shares Outstanding:
Class A 2,162
Class B 3,922
Class C 1,049
Class L 2,155
Class M 626
Net Asset Value Per Share:
Class A $ 8.26
Class B 8.19
Class C 8.19
Class L 8.19
Class M 8.20
Maximum Offering Price Per Share (1):
Class A $ 8.74
Class M 8.28
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 1
Dividends 84
---------
85
---------
Expenses:
Management and advisory fees 25
Transfer agent fees and expenses 99
Custody fees 12
Administration fees 15
Registration fees 50
Trustees fees and expenses 1
Professional fees 9
Other 12
Distribution and service fees:
Class A --
Class B 62
Class C 28
Class L 19
Class M 13
---------
Total Expenses 345
Less reimbursements by the investment adviser (112)
---------
Net Expenses 233
---------
Net Investment Income (Loss) (148)
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (236)
Net unrealized appreciation (depreciation) on
investment securities 3,101
---------
Net Gain (Loss) on Investments 2,865
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 2,717
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Growth 2
IDEX Asset Allocation-Growth Portfolio
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002 (a)
--------------- ---------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (148) $ (87)
Net realized gain (loss) on investment
securities (236) (716)
Net unrealized appreciation (depreciation)
on investment securities 3,101 (2,958)
--------- ---------
2,717 (3,761)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 9,974 10,067
Class B 21,822 12,627
Class C 3,263 9,331
Class L 17,570 --
Class M 1,551 5,274
--------- ---------
54,180 37,299
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (1,100) (607)
Class B (1,180) (757)
Class C (2,851) (656)
Class L (590) --
Class M (1,010) (347)
--------- ---------
(6,731) (2,367)
--------- ---------
47,449 34,932
--------- ---------
Net increase (decrease) in net assets 50,166 31,171
--------- ---------
Net Assets:
Beginning of period 31,171 --
--------- ---------
End of period $ 81,337 $ 31,171
========= =========
Accumulated Net Investment Income (Loss) $ (148) $ --
========= =========
Share Activity:
Shares issued during the period:
Class A 1,247 1,126
Class B 2,750 1,416
Class C 405 1,085
Class L 2,230 --
Class M 195 598
--------- ---------
6,827 4,225
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (138) (73)
Class B (150) (94)
Class C (361) (80)
Class L (75) --
Class M (125) (42)
--------- ---------
(849) (289)
--------- ---------
Net increase (decrease) in shares outstanding 5,978 3,936
========= =========
(a) Commenced operations on March 1, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Growth 3
IDEX Asset Allocation-Growth Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout each
period
-------------------------------------------------------------
Investment Operations
-------------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) (a) Gain (Loss) Operations
-------------- ----------- ------------------- ---------------- ------------
Class A 04/30/2003 $ 7.95 $ -- $ 0.31 $ 0.31
10/31/2002 10.00 (0.02) (2.03) (2.05)
- ------------------------------------------------------------------------------------
Class B 04/30/2003 7.91 -- 0.28 0.28
10/31/2002 10.00 (0.06) (2.03) (2.09)
- ------------------------------------------------------------------------------------
Class C 04/30/2003 7.91 -- 0.28 0.28
10/31/2002 10.00 (0.04) (2.05) (2.09)
- ------------------------------------------------------------------------------------
Class L 04/30/2003 7.86 -- 0.33 0.33
- ------------------------------------------------------------------------------------
Class M 04/30/2003 7.91 -- 0.29 0.29
10/31/2002 10.00 (0.05) (2.04) (2.09)
- ------------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 8.26
-- -- -- 7.95
- -----------------------------------------------------------
Class B -- -- -- 8.19
-- -- -- 7.91
- -----------------------------------------------------------
Class C -- -- -- 8.19
-- -- -- 7.91
- -----------------------------------------------------------
Class L -- -- -- 8.19
- -----------------------------------------------------------
Class M -- -- -- 8.20
-- -- -- 7.91
- -----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 3.90% $ 17,860 0.45% 0.90% (0.11)% 6.44%
10/31/2002 (20.50) 8,368 0.45 1.65 (0.44) 31.23
- --------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 3.54 32,111 1.10 1.55 (0.76) 6.44
10/31/2002 (20.90) 10,452 1.10 2.30 (1.09) 31.23
- --------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 3.54 8,589 1.10 1.55 (0.76) 6.44
10/31/2002 (20.90) 7,948 1.10 2.30 (1.09) 31.23
- --------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 4.20 17,644 1.10 1.55 (0.76) 6.44
- --------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 3.67 5,133 1.00 1.45 (0.66) 6.44
10/31/2002 (20.90) 4,403 1.00 2.20 (0.99) 31.23
- --------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Growth 4
IDEX Asset Allocation-Growth Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Recognition of net investment income is affected by the timing of dividend
declarations by the investee funds. Expenses of the investee funds are
excluded from the expense ratios. Ratios of Net Investment Income (Loss)
and Expenses to Average Net Assets are annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Asset Allocation-Growth Portfolio ("the Fund") commenced operations
on March 1, 2002. The inception date for the Fund's offering of share
Class L was November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Growth 5
IDEX Asset Allocation-Growth Portfolio
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Asset Allocation-Growth Portfolio ("the
Fund"), part of IDEX Mutual Funds, began operations on March 1, 2002. On March
3, 2003, the Fund changed its name from IDEX Aggressive Asset Allocation to
IDEX Asset Allocation-Growth Portfolio.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: The Fund's investments are valued at the net asset values
of the underlying portfolios of the Fund. The net asset values of the
underlying portfolios are determined after the close of the New York Stock
Exchange (generally 4:00 p.m. eastern time) on the valuation date.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Security transactions and investment income: Security transactions are recorded
for on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date.
Dividends and net realized gain (loss) from investment securities for the Fund
are from investments in shares of affiliated investment companies.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following rate:
0.10% of ANA
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
0.45% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The Fund is
authorized under the 12b-1 plan to pay fees on each class up to the following
limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
In addition, the underlying Fund's Class A shares in which the Fund invests
impose a 0.35% 12b-1 fee. To avoid duplication of 12b-1 fees, each class of
fund shares of the Fund has reduced the 12b-1 fees by the amount of the
underlying funds' Class A 12b-1 fees.
ATFA has entered into a consultant agreement with Morningstar Associates, LLC
to provide investment services to the Fund. ATFA compensates Morningstar
Associates, LLC as described in the Prospectus. AEGON USA Investments
Management, Inc., Transamerica Investment Management, LLC and Great Companies,
LLC are affiliates of the Fund and are sub-advisors to other funds within IDEX
Mutual Funds.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Growth 6
IDEX Asset Allocation-Growth Portfolio
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 260
Retained by Underwriter 32
Contingent Sales Charges 14
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 49,616
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 3,213
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforward is available to offset future realized capital
gains through the period listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 716 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 79,108
=========
Unrealized Appreciation $ 1,113
Unrealized (Depreciation) (1,009)
---------
Net Unrealized Appreciation (Depreciation) $ 104
=========
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Growth 7
IDEX Asset Allocation-Moderate Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- -------------------------------------------------------------------------------
MUTUAL FUNDS (98.0%) (b)
Aggressive (26.3%)
IDEX Great Companies-America(SM)(a) 1,016,526 $ 8,102
IDEX Great Companies-Technology(SM)(a) 1,938,427 5,544
IDEX Isabelle Small Cap Value (a) 987,878 9,276
IDEX Janus Growth (a) 153,370 2,624
IDEX T. Rowe Price Health Sciences (a) 346,484 3,039
IDEX T. Rowe Price Tax-Efficient Growth (a) 1,199,375 10,243
IDEX Transamerica Equity (a) 3,130,449 18,438
IDEX Transamerica Growth
Opportunities (a) 1,819,651 8,953
Balanced (4.5%)
IDEX Clarion Real Estate Securities (a) 1,055,174 11,185
Conservative (21.4%)
IDEX Janus Growth & Income (a) 1,266,947 9,578
IDEX Marsico Growth (a) 1,199,843 8,963
IDEX Salomon All Cap (a) 432,346 4,881
IDEX Salomon Investors Value 2,855,066 30,349
Fixed-Income (38.8%)
IDEX Janus Flexible Income 2,192,047 $ 22,512
IDEX PIMCO Real Return TIPS 696,220 6,809
IDEX PIMCO Total Return 1,040,841 11,002
IDEX Transamerica Conservative
High-Yield Bond 3,640,527 31,927
IDEX Transamerica Convertible Securities 2,493,093 25,205
International (4.4%)
IDEX American Century International (a) 1,000,850 6,796
IDEX Great Companies-Global2 (a) 718,025 4,330
Money Market (2.6%)
IDEX Transamerica Money Market 6,438,339 6,438
---------
Total Mutual Funds (cost: $240,412) 246,194
---------
Total Investment Securities (cost: $240,412) $ 246,194
=========
SUMMARY:
Investments, at market value 98.0% $ 246,194
Other assets in excess of liabilities 2.0% 5,070
---------- ---------
Net assets 100.0% $ 251,264
========== =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) The fund invests its assets in Class A shares of underlying IDEX Mutual
Funds, which are affiliates of the fund.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Portfolio 1
IDEX Asset Allocation-Moderate Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $240,412) $ 246,194
Cash 1,352
Receivables:
Shares of beneficial interest sold 5,503
Other 3
----------
253,052
----------
Liabilities:
Investment securities purchased 1,352
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 255
Management and advisory fees 12
Distribution fees 102
Transfer agent fees and expenses 47
Other 20
----------
1,788
----------
Net Assets $ 251,264
==========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 246,819
Undistributed net investment income (loss) 382
Accumulated net realized gain (loss) from investments (1,719)
Net unrealized appreciation (depreciation) of
investments 5,782
----------
Net Assets $ 251,264
==========
Shares Outstanding:
Class A 4,659
Class B 10,844
Class C 3,754
Class L 6,823
Class M 1,477
Net Asset Value Per Share:
Class A $ 9.14
Class B 9.12
Class C 9.12
Class L 9.12
Class M 9.12
Maximum Offering Price Per Share (1):
Class A shares $ 9.67
Class M shares 9.21
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 3
Dividends 1,591
---------
1,594
---------
Expenses:
Management and advisory fees 80
Transfer agent fees and expenses 152
Custody fees 18
Administration fees 16
Registration fees 74
Trustees fees and expenses 4
Professional fees 14
Other 19
Distribution and service fees:
Class A --
Class B 212
Class C 100
Class L 80
Class M 34
---------
Total Expenses 803
Less reimbursements by the investment adviser (14)
---------
Net Expenses 789
---------
Net Investment Income (Loss) 805
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (1,099)
Net unrealized appreciation (depreciation) on
investment securities 9,922
---------
Net Gain (Loss) on Investments 8,823
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 9,628
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Portfolio 2
IDEX Asset Allocation-Moderate Portfolio
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002 (a)
--------------- ---------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 805 $ 83
Net realized gain (loss) on investment
securities (1,099) (620)
Net unrealized appreciation (depreciation)
on investment securities 9,922 (4,140)
---------- ----------
9,628 (4,677)
---------- ----------
Distributions to Shareholders:
From net investment income:
Class A (219) --
Class B (148) --
Class C (85) --
Class L (21) --
Class M (44) --
---------- ----------
(517) --
---------- ----------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
---------- ----------
-- --
---------- ----------
Capital Share Transactions:
Proceeds from shares sold:
Class A 29,695 20,382
Class B 62,388 43,878
Class C 10,672 28,947
Class L 62,940 --
Class M 4,350 12,877
---------- ----------
170,045 106,084
---------- ----------
Dividends and distributions reinvested:
Class A 200 --
Class B 123 --
Class C 61 --
Class L 18 --
Class M 41 --
---------- ----------
443 --
---------- ----------
Cost of shares redeemed:
Class A (6,328) (1,985)
Class B (6,281) (2,810)
Class C (3,351) (2,406)
Class L (2,808) --
Class M (2,622) (1,151)
---------- ----------
(21,390) (8,352)
---------- ----------
149,098 97,732
---------- ----------
Net increase (decrease) in net assets 158,209 93,055
---------- ----------
Net Assets:
Beginning of period 93,055 --
---------- ----------
End of period $ 251,264 $ 93,055
========== ==========
Undistributed Net Investment Income (Loss) $ 382 $ 94
========== ==========
Share Activity:
Shares issued during the period:
Class A 3,358 2,226
Class B 7,075 4,793
Class C 1,209 3,190
Class L 7,144 --
Class M 495 1,409
---------- ----------
19,281 11,618
---------- ----------
Shares issued-reinvested from distributions:
Class A 23 --
Class B 14 --
Class C 7 --
Class L 2 --
Class M 5 --
---------- ----------
51 --
---------- ----------
Shares redeemed during the period:
Class A (722) (226)
Class B (717) (321)
Class C (382) (270)
Class L (323) --
Class M (299) (133)
---------- ----------
(2,443) (950)
---------- ----------
Net increase (decrease) in shares outstanding 16,889 10,668
========== ==========
(a) Commenced operations on March 1, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Portfolio 3
IDEX Asset Allocation-Moderate Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout each
period
-------------------------------------------------------------
Investment Operations
-------------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) (a) Gain (Loss) Operations
- -------------------------------------------------------------------------------------
Class A 04/30/2003 $ 8.76 $ 0.07 $ 0.39 $ 0.46
10/31/2002 10.00 0.04 (1.28) (1.24)
- ------------------------------------------------------------------------------------
Class B 04/30/2003 8.71 0.04 0.39 0.43
10/31/2002 10.00 0.01 (1.30) (1.29)
- ------------------------------------------------------------------------------------
Class C 04/30/2003 8.71 0.04 0.39 0.43
10/31/2002 10.00 0.01 (1.30) (1.29)
- ------------------------------------------------------------------------------------
Class L 04/30/2003 8.71 0.04 0.39 0.43
- ------------------------------------------------------------------------------------
Class M 04/30/2003 8.72 0.03 0.40 0.43
10/31/2002 10.00 0.01 (1.29) (1.28)
- ------------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
- ------------------------------------------------------------
Class A $ (0.08) $ -- $ (0.08) $ 9.14
-- -- -- 8.76
- -----------------------------------------------------------
Class B (0.02) -- (0.02) 9.12
-- -- -- 8.71
- -----------------------------------------------------------
Class C (0.02) -- (0.02) 9.12
-- -- -- 8.71
- -----------------------------------------------------------
Class L (0.02) -- (0.02) 9.12
- -----------------------------------------------------------
Class M (0.03) -- (0.03) 9.12
-- -- -- 8.72
- -----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
- ---------------------------------------------------------------------------------------------------------------
Class A 04/30/2003 5.24% $ 42,565 0.45% 0.47% 1.52% 12.27%
10/31/2002 (12.40) 17,517 0.45 0.78 0.83 11.95
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 5.00 98,833 1.10 1.12 0.87 12.27
10/31/2002 (12.90) 38,969 1.10 1.43 0.18 11.95
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 5.00 34,210 1.10 1.12 0.87 12.27
10/31/2002 (12.90) 25,444 1.10 1.43 0.18 11.95
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 5.00 62,192 1.10 1.12 0.87 12.27
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 4.97 13,464 1.00 1.02 0.97 12.27
10/31/2002 (12.80) 11,125 1.00 1.33 0.28 11.95
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Portfolio 4
IDEX Asset Allocation-Moderate Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Recognition of net investment income is affected by the timing of dividend
delcarations by the investee funds. Expenses of the investee funds are
excluded from the expense ratios. Ratios of Expenses and Net Investment
Income (Loss) to Average Net Assets are annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Asset Allocation-Moderate Portfolio ("the Fund") commenced operations
on March 1, 2002. The inception date for the Fund's offering of share
Class L was November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Portfolio 5
IDEX Asset Allocation-Moderate Portfolio
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Asset Allocation-Moderate Portfolio ("the
Fund"), part of IDEX Mutual Funds, began operations on March 1, 2002. On March
3, 2003, the Fund changed its name from IDEX Moderate Asset Allocation to IDEX
Asset Allocation-Moderate Portfolio.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: The Fund's investments are valued at the net asset values
of the underlying portfolios of the Fund. The net asset values of the underlying
portfolios are determined after the close of the New York Stock Exchange
(generally 4:00 p.m. eastern time) on the valuation date.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date.
Dividends and net realized gain (loss) from investment securities for the Fund
are from investments in shares of affiliated investment companies.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following rate:
0.10% of ANA
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
0.45% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The Fund is
authorized under the 12b-1 plan to pay fees on each class up to the following
limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
In addition, the underlying Funds' Class A shares in which the Fund invests
impose a 0.35% 12b-1 fee. To avoid duplication of 12b-1 fees, each class of fund
shares of the Fund has reduced the 12b-1 fees by the amount of the underlying
funds' Class A 12b-1 fees.
ATFA has entered into a consultant agreement with Morningstar Associates, LLC to
provide investment services to the Fund. ATFA compensates Morningstar
Associates, LLC as described in the Prospectus. AEGON USA Investments
Management, Inc., Transamerica Investment Management, LLC and Great Companies,
LLC are affiliates of the Fund and are sub-advisors to other funds within IDEX
Mutual Funds.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Portfolio 6
IDEX Asset Allocation-Moderate Portfolio
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 888
Retained by Underwriter 115
Contingent Sales Charges 138
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $1 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 167,330
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 19,676
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforward is available to offset future realized capital
gains through the period listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 620 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 240,536
=========
Unrealized Appreciation $ 6,343
Unrealized (Depreciation) (685)
---------
Net Unrealized Appreciation (Depreciation) $ 5,658
=========
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Portfolio 7
IDEX Asset Allocation-Moderate Growth Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- -------------------------------------------------------------------------------
MUTUAL FUNDS (97.6%) (b)
Aggressive (34.2%)
IDEX Great Companies-America(SM)(a) 862,628 $ 6,875
IDEX Great Companies-Technology(SM)(a) 1,724,184 4,931
IDEX Isabelle Small Cap Value (a) 1,215,998 11,418
IDEX Janus Growth (a) 235,457 4,029
IDEX T. Rowe Price Health Sciences (a) 563,176 4,939
IDEX T. Rowe Price Tax-Efficient Growth (a) 1,199,610 10,245
IDEX Transamerica Equity (a) 3,828,239 22,548
IDEX Transamerica Growth
Opportunities (a) 2,106,797 10,365
Balanced (4.5%)
IDEX Clarion Real Estate Securities (a) 942,831 9,994
Conservative (28.5%)
IDEX Janus Growth & Income (a) 1,129,018 8,536
IDEX Marsico Growth (a) 1,508,041 11,265
IDEX Salomon All Cap (a) 553,733 6,252
IDEX Salomon Investors Value 3,466,394 36,848
Fixed-Income (23.1%)
IDEX Janus Flexible Income 1,296,233 $ 13,312
IDEX PIMCO Real Return TIPS 514,057 5,027
IDEX PIMCO Total Return 871,061 9,207
IDEX Transamerica Conservative
High-Yield Bond 2,013,063 17,655
IDEX Transamerica Convertible Securities 560,612 5,668
International (7.3%)
IDEX American Century International (a) 1,543,534 10,481
IDEX Great Companies-Global2 (a) 933,028 5,626
---------
Total Mutual Funds (cost: $212,285) 215,221
---------
Total Investment Securities (cost: $212,285) $ 215,221
=========
SUMMARY:
Investments, at market value 97.6% $ 215,221
Other assets in excess of liabilities 2.4% 5,360
---------- ---------
Net assets 100.0% $ 220,581
========== =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) The fund invests its assets in Class A shares of underlying IDEX Mutual
Funds, which are affiliates of the fund.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Growth Portfolio 1
IDEX Asset Allocation-Moderate Growth Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $212,285) $ 215,221
Cash 1,718
Receivables:
Shares of beneficial interest sold 5,854
Due from investment adviser 59
Other 2
----------
222,854
----------
Liabilities:
Investment securities purchased 1,718
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 390
Distribution fees 85
Transfer agent fees and expenses 59
Other 21
----------
2,273
----------
Net Assets $ 220,581
==========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 219,818
Undistributed net investment income (loss) 142
Accumulated net realized gain (loss) from investments (2,315)
Net unrealized appreciation (depreciation) of
investments 2,936
----------
Net Assets $ 220,581
==========
Shares Outstanding:
Class A 4,842
Class B 9,893
Class C 2,592
Class L 6,262
Class M 1,733
Net Asset Value Per Share:
Class A $ 8.73
Class B 8.71
Class C 8.71
Class L 8.71
Class M 8.71
Maximum Offering Price Per Share (1):
Class A $ 9.24
Class M 8.80
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 2
Dividends 996
---------
998
---------
Expenses:
Management and advisory fees 70
Transfer agent fees and expenses 190
Custody fees 16
Administration fees 16
Registration fees 71
Trustees fees and expenses 4
Professional fees 13
Other 21
Distribution and service fees:
Class A --
Class B 182
Class C 70
Class L 63
Class M 38
---------
Total Expenses 754
Less reimbursements by the investment adviser (85)
---------
Net Expenses 669
---------
Net Investment Income (Loss) 329
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (1,074)
Net unrealized appreciation (depreciation) on
investment securities 8,576
---------
Net Gain (Loss) on Investments 7,502
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 7,831
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Growth Portfolio 2
IDEX Asset Allocation-Moderate Growth Portfolio
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002 (a)
--------------- ---------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 329 $ (18)
Net realized gain (loss) on investment
securities (1,074) (1,241)
Net unrealized appreciation (depreciation)
on investment securities 8,576 (5,640)
---------- ----------
7,831 (6,899)
---------- ----------
Distributions to Shareholders:
From net investment income:
Class A (161) --
Class B (6) --
Class C (3) --
Class L (1) --
Class M (15) --
---------- ----------
(186) --
---------- ----------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
---------- ----------
-- --
---------- ----------
Capital Share Transactions:
Proceeds from shares sold:
Class A 23,537 23,598
Class B 54,621 38,467
Class C 8,934 21,710
Class L 54,082 --
Class M 3,671 14,344
---------- ----------
144,845 98,119
---------- ----------
Dividends and distributions reinvested:
Class A 148 --
Class B 6 --
Class C 2 --
Class L 1 --
Class M 14 --
---------- ----------
171 --
---------- ----------
Cost of shares redeemed:
Class A (3,574) (1,413)
Class B (4,691) (2,297)
Class C (4,867) (2,531)
Class L (1,406) --
Class M (1,794) (727)
---------- ----------
(16,332) (6,968)
---------- ----------
128,684 91,151
---------- ----------
Net increase (decrease) in net assets 136,329 84,252
---------- ----------
Net Assets:
Beginning of period 84,252 --
---------- ----------
End of period $ 220,581 $ 84,252
========== ==========
Undistributed Net Investment Income (Loss) $ 142 $ (1)
========== ==========
Share Activity:
Shares issued during the period:
Class A 2,782 2,640
Class B 6,465 4,266
Class C 1,051 2,434
Class L 6,431 --
Class M 431 1,599
---------- ----------
17,160 10,939
---------- ----------
Shares issued-reinvested from distributions:
Class A 17 --
Class B 1 --
Class C -- --
Class L -- --
Class M 2 --
---------- ----------
20 --
---------- ----------
Shares redeemed during the period:
Class A (427) (170)
Class B (563) (276)
Class C (586) (307)
Class L (169) --
Class M (213) (86)
---------- ----------
(1,958) (839)
---------- ----------
Net increase (decrease) in shares outstanding 15,222 10,100
========== ==========
(a) Commenced operations on March 1, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Growth Portfolio 3
IDEX Asset Allocation-Moderate Growth Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout each
period
-------------------------------------------------------------
Investment Operations
-------------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) (a) Gain (Loss) Operations
- --------------------------------------------------------------------------------------
Class A 04/30/2003 $ 8.37 $ 0.04 $ 0.37 $ 0.41
10/31/2002 10.00 0.02 (1.65) (1.63)
- ------------------------------------------------------------------------------------
Class B 04/30/2003 8.33 0.01 0.37 0.38
10/31/2002 10.00 (0.01) (1.66) (1.67)
- ------------------------------------------------------------------------------------
Class C 04/30/2003 8.33 0.01 0.37 0.38
10/31/2002 10.00 (0.01) (1.66) (1.67)
- ------------------------------------------------------------------------------------
Class L 04/30/2003 8.31 0.01 0.39 0.40
- ------------------------------------------------------------------------------------
Class M 04/30/2003 8.34 0.02 0.36 0.38
10/31/2002 10.00 (0.01) (1.65) (1.66)
- ------------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
- ------------------------------------------------------------
Class A $ (0.05) $ -- $ (0.05) $ 8.73
-- -- -- 8.37
- -----------------------------------------------------------
Class B -- -- -- 8.71
-- -- -- 8.33
- -----------------------------------------------------------
Class C -- -- -- 8.71
-- -- -- 8.33
- -----------------------------------------------------------
Class L -- -- -- 8.71
- -----------------------------------------------------------
Class M (0.01) -- (0.01) 8.71
-- -- -- 8.34
- -----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
- ---------------------------------------------------------------------------------------------------------------
Class A 04/30/2003 4.96% $ 42,254 0.45% 0.57% 0.97% 5.44%
10/31/2002 (16.30) 20,681 0.45 0.90 0.41 20.88
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 4.58 86,136 1.10 1.22 0.32 5.44
10/31/2002 (16.70) 33,241 1.10 1.55 (0.24) 20.88
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 4.58 22,569 1.10 1.22 0.32 5.44
10/31/2002 (16.70) 17,719 1.10 1.55 (0.24) 20.88
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 4.83 54,524 1.10 1.22 0.32 5.44
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 4.55 15,098 1.00 1.12 0.42 5.44
10/31/2002 (16.60) 12,611 1.00 1.45 (0.14) 20.88
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Growth Portfolio 4
IDEX Asset Allocation-Moderate Growth Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Recognition of net investment income is affected by the timing of dividend
declarations by the investee funds. Expenses of the investee funds are
excluded from the expense ratios. Ratios of Expense and Net Investment
Income (Loss) to Average Net Assets are annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Asset Allocation-Moderate Growth Portfolio ("the Fund") commenced
operations on March 1, 2002. The inception date for the Fund's offering of
share Class L was November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Growth Portfolio 5
IDEX Asset Allocation-Moderate Growth Portfolio
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Asset Allocation-Moderate Growth Portfolio
("the Fund"), part of IDEX Mutual Funds, began operations on March 1, 2002. On
March 3, 2003, the Fund changed its name from IDEX Moderately Aggressive Asset
Allocation to IDEX Asset Allocation-Moderate Growth Portfolio.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: The Fund's investments are valued at the net asset values
of the underlying portfolios of the Fund. The net asset values of the underlying
portfolios are determined after the close of the New York Stock Exchange
(generally 4:00 p.m. eastern time) on the valuation date.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date.
Dividends and net realized gain (loss) from investment securities for the Fund
are from investments in shares of affiliated investment companies.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following rate:
0.10% of ANA
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
0.45% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The Fund is
authorized under the 12b-1 plan to pay fees on each class up to the following
limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
In addition, the underlying Funds' Class A shares in which the Fund invests
impose a 0.35% 12b-1 fee. To avoid duplication of 12b-1 fees, each class of fund
shares of the Fund has reduced the 12b-1 fees by the amount of the underlying
funds' Class A 12b-1 fees.
ATFA has entered into consultant agreements with Morningstar Associates, LLC to
provide investment services to the Fund. ATFA compensates Morningstar
Associates, LLC as described in the Prospectus.
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Growth Portfolio 6
IDEX Asset Allocation-Moderate Growth Portfolio
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
AEGON USA Investments Management, Inc., Transamerica Investment Management, LLC
and Great Companies, LLC are affiliates of the Fund and are sub-advisors to
other funds within IDEX Mutual Funds.
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 760
Retained by Underwriter 102
Contingent Sales Charges 97
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $1 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 133,981
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 7,621
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, net operating losses and capital loss
carryforwards.
The capital loss carryforward is available to offset future realized capital
gains through the period listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 1,239 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 212,292
=========
Unrealized Appreciation $ 4,342
Unrealized (Depreciation) (1,413)
---------
Net Unrealized Appreciation (Depreciation) $ 2,929
=========
IDEX Mutual Funds
Semi-Annual Report 2003
Asset Allocation-Moderate Growth Portfolio 7
IDEX Alger Aggressive Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- -------------------------------------------------------------------------------
COMMON STOCKS (93.5%)
Apparel & Accessory Stores (6.4%)
Abercrombie & Fitch Co.-Class A (a) 113,900 $ 3,745
Gap, Inc. (The) 225,100 3,743
Business Services (3.1%)
eBay Inc. (a) 38,525 3,574
Commercial Banks (5.0%)
Citigroup Inc. 100,900 3,960
Mellon Financial Corporation 72,300 1,912
Communication (3.8%)
Comcast Corporation-Class A (a) 47,900 1,528
Liberty Media Corporation-Class A (a) 145,300 1,598
Viacom, Inc.-Class B (a) 28,900 1,255
Communications Equipment (0.8%)
Ciena Corporation (a)(b) 192,400 937
Computer & Data Processing Services (11.0%)
Microsoft Corporation 192,700 4,927
Oracle Corporation (a) 379,200 4,505
VERITAS Software Corporation (a) 63,300 1,393
Yahoo! Inc. (a) 82,900 2,054
Computer & Office Equipment (7.1%)
Cisco Systems, Inc. (a) 170,200 2,560
EMC Corporation (a) 260,100 2,364
Juniper Networks, Inc. (a)(b) 170,700 1,745
Network Appliance, Inc. (a) 124,400 1,652
Educational Services (1.0%)
Apollo Group, Inc.-Class A (a) 22,200 1,203
Electronic & Other Electric Equipment (4.1%)
General Electric Company 160,900 4,739
Electronic Components & Accessories (6.8%)
Broadcom Corporation-Class A (a) 63,700 1,140
Intersil Corporation-Class A (a) 152,100 2,814
Maxim Integrated Products 42,000 1,650
Micron Technology, Inc. (a) 81,100 689
National Semiconductor Corporation (a) 84,800 1,588
Fabricated Metal Products (1.3%)
Gillette Company (The) 49,600 1,510
Instruments & Related Products (2.0%)
Danaher Corporation (b) 12,700 876
KLA-Tencor Corporation (a)(b) 36,000 1,476
Insurance (2.5%)
AFLAC Incorporated 24,600 805
American International Group, Inc. 35,850 2,078
Lumber & Other Building Materials (0.5%)
Home Depot, Inc. (The) 21,400 602
Medical Instruments & Supplies (3.8%)
Boston Scientific Corporation (a) 20,300 874
Guidant Corporation (a) 39,200 1,528
Zimmer Holdings, Inc. (a) 44,100 2,068
Motion Pictures (1.7%)
AOL Time Warner Inc. (a) 142,400 1,948
Oil & Gas Extraction (1.7%)
Halliburton Company 90,200 1,931
Personal Credit Institutions (0.7%)
SLM Corporation 7,800 874
Pharmaceuticals (21.0%)
Alcon, Inc. (a) 23,500 1,035
Allergan, Inc. 35,100 2,466
Amgen Inc. (a) 76,600 4,696
Barr Laboratories, Inc. (a) 40,800 2,268
Genzyme Corporation-General Division (a) 49,500 1,994
Gilead Sciences, Inc. (a)(b) 37,640 1,737
Johnson & Johnson 20,400 1,150
Merck & Co., Inc. 63,400 3,689
Pfizer Inc. 75,600 2,325
Teva Pharmaceutical Industries Ltd.-ADR (b) 37,400 1,747
Wyeth 32,450 1,413
Radio, Television & Computer Stores (1.8%)
Best Buy Co., Inc. (a) 59,300 2,051
Restaurants (0.8%)
Starbucks Corporation (a) 41,600 977
Retail Trade (0.5%)
Amazon.com, Inc. (a) 20,900 599
Rubber & Misc. Plastic Products (1.2%)
NIKE, Inc.-Class B 26,100 1,397
Security & Commodity Brokers (1.9%)
Merrill Lynch & Co., Inc. 54,800 2,250
Telecommunications (1.3%)
Vodafone Group PLC-ADR 76,300 1,508
Variety Stores (1.7%)
Wal-Mart Stores, Inc. 35,000 1,971
---------
Total Common Stocks (cost: $99,750)
109,118
---------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Alger Aggressive Growth 1
IDEX Alger Aggressive Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (7.0%)
Bank Notes (0.4%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 465 $ 465
Euro Dollar Overnight (0.7%)
Bank of Montreal
1.34%, due 05/01/2003 317 317
BNP Paribas SA
1.24%, due 05/06/2003 149 149
Royal Bank of Canada
1.35%, due 05/01/2003 372 372
Euro Dollar Terms (2.1%)
American Express Centurion Bank
1.28%, due 05/30/2003 745 745
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 186 186
Credit Agricole Indosuez
1.27%, due 05/12/2003 56 56
1.26%, due 06/24/2003 372 372
Danske Bank A/S
1.25%, due 05/07/2003 465 465
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 186 186
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 465 465
Medium Term Notes (0.2%)
Parkland (USA) LLC
1.31%, due 11/26/2003 279 279
Money Market Funds (2.8%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 1,490 1,490
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 1,770 1,770
Promissory Notes (0.6%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 652 652
Repurchase Agreements (0.2%) (c)
Merrill Lynch & Co., Inc.
1.42%, due 05/01/2003 186 186
---------
Total Security Lending Collateral (cost: $8,155) 8,155
---------
Total Investment Securities (cost: $107,905) $ 117,273
=========
SUMMARY:
Investments, at market value 100.5% $ 117,273
Liabilities in excess of other assets (0.5)% (543)
---------- ---------
Net assets 100.0% $ 116,730
========== =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003 of all securities on loan is $7,841.
(c) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $190.
DEFINITIONS:
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Alger Aggressive Growth 2
IDEX Alger Aggressive Growth
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $107,905)
(including $7,841 of securities loaned) $ 117,273
Cash 7,604
Receivables:
Investment securities sold 1,270
Shares of beneficial interest sold 45
Interest 2
Dividends 18
Due from investment adviser 28
Other 28
----------
126,268
----------
Liabilities:
Investment securities purchased 935
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 86
Distribution fees 62
Transfer agent fees and expenses 212
Payable for securities on loan 8,155
Other 88
----------
9,538
----------
Net Assets $ 116,730
==========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 256,655
Accumulated net investment income (loss) (783)
Accumulated net realized gain (loss) from investments (148,505)
Net unrealized appreciation (depreciation) of
investments 9,363
----------
Net Assets $ 116,730
==========
Shares Outstanding:
Class A 3,666
Class B 2,806
Class C 428
Class L 8
Class M 578
Net Asset Value Per Share:
Class A $ 15.97
Class B 15.20
Class C 15.20
Class L 15.20
Class M 15.32
Maximum Offering Price Per Share (1):
Class A $ 16.90
Class M 15.48
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 13
Dividends 267
Income from loaned securities-net 7
Less withholding taxes on foreign dividends (1)
----------
286
----------
Expenses:
Management and advisory fees 450
Transfer agent fees and expenses 603
Custody fees 15
Administration fees 12
Registration fees 42
Trustees fees and expenses 6
Professional fees 22
Other 100
Distribution and service fees:
Class A 98
Class B 207
Class C 32
Class L --
Class M 40
----------
Total Expenses 1,627
Less reimbursements by the investment adviser (575)
----------
Net Expenses 1,052
----------
Net Investment Income (Loss) (766)
----------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (8,335)
Net unrealized appreciation (depreciation) on
investment securities 13,513
----------
Net Gain (Loss) on Investments 5,178
----------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 4,412
==========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Alger Aggressive Growth 3
IDEX Alger Aggressive Growth
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
--------------- ---------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (766) $ (2,468)
Net realized gain (loss) on investment
securities (8,335) (48,994)
Net unrealized appreciation (depreciation)
on investment securities 13,513 8,004
---------- ----------
4,412 (43,458)
---------- ----------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
---------- ----------
-- --
---------- ----------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
---------- ----------
-- --
---------- ----------
Capital Share Transactions:
Proceeds from shares sold:
Class A 45,587 293,385
Class B 2,290 7,548
Class C 561 2,935
Class L 123 --
Class M 280 1,339
---------- ----------
48,841 305,207
---------- ----------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
---------- ----------
-- --
---------- ----------
Cost of shares redeemed:
Class A (48,676) (318,028)
Class B (5,641) (18,403)
Class C (1,319) (3,913)
Class L (9) --
Class M (1,647) (5,821)
---------- ----------
(57,292) (346,165)
---------- ----------
(8,451) (40,958)
---------- ----------
Net increase (decrease) in net assets (4,039) (84,416)
---------- ----------
Net Assets:
Beginning of period 120,769 205,185
---------- ----------
End of period $ 116,730 $ 120,769
========== ==========
Accumulated Net Investment Income (Loss) $ (783) $ (17)
========== ==========
Share Activity:
Shares issued during the period:
Class A 3,026 15,257
Class B 160 402
Class C 39 156
Class L 9 --
Class M 20 69
---------- ----------
3,254 15,884
---------- ----------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
---------- ----------
-- --
---------- ----------
Shares redeemed during the period:
Class A (3,248) (16,547)
Class B (400) (1,043)
Class C (93) (215)
Class L (1) --
Class M (116) (321)
---------- ----------
(3,858) (18,126)
---------- ----------
Net increase (decrease) in shares outstanding (604) (2,242)
========== ==========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Alger Aggressive Growth 4
IDEX Alger Aggressive Growth
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
- ----------------------------------------------------------------------------------
Class A 04/30/2003 $ 15.27 $ (0.08) $ 0.78 $ 0.70
10/31/2002 20.21 (0.20) (4.74) (4.94)
10/31/2001 32.07 (0.13) (11.09) (11.22)
10/31/2000 33.05 (0.13) 2.15 2.02
10/31/1999 22.24 0.17 11.82 11.99
10/31/1998 18.77 0.03 4.02 4.05
- --------------------------------------------------------------------------------
Class B 04/30/2003 14.59 (0.12) 0.73 0.61
10/31/2002 19.48 (0.32) (4.57) (4.89)
10/31/2001 31.23 (0.29) (10.82) (11.11)
10/31/2000 32.44 (0.36) 2.15 1.79
10/31/1999 21.93 (0.13) 11.82 11.69
10/31/1998 18.58 (0.09) 4.02 3.93
- --------------------------------------------------------------------------------
Class C 04/30/2003 14.59 (0.12) 0.73 0.61
10/31/2002 19.48 (0.32) (4.57) (4.89)
10/31/2001 31.23 (0.31) (10.80) (11.11)
10/31/2000 32.44 (0.36) 2.15 1.79
- --------------------------------------------------------------------------------
Class L 04/30/2003 14.24 (0.10) 1.06 0.96
- --------------------------------------------------------------------------------
Class M 04/30/2003 14.69 (0.11) 0.74 0.63
10/31/2002 19.59 (0.30) (4.60) (4.90)
10/31/2001 31.36 (0.27) (10.86) (11.13)
10/31/2000 32.53 (0.32) 2.15 1.83
10/31/1999 21.98 (0.09) 11.82 11.73
10/31/1998 18.61 (0.07) 4.02 3.95
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
----------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
- --------------------------------------------------------------
Class A $ -- $ -- $ -- $ 15.97
-- -- -- 15.27
-- (0.64) (0.64) 20.21
-- (3.00) (3.00) 32.07
-- (1.18) (1.18) 33.05
-- (0.58) (0.58) 22.24
- ------------------------------------------------------------
Class B -- -- -- 15.20
-- -- -- 14.59
-- (0.64) (0.64) 19.48
-- (3.00) (3.00) 31.23
-- (1.18) (1.18) 32.44
-- (0.58) (0.58) 21.93
- ------------------------------------------------------------
Class C -- -- -- 15.20
-- -- -- 14.59
-- (0.64) (0.64) 19.48
-- (3.00) (3.00) 31.23
- ------------------------------------------------------------
Class L -- -- -- 15.20
- ------------------------------------------------------------
Class M -- -- -- 15.32
-- -- -- 14.69
-- (0.64) (0.64) 19.59
-- (3.00) (3.00) 31.36
-- (1.18) (1.18) 32.53
-- (0.58) (0.58) 21.98
- ------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
- ---------------------------------------------------------------------------------------------------------------
Class A 04/30/2003 4.58% $ 58,582 1.55% 2.57% (1.04)% 92.49%
10/31/2002 (24.44) 59,396 1.55 2.26 (1.05) 174.21
10/31/2001 (35.56) 104,660 1.55 1.88 (0.56) 104.50
10/31/2000 4.81 164,730 1.55 1.77 (0.94) 107.81
10/31/1999 55.49 100,078 1.61 1.90 (1.15) 96.25
10/31/1998 22.48 46,413 1.85 2.18 (1.11) 142.08
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 4.18 42,663 2.20 3.22 (1.69) 92.49
10/31/2002 (25.11) 44,439 2.20 2.91 (1.70) 174.21
10/31/2001 (36.17) 71,834 2.20 2.53 (1.21) 104.50
10/31/2000 4.13 115,689 2.20 2.42 (1.59) 107.81
10/31/1999 54.88 47,399 2.26 2.55 (1.80) 96.25
10/31/1998 22.04 10,564 2.50 2.83 (1.76) 142.08
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 4.18 6,511 2.20 3.22 (1.69) 92.49
10/31/2002 (25.11) 7,028 2.20 2.91 (1.70) 174.21
10/31/2001 (36.17) 10,545 2.20 2.53 (1.21) 104.50
10/31/2000 4.13 16,586 2.20 2.42 (1.59) 107.81
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 6.74 121 2.20 3.22 (1.69) 92.49
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 4.29 8,853 2.10 3.12 (1.59) 92.49
10/31/2002 (25.02) 9,906 2.10 2.81 (1.60) 174.21
10/31/2001 (36.08) 18,146 2.10 2.43 (1.11) 104.50
10/31/2000 4.24 33,223 2.10 2.32 (1.49) 107.81
10/31/1999 54.97 18,538 2.16 2.45 (1.70) 96.25
10/31/1998 22.11 5,573 2.40 2.73 (1.66) 142.08
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Alger Aggressive Growth 5
IDEX Alger Aggressive Growth
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Alger Aggressive Growth ("the Fund") commenced operations on December
2, 1994. The inception date for the Fund's offering of share classes C and
L are as follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Alger Aggressive Growth 6
IDEX Alger Aggressive Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Alger Aggressive Growth ("the Fund"), part
of IDEX Mutual Funds, began operations on December 2, 1994.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or less are valued at
amortized cost, which approximates market. Other securities for which quotations
are not readily available are valued at fair value determined in such a manner
as the adviser and sub-adviser, under the supervision of the Board of Trustees
and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Directed Brokerage: The sub-adviser, to the extent consistent with the best
execution and usual commission rate policies and practices, may place security
transactions of the Fund with broker/dealers with which IDEX Mutual Funds has
established a Directed Brokerage Program. A Directed Brokerage Program is any
arrangement under which a broker/dealer applies a portion of the commissions
received by such broker/dealer on the security transactions to the payment of
operating expenses that would otherwise be borne by the Fund. In no event will
commissions paid by the Fund be used to pay expenses that would otherwise be
borne by any other funds within IDEX Mutual Funds, or by any other party.
Directed commissions during the six-months ended April 30, 2003, of $17 are
included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are included in
investment securities at market value on the Statement of Assets and Liabilities
and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities loans,
the collateral and securities loaned remain subject to fluctuation in market
value. IBT marks to market securities loaned and the collateral each business
day. If additional collateral is due (at least $1), IBT collects additional cash
collateral from the borrowers. Although securities loaned will be fully
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the event
the borrower fails to timely return a recalled security, IBT may indemnify the
Fund by purchasing replacement securities for the Fund at its own expense and
claiming the collateral to fund such a purchase. IBT absorbs the loss if the
collateral value is not sufficient to cover the cost of the replacement
securities. If replacement securities are not available, IBT will credit the
equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the
IDEX Mutual Funds
Semi-Annual Report 2003
Alger Aggressive Growth 7
IDEX Alger Aggressive Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
ex-dividend date or, in the case of foreign securities, as soon as the Fund is
informed of the ex-dividend date. Interest income, including accretion of
discounts and amortization of premiums, is recorded on the accrual basis
commencing on the settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.20% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for the
Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 88
Retained by Underwriter 7
Contingent Sales Charges 56
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and other
legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account charges
(not in thousands) of $15.39 for each open shareholder account, $2.73 for each
new account opened, $1.63 for each closed account maintained, and certain
out-of-pocket expenses.
Brokerage commissions: Brokerage commissions incurred on security transactions
placed with an affiliate of the sub-adviser for the six-months ended April 30,
2003, totaled $173.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan amounts
are included in Other assets, and the total liability of $13 for deferred
compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 101,067
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 108,325
U.S. Government --
IDEX Mutual Funds
Semi-Annual Report 2003
Alger Aggressive Growth 8
IDEX Alger Aggressive Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 90,423 October 31, 2009
48,961 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 108,663
=========
Unrealized Appreciation $ 10,780
Unrealized (Depreciation) (2,170)
---------
Net Unrealized Appreciation (Depreciation) $ 8,610
=========
IDEX Mutual Funds
Semi-Annual Report 2003
Alger Aggressive Growth 9
IDEX American Century Income & Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- -------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS (0.3%)
Automotive (0.2%)
Ford Motor Company Capital Trust II 1,092 $ 48
Electric Services (0.1%)
DTE Energy Company 1,213 31
---------
Total Convertible Preferred Stocks (cost: $94) 79
---------
PREFERRED STOCKS (0.1%)
Automotive (0.1%)
General Motors Corporation 1,300 31
---------
Total Preferred Stocks (cost: $36) 31
---------
COMMON STOCKS (98.1%)
Aerospace (0.7%)
Goodrich Corporation 1,279 18
United Technologies Corporation 2,683 166
Air Transportation (0.4%)
Delta Air Lines, Inc. 867 11
FedEx Corporation 917 55
Southwest Airlines Co. 2,777 44
Amusement & Recreation Services (0.4%)
Disney (Walt) Company (The) 6,403 119
Apparel & Accessory Stores (0.2%)
Gap, Inc. (The) 2,017 34
Limited, Inc. (The) 1,236 18
Apparel Products (0.4%)
Jones Apparel Group, Inc. (a) 1,029 29
V.F. Corporation 1,751 69
Auto Repair, Services & Parking (0.1%)
Ryder System, Inc. 1,264 31
Automotive (1.4%)
Delphi Corporation 18,239 153
Ford Motor Company (b) 16,796 173
Honeywell International Inc. 1,607 38
Beverages (0.5%)
Coca-Cola Enterprises Inc. 1,451 28
Constellation Brands, Inc. (a) 834 22
Coors (Adolph) Company 623 33
PepsiCo, Inc. 1,221 53
Business Services (1.8%)
CheckFree Holdings Corporation (a)(b) 3,811 105
Clear Channel Communications, Inc. (a) 1,732 68
First Data Corporation 520 20
Omnicom Group, Inc. (b) 357 22
Overture Services, Inc. (a) 951 10
Rent-A-Center, Inc. (a) 1,922 123
Viad Corp. 6,073 122
Chemicals & Allied Products (4.7%)
Cytec Industries Inc. (a) 1,698 54
Lubrizol Corporation (The) 5,021 159
Monsanto Company 6,726 117
Procter & Gamble Company (The) 7,641 687
RPM, Inc. 2,040 25
Sherwin-Williams Company (The) 7,501 209
Commercial Banks (11.9%)
AmSouth Bancorporation 1,487 31
Bank of America Corporation 14,732 1,091
Bank One Corporation 879 32
Citigroup Inc. 19,602 769
First Tennessee National Corporation 4,175 183
FleetBoston Financial Corporation 5,865 156
HSBC Holdings PLC-ADR 1,146 63
National City Corporation 742 22
PNC Financial Services Group, Inc. (The) 1,664 73
U.S. Bancorp 11,099 246
Union Planters Corporation 1,214 35
UnionBanCal Corporation 3,654 148
Wachovia Corporation 3,863 148
Wells Fargo & Company 4,297 207
Communication (1.6%)
Comcast Corporation-Class A (a)(b) 4,204 134
PanAmSat Corporation (a) 1,921 33
Viacom, Inc.-Class B (a) 5,957 259
Communications Equipment (0.8%)
L-3 Communications Holdings, Inc. (a) 1,114 49
Motorola, Inc. (b) 12,471 99
QUALCOMM Incorporated 1,829 58
Scientific-Atlanta, Inc. (b) 964 16
Computer & Data Processing Services (4.7%)
Activision, Inc. (a)(b) 2,369 36
BMC Software, Inc. (a) 1,310 20
Computer Sciences Corporation (a)(b) 2,978 98
Compuware Corporation (a) 5,477 24
Convergys Corporation (a) 742 12
Electronic Arts Inc. (a) 277 16
Electronic Data Systems Corporation 8,498 154
Microsoft Corporation 28,650 733
Oracle Corporation (a) 8,184 97
Symantec Corporation (a) 282 12
Take-Two Interactive Software, Inc. (a)(b) 1,449 33
Yahoo! Inc. (a) 525 13
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century Income & Growth 1
IDEX American Century Income & Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- -------------------------------------------------------------------------------
Computer & Office Equipment (4.2%)
Cisco Systems, Inc. (a) 12,761 $ 192
Dell Computer Corporation (a) 2,378 69
Hewlett-Packard Company 16,547 270
International Business Machines
Corporation 4,643 394
SanDisk Corporation (a)(b) 1,120 27
Storage Technology Corporation (a) 1,237 31
Western Digital Corporation (a) 8,162 76
Xerox Corporation (a)(b) 7,192 71
Construction (1.3%)
Centex Corporation 3,295 218
KB Home 2,393 118
NVR, Inc. (a)(b) 28 10
Department Stores (2.3%)
Federated Department Stores, Inc. (a) 10,677 327
J.C. Penney Company, Inc. (b) 14,280 244
May Department Stores Company (The) 1,497 32
Electric Services (1.4%)
American Electric Power Company, Inc. 2,971 78
Duke Energy Corporation 1,343 24
Entergy Corporation 1,053 49
OGE Energy Corp. 2,040 37
Progress Energy, Inc. 2,103 88
Southern Company (The) 3,378 98
Electric, Gas & Sanitary Services (1.9%)
Exelon Corporation 2,419 128
NiSource Inc. 2,764 52
Public Service Enterprise Group
Incorporated 3,727 143
Sempra Energy 6,306 169
UGI Corporation 366 12
Electrical Goods (1.1%)
Anixter International Inc. (a) 2,279 52
Arrow Electronics, Inc. (a) 6,430 109
Avnet, Inc. (a) 10,808 138
Electronic & Other Electric Equipment (2.3%)
Cooper Industries, Inc.-Class A 1,668 62
Eaton Corporation 289 24
General Electric Company 17,978 529
Whirlpool Corp. 128 7
Electronic Components & Accessories (3.1%)
ESS Technology, Inc. (a) 5,146 36
Flextronics International Ltd. (a) 3,817 33
Intel Corporation 21,829 402
QLogic Corporation (a)(b) 298 13
Texas Instruments Incorporated 7,622 141
Tyco International Ltd. 11,050 $ 172
Vishay Intertechnology, Inc. (a) 2,669 33
Fabricated Metal Products (0.8%)
Fortune Brands, Inc. 4,088 198
Shaw Group Inc. (The) (a)(b) 1,714 20
Food & Kindred Products (2.8%)
Altria Group, Inc. 8,318 256
Archer Daniels Midland Co. 1,028 11
ConAgra Foods, Inc. 14,812 311
Dean Foods Company (a) 2,729 119
Sara Lee Corporation 2,991 50
Food Stores (0.1%)
Winn-Dixie Stores, Inc. (b) 1,306 16
Furniture & Fixtures (0.0%)
Johnson Controls, Inc. 141 12
Gas Production & Distribution (0.1%)
Northern Border Partners, L.P. (b) 718 29
Holding & Other Investment Offices (0 5%)
CBL & Associates Properties, Inc. 683 29
Equity Office Properties Trust 678 18
General Growth Properties, Inc. 471 26
HRPT Properties Trust 2,883 26
Simon Property Group, Inc. 771 28
Industrial Machinery & Equipment (0.5%)
Black & Decker Corporation (The) 1,455 60
Brunswick Corporation 825 18
Deere & Company 345 15
Timken Company (The) 2,108 37
York International Corporation 638 15
Instruments & Related Products (1.9%)
Applera Corporation-Applied
Biosystems Group 4,172 73
Eastman Kodak Company (b) 14,054 420
PerkinElmer, Inc. 1,077 11
Insurance (4.5%)
Allstate Corporation (The) 3,404 129
Anthem, Inc. (a) 1,016 70
CIGNA Corporation 2,205 115
Fidelity National Financial, Inc. (b) 9,986 344
First American Corporation (The) 7,315 194
Humana Inc. (a) 4,086 45
Loews Corporation 2,290 95
Odyssey Re Holdings Corp. (b) 1,219 26
Old Republic International Corp. 3,511 107
UnumProvident Corporation 5,979 69
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century Income & Growth 2
IDEX American Century Income & Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- -------------------------------------------------------------------------------
Insurance Agents, Brokers & Service (0.0%)
Hartford Financial Services Group,
Inc. (The) 140 $ 6
Life Insurance (0.8%)
AmerUs Group Co. 3,645 95
John Hancock Financial Services, Inc. (b) 728 21
Protective Life Corporation 3,162 91
Lumber & Other Building Materials (0.6%)
Home Depot, Inc. (The) 5,440 153
Lumber & Wood Products (0.2%)
Rayonier, Inc. 1,007 51
Medical Instruments & Supplies (0.0%)
Guidant Corporation (a) 42 2
Metal Cans & Shipping Containers (0.1%)
Ball Corporation 305 17
Motion Pictures (1.5%)
AOL Time Warner Inc. (a) 24,205 331
Blockbuster Inc.-Class A (b) 1,815 32
Fox Entertainment Group, Inc.-
Class A (a) 693 18
Regal Entertainment Group-Class A 854 17
Oil & Gas Extraction (2.4%)
ConocoPhillips 2,054 103
Halliburton Company 6,216 133
Occidental Petroleum Corporation 10,695 319
Transocean Inc. 5,146 98
Paper & Allied Products (0.4%)
Bemis Company, Inc. 1,891 86
International Paper Company 286 10
Personal Credit Institutions (0.7%)
Capital One Financial Corporation (b) 4,149 174
Personal Services (0.4%)
Block (H&R), Inc. (b) 2,910 112
Petroleum Refining (5.2%)
Amerada Hess Corporation 1,330 60
ChevronTexaco Corporation 4,751 298
Exxon Mobil Corporation 14,881 524
Marathon Oil Corporation 22,154 504
Pharmaceuticals (9.9%)
Abbott Laboratories (c) 467 19
AmerisourceBergen Corporation (b) 1,955 113
Amgen Inc. (a) 2,859 175
Bristol-Myers Squibb Co. 6,194 158
Cardinal Health, Inc. 1,177 65
Charles River Laboratories, Inc. (a) 340 9
Invitrogen Corporation (a) 1,086 36
Johnson & Johnson 8,910 503
King Pharmaceuticals, Inc. (a) 6,708 85
McKesson HBOC, Inc. (b) 5,712 158
Merck & Co., Inc. 10,959 638
Pfizer Inc. 19,833 610
Pharmaceutical Resources, Inc. (a) 208 9
Ribapharm Inc. (a) 1,234 5
Watson Pharmaceuticals, Inc. (a) 1,654 48
Primary Metal Industries (0.4%)
Andrew Corporation (a)(b) 1,896 15
Worthington Industries, Inc. 6,980 94
Printing & Publishing (0.1%)
American Greetings Corporation-
Class A (a) 1,687 25
Radio & Television Broadcasting (0.1%)
Hearst-Argyle Television, Inc. (a) 1,428 34
Railroads (0.5%)
Burlington Northern Santa Fe Corp. 1,222 34
CSX Corporation 735 24
Norfolk Southern Corporation 1,332 28
Union Pacific Corporation 772 46
Retail Trade (0.3%)
Barnes & Noble, Inc. (a) 1,278 25
Office Depot, Inc. (a) 3,049 39
Staples, Inc. (a) 309 6
Rubber & Misc. Plastic Products (0.2%)
Carlisle Companies Incorporated 1,329 60
Newell Financial Trust I (b) 208 6
Savings Institutions (0.6%)
Washington Mutual, Inc. 4,119 163
Security & Commodity Brokers (2.4%)
American Express Company 4,785 181
Bear Stearns Companies Inc. (The) 365 24
Goldman Sachs Group, Inc. (The) 419 32
Lehman Brothers Holdings Inc. 179 11
Merrill Lynch & Co., Inc. 5,277 217
Morgan Stanley Dean Witter & Co. 4,198 188
Shoe Stores (0.2%)
Foot Locker, Inc. (b) 4,953 54
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century Income & Growth 3
IDEX American Century Income & Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- -------------------------------------------------------------------------------
Telecommunications (6.9%)
ALLTEL Corporation 4,863 $ 228
AT&T Corp. (b) 3,634 62
BellSouth Corporation 10,111 258
CenturyTel, Inc. 1,211 36
Nextel Communications, Inc.-Class A (a) 9,654 143
SBC Communications Inc. 13,099 306
Sprint Corporation (FON Group) 21,807 251
Verizon Communications, Inc. 14,695 549
Transportation & Public Utilities (0.9%)
Kinder Morgan Energy Partners, L.P. 5,819 228
Plains All American Pipeline, L.P. 212 6
Trucking & Warehousing (0.8%)
United Parcel Service, Inc.-Class B 3,320 206
U.S. Government Agencies (2.0%)
Fannie Mae 4,492 325
Freddie Mac 3,603 209
Variety Stores (1.0%)
Target Corporation 388 13
Wal-Mart Stores, Inc. 4,677 263
Wholesale Trade Durable Goods (0.5%)
Fisher Scientific International Inc. (a) 2,316 67
IKON Office Solutions, Inc. 8,485 66
Ingram Micro Inc. (a) 566 6
Wholesale Trade Nondurable Goods (0.6%)
SUPERVALU INC 9,531 157
---------
Total Common Stocks (cost: $28,009) 26,186
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (8.4%)
Bank Notes (0.5%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 129 $ 129
Euro Dollar Overnight (0.9%)
Bank of Montreal
1.34%, due 05/01/2003 88 88
BNP Paribas SA
1.24%, due 05/06/2003 41 41
Royal Bank of Canada
1.35%, due 05/01/2003 103 103
Euro Dollar Term (2.5%)
American Express Centurion Bank
1.28%, due 05/30/2003 206 206
1.25%, due 05/07/2003 51 51
Credit Agricole Indosuez
1.27%, due 05/12/2003 15 15
1.26%, due 06/24/2003 103 103
Danske Bank A/S
1.25%, due 05/07/2003 129 129
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 51 51
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 129 129
Medium Term Notes (0.3%)
Parkland (USA) LLC
1.31%, due 11/26/2003 77 77
Money Market Funds (3.3%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 412 412
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 489 489
Promissory Notes (0.7%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 180 180
Repurchase Agreements (0.2%) (d)
Merrill Lynch & Co., Inc.
1.42%, due 05/01/2003 51 51
---------
Total Security Lending Collateral (cost: $2,254) 2,254
---------
Total Investment Securities (cost: $30,393) $ 28,550
=========
SUMMARY:
Investments, at market value 106.9 % $ 28,550
Liabilities in excess of other assets (6.9)% (1,849)
---------- ---------
Net assets 100.0 % $ 26,701
========== =========
FUTURES CONTRACTS:
- ------------------------------------------------------------------------
Amount in Net Unrealized
Settlement U.S. Dollars Appreciation
Currency Contracts Date Bought (Sold) (Depreciation)
- --------------- ----------- ------------ --------------- ---------------
S&P 500 Index 1 06/19/2003 $ 222 $ 7
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$2,159.
(c) At April 30, 2003, all or a portion of this security is segregated with the
custodian to cover margin requirements for open futures contracts. The
market value of all securities segregated at April 30, 2003 is $19.
(d) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $52.
DEFINITIONS:
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century Income & Growth 4
IDEX American Century Income & Growth
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $30,393)
(including $2,159 of securities loaned) $ 28,550
Cash 360
Receivables:
Investment securities sold 288
Shares of beneficial interest sold 107
Dividends 44
Due from investment adviser 7
Other 3
----------
29,359
----------
Liabilities:
Investment securities purchased 292
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 34
Distribution fees 17
Transfer agent fees and expenses 29
Payable for securities on loan 2,254
Other 32
----------
2,658
----------
Net Assets $ 26,701
==========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 36,630
Accumulated net investment income (loss) (1)
Accumulated net realized gain (loss) from investments
and futures contracts (8,092)
Net unrealized appreciation (depreciation) of
investments and futures contracts (1,836)
----------
Net Assets $ 26,701
==========
Shares Outstanding:
Class A 946
Class B 1,749
Class C 495
Class L 11
Class M 259
Net Asset Value Per Share:
Class A $ 7.84
Class B 7.67
Class C 7.67
Class L 7.67
Class M 7.69
Maximum Offering Price Per Share (1):
Class A $ 8.30
Class M 7.77
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Dividends $ 312
Income from securities loaned-net 2
----------
314
----------
Expenses:
Management and advisory fees 122
Transfer agent fees and expenses 78
Custody fees 27
Administration fees 13
Registration fees 46
Trustees fees and expenses 1
Professional fees 10
Other 15
Distribution and service fees:
Class A 13
Class B 68
Class C 20
Class L --
Class M 10
----------
Total Expenses 423
Less reimbursements by the investment adviser (108)
----------
Net Expenses 315
----------
Net Investment Income (Loss) (1)
----------
Net Realized Gain (Loss) on:
Net investment securities (2,769)
Net futures contracts 5
----------
(2,764)
----------
Net Unrealized Appreciation (Depreciation) on:
Net investment securities 3,611
Net futures contracts 7
----------
3,618
----------
Net Gain (Loss) on Investments and Futures
Contracts 854
----------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 853
==========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century Income & Growth 5
IDEX American Century Income & Growth
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
--------------- ---------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (1) $ (134)
Net realized gain (loss) on investment
securities and futures contracts (2,764) (3,697)
Net unrealized appreciation (depreciation) on
investment securities and futures contracts 3,618 (3,257)
---------- ----------
853 (7,088)
Distributions to Shareholders: ---------- ----------
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
---------- ----------
-- --
---------- ----------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
---------- ----------
-- --
---------- ----------
Capital Share Transactions:
Proceeds from shares sold(1):
Class A 1,332 13,320
Class B 1,442 12,717
Class C 513 3,660
Class L 85 --
Class M 136 1,945
---------- ----------
3,508 31,642
---------- ----------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
---------- ----------
-- --
---------- ----------
Cost of shares redeemed:
Class A (2,063) (8,387)
Class B (2,903) (6,476)
Class C (1,054) (2,502)
Class L (1) --
Class M (720) (1,009)
---------- ----------
(6,741) (18,374)
---------- ----------
(3,233) 13,268
---------- ----------
Net increase (decrease) in net assets (2,380) 6,180
---------- ----------
Net Assets:
Beginning of period 29,081 22,901
---------- ----------
End of period $ 26,701 $ 29,081
========== ==========
Accumulated Net Investment Income (Loss) $ (1) $ --
========== ==========
Share Activity:
Shares issued during the period(1):
Class A 175 1,467
Class B 194 1,404
Class C 69 407
Class L 11 --
Class M 17 215
---------- ----------
466 3,493
---------- ----------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
---------- ----------
-- --
---------- ----------
Shares redeemed during the period:
Class A (276) (1,009)
Class B (394) (792)
Class C (144) (295)
Class L -- --
Class M (96) (120)
---------- ----------
(910) (2,216)
---------- ----------
Net increase (decrease) in shares outstanding (444) 1,277
========== ==========
(1) Includes proceeds in connection with the acquisition on March 1, 2002. See
Note 1 on page 9.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century Income & Growth 6
IDEX American Century Income & Growth
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
- ----------------------------------------------------------------------------------
Class A 04/30/2003 $ 7.55 $ 0.02 $ 0.27 $ 0.29
10/31/2002 8.79 0.01 (1.25) (1.24)
10/31/2001 10.83 (0.03) (2.01) (2.04)
10/31/2000 10.00 -- 0.83 0.83
- --------------------------------------------------------------------------------
Class B 04/30/2003 7.41 (0.01) 0.27 0.26
10/31/2002 8.69 (0.05) (1.23) (1.28)
10/31/2001 10.79 (0.10) (2.00) (2.10)
10/31/2000 10.00 (0.04) 0.83 0.79
- --------------------------------------------------------------------------------
Class C 04/30/2003 7.41 (0.01) 0.27 0.26
10/31/2002 8.69 (0.05) (1.23) (1.28)
10/31/2001 10.79 (0.08) (2.02) (2.10)
10/31/2000 10.00 (0.04) 0.83 0.79
- --------------------------------------------------------------------------------
Class L 04/30/2003 7.32 -- 0.35 0.35
- --------------------------------------------------------------------------------
Class M 04/30/2003 7.43 -- 0.26 0.26
10/31/2002 8.71 (0.04) (1.24) (1.28)
10/31/2001 10.79 (0.09) (1.99) (2.08)
10/31/2000 10.00 (0.04) 0.83 0.79
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
- ------------------------------------------------------------
Class A $ -- $ -- $ -- $ 7.84
-- -- -- 7.55
-- -- -- 8.79
-- -- -- 10.83
- ----------------------------------------------------------
Class B -- -- -- 7.67
-- -- -- 7.41
-- -- -- 8.69
-- -- -- 10.79
- ----------------------------------------------------------
Class C -- -- -- 7.67
-- -- -- 7.41
-- -- -- 8.69
-- -- -- 10.79
- ----------------------------------------------------------
Class L -- -- -- 7.67
- ----------------------------------------------------------
Class M -- -- -- 7.69
-- -- -- 7.43
-- -- -- 8.71
-- -- -- 10.79
- ----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
- ---------------------------------------------------------------------------------------------------------------
Class A 04/30/2003 3.84% $ 7,421 1.85% 2.65% 0.46% 31.31%
10/31/2002 (14.15) 7,908 1.80 2.43 0.09 160.85
10/31/2001 (18.80) 5,183 1.55 2.49 (0.28) 113.05
10/31/2000 8.30 2,974 1.55 6.85 (0.42) 110.96
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 3.51 13,407 2.50 3.30 (0.19) 31.31
10/31/2002 (14.76) 14,446 2.45 3.08 (0.56) 160.85
10/31/2001 (19.41) 11,623 2.20 3.14 (0.93) 113.05
10/31/2000 7.86 3,635 2.20 7.50 (1.07) 110.96
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 3.51 3,794 2.50 3.30 (0.19) 31.31
10/31/2002 (14.76) 4,223 2.45 3.08 (0.56) 160.85
10/31/2001 (19.41) 3,985 2.20 3.14 (0.93) 113.05
10/31/2000 7.86 2,077 2.20 7.50 (1.07) 110.96
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 4.78 86 2.50 3.30 (0.18) 31.31
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 3.50 1,993 2.40 3.20 (0.09) 31.31
10/31/2002 (14.68) 2,504 2.35 2.98 (0.46) 160.85
10/31/2001 (19.32) 2,110 2.10 3.04 (0.83) 113.05
10/31/2000 7.93 741 2.10 7.40 (0.97) 110.96
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century Income & Growth 7
IDEX American Century Income & Growth
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX American Century Income & Growth ("the Fund") commenced operations on
March 1, 2000. The inception date for the Fund's offering of share Class L
was November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century Income & Growth 8
IDEX American Century Income & Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX American Century Income & Growth ("the
Fund"), part of IDEX Mutual Funds, began operations on March 1, 2000.
On March 1, 2002, IDEX GE U.S. Equity acquired all the net assets of IDEX
American Century Income & Growth pursuant to a plan of reorganization approved
by shareholders of IDEX American Century Income & Growth on February 22, 2002.
The acquisition accomplished by a tax-free exchange of 1,150 shares of IDEX
American Century Income & Growth (valued at $11,600) for the 1,251 shares of
IDEX GE U.S. Equity outstanding on February 28, 2002. IDEX American Century
Income & Growth net assets at that date ($11,600) including $145 of unrealized
depreciation, were combined with those of IDEX GE U.S. Equity. The aggregate net
assets of IDEX GE U.S. Equity and IDEX American Century Income & Growth
immediately before the acquisition were $26,183 and $11,600, respectively.
Immediately following the merger, IDEX GE U.S. Equity was renamed IDEX American
Century Income & Growth.
Shares Amount
-------- -----------
Proceeds in connection with the
acquisition
Class A 363 $ 3,678
Class B 581 5,853
Class C 111 1,115
Class M 95 954
--------
$ 11,600
========
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or less are valued at
amortized cost, which approximates market. Other securities for which quotations
are not readily available are valued at fair value determined in such a manner
as the adviser and sub-adviser, under the supervision of the Board of Trustees
and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are included in
investment securities at market value on the Statement of Assets and Liabilities
and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities loans,
the collateral and securities loaned remain subject to fluctuation in market
value. IBT marks to market securities loaned and the collateral each business
day. If additional collateral is due (at least $1), IBT collects additional cash
collateral from the borrowers. Although securities loaned will be fully
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the event
the borrower fails to timely return a recalled security, IBT may indemnify the
Fund by purchasing replacement securities for the Fund at its own expense and
claiming the collateral to fund such a purchase. IBT absorbs the loss if the
collateral value is not sufficient to cover the cost of the replacement
securities. If replacement securities are not available, IBT will credit the
equivalent cash value to the Fund.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century Income & Growth 9
IDEX American Century Income & Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or, in
the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Futures contracts: The Fund may enter into futures contracts to manage exposure
to market, interest rate or currency fluctuations. Futures contracts are valued
at the settlement price established each day by the board of trade or exchange
on which they are traded. The primary risks associated with futures contracts
are imperfect correlation between the change in market value of the securities
held and the prices of futures contracts; the possibility of an illiquid market
and inability of the counterparty to meet the contract terms.
The underlying face amounts of any open futures contracts at April 30, 2003, are
listed in the Schedule of Investments. The variation margin receivable or
payable, as applicable, is included in the accompanying Statement of Assets and
Liabilities. Variation margin represents the additional payments due or excess
deposits made in order to maintain the equity account at the required margin
level.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
0.90% of the first $100 million of ANA
0.85% of the next $150 million of ANA
0.80% of ANA over $250 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.50% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for the
Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 21
Retained by Underwriter --
Contingent Sales Charges 48
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and other
legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account charges
(not in thousands) of $15.39 for each open shareholder account, $2.73 for each
new account opened, $1.63 for each closed account maintained, and certain
out-of-pocket expenses.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century Income & Growth 10
IDEX American Century Income & Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan amounts
are included in Other assets, and the total liability of $1 for deferred
compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 8,504
U.S. Government 23
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 11,694
U.S. Government 192
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 743 October 31, 2009
3,520 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 31,609
=========
Unrealized Appreciation $ 1,055
Unrealized (Depreciation) (4,114)
---------
Net Unrealized Appreciation (Depreciation) $ (3,059)
=========
IDEX Mutual Funds
Semi-Annual Report 2003
American Century Income & Growth 11
IDEX American Century International
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- -------------------------------------------------------------------------------
COMMON STOCKS (98.6%)
Australia (3.1%)
Australia and New Zealand Banking
Group Limited 29,052 $ 339
BHP Billiton Limited 174,810 989
News Corporation Limited (The) 40,441 288
Westpac Banking Corporation 55,905 557
Bermuda (0.7%)
Nabors Industries Ltd. (a) 11,798 462
Brazil (0.1%)
Tele Norte Celular Participacoes
SA-ADR (a)(b) 16,900 103
Canada (1.3%)
Diversinet Corporation (a) 6,750 5
EnCana Corporation (b) 16,546 542
Nortel Networks Corporation (a) 66,620 172
Placer Dome Inc.-CUFS 9,296 91
Suncor Energy Inc. 702 12
TransCanada Pipelines Limited 4,553 73
China (1.4%)
China Telecom Corporation, Ltd. (a) 2,867,928 548
Huaneng Power International, Inc. 332,000 315
SINOPEC Shanghai Petrochemical
Company Limited (a) 720,000 112
Finland (1.3%)
Nokia Oyj-ADR 41,388 686
Stora Enso Oyj-R Shares 19,283 209
France (15.3%)
Accor SA 18,301 603
Alcatel-Class A (b) 55,143 451
Aventis SA 4,964 252
BNP Paribas SA 22,380 1,049
Compagnie Generale des Etablissements
Michelin-Class B 4,600 170
Essilor International SA 7,104 291
France Telecom (b) 77,442 1,787
France Telecom-new (a) 8,480 195
Groupe Danone SA (b) 9,798 1,385
Groupe Wanadoo SA (a) 70,699 482
Orange SA (a) 52,632 421
Pernod Ricard 749 66
PSA Peugeot Citroen SA 13,801 645
Sanofi-Synthelabo 778 46
Schneider Electric SA 8,658 409
Societe Generale-Class A (b) 17,024 1,040
Total Fina Elf SA 7,938 1,040
Vivendi Universal 24,754 403
Germany (4.0%)
BASF AG (b) 3,426 151
Deutsche Borse AG (b) 19,222 892
Deutsche Telekom AG 62,245 831
Fresenius Medical Care AG (b) 6,897 345
T-Online International AG (a) 77,375 607
Hong Kong (0.5%)
CNOOC Limited 195,000 256
Johnson Electric Holdings Limited 97,500 105
Ireland (2.6%)
Allied Irish Banks PLC 61,585 944
Bank of Ireland 69,861 853
CRH PLC 1,547 24
Israel (0.7%)
Teva Pharmaceutical Industries
Ltd.-ADR (b) 11,264 526
Italy (5.9%)
Banco Popolare di Verona e Novara S c.r.l 21,409 291
ENI-Ente Nazionale Idrocarburi (b) 75,498 1,076
Marzotto SpA 82,827 522
Pininfarina SpA 13,650 312
Snam Rete Gas SpA 145,371 527
UniCredito Italiano SpA (b) 325,643 1,424
Japan (14.2%)
Ajinomoto Co., Inc. 54,000 547
Asahi Glass Company, Limited (b) 74,000 393
Canon Inc. 29,409 1,187
East Japan Railway Company 42 190
FANUC LTD (b) 11,900 486
Fujisawa Pharmaceutical Company
Limited 21,000 355
Honda Motor Co., Ltd. 14,600 483
Hoya Corporation 10,564 624
Kao Corporation 8,656 158
KDDI Corporation (b) 174 527
Keyence Corporation 2,840 456
Nissan Motor Co., Ltd. (b) 122,845 941
Nomura Securities Co., Ltd. (The) 31,000 307
NTT DoCoMo, Inc. 323 665
Olympus Optical Co., Ltd. 21,000 363
Sharp Corporation 52,000 544
SMC Corporation 5,700 429
Takeda Chemical Industries, Ltd. 8,784 321
Tokyo Gas Co., Ltd. 103,000 335
Toshiba Corporation 163,400 435
Yahoo Japan Corporation (a) 23 258
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century International 1
IDEX American Century International
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- -------------------------------------------------------------------------------
Mexico (1.0%)
America Movil, SA de CV-
Series L-ADR 27,108 $ 455
Wal-Mart de Mexico SA de CV-
Series V 85,068 236
Netherlands (4.7%)
Fox Kids Europe NV (a) 50,750 255
ING Groep NV 33,060 536
Koninklijke KPN NV (a) 126,166 838
Unilever NV-CVA 21,461 1,351
VNU NV 12,191 353
Russia (2.8%)
Lukoil Oil Company-ADR 4,467 308
Mobile TeleSystems OJSC-ADR (a)(b) 7,169 344
Surgutneftegaz-ADR (b) 11,499 225
Vimpel-Communications-ADR (a) 5,909 236
YUKOS Oil Company 74,141 867
South Korea (1.2%)
POSCO 1,622 137
Samsung Electronics Co., Ltd. 2,941 739
Spain (7.8%)
Acesa Infraestructuras, SA 26,002 338
Altadis, SA 32,074 826
Banco Popular Espanol SA 11,608 562
Banco Santander Central Hispano SA (b) 96,312 756
Gas Natural SDG, SA 24,240 463
Grupo Dragados 20,724 396
Grupo Ferrovial, SA (b) 22,781 604
Repsol-YPF, SA 51,078 743
Telefonica SA (a) 76,379 844
Sweden (1.7%)
ForeningsSparbanken AB 42,516 577
Svenska Cellulosa AB-B Shares (b) 5,982 203
Tele2 AB-B Shares (a) 7,871 263
Telefonaktiebolaget LM Ericsson-
Class B 195,540 178
Switzerland (6.8%)
Adecco SA-Registered Shares 4,791 184
Alcon, Inc. (a) 4,329 191
Credit Suisse Group (a) 9,569 228
Nestle SA-Registered Shares 4,822 983
Novartis AG 39,302 1,550
Roche Holdings AG 13,555 862
STMicroelectronics NV-NY Registered Shares 16,937 349
UBS AG-Registered Shares (b) 9,749 462
United Kingdom (21.5%)
3i Group PLC 29,220 217
Alliance & Leicester PLC (b) 43,689 566
AstraZeneca PLC 22,816 895
BAA PLC 62,617 483
Boots Group PLC (The) 1,899 17
Diageo PLC 74,995 831
Exel PLC 28,399 272
Gallaher Group Plc 47,980 454
Glaxo Wellcome PLC-ADR (b) 25,575 1,036
HBOS PLC 130,075 1,523
Imperial Tobacco Group PLC 12,695 212
Marks and Spencer Group PLC 53,563 249
mmO2 PLC (a) 886,679 790
Reckitt Benckiser PLC 81,507 1,437
Rentokil Initial PLC 135,659 405
Rio Tinto PLC-Registered Shares 33,502 640
Royal Bank of Scotland Group PLC (The) 73,023 1,914
Smith & Nephew PLC 38,485 257
Stolt Offshore SA (a) 27,100 45
Vodafone Group PLC 1,248,353 2,463
WPP Group PLC 53,674 382
---------
Total Common Stocks (cost: $66,650) 69,458
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (16.3%)
Bank Notes (0.9%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 658 $ 658
Euro Dollar Overnight (1.7%)
Bank of Montreal
1.34%, due 05/01/2003 448 448
BNP Paribas SA
1.24%, due 05/06/2003 210 210
Royal Bank of Canada
1.35%, due 05/01/2003 526 526
Euro Dollar Term (5.0%)
American Express Centurion Bank
1.28%, due 05/30/2003 1,052 1,052
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 263 263
Credit Agricole Indosuez
1.27%, due 05/12/2003 79 79
1.26%, due 06/24/2003 526 526
Danske Bank A/S
1.25%, due 05/07/2003 658 658
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 263 263
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 658 658
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century International 2
IDEX American Century International
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Medium Term Notes (0.6%)
Parkland (USA) LLC
1.31%, due 11/26/2003 $ 395 $ 395
Money Market Funds (6.4%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 2,105 2,105
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 2,499 2,499
Promissory Notes (1.3%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 921 921
Repurchase Agreements (0.4%) (c)
Merrill Lynch & Co., Inc.
1.42%, due 05/01/2003 263 263
---------
Total Security Lending Collateral (cost: $11,524) 11,524
---------
Total Investment Securities (cost: $78,174) $ 80,982
=========
SUMMARY:
Investments, at market value 114.9 % $ 80,982
Liabilities in excess of other assets (14.9)% (10,475)
---------- ---------
Net assets 100.0 % $ 70,507
========== =========
Percentage of
Net Assets Value
- -------------------------------------------------------------------------------
INVESTMENTS BY INDUSTRY:
Commercial Banks 17.7% $ 12,519
Telecommunications 16.3% 11,488
Pharmaceuticals 8.2% 5,782
Oil & Gas Extraction 7.1% 5,022
Food & Kindred Products 6.1% 4,332
Automotive 3.4% 2,381
Chemicals & Allied Products 3.0% 2,110
Electronic & Other Electric Equipment 2.7% 1,874
Metal Mining 2.4% 1,720
Tobacco Products 2.1% 1,492
Computer & Data Processing Services 1.9% 1,347
Communications Equipment 1.9% 1,309
Transportation & Public Utilities 1.8% 1,283
Electronic Components & Accessories 1.8% 1,240
Security & Commodity Brokers 1.7% 1,199
Electric Services 1.7% 1,192
Computer & Office Equipment 1.7% 1,187
Gas Production & Distribution 1.5% 1,063
Construction 1.4% 1,000
Instruments & Related Products 1.4% 987
Machinery, Equipment & Supplies 1.2% 838
Beverages 1.2% 831
Apparel Products 1.1% 771
Motion Pictures 1.0% 691
Hotels & Other Lodging Places 0.9% 603
Business Services 0.8% 566
Mortgage Bankers & Brokers 0.8% 566
Medical Instruments & Supplies 0.8% 548
Life Insurance 0.8% 536
Paper & Allied Products 0.6% 412
Personal Services 0.6% 405
Stone, Clay & Glass Products 0.6% 393
Printing & Publishing 0.5% 353
Health Services 0.5% 345
Radio & Television Broadcasting 0.4% 255
Variety Stores 0.3% 236
Holding & Other Investment Offices 0.3% 217
Rubber & Misc. Plastic Products 0.2% 170
Primary Metal Industries 0.2% 137
Lumber & Constuction Materials 0.0% 24
Drug Stores & Proprietary Stores 0.0% 17
Petroleum Refining 0.0% 12
Industrial Machinery & Equipment 0.0% 5
---------- ---------
Investments, at market value 98.6% 69,458
Short-term investments 16.3% 11,524
Other assets in excess of liabilities (14.9)% (10,475)
---------- ---------
Net assets 100.0% $ 70,507
========== =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century International 3
IDEX American Century International
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
FORWARD FOREIGN CURRENCY CONTRACTS:
- --------------------------------------------------------------------------------
Net
Amount in Unrealized
Bought Settlement U.S. Dollars Appreciation
Currency (Sold) Date Bought (Sold) (Depreciation)
- --------------------------------------------------------------------------------
British Pound 32,695 05/01/2003 $ 52 $ 0
British Pound (109,927) 05/02/2003 (175) 0
Canadian Dollar (12,568) 05/01/2003 (9) 0
Canadian Dollar (91,295) 05/02/2003 (63) 0
Euro Dollar 91,286 05/02/2003 102 0
Euro Dollar 320,803 05/05/2003 359 (1)
Hong Kong Dollar (589,325) 05/02/2003 (76) 0
Japanese Yen (15,861,226) 05/02/2003 (131) (2)
Japanese Yen 10,283,968 05/02/2003 85 1
Swedish Krona 1,461,411 05/05/2003 179 (1)
Swiss Franc 241,119 05/05/2003 178 0
----- -----
$ 501 $ (3)
===== =====
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003 of all securities on loan is
$10,885.
(c) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $268.
DEFINITIONS:
ADR American Depositary Receipt
CUFS Chess Unit of Foreign Securities
CVA Certificaaten van aandelen (share certificates)
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century International 4
IDEX American Century International
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $78,174)
(including $10,885 of securities loaned) $ 80,982
Cash 2,151
Foreign cash (cost: $66) 66
Receivables:
Investment securities sold 1,301
Shares of beneficial interest sold 638
Interest 1
Dividends 342
Due from investment adviser 91
Forward foreign currency contracts 1
Other 12
---------
85,585
---------
Liabilities:
Investment securities purchased 2,669
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 694
Distribution fees 36
Transfer agent fees and expenses 73
Payable for securities on loan 11,524
Forward foreign currency contracts 4
Other 78
---------
15,078
---------
Net Assets $ 70,507
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 107,389
Accumulated net investment income (loss) (99)
Accumulated net realized gain (loss) from investments
and foreign currency transactions (39,591)
Net unrealized appreciation (depreciation) of
investments and on translation of assets and liabilities
in foreign currencies 2,808
---------
Net Assets $ 70,507
=========
Shares Outstanding:
Class A 6,055
Class B 3,032
Class C 957
Class L 36
Class M 468
Net Asset Value Per Share:
Class A $ 6.79
Class B 6.53
Class C 6.53
Class L 6.53
Class M 6.57
Maximum Offering Price Per Share (1):
Class A $ 7.19
Class M 6.64
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 4
Dividends 553
Income from loaned securities-net 19
Less withholding taxes on foreign dividends (65)
---------
511
---------
Expenses:
Management and advisory fees 199
Transfer agent fees and expenses 99
Custody fees 163
Administration fees 14
Registration fees 71
Trustees fees and expenses 2
Professional fees 32
Other 12
Distribution and service fees:
Class A 45
Class B 49
Class C 14
Class L 1
Class M 7
---------
Total Expenses 708
Less reimbursements by the investment adviser (295)
---------
Net Expenses 413
---------
Net Investment Income (Loss) 98
---------
Net realized gain (loss) during the period on:
Net investment securities (12,469)
Net foreign currency transactions (160)
---------
(12,629)
---------
Net Unrealized Appreciation (Depreciation) on:
Net investment securities 3,405
Net translation of assets and liabilities
denominated in foreign currency (3)
---------
3,402
---------
Net Gain (Loss) on Investments and Foreign
Currency Transactions (9,227)
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ (9,129)
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century International 5
IDEX American Century International
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 98 $ (56)
Net realized gain (loss) on investment
securities and foreign currency
transactions (12,629) (3,308)
Net unrealized appreciation (depreciation)
on investment securities and foreign
currency translation 3,402 (248)
--------- ---------
(9,129) (3,612)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold (1)(2):
Class A 57,901 23,660
Class B 20,569 3,848
Class C 7,185 3,910
Class L 263 --
Class M 3,227 2,488
--------- ---------
89,145 33,906
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (28,496) (11,860)
Class B (2,246) (2,375)
Class C (869) (3,242)
Class L (17) --
Class M (337) (2,383)
--------- ---------
(31,965) (19,860)
--------- ---------
57,180 14,046
--------- ---------
Net increase (decrease) in net assets 48,051 10,434
--------- ---------
Net Assets:
Beginning of period 22,456 12,022
--------- ---------
End of period $ 70,507 $ 22,456
========= =========
Accumulated Net Investment Income (Loss) $ (99) $ (1)
========= =========
Share Activity:
Shares issued during the period (1)(2):
Class A 8,245 3,095
Class B 2,598 483
Class C 886 519
Class L 39 --
Class M 398 329
--------- ---------
12,166 4,426
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (4,321) (1,585)
Class B (354) (309)
Class C (133) (430)
Class L (3) --
Class M (52) (314)
--------- ---------
(4,863) (2,638)
--------- ---------
Net increase (decrease) in shares outstanding 7,303 1,788
========= =========
(1) Includes proceeds in connection with the acquisition on March 1, 2003. See
Note 1 on page 9.
(2) Includes proceeds in connection with the acquisition on March 1, 2002. See
Note 1 on page 9.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century International 6
IDEX American Century International
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2002 $ 7.00 $ 0.02 $ (0.23) $ (0.21)
10/31/2002 8.38 0.01 (1.39) (1.38)
10/31/2001 12.76 0.05 (3.05) (3.00)
10/31/2000 12.85 0.05 0.35 0.40
10/31/1999 10.77 0.03 2.05 2.08
10/31/1998 10.57 0.07 0.20 0.27
- ---------------------------------------------------------------------------------
Class B 04/30/2003 6.76 -- (0.23) (0.23)
10/31/2002 8.15 (0.04) (1.35) (1.39)
10/31/2001 12.53 (0.02) (2.98) (3.00)
10/31/2000 12.70 (0.03) 0.35 0.32
10/31/1999 10.71 (0.06) 2.05 1.99
10/31/1998 10.52 -- 0.20 0.20
- ---------------------------------------------------------------------------------
Class C 04/30/2003 6.76 -- (0.23) (0.23)
10/31/2002 8.15 (0.04) (1.35) (1.39)
10/31/2001 12.53 (0.02) (2.98) (3.00)
10/31/2000 12.70 (0.03) 0.35 0.32
- ---------------------------------------------------------------------------------
Class L 04/30/2003 6.73 -- (0.20) (0.20)
- ---------------------------------------------------------------------------------
Class M 04/30/2003 6.80 0.01 (0.24) (0.23)
10/31/2002 8.18 (0.03) (1.35) (1.38)
10/31/2001 12.57 (0.01) (3.00) (3.01)
10/31/2000 12.73 (0.02) 0.35 0.33
10/31/1999 10.72 (0.04) 2.05 2.01
10/31/1998 10.53 0.01 0.20 0.21
- ---------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 6.79
-- -- -- 7.00
-- (1.38) (1.38) 8.38
-- (0.49) (0.49) 12.76
-- -- -- 12.85
(0.07) -- (0.07) 10.77
- ----------------------------------------------------------
Class B -- -- -- 6.53
-- -- -- 6.76
-- (1.38) (1.38) 8.15
-- (0.49) (0.49) 12.53
-- -- -- 12.70
(0.01) -- (0.01) 10.71
- ----------------------------------------------------------
Class C -- -- -- 6.53
-- -- -- 6.76
-- (1.38) (1.38) 8.15
-- (0.49) (0.49) 12.53
- ----------------------------------------------------------
Class L -- -- -- 6.53
- ----------------------------------------------------------
Class M -- -- -- 6.57
-- -- -- 6.80
-- (1.38) (1.38) 8.18
-- (0.49) (0.49) 12.57
-- -- -- 12.73
(0.02) -- (0.02) 10.72
- ----------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ------------
Class A 04/30/2003 (3.00)% $ 41,133 1.84% 3.32% 0.72% 183.15%
10/31/2002 (16.49) 14,921 1.87 3.68 0.22 240.73
10/31/2001 (26.43) 5,209 1.55 2.77 0.47 128.78
10/31/2000 2.74 6,977 1.62 3.56 0.09 108.37
10/31/1999 19.12 4,902 1.90 3.53 (0.16) 71.70
10/31/1998 2.58 4,981 2.03 4.22 (0.21) 50.01
- ---------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 (3.40) 19,811 2.49 3.97 0.07 183.15
10/31/2002 (17.09) 5,328 2.52 4.33 (0.43) 240.73
10/31/2001 (26.96) 5,003 2.20 3.42 (0.18) 128.78
10/31/2000 2.09 4,407 2.27 4.21 (0.56) 108.37
10/31/1999 18.45 1,527 2.55 4.18 (0.81) 71.70
10/31/1998 1.89 1,198 2.68 4.87 (0.86) 50.01
- ---------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 (3.40) 6,254 2.49 3.97 0.07 183.15
10/31/2002 (17.09) 1,381 2.52 4.33 (0.43) 240.73
10/31/2001 (26.96) 938 2.20 3.42 (0.18) 128.78
10/31/2000 2.09 629 2.27 4.21 (0.56) 108.37
- ---------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 (2.97) 236 2.49 3.97 0.07 183.15
- ---------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 (3.24) 3,073 2.39 3.87 0.17 183.15
10/31/2002 (17.08) 826 2.42 4.23 (0.33) 240.73
10/31/2001 (26.88) 872 2.10 3.32 (0.08) 128.78
10/31/2000 2.19 840 2.17 4.11 (0.46) 108.37
10/31/1999 18.55 480 2.45 4.08 (0.71) 71.70
10/31/1998 1.99 397 2.58 4.77 (0.76) 50.01
- ---------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century International 7
IDEX American Century International
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) The inception date for the Fund's offering of share classes C and L are as
follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
American Century International 8
IDEX American Century International
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX American Century International ("the
Fund"), part of IDEX Mutual Funds, began operations on February 1, 1997.
On March 1, 2003, the Fund acquired all the net assets of IDEX Gabelli Global
Growth pursuant to a plan of reorganization approved by shareholders of IDEX
Gabelli Global Growth on February 12, 2003. The acquisition was accomplished by
a tax-free exchange of 5,472 shares of the Fund for the 6,190 shares of IDEX
Gabelli Global Growth outstanding on February 28, 2003. IDEX Gabelli Global
Growth's net assets at that date ($34,573), including $(10,073) of unrealized
depreciation, were combined with those of the Fund. Proceeds in connection with
the acquisition were as follows:
Shares Amount
-------- -----------
Proceeds in connection with the
acquisition
Class A 1,824 $ 11,819
Class B 2,448 15,256
Class C 808 5,043
Class L 7 43
Class M 385 2,412
--------
$ 34,573
========
On March 1, 2002, IDEX International Equity acquired all the net assets of IDEX
American Century International pursuant to a plan of reorganization approved by
shareholders of IDEX American Century International on February 22, 2002. The
acquisition was accomplished by a tax-free exchange of 447 shares of IDEX
American Century International (valued at $3,605) for the 449 shares of IDEX
International Equity outstanding on February 28, 2002. IDEX American Century
International's net assets at that date ($3,605), including $8 of unrealized
appreciation, were combined with those of IDEX International Equity. The
aggregate net assets of IDEX International Equity and IDEX American Century
International immediately before the acquisition were $11,514 and $3,605,
respectively. Immediately following the merger, IDEX International Equity was
renamed IDEX American Century International.
Shares Amount
-------- ----------
Proceeds in connection with the
acquisition
Class A 117 $ 951
Class B 205 1,646
Class C 80 646
Class M 45 362
-------
$ 3,605
=======
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or less are valued at
amortized cost, which approximates market. Other securities for which quotations
are not readily available are valued at fair value determined in such a manner
as the adviser and sub-adviser, under the supervision of the Board of Trustees
and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are included in
investment securities at market value on the Statement of Assets and Liabilities
and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan,
IDEX Mutual Funds
Semi-Annual Report 2003
American Century International 9
IDEX American Century International
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
and not less then 100% thereafter. The Fund may invest cash collateral in
short-term money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities
loans, the collateral and securities loaned remain subject to fluctuation in
market value. IBT marks to market securities loaned and the collateral each
business day. If additional collateral is due (at least $1), IBT collects
additional cash collateral from the borrowers. Although securities loaned will
be fully collateralized at all times, IBT may experience delays in, or may be
prevented from, recovering the collateral on behalf of the Fund. The Fund may
recall a loaned security position at any time from the borrower through IBT. In
the event the borrower fails to timely return a recalled security, IBT may
indemnify the Fund by purchasing replacement securities for the Fund at its own
expense and claiming the collateral to fund such a purchase. IBT absorbs the
loss if the collateral value is not sufficient to cover the cost of the
replacement securities. If replacement securities are not available, IBT will
credit the equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amounts of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as in the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or, in
the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Foreign currency denominated investments: The accounting records of the Fund are
maintained in U.S. dollars. Securities and other assets and liabilities
denominated in foreign currencies are translated into U.S. dollars at the
closing exchange rate each day. The cost of foreign securities is translated at
the exchange rate in effect when the investment was acquired. The Fund combines
fluctuations from currency exchange rates and fluctuations in market value when
computing net realized and unrealized gains or losses from investments. Net
foreign currency gains and losses resulting from changes in exchange rates
include: 1) foreign currency fluctuations between trade date and settlement date
of investment security transactions; 2) gains and losses on forward foreign
currency contracts; and 3) the difference between the receivable amounts of
interest and dividends recorded in the accounting records in U.S. dollars and
the amounts actually received. Foreign currency denominated assets may involve
risks not typically associated with domestic transactions, including
unanticipated movements in exchange currency rates, the degree of government
supervision and regulation of security markets, and the possibility of political
or economic instability.
Forward foreign currency contracts: The Fund may enter into forward foreign
currency contracts to hedge against exchange rate risk arising from investments
in securities denominated in foreign currencies. Contracts are valued at the
contractual forward rate and are marked to market daily, with the change in
market value recorded as an unrealized gain or loss. When the contracts are
closed a realized gain or loss is incurred. Risks may arise from changes in
market value of the underlying currencies and from the possible inability of
counterparties to meet the terms of their contracts. Open forward currency
contracts at April 30, 2003, are listed in the Schedule of Investments.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
1.00% of the first $50 million of ANA
0.95% of the next $100 million of ANA
0.90% of the next $350 million of ANA
0.85% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.40% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for the
Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales
IDEX Mutual Funds
Semi-Annual Report 2003
American Century International 10
IDEX American Century International
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
charge/distribution fee. The Fund is authorized under the 12b-1 plan to pay
fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M, and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 15
Retained by Underwriter --
Contingent Sales Charges 26
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account charges
(not in thousands) of $15.39 for each open shareholder account, $2.73 for each
new account opened, $1.63 for each closed account maintained, and certain
out-of-pocket expenses.
Brokerage commissions: Brokerage commissions incurred on security transactions
placed with an affiliate of the sub-adviser for the six-months ended April 30,
2003, was $5.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan amounts
are included in Other assets, and the total liability of $1 for deferred
compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 84,188
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 69,096
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 8,205 October 31, 2009
17,179 October 31, 2009
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 79,421
========
Unrealized Appreciation $ 4,084
Unrealized (Depreciation) (2,523)
--------
Net Unrealized Appreciation (Depreciation) $ 1,561
========
IDEX Mutual Funds
Semi-Annual Report 2003
American Century International 11
IDEX MUTUAL FUNDS
RESULTS OF SHAREHOLDER PROXY (unaudited)
Section 270.30d-1 under the Investment Company Act of 1940, as amended, titled,
"Reports to Stockholders of Management Companies," requires regulated
investment companies to report on all subject matters put to the vote of
shareholders and provide final results. Accordingly, IDEX Mutual Funds
solicited a vote by the shareholders for:
At a special meeting of shareholders held on February 12, 2003, the results of
the Proposal were as follows:
IDEX Gabelli Global Growth
Proposal 1: Approval of an Agreement and Plan of Reorganization.
For Against Abstentions/Broker Non-Votes
- ------------- --------- -----------------------------
92.45% 2.80% 4.75%
IDEX Mutual Funds
Semi-Annual Report 2003
American Century International 12
IDEX Clarion Real Estate Securities
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
PREFERRED STOCKS (0.9%)
Holding & Other Investment Offices (0.9%)
Keystone Property Trust-Series D 11,050 $ 295
---------
Total Preferred Stocks (cost: $290) 295
---------
COMMON STOCKS (91.5%)
Holding & Other Investment Offices (91.5%)
Apartments (17.8%)
Camden Property Trust 40,560 1,418
Equity Residential 56,620 1,467
Gables Residential Trust 41,600 1,181
Home Properties of New York, Inc. 25,400 882
United Dominion Realty Trust, Inc. 53,400 891
Diversified (13.1%)
iStar Financial Inc. 39,140 1,171
Keystone Property Trust 49,400 850
Lexington Corporate Properties Trust 45,000 776
Liberty Property Trust 47,500 1,486
Health Care (4.0%)
Health Care REIT, Inc. 45,690 1,301
Hotels (3.3%)
LaSalle Hotel Properties 78,000 1,091
Office Property (20.6%)
Arden Realty, Inc. 50,950 1,214
Brandywine Realty Trust 49,490 1,104
Equity Office Properties Trust 79,450 2,064
Mack-Cali Realty Corporation 47,350 1,495
Prentiss Properties Trust 32,660 898
Regional Malls (12.0%)
CBL & Associates Properties, Inc. 29,080 1,234
Mills Corporation (The) 46,500 1,486
Simon Property Group, Inc. 33,400 1,226
Shopping Centers (17.8%)
Developers Diversified Realty Corporation 42,900 1,081
Glimcher Realty Trust 61,000 1,260
Heritage Property Investment Trust 49,730 1,263
New Plan Realty Trust, Inc. 64,200 1,283
Tanger Factory Outlet Centers, Inc. 29,350 945
Warehouses (2.9%)
ProLogis 36,700 945
---------
Total Common Stocks (cost: $29,886) 30,012
---------
Total Investment Securities (cost: $30,176) $ 30,307
=========
SUMMARY:
Investments, at market value 92.4% $ 30,307
Other assets in excess of liabilities 7.6% 2,493
--------- ---------
Net assets 100.0% $ 32,800
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Clarion Real Estate Securities 1
IDEX Clarion Real Estate Securities
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $30,176) $ 30,307
Cash 4,986
Receivables:
Investment securities sold 240
Shares of beneficial interest sold 1,498
Interest 1
Dividends 57
Due from investment adviser 13
---------
37,102
---------
Liabilities:
Investment securities purchased 4,292
Accounts payable and accrued liabilities:
Distribution fees 4
Transfer agent fees and expenses 1
Other 5
---------
4,302
---------
Net Assets $ 32,800
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 32,616
Undistributed net investment income (loss) 49
Undistributed net realized gain (loss) from investments 4
Net unrealized appreciation (depreciation) of
investments 131
---------
Net Assets $ 32,800
=========
Shares Outstanding:
Class A 2,992
Class B 32
Class C 10
Class L 39
Class M 19
Net Asset Value Per Share:
Class A $ 10.60
Class B 10.59
Class C 10.59
Class L 10.59
Class M 10.60
Maximum Offering Price Per Share (1):
Class A $ 11.22
Class M 10.71
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
From March 1, 2003 to April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 1
Dividends 70
---------
71
---------
Expenses:
Management and advisory fees 9
Transfer agent fees and expenses 20
Custody fees 1
Administration fees 4
Registration fees 6
Professional fees 3
Other 1
Distribution and service fees:
Class A 4
Class B --
Class C --
Class L --
Class M --
---------
Total Expenses 48
Less reimbursements by the investment adviser (26)
---------
Net Expenses 22
---------
Net Investment Income (Loss) 49
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities 4
Net unrealized appreciation (depreciation) on
investment securities 131
---------
Net Gain (Loss) on Investments 135
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 184
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Clarion Real Estate Securities 2
IDEX Clarion Real Estate Securities
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
(unaudited)
April 30,
2003 (a)
-------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 49
Net realized gain (loss) on investment
securities 4
Net unrealized appreciation (depreciation)
on investment securities 131
---------
184
---------
Distributions to Shareholders:
From net investment income:
Class A --
Class B --
Class C --
Class L --
Class M --
---------
--
---------
From net realized gains:
Class A --
Class B --
Class C --
Class L --
Class M --
---------
--
---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 31,927
Class B 330
Class C 104
Class L 401
Class M 197
---------
32,959
---------
Dividends and distributions reinvested:
Class A --
Class B --
Class C --
Class L --
Class M --
---------
--
---------
Cost of shares redeemed:
Class A (340)
Class B (2)
Class C --
Class L --
Class M (1)
---------
(343)
---------
32,616
---------
Net increase (decrease) in net assets 32,800
---------
Net Assets:
Beginning of period --
---------
End of period $ 32,800
=========
Undistributed Net Investment Income (Loss) $ 49
=========
Share Activity:
Shares issued during the period:
Class A 3,024
Class B 32
Class C 10
Class L 39
Class M 19
---------
3,124
---------
Shares issued-reinvested from distributions:
Class A --
Class B --
Class C --
Class L --
Class M --
---------
--
---------
Shares redeemed during the period:
Class A (32)
Class B --
Class C --
Class L --
Class M --
---------
(32)
---------
Net increase (decrease) in shares outstanding 3,092
=========
(a) Commenced operations on March 1, 2003.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Clarion Real Estate Securities 3
IDEX Clarion Real Estate Securities
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (f) of Period Income (Loss) Gain (Loss) Operations
------------ ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 10.00 $ 0.03 $ 0.57 $ 0.60
- ------------------------------------------------------------------------------
Class B 04/30/2003 10.00 0.05 0.54 0.59
- ------------------------------------------------------------------------------
Class C 04/30/2003 10.00 0.06 0.53 0.59
- ------------------------------------------------------------------------------
Class L 04/30/2003 10.00 0.05 0.54 0.59
- ------------------------------------------------------------------------------
Class M 04/30/2003 10.00 0.06 0.54 0.60
- ------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
----------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ------------
Class A $ -- $ -- $ -- $ 10.60
- ------------------------------------------------------------
Class B -- -- -- 10.59
- ------------------------------------------------------------
Class C -- -- -- 10.59
- ------------------------------------------------------------
Class L -- -- -- 10.59
- ------------------------------------------------------------
Class M -- -- -- 10.60
- ------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (d) Total (e) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 6.00% $ 31,733 1.75% 3.97% 4.15% 2.27%
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 5.90 337 2.40 4.62 3.50 2.27
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 5.90 110 2.40 4.62 3.50 2.27
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 5.90 417 2.40 4.62 3.50 2.27
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 6.00 203 2.30 4.52 3.60 2.27
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Clarion Real Estate Securities 4
IDEX Clarion Real Estate Securities
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(e) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(f) Commenced operations on March 1, 2003.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Clarion Real Estate Securities 5
IDEX Clarion Real Estate Securities
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Clarion Real Estate Securities ("the Fund"),
part of IDEX Mutual Funds, began operations on March 1, 2003. The Fund is
"non-diversified" under the 1940 Act.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Class C and M shares are not available to
new investors. Income, non-class specific expenses and realized and unrealized
gains and losses, are allocated daily to each class, based upon the value of
shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each
class bears its own specific expenses as well as a portion of general, common
expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or less are valued at
amortized cost, which approximates market. Other securities for which quotations
are not readily available are valued at fair value determined in such a manner
as the adviser and sub-adviser, under the supervision of the Board of Trustees
and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investor's Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Real Estate Investment Trusts ("REITs"): There are certain additional risks
involved in investing in REITs. These include, but are not limited to, economic
conditions, changes in zoning laws, real estate values, property taxes and
interest rates. Since the Fund invests primarily in real estate related
securities, the value of its shares may fluctuate more widely than the value of
shares of a fund that invests in a broad range of industries.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or, in
the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
0.80% of the first $250 million of ANA
0.775% of the next $250 million of ANA
0.70% of the next $500 million of ANA
0.65% of ANA over $1 billion
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.40% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
IDEX Mutual Funds
Semi-Annual Report 2003
Clarion Real Estate Securities 6
IDEX Clarion Real Estate Securities
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for the
Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the period ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 1
Retained by Underwriter --
Contingent Sales Charges --
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and other
legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the period ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 30,525
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 352
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 30,176
========
Unrealized Appreciation $ 249
Unrealized (Depreciation) (118)
--------
Net Unrealized Appreciation (Depreciation) $ 131
========
IDEX Mutual Funds
Semi-Annual Report 2003
Clarion Real Estate Securities 7
IDEX Federated Tax Exempt
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
LONG-TERM MUNICIPAL BONDS (96.9%)
Alabama (2.8%)
Alabama Water Pollution Control,
Revenue Bonds,
5.50%, due 08/15/2023 $ 500 $ 537
Birmingham Waterworks & Sewer Board,
Revenue Bonds, Series B,
5.25%, due 01/01/2021 600 641
Arkansas (1.2%)
Jefferson County Hospital Association,
Revenue Bonds, Series B,
5.80%, due 06/01/2021 500 526
California (4.6%)
California State,
General Obligation Bonds,
5.25%, due 02/01/2014 500 544
Los Angeles Water and Power Division,
Revenue Bonds, Series A-A-1,
5.25%, due 07/01/2019 500 539
Sacramento Municipal Utilities,
Revenue Bonds, Series P,
5.25%, due 08/15/2021 300 321
Torrance Memorial Medical Center,
Revenue Bonds, Series A,
6.00%, due 06/01/2022 500 542
Colorado (1.4%)
Colorado Department of Transportation,
Revenue Bonds, Series A,
5.50%, due 06/15/2015 500 582
District of Columbia (1.4%)
District of Columbia Water and Sewer
Authority, Revenue Bonds,
5.50%, due 10/01/2017 500 579
Florida (1.3%)
Orlando Utilities, Community Water and
Electric Division, Revenue Bonds,
5.25%, due 10/01/2020 500 540
Georgia (1.3%)
Clayton County Water Authority,
Revenue Bonds,
5.13%, due 05/01/2021 500 529
Illinois (5.3%)
Illinois State Partnership, Department
of Central Management,
Public Improvements,
General Obligation Bonds,
5.65%, due 07/01/2017 1,000 1,118
McHenry County Community School
District, General Obligation Bonds,
Series A,
5.85%, due 01/01/2016 1,000 1,127
Indiana (3.8%)
Indiana State Development Finance
Authority, Revenue Bonds,
5.25%, due 12/01/2022 500 506
Indianapolis Gas Utility,
Revenue Bonds, Series A,
5.25%, due 08/15/2012 1,000 1,118
Iowa (2.4%)
Iowa State Certificate of Participation,
Revenue Bonds,
6.50%, due 07/01/2006 1,000 1,024
Louisiana (1.2%)
Sabine River Authority, Water Facilities,
Revenue Bonds,
6.20%, due 02/01/2025 500 520
Massachusetts (2.6%)
Massachusetts State Health and
Educational Facilities Authority,
Revenue Bonds,
5.38%, due 05/15/2017 500 543
Massachusetts State Development Finance
Agency, Revenue Bonds,
6.38%, due 07/01/2023 500 538
Michigan (8.5%)
Cornell Michigan, Economic
Development, Revenue Bonds,
5.88%, due 05/01/2018 500 503
Michigan Municipal Bond Authority,
Revenue Bonds,
5.50%, due 10/01/2022 500 584
Michigan State Strategic Fund Ltd.,
Revenue Bonds,
5.45%, due 09/01/2029 1,000 1,028
West Bloomfield Michigan School
District, General Obligation Bonds,
5.13%, due 05/01/2021 900 947
Western Michigan University,
Revenue Bonds,
5.00%, due 07/15/2021 500 521
Mississippi (1.3%)
Lowdes County Solid Waste Disposal &
Pollution Control, Revenue Bonds,
6.70%, due 04/01/2022 500 570
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Federated Tax Exempt 1
IDEX Federated Tax Exempt
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Nevada (2.3%)
Clark County Industrial Development,
Revenue Bonds,
5.45%, due 03/01/2038 $ 400 $ 403
Clark County School District, School
Improvements, General Obligation
Bonds, Series F,
5.00%, due 06/15/2006 500 550
New Hampshire (0.8%)
New Hampshire State Housing Authority,
Single-Family Mortgage,
Revenue Bonds, Series C,
6.13%, due 01/01/2020 310 332
New Mexico (1.1%)
New Mexico Mortgage and Finance
Authority, Revenue Bonds,
6.05%, due 09/01/2021 445 474
New York (9.5%)
New York City Industrial Development
Agency, Revenue Bonds,
5.38%, due 07/01/2017 250 275
New York City Transitional Finance
Authority, Revenue Bonds,
Non pre-refunded,
5.50%, due 02/15/2019 640 703
New York City Transitional Finance
Authority, Revenue Bonds,
Pre-refunded,
5.50%, due 02/15/2019 360 418
New York City, General Obligation Bonds,
5.75%, due 03/01/2015 400 436
New York Metropolitan Transit Authority,
Revenue Bonds, Series A,
5.13%, due 11/15/2022 500 528
New York State Mortgage Agency,
Revenue Bonds, Series 95,
5.50%, due 10/01/2017 500 538
Niagara Count Solid Waste Disposal
Division, Revenue Bonds, Series D,
5.55%, due 11/15/2024 500 524
Warwick Valley Central School District,
School Improvements, General
Obligation Bonds,
5.50%, due 01/15/2017 570 639
North Carolina (2.5%)
North Carolina Housing and Finance
Agency Authority, Revenue Bonds,
5.25%, due 01/01/2022 485 499
North Carolina Municipal Power Agency,
Revenue Bonds, Series A,
5.50%, due 01/01/2012 500 540
North Dakota (1.2%)
North Dakota State Housing and Finance
Authority, Revenue Bonds, Series C,
6.00%, due 07/01/2020 465 494
Ohio (6.4%)
Ohio State Air Quality Development
Authority, Revenue Bonds, Series A,
6.00%, due 12/01/2013 500 524
Ohio State Building Authority,
Revenue Bonds,
5.00%, due 04/01/2018 500 533
Ohio State Infrastructure, Highway
Improvements, Revenue Bonds,
5.00%, due 06/15/2006 500 550
Ohio State Schools,
General Obligation Bonds, Series A,
5.38%, due 09/15/2017 500 556
Steubenville Hospital Improvement
Facilities, Revenue Bonds,
6.38%, due 10/01/2020 500 537
Oregon (1.2%)
Clackamas County Hospital Facilities,
Revenue Bonds, Series A,
5.25%, due 05/01/2021 500 513
Pennsylvania (5.0%)
Pennsylvania Housing Finance Agency,
Multi-Family Mortgage,
Revenue Bonds,
9.38%, due 08/01/2028 5 5
Pennsylvania Housing Finance Agency,
Single Family Mortgage,
Revenue Bonds,
5.00%, due 04/01/2016 500 523
Pennsylvania State Facilities Authority,
Revenue Bonds,
6.00%, due 01/15/2022 500 526
Pennsylvania State,
General Obligation Bonds,
5.00%, due 09/15/2018 500 536
Sayre, Pennsylvania Health Care Facilities,
Revenue Bonds,
5.75%, due 12/01/2021 500 522
Puerto Rico (1.3%)
Puerto Rico Electric Power Authority,
Revenue Bonds, Series II,
5.25%, due 07/01/2022 500 537
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Federated Tax Exempt 2
IDEX Federated Tax Exempt
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Rhode Island (3.9%)
Providence Public Building Authority,
Revenue Bonds, Series A,
5.70%, due 12/15/2015 $ 500 $ 575
Rhode Island Clean Water Financing
Agency, Revenue Bonds,
5.80%, due 09/01/2022 1,000 1,092
South Carolina (2.3%)
Lexington County School District,
General Obligation Bonds,
5.13%, due 03/01/2023 500 533
South Carolina State Public Service
Authority, Revenue Bonds, Series D,
5.00%, due 01/01/2021 420 441
South Dakota (1.2%)
South Dakota Housing Development
Agency, Revenue Bonds, Series C,
5.35%, due 05/01/2022 500 521
Tennessee (3.1%)
Memphis-Shelby County, Tennessee
Airport, Revenue Bonds,
5.00%, due 09/01/2009 500 536
Sullivan County Health & Educational
Housing Facilities Board Review,
Revenue Bonds,
6.25%, due 09/01/2022 250 262
Tennessee Housing Development Agency,
Revenue Bonds,
5.38%, due 01/01/2018 500 529
Texas (4.9%)
Houston Port Authority, Harris County,
General Obligation Bonds, Series A,
5.50%, due 10/01/2024 500 539
Kingsbridge Municipal Utility District,
General Obligation Bonds,
5.38%, due 03/01/2015 500 548
Lower Colorado River Authority,
Revenue Bonds,
5.00%, due 05/15/2023 450 465
North Central Texas Health Facilities
Development, Revenue Bonds,
5.25%, due 08/15/2022 500 522
Virginia (1.3%)
Virginia Commonwealth Transportation
Board, Revenue Bonds, Series B,
4.50%, due 05/15/2008 500 548
Washington (5.2%)
Northwest Washington Electric
Revenue Bonds, Series A,
5.75%, due 07/01/2018 500 563
Port Seattle Washington Pollution
Control, Revenue Bonds,
5.25%, due 09/01/2021 500 532
Seattle Municipal Light and Power,
Revenue Bonds,
5.13%, due 03/01/2021 500 522
University of Washington, Student
Facilities Improvements,
Revenue Bonds,
5.88%, due 06/01/2016 500 579
Wisconsin (1.8%)
Wisconsin State Health & Educational
Facilities Authority, Revenue Bonds,
5.75%, due 08/15/2025 500 517
Wisconsin State Health Facilities,
Revenue Bonds,
6.00%, due 07/01/2021 250 263
Wyoming (2.8%)
Wyoming State Farm Loan Board, Capital
Facilities, Revenue Bonds,
5.75%, due 10/01/2020 1,000 1,168
---------
Total Long-Term Municipal Bonds (cost: $38,566)
40,997
---------
SHORT-TERM MUNICIPAL BONDS (2.2%)
Indiana (1.3%)
Indiana Health Facilities Financing
Authority, Revenue Bonds,
1.31%, due 03/01/2030 (a) 525 525
New York (0.7%)
New York City,
General Obligation Bonds,
1.26%, due 08/01/2017 (a) 300 300
Texas (0.2%)
North Central Texas Health Facilities
Development, Revenue Bonds,
1.31%, due 12/01/2015 (a) 100 100
---------
Total Short-Term Municipal Bonds (cost: $925)
925
---------
Total Investment Securities (cost: $39,491)
$ 41,922
=========
SUMMARY:
Investments, at market value 99.1% $ 41,922
Other assets in excess of liabilities 0.9% 360
--------- ---------
Net assets 100.0% $ 42,282
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Floating or variable rate note. Rate is listed as of April 30, 2003.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Federated Tax Exempt 3
IDEX Federated Tax Exempt
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $39,491) $ 41,922
Cash 23
Receivables:
Shares of beneficial interest sold 59
Interest 585
Other 4
---------
42,593
---------
Liabilities:
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 246
Management and advisory fees 14
Distribution fees 23
Transfer agent fees and expenses 11
Other 17
---------
311
---------
Net Assets $ 42,282
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 40,814
Undistributed net investment income (loss) 55
Accumulated net realized gain (loss) from investments (1,017)
Net unrealized appreciation (depreciation) of
investments 2,430
---------
Net Assets $ 42,282
=========
Shares Outstanding:
Class A 1,758
Class B 1,085
Class C 408
Class L 120
Class M 218
Net Asset Value Per Share:
Class A $ 11.79
Class B 11.78
Class C 11.78
Class L 11.78
Class M 11.79
Maximum Offering Price Per Share (1):
Class A $ 12.38
Class M 11.91
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 1,013
---------
Expenses:
Management and advisory fees 124
Transfer agent fees and expenses 32
Custody fees 7
Administration fees 15
Registration fees 33
Trustees fees and expenses 2
Professional fees 13
Other 5
Distribution and service fees:
Class A 36
Class B 61
Class C 26
Class L 3
Class M 9
---------
Total Expenses 366
Less reimbursements by the investment adviser (24)
---------
Net Expenses 342
---------
Net Investment Income (Loss) 671
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (1)
Net unrealized appreciation (depreciation) on
investment securities 977
---------
Net Gain (Loss) on Investments 976
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 1,647
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Federated Tax Exempt 4
IDEX Federated Tax Exempt
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 671 $ 1,127
Net realized gain (loss) on investment
securities (1) 26
Net unrealized appreciation (depreciation)
on investment securities 977 73
--------- ---------
1,647 1,226
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A (360) (718)
Class B (174) (233)
Class C (76) (84)
Class L (8) --
Class M (46) (82)
--------- ---------
(664) (1,117)
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 9,261 14,209
Class B 2,086 8,223
Class C 1,312 5,904
Class L 1,411 --
Class M 141 1,219
--------- ---------
14,211 29,555
--------- ---------
Dividends and distributions reinvested:
Class A 271 524
Class B 117 151
Class C 40 68
Class L 5 --
Class M 36 65
--------- ---------
469 808
--------- ---------
Cost of shares redeemed:
Class A (9,773) (17,500)
Class B (1,728) (2,677)
Class C (1,913) (2,376)
Class L (25) --
Class M (555) (821)
--------- ---------
(13,994) (23,374)
--------- ---------
686 6,989
--------- ---------
Net increase (decrease) in net assets 1,669 7,098
--------- ---------
Net Assets:
Beginning of period 40,613 33,515
--------- ---------
End of period $ 42,282 $ 40,613
========= =========
Undistributed Net Investment Income (Loss) $ 55 $ 48
========= =========
Share Activity:
Shares issued during the period:
Class A 798 1,245
Class B 181 718
Class C 114 516
Class L 122 --
Class M 13 105
--------- ---------
1,228 2,584
--------- ---------
Shares issued-reinvested from distributions:
Class A 23 46
Class B 10 13
Class C 3 6
Class L -- --
Class M 3 6
--------- ---------
39 71
--------- ---------
Shares redeemed during the period:
Class A (841) (1,539)
Class B (149) (236)
Class C (165) (209)
Class L (2) --
Class M (48) (72)
--------- ---------
(1,205) (2,056)
--------- ---------
Net increase (decrease) in shares outstanding 62 599
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Federated Tax Exempt 5
IDEX Federated Tax Exempt
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 11.51 $ 0.20 $ 0.28 $ 0.48
10/31/2002 11.44 0.38 0.14 0.52
10/31/2001 10.91 0.40 0.56 0.96
10/31/2000 10.60 0.44 0.42 0.86
10/31/1999 11.94 0.44 (1.14) (0.70)
10/31/1998 11.75 0.48 0.34 0.82
- --------------------------------------------------------------------------------
Class B 04/30/2003 11.51 0.17 0.26 0.43
10/31/2002 11.44 0.30 0.11 0.41
10/31/2001 10.90 0.34 0.56 0.90
10/31/2000 10.59 0.37 0.42 0.79
10/31/1999 11.94 0.35 (1.14) (0.79)
10/31/1998 11.74 0.41 0.34 0.75
- --------------------------------------------------------------------------------
Class C 04/30/2003 11.51 0.17 0.26 0.43
10/31/2002 11.44 0.29 0.12 0.41
10/31/2001 10.90 0.65 0.25 0.90
10/31/2000 10.59 0.37 0.42 0.79
- --------------------------------------------------------------------------------
Class L 04/30/2003 11.59 0.14 0.21 0.35
- --------------------------------------------------------------------------------
Class M 04/30/2003 11.51 0.21 0.26 0.47
10/31/2002 11.44 0.36 0.09 0.45
10/31/2001 10.91 0.40 0.53 0.93
10/31/2000 10.59 0.42 0.42 0.84
10/31/1999 11.94 0.39 (1.14) (0.75)
10/31/1998 11.75 0.45 0.34 0.79
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
----------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ------------
Class A $ (0.20) $ -- $ (0.20) $ 11.79
(0.45) -- (0.45) 11.51
(0.43) -- (0.43) 11.44
(0.44) (0.11) (0.55) 10.91
(0.44) (0.20) (0.64) 10.60
(0.48) (0.15) (0.63) 11.94
- ------------------------------------------------------------
Class B (0.16) -- (0.16) 11.78
(0.34) -- (0.34) 11.51
(0.36) -- (0.36) 11.44
(0.37) (0.11) (0.48) 10.90
(0.36) (0.20) (0.56) 10.59
(0.40) (0.15) (0.55) 11.94
- ------------------------------------------------------------
Class C (0.16) -- (0.16) 11.78
(0.34) -- (0.34) 11.51
(0.36) -- (0.36) 11.44
(0.37) (0.11) (0.48) 10.90
- ------------------------------------------------------------
Class L (0.16) -- (0.16) 11.78
- ------------------------------------------------------------
Class M (0.19) -- (0.19) 11.79
(0.38) -- (0.38) 11.51
(0.40) -- (0.40) 11.44
(0.41) (0.11) (0.52) 10.91
(0.40) (0.20) (0.60) 10.59
(0.45) (0.15) (0.60) 11.94
- ------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 4.24% $ 20,723 1.35% 1.47% 3.54% 9.68%
10/31/2002 4.26 20,469 1.35 1.46 3.63 55.01
10/31/2001 8.99 23,190 1.35 1.48 3.80 34.89
10/31/2000 8.38 16,999 1.35 1.68 4.14 67.32
10/31/1999 (6.23) 20,996 1.35 1.50 3.83 35.97
10/31/1998 7.19 22,313 1.23 1.27 4.08 42.42
- --------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 3.80 12,779 2.00 2.12 2.89 9.68
10/31/2002 3.63 12,019 2.00 2.11 2.98 55.01
10/31/2001 8.32 6,276 2.00 2.13 3.15 34.89
10/31/2000 7.72 1,728 2.00 2.33 3.49 67.32
10/31/1999 (6.89) 1,253 2.00 2.15 3.18 35.97
10/31/1998 6.50 654 1.88 1.92 3.43 42.42
- --------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 3.80 4,804 2.00 2.12 2.89 9.68
10/31/2002 3.63 5,247 2.00 2.11 2.98 55.01
10/31/2001 8.32 1,636 2.00 2.13 3.15 34.89
10/31/2000 7.72 195 2.00 2.33 3.49 67.32
- --------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 3.09 1,410 2.00 2.12 2.89 9.68
- --------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 4.11 2,566 1.60 1.72 3.29 9.68
10/31/2002 4.02 2,878 1.60 1.71 3.38 55.01
10/31/2001 8.73 2,413 1.60 1.73 3.55 34.89
10/31/2000 8.13 2,014 1.60 1.93 3.89 67.32
10/31/1999 (6.56) 2,193 1.60 1.75 3.58 35.97
10/31/1998 6.92 1,607 1.48 1.52 3.83 42.42
- --------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Federated Tax Exempt 6
IDEX Federated Tax Exempt
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) The inception date for the Fund's offering of share classes C and L are as
follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Federated Tax Exempt 7
IDEX Federated Tax Exempt
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Federated Tax Exempt ("the Fund"), part of
IDEX Mutual Funds, began operations on April 1, 1985.
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or less are valued at
amortized cost, which approximates market. Other securities for which quotations
are not readily available are valued at fair value determined in such a manner
as the adviser and sub-adviser under the supervision of the Board of Trustees
and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following rate:
0.60% of ANA
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.00% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for the
Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.60%
IDEX Mutual Funds
Semi-Annual Report 2003
Federated Tax Exempt 8
IDEX Federated Tax Exempt
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 26
Retained by Underwriter 4
Contingent Sales Charges 33
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $3 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 5,665
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 3,886
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforward is available to offset future realized capital
gains through the period listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 1,016 October 31, 2008
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 39,491
========
Unrealized Appreciation $ 2,433
Unrealized (Depreciation) (2)
--------
Net Unrealized Appreciation (Depreciation) $ 2,431
========
IDEX Mutual Funds
Semi-Annual Report 2003
Federated Tax Exempt 9
IDEX Great Companies-AmericaSM
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS (97.4%)
Aerospace (6.4%)
United Technologies Corporation 152,002 $ 9,395
Beverages (3.8%)
Coca-Cola Company (The) 139,800 5,648
Business Services (14.1%)
First Data Corporation (a) 281,455 11,041
Omnicom Group, Inc. (a) 156,200 9,669
Chemicals & Allied Products (7.5%)
Colgate-Palmolive Company 119,400 6,826
Procter & Gamble Company (The) 46,300 4,160
Commercial Banks (8.0%)
Bank of New York Company, Inc. (The) 276,400 7,311
Citigroup Inc. 113,100 4,439
Electronic & Other Electric Equipment (7.2%)
General Electric Company 358,900 10,570
Fabricated Metal Products (1.8%)
Gillette Company (The) 88,938 2,708
Insurance (4.9%)
American International Group, Inc. 124,100 7,192
Medical Instruments & Supplies (4.3%)
Medtronic, Inc. 131,500 6,278
Paper & Allied Products (4.5%)
3M Company 52,723 6,645
Pharmaceuticals (22.6%)
Abbott Laboratories 165,200 6,712
Johnson & Johnson 169,400 9,547
Pfizer Inc. 303,900 9,345
Wyeth 176,000 7,661
Security & Commodity Brokers (12.3%)
Goldman Sachs Group, Inc. (The) 88,100 6,687
Lehman Brothers Holdings Inc. 112,600 7,090
Merrill Lynch & Co., Inc. 104,400 4,286
---------
Total Common Stocks (cost: $152,902) 143,210
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (5.0%)
Bank Notes (0.3%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 419 $ 419
Euro Dollar Overnight (0.5%)
Bank of Montreal
1.34%, due 05/01/2003 $ 286 $ 286
BNP Paribas SA
1.24%, due 05/06/2003 134 134
Royal Bank of Canada
1.35%, due 05/01/2003 335 335
Euro Dollar Term (1.5%)
American Express Centurion Bank
1.28%, due 05/30/2003 671 671
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 168 168
Credit Agricole Indosuez
1.27%, due 05/12/2003 50 50
1.26%, due 06/24/2003 335 335
Danske Bank A/S
1.25%, due 05/07/2003 419 419
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 168 168
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 419 419
Medium Term Notes (0.2%)
Parkland (USA) LLC
1.31%, due 11/26/2003 252 252
Money Market Funds (2.0%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 1,342 1,342
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 1,593 1,593
Promissory Notes (0.4%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 587 587
Repurchase Agreements (0.1%)
Merrill Lynch & Co., Inc. (b)
1.42%, due 05/01/2003 168 168
---------
Total Security Lending Collateral (cost: $7,346) 7,346
---------
Total Investment Securities (cost: $160,248) $ 150,556
=========
SUMMARY:
Investments, at market value 102.4 % $ 150,556
Liabilities in excess of other assets (2.4)% (3,516)
--------- ---------
Net assets 100.0 % $ 147,040
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003 of all securities on loan is $7,133.
(b) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $171.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-America(SM)1
IDEX Great Companies-AmericaSM
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $160,248)
(including $7,133 of securities loaned) $ 150,556
Cash 3,453
Receivables:
Investment securities sold 1,210
Shares of beneficial interest sold 509
Interest 1
Dividends 166
Due from investment adviser 405
Other 8
---------
156,308
---------
Liabilities:
Investment securities purchased 1,109
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 131
Management and advisory fees 490
Distribution fees 82
Transfer agent fees and expenses 71
Payable for securities on loan 7,346
Other 39
---------
9,268
---------
Net Assets $ 147,040
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 177,622
Accumulated net investment income (loss) (220)
Accumulated net realized gain (loss) from investments (20,670)
Net unrealized appreciation (depreciation) of
investments (9,692)
---------
Net Assets $ 147,040
=========
Shares Outstanding:
Class A 8,334
Class B 6,967
Class C 2,044
Class L 207
Class M 1,101
Net Asset Value Per Share:
Class A $ 7.97
Class B 7.81
Class C 7.81
Class L 7.81
Class M 7.83
Maximum Offering Price Per Share (1):
Class A $ 8.43
Class M 7.91
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 9
Dividends 1,067
Income from loaned securities-net 6
---------
1,082
---------
Expenses:
Management and advisory fees 544
Transfer agent fees and expenses 216
Custody fees 10
Administration fees 13
Registration fees 34
Trustees fees and expenses 6
Professional fees 17
Other 34
Distribution and service fees:
Class A 104
Class B 260
Class C 78
Class L 3
Class M 37
---------
Total Expenses 1,356
Less reimbursements by the investment adviser (57)
---------
Net Expenses 1,299
---------
Net Investment Income (Loss) (217)
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (8,739)
Net unrealized appreciation (depreciation) on
investment securities 14,455
---------
Net Gain (Loss) on Investments 5,716
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 5,499
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-America(SM)2
IDEX Great Companies-America(SM)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (217) $ (791)
Net realized gain (loss) on investment
securities (8,739) (7,169)
Net unrealized appreciation (depreciation)
on investment securities 14,455 (18,467)
--------- ---------
5,499 (26,427)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 17,456 43,241
Class B 6,294 37,954
Class C 1,328 13,762
Class L 1,623 --
Class M 892 7,063
--------- ---------
27,593 102,020
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (9,237) (16,357)
Class B (7,042) (14,179)
Class C (2,350) (5,739)
Class L (66) --
Class M (1,283) (3,754)
--------- ---------
(19,978) (40,029)
--------- ---------
7,615 61,991
--------- ---------
Net increase (decrease) in net assets 13,114 35,564
--------- ---------
Net Assets:
Beginning of period 133,926 98,362
--------- ---------
End of period $ 147,040 $ 133,926
========= =========
Accumulated Net Investment Income (Loss) $ (220) $ (3)
========= =========
Share Activity:
Shares issued during the period:
Class A 2,304 4,955
Class B 838 4,256
Class C 176 1,547
Class L 216 --
Class M 120 790
--------- ---------
3,654 11,548
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (1,227) (1,977)
Class B (953) (1,767)
Class C (320) (706)
Class L (9) --
Class M (174) (456)
--------- ---------
(2,683) (4,906)
--------- ---------
Net increase (decrease) in shares outstanding 971 6,642
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-America(SM)3
IDEX Great Companies-America(SM)
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 7.65 $ -- $ 0.32 $ 0.32
10/31/2002 8.96 (0.01) (1.30) (1.31)
10/31/2001 10.58 (0.02) (1.60) (1.62)
10/31/2000 10.00 -- 0.58 0.58
- --------------------------------------------------------------------------------
Class B 04/30/2003 7.52 (0.02) 0.31 0.29
10/31/2002 8.87 (0.08) (1.27) (1.35)
10/31/2001 10.56 (0.08) (1.61) (1.69)
10/31/2000 10.00 (0.02) 0.58 0.56
- --------------------------------------------------------------------------------
Class C 04/30/2003 7.52 (0.02) 0.31 0.29
10/31/2002 8.87 (0.08) (1.27) (1.35)
10/31/2001 10.56 (0.08) (1.61) (1.69)
10/31/2000 10.00 (0.02) 0.58 0.56
- --------------------------------------------------------------------------------
Class L 04/30/2003 7.51 (0.02) 0.32 0.30
- --------------------------------------------------------------------------------
Class M 04/30/2003 7.54 (0.02) 0.31 0.29
10/31/2002 8.89 (0.07) (1.28) (1.35)
10/31/2001 10.56 (0.08) (1.59) (1.67)
10/31/2000 10.00 (0.02) 0.58 0.56
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 7.97
-- -- -- 7.65
-- -- -- 8.96
-- -- -- 10.58
- ----------------------------------------------------------
Class B -- -- -- 7.81
-- -- -- 7.52
-- -- -- 8.87
-- -- -- 10.56
- ----------------------------------------------------------
Class C -- -- -- 7.81
-- -- -- 7.52
-- -- -- 8.87
-- -- -- 10.56
- ----------------------------------------------------------
Class L -- -- -- 7.81
- ----------------------------------------------------------
Class M -- -- -- 7.83
-- -- -- 7.54
-- -- -- 8.89
-- -- -- 10.56
- ----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 4.18% $ 66,431 1.55% 1.63% 0.04% 20.51%
10/31/2002 (14.59) 55,508 1.55 1.66 (0.16) 27.70
10/31/2001 (15.35) 38,345 1.55 1.78 (0.18) 64.93
10/31/2000 5.81 13,377 1.55 3.38 (0.08) 2.11
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 3.86 54,407 2.20 2.28 (0.61) 20.51
10/31/2002 (15.26) 53,256 2.20 2.31 (0.81) 27.70
10/31/2001 (15.98) 40,769 2.20 2.43 (0.83) 64.93
10/31/2000 5.62 7,839 2.20 4.03 (0.73) 2.11
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 3.86 15,961 2.20 2.28 (0.61) 20.51
10/31/2002 (15.26) 16,452 2.20 2.31 (0.81) 27.70
10/31/2001 (15.98) 11,953 2.20 2.43 (0.83) 64.93
10/31/2000 5.62 2,875 2.20 4.03 (0.73) 2.11
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 3.99 1,619 2.20 2.28 (0.61) 20.51
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 3.85 8,622 2.10 2.18 (0.51) 20.51
10/31/2002 (15.15) 8,710 2.10 2.21 (0.71) 27.70
10/31/2001 (15.88) 7,296 2.10 2.33 (0.73) 64.93
10/31/2000 5.65 1,744 2.10 3.93 (0.63) 2.11
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-America(SM)4
IDEX Great Companies-America(SM)
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Great Companies-America(SM)("the Fund") commenced operations on July
14, 2000. The inception date for the Fund's offering of share Class L was
November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-America(SM)5
IDEX Great Companies-America(SM)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Great Companies-America(SM)("the Fund"),
part of IDEX Mutual Funds, began operations on July 14, 2000. The Fund is
"non-diversified" under the 1940 Act.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or less are valued at
amortized cost, which approximates market. Other securities for which quotations
are not readily available are valued at fair value determined in such a manner
as the adviser and sub-adviser, under the supervision of the Board of Trustees
and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are included in
investment securities at market value on the Statement of Assets and Liabilities
and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities loans,
the collateral and securities loaned remain subject to fluctuation in market
value. IBT marks to market securities loaned and the collateral each business
day. If additional collateral is due (at least $1), IBT collects additional cash
collateral from the borrowers. Although securities loaned will be fully
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the event
the borrower fails to timely return a recalled security, IBT may indemnify the
Fund by purchasing replacement securities for the Fund at its own expense and
claiming the collateral to fund such a purchase. IBT absorbs the loss if the
collateral value is not sufficient to cover the cost of the replacement
securities. If replacement securities are not available, IBT will credit the
equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or, in
the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-America(SM)6
IDEX Great Companies-America(SM)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation. Great Companies,
L.L.C. is both an affiliate of the Fund and a sub-adviser to the Fund.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.20% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for the
Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 125
Retained by Underwriter 16
Contingent Sales Charges 120
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and other
legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account charges
(not in thousands) of $15.39 for each open shareholder account, $2.73 for each
new account opened, $1.63 for each closed account maintained, and certain
out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan amounts
are included in Other assets, and the total liability of $3 for deferred
compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 42,422
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 27,237
U.S. Government --
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-America(SM)7
IDEX Great Companies-America(SM)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 4,113 October 31, 2009
6,883 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 162,702
==========
Unrealized Appreciation $ 3,133
Unrealized (Depreciation) (15,279)
----------
Net Unrealized Appreciation (Depreciation) $ (12,146)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-America(SM)8
IDEX Great Companies-Global2
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS (95.4%)
Australia (4.0%)
News Corporation Limited (The)-ADR (b) 37,600 $ 1,063
France (4.5%)
L'Oreal SA-ADR 83,600 1,195
Germany (2.0%)
SAP AG-ADR (b) 21,100 538
Japan (4.2%)
Canon Inc.-ADR 13,300 533
Sony Corporation-ADR (b) 23,700 586
Netherlands (5.5%)
ING Groep NV-ADR (b) 88,900 1,451
South Korea (2.0%)
Samsung Electronics Co., Ltd.-
GDR-144A (a)(b) 4,300 538
Switzerland (8.9%)
Nestle SA-ADR 23,200 1,183
Novartis AG-ADR 29,700 1,173
United Kingdom (4.6%)
HSBC Holdings PLC-ADR 22,300 1,220
United States (59.7%)
AFLAC Incorporated 37,400 1,223
American International Group, Inc. 21,000 1,217
Amgen Inc. (a) 8,300 509
Analog Devices, Inc. (a) 15,700 520
Berkshire Hathaway Inc.-Class B (a) 200 466
Coca-Cola Company (The) 29,300 1,184
First Data Corporation 32,700 1,283
General Electric Company 40,300 1,187
Goldman Sachs Group, Inc. (The) 15,500 1,176
Intel Corporation 28,000 515
International Business Machines
Corporation 6,200 526
Johnson & Johnson 18,020 1,016
Microsoft Corporation 20,400 522
Moody's Corporation 10,900 526
Omnicom Group, Inc. (b) 19,200 1,188
Pfizer Inc. 34,200 1,052
Texas Instruments Incorporated 29,600 547
United Technologies Corporation 19,300 1,193
---------
Total Common Stocks (cost: $26,340) 25,330
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (14.1%)
Bank Notes (0.8%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 214 $ 214
Euro Dollar Overnight (1.5%)
Bank of Montreal
1.34%, due 05/01/2003 146 146
BNP Paribas SA
1.24%, due 05/06/2003 69 69
Royal Bank of Canada
1.35%, due 05/01/2003 171 171
Euro Dollar Term (4.3%)
American Express Centurion Bank
1.28%, due 05/30/2003 343 343
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 86 86
Credit Agricole Indosuez
1.27%, due 05/12/2003 26 26
1.26%, due 06/24/2003 171 171
Danske Bank A/S
1.25%, due 05/07/2003 214 214
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 86 86
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 214 214
Medium Term Notes (0.5%)
Parkland (USA) LLC
1.31%, due 11/26/2003 129 129
Money Market Funds (5.6%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 686 686
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 815 815
Promissory Notes (1.1%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 300 300
Repurchase Agreements (0.3%)
Merrill Lynch & Co., Inc. (c)
1.42%, due 05/01/2003 86 86
---------
Total Security Lending Collateral (cost: $3,756) 3,756
---------
Total Investment Securities (cost: $30,096) $ 29,086
=========
SUMMARY:
Investments, at market value 109.5% $ 29,086
Liabilities in excess of other assets. (9.5)% (2,513)
--------- ---------
Net assets 100.0% $ 26,573
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Global(2) 1
IDEX Great Companies-Global(2)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Percentage of
Net Assets Value
- -------------------------------------------------------------------------------
INVESTMENTS BY INDUSTRY:
Pharmaceuticals 14.1 % $ 3,751
Business Services 11.3 % 2,997
Insurance 10.9 % 2,906
Electronic & Other Electric Equipment 8.7 % 2,311
Electronic Components & Accessories 6.0 % 1,582
Life Insurance 5.5 % 1,451
Commercial Banks 4.6 % 1,220
Chemicals & Allied Products 4.5 % 1,195
Aerospace 4.5 % 1,193
Beverages 4.5 % 1,184
Food & Kindred Products 4.4 % 1,182
Security & Commodity Brokers 4.4 % 1,176
Motion Pictures 4.0 % 1,063
Computer & Data Processing Services 4.0 % 1,060
Computer & Office Equipment 4.0 % 1,059
--------- ---------
Investments, at market value 95.4 % 25,330
Short-term investments 14.1 % 3,756
Other assets in excess of liabilities (9.5)% (2,513)
--------- ---------
Net Assets 100.0 % $ 26,573
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$3,613.
(c) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $87.
DEFINITIONS:
ADR American Depositary Receipt
GDR Global Depository Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Global(2) 2
IDEX Great Companies-Global(2)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $30,096)
(including $3,613 of securities loaned) $ 29,086
Cash 2,723
Receivables:
Shares of beneficial interest sold 16
Interest 1
Dividends 96
Other 3
---------
31,925
---------
Liabilities:
Investment securities purchased 1,555
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 1
Management and advisory fees 3
Distribution fees 10
Transfer agent fees and expenses 12
Payable for securities on loan 3,756
Other 15
---------
5,352
---------
Net Assets $ 26,573
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 30,792
Undistributed net investment income (loss) 8
Accumulated net realized gain (loss) from investments (3,217)
Net unrealized appreciation (depreciation) of
investments (1,010)
---------
Net Assets $ 26,573
=========
Shares Outstanding:
Class A 3,655
Class B 491
Class C 162
Class L 7
Class M 106
Net Asset Value Per Share:
Class A $ 6.03
Class B 5.91
Class C 5.91
Class L 5.91
Class M 5.93
Maximum Offering Price Per Share (1):
Class A $ 6.38
Class M 5.99
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 4
Dividends 197
Less withholding taxes on foreign dividends (15)
---------
186
---------
Expenses:
Management and advisory fees 84
Transfer agent fees and expenses 33
Custody fees 6
Administration fees 14
Registration fees 34
Trustees fees and expenses 1
Professional fees 13
Other 3
Distribution and service fees:
Class A 29
Class B 15
Class C 5
Class L --
Class M 3
---------
Total Expenses 240
Less reimbursements by the investment adviser (62)
---------
Net Expenses 178
---------
Net Investment Income (Loss) 8
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (205)
Net unrealized appreciation (depreciation) on
investment securities 1,006
---------
Net Gain (Loss) on Investments 801
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 809
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Global(2) 3
IDEX Great Companies-Global(2)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 8 $ (88)
Net realized gain (loss) on investment
securities (205) (1,164)
Net unrealized appreciation (depreciation)
on investment securities 1,006 (740)
--------- ---------
809 (1,992)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 10,090 12,939
Class B 267 1,933
Class C 136 593
Class L 44 --
Class M 12 469
--------- ---------
10,549 15,934
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (711) (5,236)
Class B (686) (1,452)
Class C (190) (541)
Class L -- --
Class M (169) (361)
--------- ---------
(1,756) (7,590)
--------- ---------
8,793 8,344
--------- ---------
Net increase (decrease) in net assets 9,602 6,352
--------- ---------
Net Assets:
Beginning of period 16,971 10,619
--------- ---------
End of period $ 26,573 $ 16,971
========= =========
Undistributed Net Investment Income (Loss) $ 8 $ --
========= =========
Share Activity:
Shares issued during the period:
Class A 1,737 2,029
Class B 46 281
Class C 23 87
Class L 7 --
Class M 2 66
--------- ---------
1,815 2,463
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (124) (783)
Class B (119) (233)
Class C (33) (84)
Class L -- --
Class M (29) (56)
--------- ---------
(305) (1,156)
--------- ---------
Net increase (decrease) in shares outstanding 1,510 1,307
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Global(2) 4
IDEX Great Companies-Global(2)
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
- ----------------------------------------------------------------------------------
Class A 04/30/2003 $ 5.86 $ 0.01 $ 0.16 $ 0.17
10/31/2002 6.65 (0.01) (0.78) (0.79)
10/31/2001 9.81 (0.03) (3.10) (3.13)
10/31/2000 10.00 -- (0.19) (0.19)
- --------------------------------------------------------------------------------
Class B 04/30/2003 5.76 (0.01) 0.16 0.15
10/31/2002 6.59 (0.07) (0.76) (0.83)
10/31/2001 9.80 (0.08) (3.10) (3.18)
10/31/2000 10.00 (0.01) (0.19) (0.20)
- --------------------------------------------------------------------------------
Class C 04/30/2003 5.76 (0.01) 0.16 0.15
10/31/2002 6.59 (0.06) (0.77) (0.83)
10/31/2001 9.80 (0.09) (3.09) (3.18)
10/31/2000 10.00 (0.01) (0.19) (0.20)
- --------------------------------------------------------------------------------
Class L 04/30/2003 5.73 (0.01) 0.19 0.18
- --------------------------------------------------------------------------------
Class M 04/30/2003 5.78 (0.01) 0.16 0.15
10/31/2002 6.60 (0.06) (0.76) (0.82)
10/31/2001 9.80 (0.08) (3.09) (3.17)
10/31/2000 10.00 (0.01) (0.19) (0.20)
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 6.03
-- -- -- 5.86
-- (0.03) (0.03) 6.65
-- -- -- 9.81
- -----------------------------------------------------------
Class B -- -- -- 5.91
-- -- -- 5.76
-- (0.03) (0.03) 6.59
-- -- -- 9.80
- -----------------------------------------------------------
Class C -- -- -- 5.91
-- -- -- 5.76
-- (0.03) (0.03) 6.59
-- -- -- 9.80
- -----------------------------------------------------------
Class L -- -- -- 5.91
- -----------------------------------------------------------
Class M -- -- -- 5.93
-- -- -- 5.78
-- (0.03) (0.03) 6.60
-- -- -- 9.80
- -----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
- ---------------------------------------------------------------------------------------------------------------
Class A 04/30/2003 2.90% $ 22,039 1.55% 2.13% 0.21% 12.54%
10/31/2002 (11.90) 11,964 1.55 2.39 (0.26) 65.72
10/31/2001 (31.99) 5,294 1.55 3.26 (0.37) 80.16
10/31/2000 (1.92) 2,173 1.55 25.34 (0.52) 15.15
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 2.60 2,903 2.20 2.78 (0.44) 12.54
10/31/2002 (12.58) 3,251 2.20 3.04 (0.91) 65.72
10/31/2001 (32.57) 3,400 2.20 3.91 (1.02) 80.16
10/31/2000 (2.01) 582 2.20 25.99 (1.17) 15.15
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 2.60 959 2.20 2.78 (0.44) 12.54
10/31/2002 (12.58) 988 2.20 3.04 (0.91) 65.72
10/31/2001 (32.57) 1,112 2.20 3.91 (1.02) 80.16
10/31/2000 (2.01) 353 2.20 25.99 (1.17) 15.15
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 3.14 43 2.20 2.78 (0.44) 12.54
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 2.60 629 2.10 2.68 (0.34) 12.54
10/31/2002 (12.40) 768 2.10 2.94 (0.81) 65.72
10/31/2001 (32.48) 813 2.10 3.81 (0.92) 80.16
10/31/2000 (1.99) 833 2.10 25.89 (1.07) 15.15
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Global(2) 5
IDEX Great Companies-Global(2)
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Great Companies-Global(2) ("the Fund") commenced operations on
September 15, 2000. The inception date for the Fund's offering of share
Class L was November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Global(2) 6
IDEX Great Companies-Global(2)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Great Companies-Global(2) ("the Fund"),
part of IDEX Mutual Funds, began operations on September 15, 2000.
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Other securities for which quotations are not readily
available are valued at fair value determined in such a manner as the adviser
and sub-adviser, under the supervision of the Board of Trustees and the Fund's
Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are included in
investment securities at market value on the Statement of Assets and Liabilities
and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities loans,
the collateral and securities loaned remain subject to fluctuation in market
value. IBT marks to market securities loaned and the collateral each business
day. If additional collateral is due (at least $1), IBT collects additional cash
collateral from the borrowers. Although securities loaned will be fully
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the event
the borrower fails to timely return a recalled security, IBT may indemnify the
Fund by purchasing replacement securities for the Fund at its own expense and
claiming the collateral to fund such a purchase. IBT absorbs the loss if the
collateral value is not sufficient to cover the cost of the replacement
securities. If replacement securities are not available, IBT will credit the
equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amounts of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or, in
the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation. Great Companies,
L.L.C. is both an affiliate of the Fund and a sub-adviser to the Fund.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Global(2) 7
IDEX Great Companies-Global(2)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.20% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for the
Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 7
Retained by Underwriter 1
Contingent Sales Charges 6
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and other
legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account charges
(not in thousands) of $15.39 for each open shareholder account, $2.73 for each
new account opened, $1.63 for each closed account maintained, and certain
out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, were as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 11,319
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 2,495
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 1,792 October 31, 2009
836 October 31, 2009
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 30,570
==========
Unrealized Appreciation $ 663
Unrealized (Depreciation) (2,147)
----------
Net Unrealized Appreciation (Depreciation) $ (1,484)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Global(2) 8
IDEX Great Companies-TechnologySM
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS (91.2%)
Business Services (6.6%)
First Data Corporation 53,583 $ 2,102
Computer & Data Processing Services (26.2%)
Electronic Arts Inc. (a) 33,100 1,962
Electronic Data Systems Corporation 55,000 998
Microsoft Corporation 79,700 2,038
Oracle Corporation (a) 111,000 1,319
Symantec Corporation (a)(b) 47,600 2,092
Computer & Office Equipment (23.0%)
Cisco Systems, Inc. (a) 100,000 1,504
Dell Computer Corporation (a) 74,700 2,160
EMC Corporation (a) 164,800 1,498
International Business Machines
Corporation 26,200 2,224
Electronic Components & Accessories (18.9%)
Analog Devices, Inc. (a) 38,200 1,265
Intel Corporation 65,000 1,196
Maxim Integrated Products 30,100 1,183
Texas Instruments Incorporated 64,100 1,185
Xilinx, Inc. (a) 45,000 1,218
Industrial Machinery & Equipment (3.8%)
Applied Materials, Inc. (a) 83,100 1,213
Manufacturing Industries (4.8%)
International Game Technology (a) 17,700 1,528
Pharmaceuticals (7.9%)
Amgen Inc. (a) 23,900 1,465
Genentech, Inc. (a) 28,500 1,083
---------
Total Common Stocks (cost: $30,809) 29,233
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (2.5%)
Bank Notes (0.1%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 45 $ 45
Euro Dollar Overnight (0.3%)
Bank of Montreal
1.34%, due 05/01/2003 31 31
BNP Paribas SA
1.24%, due 05/06/2003 15 15
Royal Bank of Canada
1.35%, due 05/01/2003 36 36
Euro Dollar Term (0.7%)
American Express Centurion Bank
1.28%, due 05/30/2003 73 73
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 18 18
Credit Agricole Indosuez
1.27%, due 05/12/2003 5 5
1.26%, due 06/24/2003 36 36
Danske Bank A/S
1.25%, due 05/07/2003 45 45
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 18 18
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 45 45
Medium Term Notes (0.1%)
Parkland (USA) LLC
1.31%, due 11/26/2003 27 27
Money Market Funds (1.0%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 147 147
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 174 174
Promissory Notes (0.2%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 64 64
Repurchase Agreements (0.1%)
Merrill Lynch & Co., Inc. (c)
1.42%, due 05/01/2003 18 18
---------
Total Security Lending Collateral (cost: $797) 797
---------
Total Investment Securities (cost: $31,606) $ 30,030
=========
SUMMARY:
Investments, at market value 93.7% $ 30,030
Other assets in excess of liabilities 6.3% 2,021
--------- ---------
Net assets 100.0% $ 32,051
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is $767.
(c) Cash collateral for Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $19.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Technology(SM)1
IDEX Great Companies-Technology(SM)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $31,606)
(including $767 of securities loaned) $ 30,030
Cash 4,726
Receivables:
Shares of beneficial interest sold 263
Interest 1
Dividends 1
Other 1
---------
35,022
---------
Liabilities:
Investment securities purchased 2,116
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 6
Distribution fees 12
Transfer agent fees and expenses 26
Payable for securities on loan 797
Other 14
---------
2,971
---------
Net Assets $ 32,051
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 50,217
Accumulated net investment income (loss) (137)
Accumulated net realized gain (loss) from investments (16,453)
Net unrealized appreciation (depreciation) of
investments (1,576)
---------
Net Assets $ 32,051
=========
Shares Outstanding:
Class A 8,256
Class B 1,890
Class C 671
Class L 21
Class M 437
Net Asset Value Per Share:
Class A $ 2.86
Class B 2.79
Class C 2.79
Class L 2.79
Class M 2.80
Maximum Offering Price Per Share (1):
Class A $ 3.03
Class M 2.83
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 4
Dividends 21
---------
25
---------
Expenses:
Management and advisory fees 71
Transfer agent fees and expenses 67
Custody fees 6
Administration fees 13
Registration fees 36
Trustees fees and expenses 1
Professional fees 13
Other 5
Distribution and service fees:
Class A 18
Class B 23
Class C 8
Class L --
Class M 6
---------
Total Expenses 267
Less reimbursements by the investment adviser (106)
---------
Net Expenses 161
---------
Net Investment Income (Loss) (136)
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (1,492)
Net unrealized appreciation (depreciation) on
investment securities 4,306
---------
Net Gain (Loss) on Investments 2,814
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 2,678
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Technology((SM))2
IDEX Great Companies-Technology(SM)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (136) $ (319)
Net realized gain (loss) on investment
securities (1,492) (8,549)
Net unrealized appreciation (depreciation)
on investment securities 4,306 2,243
--------- ---------
2,678 (6,625)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 18,236 5,713
Class B 1,186 2,928
Class C 670 919
Class L 59 --
Class M 331 835
--------- ---------
20,482 10,395
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (2,910) (3,274)
Class B (776) (2,231)
Class C (230) (722)
Class L (2) --
Class M (419) (552)
--------- ---------
(4,337) (6,779)
--------- ---------
16,145 3,616
--------- ---------
Net increase (decrease) in net assets 18,823 (3,009)
--------- ---------
Net Assets:
Beginning of period 13,228 16,237
--------- ---------
End of period $ 32,051 $ 13,228
========= =========
Accumulated Net Investment Income (Loss) $ (137) $ (1)
========= =========
Share Activity:
Shares issued during the period:
Class A 6,834 1,560
Class B 454 788
Class C 262 235
Class L 22 --
Class M 125 223
--------- ---------
7,697 2,806
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (1,096) (1,000)
Class B (302) (709)
Class C (88) (208)
Class L (1) --
Class M (162) (170)
--------- ---------
(1,649) (2,087)
--------- ---------
Net increase (decrease) in shares outstanding 6,048 719
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Technology(SM)3
IDEX Great Companies-Technology(SM)
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 2.56 $ (0.02) $ 0.32 $ 0.30
10/31/2002 3.63 (0.05) (1.02) (1.07)
10/31/2001 7.93 (0.06) (4.24) (4.30)
10/31/2000 10.00 -- (2.07) (2.07)
- --------------------------------------------------------------------------------
Class B 04/30/2003 2.50 (0.02) 0.31 0.29
10/31/2002 3.58 (0.08) (1.00) (1.08)
10/31/2001 7.91 (0.10) (4.23) (4.33)
10/31/2000 10.00 (0.02) (2.07) (2.09)
- --------------------------------------------------------------------------------
Class C 04/30/2003 2.50 (0.03) 0.32 0.29
10/31/2002 3.58 (0.08) (1.00) (1.08)
10/31/2001 7.91 (0.09) (4.24) (4.33)
10/31/2000 10.00 (0.02) (2.07) (2.09)
- --------------------------------------------------------------------------------
Class L 04/30/2003 2.45 (0.02) 0.36 0.34
- --------------------------------------------------------------------------------
Class M 04/30/2003 2.51 (0.03) 0.32 0.29
10/31/2002 3.59 (0.07) (1.01) (1.08)
10/31/2001 7.92 (0.09) (4.24) (4.33)
10/31/2000 10.00 (0.01) (2.07) (2.08)
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 2.86
-- -- -- 2.56
-- -- -- 3.63
-- -- -- 7.93
- -----------------------------------------------------------
Class B -- -- -- 2.79
-- -- -- 2.50
-- -- -- 3.58
-- -- -- 7.91
- -----------------------------------------------------------
Class C -- -- -- 2.79
-- -- -- 2.50
-- -- -- 3.58
-- -- -- 7.91
- -----------------------------------------------------------
Class L -- -- -- 2.79
- -----------------------------------------------------------
Class M -- -- -- 2.80
-- -- -- 2.51
-- -- -- 3.59
-- -- -- 7.92
- -----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------- ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 11.72% $ 23,636 1.55% 2.74% (1.27)% 15.45%
10/31/2002 (29.45) 6,445 1.55 2.61 (1.40) 63.64
10/31/2001 (54.26) 7,106 1.55 2.68 (1.04) 57.85
10/31/2000 (20.66) 6,322 1.55 5.55 (0.64) 11.25
- --------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 11.60 5,265 2.20 3.39 (1.92) 15.45
10/31/2002 (30.12) 4,348 2.20 3.26 (2.05) 63.64
10/31/2001 (54.80) 5,938 2.20 3.33 (1.69) 57.85
10/31/2000 (20.86) 3,295 2.20 6.20 (1.29) 11.25
- --------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 11.60 1,868 2.20 3.39 (1.92) 15.45
10/31/2002 (30.12) 1,245 2.20 3.26 (2.05) 63.64
10/31/2001 (54.80) 1,683 2.20 3.33 (1.69) 57.85
10/31/2000 (20.86) 1,443 2.20 6.20 (1.29) 11.25
- --------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 13.88 58 2.20 3.39 (1.92) 15.45
- --------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 11.55 1,224 2.10 3.29 (1.82) 15.45
10/31/2002 (29.99) 1,190 2.10 3.16 (1.95) 63.64
10/31/2001 (54.71) 1,510 2.10 3.23 (1.59) 57.85
10/31/2000 (20.83) 710 2.10 6.10 (1.19) 11.25
- --------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Technology(SM)4
IDEX Great Companies-Technology(SM)
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Great Companies-Technology(SM)("the Fund") commenced operations on
July 14, 2000. The inception date for the Fund's offering of share Class L
was November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Technology(SM)5
IDEX Great Companies-Technology(SM)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Great Companies-Technology(SM)("the Fund"),
part of IDEX Mutual Funds, began operations on July 14, 2000.
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Other securities for which quotations are not readily
available are valued at fair value determined in such a manner as the adviser
and sub-adviser, under the supervision of the Board of Trustees and the Fund's
Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are included in
investment securities at market value in the Statement of Assets and Liabilities
and remain in the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities loans,
the collateral and securities loaned remain subject to fluctuation in market
value. IBT marks to market securities loaned and the collateral each business
day. If additional collateral is due (at least $1), IBT collects additional cash
collateral from the borrowers. Although securities loaned will be fully
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the event
the borrower fails to timely return a recalled security, IBT may indemnify the
Fund by purchasing replacement securities for the Fund at its own expense and
claiming the collateral to fund such a purchase. IBT absorbs the loss if the
collateral value is not sufficient to cover the cost of the replacement
securities. If replacement securities are not available, IBT will credit the
equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amounts of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as in the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or, in
the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Technology(SM)6
IDEX Great Companies-Technology(SM)
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Co. of Ohio ("WRL"). AUSA and WRL are wholly owned indirect subsidiaries of
AEGON NV, a Netherlands corporation. Great Companies, L.L.C. is both an
affiliate of the Fund and a sub-adviser to the Fund.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.20% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 20
Retained by Underwriter 3
Contingent Sales Charges 9
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 16,291
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 2,635
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 5,516 October 31, 2009
7,851 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 33,710
==========
Unrealized Appreciation $ 824
Unrealized (Depreciation) (4,504)
----------
Net Unrealized Appreciation (Depreciation) $ (3,680)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Great Companies-Technology(SM)7
IDEX Isabelle Small Cap Value
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS (98.7%)
Apparel Products (1.5%)
Tommy Hilfiger Corporation (a) 146,200 $ 1,202
Automotive (4.1%)
GenCorp Inc. (b) 227,200 1,727
National R.V. Holdings, Inc. (a) 226,500 883
Transpro, Inc. (a) 222,500 779
Business Services (4.2%)
Butler International, Inc. (a) 572,700 200
Idine Rewards Network Inc. (a) 270,000 2,633
Westaff, Inc. (a) 298,700 597
Chemicals & Allied Products (10.1%)
American Vanguard Corporation 111,750 2,262
Crompton Corporation 430,300 2,763
PolyOne Corporation 389,000 1,797
Terra Nitrogen Company, L.P. 288,200 1,556
Communications Equipment (5.9%)
Ditech Communications Corporation (a) 892,900 3,652
EMS Technologies, Inc. (a) 94,500 1,148
Computer & Data Processing Services (1.4%)
Progress Software Corporation (a) 52,300 1,019
Viewpoint Corporation (a) 125,200 100
Computer & Office Equipment (1.7%)
Network Equipment Technologies, Inc. (a) 191,900 1,376
Construction (1.9%)
Quanta Services, Inc. (a) 452,000 1,559
Electrical Goods (2.4%)
Craftmade International, Inc. 71,500 1,051
Pioneer-Standard Electronics, Inc. 96,110 931
Electronic & Other Electric Equipment (4.1%)
Lamson & Sessions Co. (The) (a) 539,100 2,469
Magnetek, Inc. (a) 410,800 887
Electronic Components & Accessories (2.2%)
Skyworks Solutions, Inc. (a)(b) 169,900 909
Woodhead Industries, Inc. 73,400 881
Fabricated Metal Products (6.2%)
Global Power Equipment Group Inc. (a)(b) 223,000 1,336
Material Sciences Corporation (a) 174,400 1,404
Shaw Group Inc. (The) (a)(b) 203,700 2,373
Food & Kindred Products (2.0%)
Poore Brothers, Inc. (a) 660,400 1,684
Health Services (0.4%)
Matria Healthcare, Inc. (a) 27,800 347
Holding & Other Investment Offices (1.5%)
4Kids Entertainment, Inc. (a) 77,600 1,195
Industrial Machinery & Equipment (5.5%)
DT Industries, Inc. (a) 375,400 345
Gehl Company (a) 84,800 721
JLG Industries, Inc. 232,700 1,266
NACCO Industries, Inc.-Class A 40,700 2,138
Instruments & Related Products (5.3%)
Analogic Corporation 17,400 831
Signal Technology Corporation (a) 142,700 1,882
Sypris Solutions, Inc. 183,100 1,652
Insurance (0.2%)
Allmerica Financial Corporation (a) 13,200 202
Manufacturing Industries (1.8%)
Oneida Ltd. 133,400 1,471
Oil & Gas Extraction (4.8%)
Magnum Hunter Resources, Inc. (a) 178,200 1,003
Mission Resources Corporation (a) 290,300 105
Southwestern Energy Company (a)(b) 81,700 1,087
Willbros Group, Inc. (a) 207,100 1,719
Paper & Allied Products (1.7%)
Wausau-Mosinee Paper Corporation 128,900 1,371
Paper & Paper Products (1.2%)
United Stationers Inc. (a) 35,500 962
Paperboard Containers & Boxes (1.3%)
Graphic Packaging International
Corporation (a) 206,800 1,040
Petroleum Refining (1.5%)
Tesoro Petroleum Corporation (a)(b) 161,000 1,251
Pharmaceuticals (11.2%)
ARIAD Pharmaceuticals, Inc. (a) 892,700 1,812
Avigen, Inc. (a)(b) 209,300 634
EPIX Medical, Inc. (a) 149,600 1,429
PRAECIS Pharmaceuticals Inc. (a) 710,800 3,113
United Therapeutics Corporation (a)(b) 126,400 2,269
Primary Metal Industries (5.0%)
AK Steel Holding Corporation (a) 379,100 1,107
Commonwealth Industries, Inc. 450,200 2,183
RTI International Metals, Inc. (a) 77,100 779
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Isabelle Small Cap Value 1
IDEX Isabelle Small Cap Value
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Radio, Television & Computer Stores (3.0%)
InterTAN, Inc. (a) 335,200 $ 2,026
Tweeter Home Entertainment Group, Inc. (a) 72,700 419
Stone, Clay & Glass Products (1.0%)
Apogee Enterprises, Inc. 79,000 817
Telecommunications (3.6%)
D&E Communications, Inc. 208,840 2,255
Lightbridge, Inc. (a) 95,000 679
Transportation & Public Utilities (0.3%)
Navigant International, Inc. (a) 21,300 230
Wholesale Trade Durable Goods (1.7%)
A.M. Castle & Co (a) 298,100 1,377
---------
Total Common Stocks (cost: $97,416) 80,895
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (9.0%)
Bank Note (0.5%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 423 $ 423
Euro Dollar Overnight (0.9%)
Bank of Montreal
1.34%, due 05/01/2003 288 288
BNP Paribas SA
1.24%, due 05/06/2003 135 135
Royal Bank of Canada
1.35%, due 05/01/2003 338 338
Euro Dollar Term (2.7%)
American Express Centurion Bank
1.28%, due 05/30/2003 677 677
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 169 169
Credit Agricole Indosuez
1.27%, due 05/12/2003 51 51
1.26%, due 06/24/2003 338 338
Danske Bank A/S
1.25%, due 05/07/2003 423 423
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 169 169
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 423 423
Medium Term Note (0.3%)
Parkland (USA) LLC
1.31%, due 11/26/2003 254 254
Money Market Fund (3.7%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 1,353 1,353
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 1,607 1,607
Promissory Note (0.7%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 592 592
Repurchase Agreement (0.2%)
Merrill Lynch & Co., Inc. (c)
1.42%, due 05/01/2003 169 169
---------
Total Security Lending Collateral (cost: $7,409) 7,409
---------
Total Investment Securities (cost: $104,825) $ 88,304
=========
SUMMARY:
Investments, at market value 107.7 % $ 88,304
Liabilities in excess of other assets (7.7)% (6,346)
--------- ---------
Net assets 100.0 % $ 81,958
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$6,816.
(c) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $173.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Isabelle Small Cap Value 2
IDEX Isabelle Small Cap Value
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $104,825)
(including $6,816 of securities loaned) $ 88,304
Cash 855
Receivables:
Investment securities sold 661
Shares of beneficial interest sold 117
Interest 1
Dividends 29
Other 7
---------
89,974
---------
Liabilities:
Investment securities purchased 310
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 128
Management and advisory fees 61
Distribution fees 43
Transfer agent fees and expenses 42
Payable for securities on loan 7,409
Other 23
---------
8,016
---------
Net Assets $ 81,958
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 101,264
Accumulated net investment income (loss) (536)
Accumulated net realized gain (loss) from investments (2,249)
Net unrealized appreciation (depreciation) of
investments (16,521)
---------
Net Assets $ 81,958
=========
Shares Outstanding:
Class A 4,683
Class B 2,445
Class C 1,233
Class L 39
Class M 390
Net Asset Value Per Share:
Class A $ 9.39
Class B 9.25
Class C 9.25
Class L 9.25
Class M 9.27
Maximum Offering Price Per Share (1):
Class A $ 9.94
Class M 9.36
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 8
Dividends 374
Income from loaned securities-net 16
---------
398
---------
Expenses:
Management and advisory fees 403
Transfer agent fees and expenses 140
Custody fees 14
Administration fees 13
Registration fees 46
Trustees fees and expenses 4
Professional fees 14
Other 20
Distribution and service fees:
Class A 88
Class B 117
Class C 58
Class L 1
Class M 18
---------
Total Expenses 936
Less reimbursements by the investment adviser (3)
---------
Net Expenses 933
---------
Net Investment Income (Loss) (535)
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities 527
Net unrealized appreciation (depreciation) on
investment securities 1,700
---------
Net Gain (Loss) on Investments 2,227
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 1,692
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Isabelle Small Cap Value 3
IDEX Isabelle Small Cap Value
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (535) $ (804)
Net realized gain (loss) on investment
securities 527 (2,706)
Net unrealized appreciation (depreciation)
on investment securities 1,700 (17,075)
--------- ---------
1,692 (20,585)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 18,290 58,353
Class B 2,748 34,191
Class C 1,280 14,164
Class L 386 --
Class M 341 6,626
--------- ---------
23,045 113,334
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (20,470) (10,551)
Class B (5,136) (10,106)
Class C (2,226) (2,668)
Class L (35) --
Class M (1,023) (2,458)
--------- ---------
(28,890) (25,783)
--------- ---------
(5,845) 87,551
--------- ---------
Net increase (decrease) in net assets (4,153) 66,966
--------- ---------
Net Assets:
Beginning of period 86,111 19,145
--------- ---------
End of period $ 81,958 $ 86,111
========= =========
Accumulated Net Investment Income (Loss) $ (536) $ (1)
========= =========
Share Activity:
Shares issued during the period:
Class A 1,964 5,351
Class B 303 2,951
Class C 142 1,250
Class L 43 --
Class M 39 562
--------- ---------
2,491 10,114
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (2,288) (989)
Class B (573) (990)
Class C (249) (262)
Class L (4) --
Class M (114) (242)
--------- ---------
(3,228) (2,483)
--------- ---------
Net increase (decrease) in shares outstanding (737) 7,631
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Isabelle Small Cap Value 4
IDEX Isabelle Small Cap Value
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 9.09 $ (0.04) $ 0.34 $ 0.30
10/31/2002 10.12 (0.07) (0.96) (1.03)
10/31/2001 10.00 (0.02) 0.14 0.12
- --------------------------------------------------------------------------------
Class B 04/30/2003 8.98 (0.07) 0.34 0.27
10/31/2002 10.08 (0.19) (0.91) (1.10)
10/31/2001 10.00 (0.05) 0.13 0.08
- --------------------------------------------------------------------------------
Class C 04/30/2003 8.98 (0.07) 0.34 0.27
10/31/2002 10.08 (0.19) (0.91) (1.10)
10/31/2001 10.00 (0.05) 0.13 0.08
- --------------------------------------------------------------------------------
Class L 04/30/2003 9.01 (0.06) 0.30 0.24
- --------------------------------------------------------------------------------
Class M 04/30/2003 9.00 (0.08) 0.35 0.27
10/31/2002 10.09 (0.19) (0.90) (1.09)
10/31/2001 10.00 (0.06) 0.15 0.09
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 9.39
-- -- -- 9.09
-- -- -- 10.12
- ----------------------------------------------------------
Class B -- -- -- 9.25
-- -- -- 8.98
-- -- -- 10.08
- ----------------------------------------------------------
Class C -- -- -- 9.25
-- -- -- 8.98
-- -- -- 10.08
- ----------------------------------------------------------
Class L -- -- -- 9.25
- ----------------------------------------------------------
Class M -- -- -- 9.27
-- -- -- 9.00
-- -- -- 10.09
- ----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 3.30% $ 43,970 1.80% 1.81% (0.91)% 26.14%
10/31/2002 (10.18) 45,500 1.85 1.98 (0.88) 21.74
10/31/2001 1.20 6,536 1.85 3.56 (0.32) 7.58
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 3.01 22,614 2.45 2.46 (1.56) 26.14
10/31/2002 (10.91) 24,391 2.50 2.63 (1.53) 21.74
10/31/2001 0.80 7,604 2.50 4.21 (0.97) 7.58
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 3.01 11,404 2.45 2.46 (1.56) 26.14
10/31/2002 (10.91) 12,034 2.50 2.63 (1.53) 21.74
10/31/2001 0.80 3,545 2.50 4.21 (0.97) 7.58
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 2.66 359 2.45 2.46 (1.56) 26.14
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 3.00 3,611 2.35 2.36 (1.46) 26.14
10/31/2002 (10.80) 4,186 2.40 2.53 (1.43) 21.74
10/31/2001 0.90 1,460 2.40 4.11 (0.87) 7.58
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Isabelle Small Cap Value 5
IDEX Isabelle Small Cap Value
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Isabelle Small Cap Value ("the Fund") commenced operations on April
2, 2001. The inception date for the Fund's offering of share Class L was
November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Isabelle Small Cap Value 6
IDEX Isabelle Small Cap Value
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Isabelle Small Cap Value ("the Fund"), part
of IDEX Mutual Funds, began operations on April 2, 2001.
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or less are valued at
amortized cost, which approximates market. Other securities for which quotations
are not readily available are valued at fair value determined in such a manner
as the adviser and sub-adviser, under the supervision of the Board of Trustees
and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Directed Brokerage: The sub-adviser, to the extent consistent with the best
execution and usual commission rate policies and practices, may place security
transactions of the Fund with broker/dealers with which IDEX Mutual Funds has
established a Directed Brokerage Program. A Directed Brokerage Program is any
arrangement under which a broker/dealer applies a portion of the commissions
received by such broker/dealer on the security transactions to the payment of
operating expenses that would otherwise be borne by the Fund. In no event will
commissions paid by the Fund be used to pay expenses that would otherwise be
borne by any other funds within IDEX Mutual Funds, or by any other party.
Directed commissions during the six-months ended April 30, 2003, of $15 are
included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are included in
investment securities at market value on the Statement of Assets and Liabilities
and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities loans,
the collateral and securities loaned remain subject to fluctuation in market
value. IBT marks to market securities loaned and the collateral each business
day. If additional collateral is due (at least $1), IBT collects additional cash
collateral from the borrowers. Although securities loaned will be fully
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the event
the borrower fails to timely return a recalled security, IBT may indemnify the
Fund by purchasing replacement securities for the Fund at its own expense and
claiming the collateral to fund such a purchase. IBT absorbs the loss if the
collateral value is not sufficient to cover the cost of the replacement
securities. If replacement securities are not available, IBT will credit the
equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including
IDEX Mutual Funds
Semi-Annual Report 2003
Isabelle Small Cap Value 7
IDEX Isabelle Small Cap Value
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
accretion of discounts and amortization of premiums, is recorded on the accrual
basis commencing on the settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
0.90% of the first $200 million of ANA
0.85% of ANA over $200 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.50% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for the
Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 50
Retained by Underwriter 3
Contingent Sales Charges 41
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $2 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 22,823
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 22,404
U.S. Government --
IDEX Mutual Funds
Semi-Annual Report 2003
Isabelle Small Cap Value 8
IDEX Isabelle Small Cap Value
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 70 October 31, 2009
2,556 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 105,589
==========
Unrealized Appreciation $ 8,091
Unrealized (Depreciation) (25,376)
----------
Net Unrealized Appreciation (Depreciation) $ (17,285)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Isabelle Small Cap Value 9
IDEX Janus Balanced
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS (10.1%)
U.S. Treasury Bond
6.50%, due 05/15/2005 $ 1,060 $ 1,166
5.00%, due 08/15/2011 (b) 830 909
4.88%, due 02/15/2012 355 385
7.25%, due 05/15/2016 (b) 3,615 4,663
7.88%, due 02/15/2021 2,155 2,979
7.25%, due 08/15/2022 1,860 2,439
6.25%, due 08/15/2023 2,346 2,779
6.00%, due 02/15/2026 1,990 2,299
5.25%, due 02/15/2029 1,030 1,084
6.25%, due 05/15/2030 (b) 1,690 2,036
U.S. Treasury Note
3.38%, due 04/30/2004 2,095 2,141
2.13%, due 08/31/2004 5,205 5,265
4.63%, due 05/15/2006 (b) 2,020 2,176
3.50%, due 11/15/2006 (b) 2,440 2,544
5.63%, due 05/15/2008 2,410 2,722
6.00%, due 08/15/2009 2,125 2,460
5.75%, due 08/15/2010 750 860
---------
Total U.S. Government Obligations (cost: $36,900) 38,907
---------
U.S. GOVERNMENT AGENCY OBLIGATIONS (10.4%)
Fannie Mae
6.50%, due 08/15/2004 595 635
1.88%, due 12/15/2004 4,480 4,510
2.13%, due 04/15/2006 (b) 3,885 3,886
5.50%, due 05/02/2006 2,160 2,351
4.75%, due 01/02/2007 (b) 735 786
5.00%, due 01/15/2007 2,905 3,159
5.25%, due 01/15/2009 770 847
6.38%, due 06/15/2009 180 209
6.25%, due 02/01/2011 1,080 1,223
6.00%, due 05/15/2011 220 251
5.38%, due 11/15/2011 2,330 2,553
Federal Home Loan Bank
4.88%, due 05/14/2004 3,040 3,154
3.38%, due 06/15/2004 2,735 2,801
6.50%, due 11/15/2005 2,725 3,034
Freddie Mac
1.88%, due 01/15/2005 (b) 4,485 4,509
4.25%, due 06/15/2005 2,165 2,279
2.38%, due 04/15/2006 3,135 3,158
5.75%, due 04/15/2008 525 590
5.88%, due 03/21/2011 290 322
---------
Total U.S. Government Agency Obligations
(cost: $38,853) 40,257
---------
FOREIGN GOVERNMENT OBLIGATIONS (0.3%)
Federal Republic of Germany
5.00%, due 07/04/2012 1,070 1,273
---------
Total Foreign Government Obligations (cost: $1,171) 1,273
---------
CORPORATE DEBT SECURITIES (22.0%)
Aerospace (1.3%)
Honeywell International Inc.
5.13%, due 11/01/2006 1,410 1,524
Lockheed Martin Corporation
7.25%, due 05/15/2006 610 691
8.20%, due 12/01/2009 750 931
7.65%, due 05/01/2016 1,525 1,901
Amusement & Recreation Services (0.5%)
Disney (Walt) Company (The)
4.88%, due 07/02/2004 1,455 1,501
Premier Parks Inc. (b)
9.75%, due 06/15/2007 305 316
Automotive (0.2%)
Honeywell International Inc.
6.13%, due 11/01/2011 720 800
Beverages (2.9%)
Anheuser-Busch Companies, Inc
5.65%, due 09/15/2008 2,220 2,458
5.75%, due 04/01/2010 600 671
6.00%, due 04/15/2011 1,280 1,429
7.55%, due 10/01/2030 480 620
6.80%, due 01/15/2031 325 386
6.80%, due 08/20/2032 700 833
Coca Cola Enterprises Inc.
5.38%, due 08/15/2006 950 1,036
6.13%, due 08/15/2011 1,150 1,291
4.38%, due 09/15/2009 935 976
7.13%, due 09/30/2009 895 1,060
Pepsi Bottling Group, Inc. (The)
5.63%, due 02/17/2009 480 532
Business Services (0.5%)
Clear Channel Communications, Inc.
6.00%, due 11/01/2006 555 600
4.63%, due 01/15/2008 1,225 1,262
Chemicals & Allied Products (0.3%)
International Flavors & Fragrances Inc.
6.45%, due 05/15/2006 1,150 1,258
Commercial Banks (0.9%)
Citigroup Inc.
7.25%, due 10/01/2010 1,435 1,701
6.63%, due 06/15/2032 435 491
Firstar Bank, NA
7.13%, due 12/01/2009 150 178
US Bank NA
5.70%, due 12/15/2008 1,020 1,126
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Balanced 1
IDEX Janus Balanced
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Communication (2.8%)
Comcast Cable Communications, Inc.
6.38%, due 01/30/2006 $ 85 $ 92
6.75%, due 01/30/2011 1,655 1,827
7.13%, due 06/15/2013 425 482
Comcast Corporation
5.85%, due 01/15/2010 225 239
6.50%, due 01/15/2015 245 266
7.05%, due 03/15/2033 540 586
Cox Communications, Inc.
7.50%, due 08/15/2004 375 400
7.75%, due 08/15/2006 220 250
7.13%, due 10/01/2012 575 671
CSC Holdings, Inc.
7.63%, due 04/01/2011 1,145 1,205
TCI Communications, Inc.
6.38%, due 05/01/2003 2,625 2,625
8.65%, due 09/15/2004 160 172
6.88%, due 02/15/2006 780 855
Viacom Inc.
7.75%, due 06/01/2005 995 1,107
7.70%, due 07/30/2010 270 327
Computer & Office Equipment (0.8%)
Apple Computer, Inc.
6.50%, due 02/15/2004 975 995
Hewlett-Packard Company
3.63%, due 03/15/2008 785 786
Sun Microsystems, Inc.
7.35%, due 08/15/2004 280 294
7.65%, due 08/15/2009 765 863
Department Stores (0.4%)
J.C. Penney Company, Inc.
7.38%, due 08/15/2008 (b) 385 400
8.00%, due 03/01/2010 385 409
Meyer (Fred) Stores, Inc.
7.45%, due 03/01/2008 700 801
Electric Services (0.3%)
Dominion Resources, Inc.
2.80%, due 02/15/2005 490 493
4.13%, due 02/15/2008 320 327
Duke Energy Corporation
6.25%, due 01/15/2012 305 335
Electric, Gas & Sanitary Services (0.3%)
Coastal Corporation
6.20%, due 05/15/2004 205 200
Illinois Power Company-144A
11.50%, due 12/15/2010 865 969
Environmental Services (0.1%)
Allied Waste North America, Inc.
7.88%, due 04/15/2013 175 182
USA Waste Services, Inc.
7.00%, due 10/01/2004 200 213
Fabricated Metal Products (0.1%)
Stanley Works (The)-144A
4.90%, due 11/01/2012 445 453
Food & Kindred Products (0.7%)
Dean Foods Company
6.75%, due 06/15/2005 230 236
6.63%, due 05/15/2009 560 577
General Mills, Inc.
5.13%, due 02/15/2007 (b) 970 1,045
6.00%, due 02/15/2012 640 702
Kellogg Company
7.45%, due 04/01/2031 250 310
Food Stores (0.2%)
Kroger Co. (The)
7.80%, due 08/15/2007 375 430
7.00%, due 05/01/2018 210 235
Furniture & Fixtures (0.3%)
Lear Corporation
7.96%, due 05/15/2005 1,170 1,252
Gas Production & Distribution (0.4%)
Duke Capital Corporation
6.25%, due 07/15/2005 305 319
6.25%, due 02/15/2013 305 314
El Paso Corporation (b)
7.00%, due 05/15/2011 695 605
Sonat Inc. (b)
6.88%, due 06/01/2005 205 193
Holding & Other Investment Offices (0.1%)
Gemstone Investments Ltd.-144A
7.71%, due 10/31/2004 285 274
Hotels & Other Lodging Places (0.6%)
HMH Properties, Inc.
7.88%, due 08/01/2005 460 465
Starwood Hotels & Resorts
Worldwide, Inc.
6.75%, due 11/15/2005 455 471
7.38%, due 05/01/2007 820 857
7.88%, due 05/01/2012 445 466
Industrial Machinery & Equipment (0.4%)
Black & Decker Corporation
7.13%, due 06/01/2011 925 1,074
SPX Corporation
7.50%, due 01/01/2013 470 512
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Balanced 2
IDEX Janus Balanced
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Insurance (0.2%)
UnitedHealth Group Incorporated
7.50%, due 11/15/2005 $ 360 $ 405
5.20%, due 01/17/2007 320 342
Insurance Agents, Brokers & Service (0.3%)
Marsh & McLennan Companies, Inc.
5.38%, due 03/15/2007 970 1,046
Life Insurance (0.3%)
AIG SunAmer Global Financing
IX -144A
5.10%, due 01/17/2007 985 1,050
Lumber & Other Building Materials (0.7%)
Home Depot, Inc. (The)
6.50%, due 09/15/2004 2,600 2,768
Metal Cans & Shipping Containers (0.3%)
Ball Corporation
6.88%, due 12/15/2012 1,075 1,131
Motion Pictures (1.0%)
AOL Time Warner Inc.
5.63%, due 05/01/2005 450 474
6.15%, due 05/01/2007 (b) 1,000 1,078
9.15%, due 02/01/2023 1,325 1,606
7.70%, due 05/01/2032 665 741
Personal Credit Institutions (1.7%)
American General Finance
Corporation-Series F
5.88%, due 07/14/2006 965 1,051
General Electric Capital Corporation
4.25%, due 01/28/2005 (b) 700 731
2.85%, due 01/30/2006 940 954
5.35%, due 03/30/2006 2,030 2,190
General Motors Acceptance Corporation
5.36%, due 07/27/2004 820 843
5.25%, due 05/16/2005 575 590
Pharmaceuticals (0.2%)
Pfizer Inc.
5.63%, due 02/01/2006 485 531
6.00%, due 01/15/2008 265 297
Radio & Television Broadcasting (0.1%)
Liberty Media Corporation
5.70%, due 05/15/2013 320 321
Restaurants (0.2%)
YUM! Brands, Inc.
7.70%, due 07/01/2012 685 762
Security & Commodity Brokers (0.9%)
American Express Company
6.75%, due 06/23/2004 1,400 1,482
Salomon Smith Barney Holdings Inc.
6.50%, due 02/15/2008 755 854
Schwab (Charles) Corporation (The)
8.05%, due 03/01/2010 800 943
Telecommunications (1.1%)
AT&T Broadband, LLC
7.88%, due 08/01/2013 380 445
Verizon Global Funding Corp.
6.13%, due 06/15/2007 1,020 1,136
4.00%, due 01/15/2008 1,010 1,033
VoiceStream Wireless Corporation
10.38%, due 11/15/2009 1,430 1,587
Textile Mill Products (0.1%)
Mohawk Industries, Inc.
7.20%, due 04/15/2012 285 319
Variety Stores (0.8%)
Target Corporation
5.50%, due 04/01/2007 435 471
Wal-Mart Stores, Inc.
5.45%, due 08/01/2006 1,125 1,233
6.88%, due 08/10/2009 1,125 1,332
---------
Total Corporate Debt Securities (cost: $77,915) 84,479
---------
CONVERTIBLE BONDS (0.3%)
Printing & Publishing (0.3%)
Tribune Company-PHONES
2.00%, due 05/15/2029 14 1,108
---------
Total Convertible Bonds (cost: $1,732) 1,108
---------
Shares Value
- ------------------------------------------------------------------------------
PREFERRED STOCKS (0.7%)
Automotive (0.7%)
General Motors Corporation 112,100 $ 2,676
---------
Total Preferred Stocks (cost: $2,943) 2,676
---------
COMMON STOCKS (48.8%)
Air Transportation (0.8%)
FedEx Corporation 32,485 1,945
Southwest Airlines Co. 65,630 1,047
Amusement & Recreation Services (0.1%)
Westwood One, Inc. (a) 6,180 216
Automotive (1.2%)
Bayerische Motoren Werke AG (BMW) (b) 73,238 2,441
Honeywell International Inc. 96,600 2,280
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Balanced 3
IDEX Janus Balanced
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Beverages (3.3%)
Anheuser-Busch Companies, Inc. 103,985 $ 5,187
Diageo PLC 285,420 3,165
Pepsi Bottling Group, Inc. (The) 70,630 1,451
PepsiCo, Inc. 66,335 2,871
Chemicals & Allied Products (2.9%)
Avon Products, Inc. 18,210 1,059
Colgate-Palmolive Company 31,475 1,799
du Pont (E.I.) de Nemours and Company 48,285 2,054
Procter & Gamble Company (The) 54,105 4,862
Reckitt Benckiser PLC 80,748 1,424
Commercial Banks (3.3%)
Bank of America Corporation 40,970 3,034
Citigroup Inc. 180,237 7,074
U.S. Bancorp 118,196 2,618
Communication (3.3%)
Comcast Corporation-Class A (a) 40,053 1,278
Comcast Corporation-Special
Class A (a)(b) 58,194 1,749
Cox Communications, Inc.-
Class A (a)(b) 41,500 1,374
Liberty Media Corporation-Class A (a) 339,560 3,734
Viacom, Inc.-Class B (a) 101,148 4,390
Communications Equipment (0.5%)
Nokia Oyj-ADR 122,545 2,031
Computer & Data Processing Services (2.5%)
Automatic Data Processing, Inc. 45,880 1,543
Microsoft Corporation 203,030 5,191
PeopleSoft, Inc. (a) 52,240 785
Yahoo! Inc. (a) 88,280 2,188
Computer & Office Equipment (2.6%)
Cisco Systems, Inc. (a) 93,605 1,408
Dell Computer Corporation (a) 74,790 2,162
International Business Machines
Corporation 41,790 3,548
Lexmark International Group, Inc. (a)(b) 37,185 2,771
Drug Stores & Proprietary Stores (0.3%)
Walgreen Co. 37,975 1,172
Electric Services (0.6%)
EnCana Corporation (CAD) 22,669 742
EnCana Corporation (USD) (b) 51,530 1,695
Electronic & Other Electric Equipment (1.0%)
General Electric Company 131,475 3,872
Electronic Components & Accessories (1.4%)
Linear Technology Corporation 38,310 1,321
Maxim Integrated Products 38,245 1,503
Texas Instruments Incorporated 139,825 2,585
Environmental Services (0.5%)
Waste Management, Inc. 88,630 1,925
Food & Kindred Products (0.8%)
Kellogg Company 20,235 662
Unilever NV-NY Shares 39,940 2,515
Hotels & Other Lodging Places (1.8%)
Fairmont Hotels & Resorts Inc. (b) 34,616 793
Marriott International, Inc.-Class A (b) 118,025 4,238
Starwood Hotels & Resorts
Worldwide, Inc. 66,540 1,786
Insurance (3.2%)
AFLAC Incorporated 75,670 2,475
Allstate Corporation (The) 56,605 2,139
American International Group, Inc. 26,896 1,559
Berkshire Hathaway Inc.-Class B (a) 2,563 5,977
Insurance Agents, Brokers & Service (1.6%)
Marsh & McLennan Companies, Inc. 130,525 6,223
Lumber & Other Building Materials (0.2%)
Home Depot, Inc. (The) 30,325 853
Manufacturing Industries (0.4%)
Mattel, Inc. (b) 67,185 1,461
Medical Instruments & Supplies (0.8%)
Medtronic, Inc. 66,570 3,178
Motion Pictures (0.6%)
AOL Time Warner Inc. (a) 172,570 2,361
Oil & Gas Extraction (2.1%)
Anadarko Petroleum Corporation 18,395 817
Apache Corporation 38,781 2,220
Burlington Resources Inc. 40,700 1,885
Total Fina Elf SA 25,147 3,294
Paper & Allied Products (1.2%)
3M Company 37,010 4,666
Petroleum Refining (1.6%)
Exxon Mobil Corporation 171,105 6,023
Pharmaceuticals (3.4%)
Abbott Laboratories 20,560 835
Forest Laboratories, Inc. (a) 30,780 1,592
Johnson & Johnson 58,665 3,306
Merck & Co., Inc. 52,675 3,065
Pfizer Inc. 146,765 4,513
Printing & Publishing (1.4%)
Gannett Co., Inc. 70,095 5,308
Radio & Television Broadcasting (0.5%)
USA Interactive (a)(b) 63,410 1,899
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Balanced 4
IDEX Janus Balanced
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Radio, Television & Computer Stores (0.3%)
Best Buy Co., Inc. (a) 30,155 $ 1,043
Railroads (0.7%)
Canadian National Railway Company 51,520 2,505
Security & Commodity Brokers (1.0%)
American Express Company 55,600 2,105
Goldman Sachs Group, Inc. (The) 24,440 1,855
Telecommunications (0.6%)
Verizon Communications, Inc. 61,640 2,304
Textile Mill Products (0.6%)
Mohawk Industries, Inc. (a) 38,715 2,148
Transportation Equipment (0.6%)
General Dynamics Corporation 38,370 2,382
Variety Stores (1.1%)
Costco Wholesale Corporation (a) 36,450 1,262
Wal-Mart Stores, Inc. 53,960 3,039
---------
Total Common Stocks (cost: $186,500) 187,780
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (10.1%)
Bank Notes (0.6%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 2,242 $ 2,242
Euro Dollar Overnight (1.0%)
Bank of Montreal
1.34%, due 05/01/2003 1,528 1,528
BNP Paribas SA
1.24%, due 05/06/2003 717 717
Royal Bank of Canada
1.35%, due 05/01/2003 1,793 1,793
Euro Dollar Term (3.1%)
American Express Centurion Bank
1.28%, due 05/30/2003 3,586 3,586
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 897 897
Credit Agricole Indosuez
1.27%, due 05/12/2003 269 269
1.26%, due 06/24/2003 1,793 1,793
Danske Bank A/S
1.25%, due 05/07/2003 2,242 2,242
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 897 897
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 2,242 2,242
Medium Term Notes (0.3%)
Parkland (USA) LLC
1.31%, due 11/26/2003 1,345 1,345
Money Market Funds (4.1%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 7,172 7,172
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 8,517 8,517
Promissory Notes (0.8%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 3,138 3,138
Repurchase Agreements (0.2%)
Merrill Lynch & Co., Inc. (c)
1.42%, due 05/01/2003 897 897
---------
Total Security Lending Collateral (cost: $39,275) 39,275
---------
Total Investment Securities (cost: $385,289) $ 395,755
=========
SUMMARY:
Investments, at market value 102.7 % $ 395,755
Liabilities in excess of other assets (2.7)% (10,499)
--------- ---------
Net assets 100.0 % $ 385,256
========= =========
FORWARD FOREIGN CURRENCY CONTRACTS:
- ------------------------------------------------------------------------------
Amount in Net Unrealized
Bought Settlement U.S. Dollars Appreciation
Currency (Sold) Date Bought (Sold) (Depreciation)
- --------------------- ----------- ------------ --------------- ---------------
Canadian Dollar (980) 10/17/03 $ (664) $ (11)
Euro Dollar (5,900) 09/28/03 (6,266) (282)
Great British Pound (200) 09/28/03 (312) (5)
Great British Pound (2,450) 10/17/03 (3,798) (76)
---------- ------
$ (11,040) $ (374)
========== ======
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$38,188.
(c) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $915.
DEFINITIONS:
ADR American Depositary Receipt
PHONES Participation Hybrid Option Note Exchangeable Securities
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Balanced 5
IDEX Janus Balanced
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $385,289)
(including $38,188 of securities loaned) $ 395,755
Cash 28,349
Receivables:
Shares of beneficial interest sold 369
Interest 2,536
Dividends 164
Other 70
---------
427,243
---------
Liabilities:
Investment securities purchased 836
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 636
Management and advisory fees 296
Distribution fees 254
Transfer agent fees and expenses 183
Payable for securities on loan 39,275
Forward foreign currency contract 374
Other 133
---------
41,987
---------
Net Assets $ 385,256
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 449,521
Undistributed net investment income (loss) 188
Accumulated net realized gain (loss) from investments
and foreign currency transactions (74,545)
Net unrealized appreciation (depreciation) of
investments and on translation of assets and liabilities
in foreign currencies 10,092
---------
Net Assets $ 385,256
=========
Shares Outstanding:
Class A 5,850
Class B 12,540
Class C 2,085
Class L 160
Class M 2,705
Net Asset Value Per Share:
Class A $ 16.54
Class B 16.50
Class C 16.50
Class L 16.50
Class M 16.50
Maximum Offering Price Per Share (1):
Class A $ 17.50
Class M 16.67
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 4,244
Dividends 1,456
Income from loaned securities-net 36
Less withholding taxes on foreign dividends (18)
---------
5,718
---------
Expenses:
Management and advisory fees 1,832
Transfer agent fees and expenses 557
Custody fees 39
Administration fees 16
Registration fees 43
Trustees fees and expenses 18
Professional fees 37
Other 96
Distribution and service fees:
Class A 169
Class B 1,035
Class C 180
Class L 6
Class M 208
---------
Total Expenses 4,236
---------
Net Investment Income (Loss) 1,482
---------
Net Realized Gain (Loss):
Net investment securities (9,981)
Net foreign currency transactions (341)
---------
(10,322)
---------
Net Unrealized Appreciation (Depreciation) :
Net investment securities 17,216
Net translation of assets and liabilities
denominated in foreign currency (370)
---------
16,846
---------
Net Gain (Loss) on Investments and Foreign
Currency Transactions 6,524
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 8,006
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Balanced 6
IDEX Janus Balanced
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 1,482 $ 5,471
Net realized gain (loss) on investment
securities and foreign currency transactions (10,322) (38,492)
Net unrealized appreciation (depreciation)
on investment securities and foreign
currency translation 16,846 8,445
--------- ---------
8,006 (24,576)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A (684) (1,905)
Class B (805) (2,364)
Class C (139) (444)
Class L (5) --
Class M (202) (639)
--------- ---------
(1,835) (5,352)
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 10,235 23,874
Class B 19,398 55,027
Class C 2,888 12,548
Class L 2,712 --
Class M 1,501 9,351
--------- ---------
36,734 100,800
--------- ---------
Dividends and distributions reinvested:
Class A 650 1,812
Class B 741 2,199
Class C 125 405
Class L 5 --
Class M 187 591
--------- ---------
1,708 5,007
--------- ---------
Cost of shares redeemed:
Class A (16,773) (43,731)
Class B (30,493) (70,703)
Class C (8,786) (17,781)
Class L (148) --
Class M (8,149) (20,468)
--------- ---------
(64,349) (152,683)
--------- ---------
(25,907) (46,876)
--------- ---------
Net increase (decrease) in net assets (19,736) (76,804)
--------- ---------
Net Assets:
Beginning of period 404,992 481,796
--------- ---------
End of period $ 385,256 $ 404,992
========= =========
Undistributed Net Investment Income (Loss) $ 186 $ 541
========= =========
Share Activity:
Shares issued during the period:
Class A 634 1,398
Class B 1,202 3,210
Class C 179 729
Class L 169 --
Class M 94 547
--------- ---------
2,278 5,884
--------- ---------
Shares issued-reinvested from distributions:
Class A 41 106
Class B 47 128
Class C 8 24
Class L -- --
Class M 12 34
--------- ---------
108 292
--------- ---------
Shares redeemed during the period:
Class A (1,044) (2,585)
Class B (1,906) (4,211)
Class C (546) (1,049)
Class L (9) --
Class M (509) (1,210)
--------- ---------
(4,014) (9,055)
--------- ---------
Net increase (decrease) in shares outstanding (1,628) (2,879)
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Balanced 7
IDEX Janus Balanced
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 16.23 $ 0.10 $ 0.32 $ 0.42
10/31/2002 17.31 0.29 (1.09) (0.80)
10/31/2001 19.75 0.37 (2.18) (1.81)
10/31/2000 18.96 0.25 1.03 1.28
10/31/1999 14.75 0.19 4.27 4.46
10/31/1998 14.34 0.15 1.76 1.91
- --------------------------------------------------------------------------------
Class B 04/30/2003 16.22 0.05 0.29 0.34
10/31/2002 17.30 0.18 (1.09) (0.91)
10/31/2001 19.73 0.25 (2.17) (1.92)
10/31/2000 18.95 0.21 1.03 1.24
10/31/1999 14.74 0.08 4.27 4.35
10/31/1998 14.33 0.06 1.76 1.82
- --------------------------------------------------------------------------------
Class C 04/30/2003 16.22 0.05 0.29 0.34
10/31/2002 17.30 0.18 (1.09) (0.91)
10/31/2001 19.73 0.26 (2.18) (1.92)
10/31/2000 18.95 0.21 1.03 1.24
- --------------------------------------------------------------------------------
Class L 04/30/2003 16.22 0.04 0.30 0.34
- --------------------------------------------------------------------------------
Class M 04/30/2003 16.22 0.06 0.29 0.35
10/31/2002 17.30 0.19 (1.09) (0.90)
10/31/2001 19.73 0.28 (2.18) (1.90)
10/31/2000 18.95 0.23 1.03 1.26
10/31/1999 14.74 0.10 4.27 4.37
10/31/1998 14.33 0.07 1.76 1.83
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
----------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ------------
Class A $ (0.11) $ -- $ (0.11) $ 16.54
(0.28) -- (0.28) 16.23
(0.35) (0.28) (0.63) 17.31
(0.24) (0.25) (0.49) 19.75
(0.17) (0.08) (0.25) 18.96
(0.15) (1.35) (1.50) 14.75
- ------------------------------------------------------------
Class B (0.06) -- (0.06) 16.50
(0.17) -- (0.17) 16.22
(0.23) (0.28) (0.51) 17.30
(0.21) (0.25) (0.46) 19.73
(0.06) (0.08) (0.14) 18.95
(0.06) (1.35) (1.41) 14.74
- ------------------------------------------------------------
Class C (0.06) -- (0.06) 16.50
(0.17) -- (0.17) 16.22
(0.23) (0.28) (0.51) 17.30
(0.21) (0.25) (0.46) 19.73
- ------------------------------------------------------------
Class L (0.06) -- (0.06) 16.50
- ------------------------------------------------------------
Class M (0.07) -- (0.07) 16.50
(0.18) -- (0.18) 16.22
(0.25) (0.28) (0.53) 17.30
(0.23) (0.25) (0.48) 19.73
(0.08) (0.08) (0.16) 18.95
(0.07) (1.35) (1.42) 14.74
- ------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 2.64% $ 96,730 1.71% 1.73% 1.24% 33.87%
10/31/2002 (4.72) 100,923 1.68 1.70 1.70 87.22
10/31/2001 (9.35) 126,369 1.64 1.66 1.96 113.77
10/31/2000 7.23 133,445 1.67 1.69 1.73 70.87
10/31/1999 30.43 67,749 1.81 1.82 1.28 59.57
10/31/1998 14.69 22,995 1.85 2.04 1.12 61.50
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 2.13 206,856 2.36 2.38 0.59 33.87
10/31/2002 (5.31) 214,019 2.33 2.35 1.05 87.22
10/31/2001 (9.93) 243,387 2.29 2.31 1.31 113.77
10/31/2000 6.58 229,160 2.32 2.34 1.08 70.87
10/31/1999 29.64 92,833 2.46 2.47 0.63 59.57
10/31/1998 13.97 11,916 2.50 2.69 0.47 61.50
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 2.13 34,397 2.36 2.38 0.59 33.87
10/31/2002 (5.31) 39,636 2.33 2.35 1.05 87.22
10/31/2001 (9.93) 47,399 2.29 2.31 1.31 113.77
10/31/2000 6.58 42,447 2.32 2.34 1.08 70.87
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 3.39 2,638 2.36 2.38 0.59 33.87
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 2.18 44,635 2.26 2.28 0.69 33.87
10/31/2002 (5.23) 50,414 2.23 2.25 1.15 87.22
10/31/2001 (9.84) 64,641 2.19 2.21 1.41 113.77
10/31/2000 6.68 66,249 2.22 2.24 1.18 70.87
10/31/1999 29.76 34,122 2.36 2.37 0.73 59.57
10/31/1998 14.08 4,897 2.40 2.59 0.57 61.50
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Balanced 8
IDEX Janus Balanced
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less fee waivers and reimbursements by the
investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
fee waivers and reimbursements by the investment adviser or affiliated
brokerage and custody earnings credits, if any.
(g) The inception date for the Fund's offering of share classes C and L are as
follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Balanced 9
IDEX Janus Balanced
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Janus Balanced ("the Fund"), part of IDEX
Mutual Funds, began operations on December 2, 1994.
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or less are valued at
amortized cost, which approximates market. Other securities for which quotations
are not readily available are valued at fair value determined in such a manner
as the adviser and sub-adviser, under the supervision of the Board of Trustees
and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are included in
investment securities at market value on the Statement of Assets and Liabilities
and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities loans,
the collateral and securities loaned remain subject to fluctuation in market
value. IBT marks to market securities loaned and the collateral each business
day. If additional collateral is due (at least $1), IBT collects additional cash
collateral from the borrowers. Although securities loaned will be fully
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the event
the borrower fails to timely return a recalled security, IBT may indemnify the
Fund by purchasing replacement securities for the Fund at its own expense and
claiming the collateral to fund such a purchase. IBT absorbs the loss if the
collateral value is not sufficient to cover the cost of the replacement
securities. If replacement securities are not available, IBT will credit the
equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amounts of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
for on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or, in
the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Foreign currency denominated investments: The accounting records of the Fund are
maintained in U.S. dollars. Securities and other assets and liabilities
denominated in foreign currencies are translated into U.S. dollars at the
closing exchange rate each day. The cost of foreign securities is translated at
the exchange rate in effect when the investment was acquired. The Fund combines
fluctuations from currency exchange rates and fluctuations in market value when
computing net realized and unrealized gains or losses from investments. Net
foreign currency gains and losses resulting from changes in exchange rates
include: 1) foreign currency fluctuations between trade date and settlement date
of investment security transactions; 2) gains and losses
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Balanced 10
IDEX Janus Balanced
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
on forward foreign currency contracts; and 3) the difference between the
receivable amounts of interest and dividends recorded in the accounting records
in U.S. dollars and the amounts actually received. Foreign currency denominated
assets may involve risks not typically associated with domestic transactions,
including unanticipated movements in exchange currency rates, the degree of
government supervision and regulation of security markets, and the possibility
of political or economic instability.
Forward foreign currency contracts: The Fund may enter into forward foreign
currency contracts to hedge against exchange rate risk arising from investments
in securities denominated in foreign currencies. Contracts are valued at the
contractual forward rate and are marked to market daily, with the change in
market value recorded as an unrealized gain or loss. When the contracts are
closed a realized gain or loss is incurred. Risks may arise from changes in
market value of the underlying currencies and from the possible inability of
counterparties to meet the terms of their contracts. Open forward currency
contracts at April 30, 2003, are listed in the Schedule of Investments.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
1.00% of the first $250 million of ANA
0.90% of the next $500 million of ANA
0.80% of the next $750 million of ANA
0.70% of ANA over $1.5 billion
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.50% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for the
Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 225
Retained by Underwriter 22
Contingent Sales Charges 345
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and other
legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account charges
(not in thousands) of $15.39 for each open shareholder account, $2.73 for each
new account opened, $1.63 for each closed account maintained, and certain
out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan amounts
are included in Other assets, and the total liability of $18 for deferred
compensation to Trustees is included in Other liabilities.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Balanced 11
IDEX Janus Balanced
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 92,255
U.S. Government 27,553
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 95,974
U.S. Government 35,969
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 23,179 October 31, 2009
40,242 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 385,948
==========
Unrealized Appreciation $ 21,498
Unrealized (Depreciation) (11,691)
----------
Net Unrealized Appreciation (Depreciation) $ 9,807
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Balanced 12
IDEX Janus Flexible Income
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS (17.8%)
U.S. Treasury Bond
3.88%, due 02/15/2013 (a) $ 3,515 $ 3,520
7.25%, due 05/15/2016 (a) 3,085 3,978
7.25%, due 08/15/2022 2,130 2,793
6.25%, due 08/15/2023 9,120 10,802
6.25%, due 05/15/2030 (c) 760 916
5.38%, due 02/15/2031 (a) 1,855 2,024
U.S. Treasury Inflation Index
3.00%, due 07/15/2012 3,212 3,448
U.S. Treasury Note
2.00%, due 11/30/2004 105 106
5.75%, due 11/15/2005 (a) 2,327 2,557
5.63%, due 02/15/2006 (a) 710 783
3.50%, due 11/15/2006 (a) 1,097 1,144
4.38%, due 05/15/2007 (a) 3,330 3,573
3.00%, due 02/15/2008 (a) 2,245 2,268
---------
Total U.S. Government Obligations (cost: $36,433) 37,912
---------
U.S. GOVERNMENT AGENCY OBLIGATIONS (18.4%)
Fannie Mae
3.88%, due 03/15/2005 (a) 12,225 12,758
2.88%, due 10/15/2005 3,000 3,073
4.38%, due 10/15/2006 1,530 1,631
3.25%, due 11/15/2007 (a) 2,250 2,286
5.25%, due 01/15/2009 2,830 3,113
6.25%, due 02/01/2011 2,635 2,983
6.00%, due 05/15/2011 225 256
6.13%, due 03/15/2012 415 477
4.38%, due 09/15/2012 (a) 1,425 1,442
6.63%, due 11/15/2030 3,305 3,955
Fannie Mae-Conventional Pool
4.63%, due 05/01/2013 775 780
Federal Home Loan Bank
5.13%, due 03/06/2006 2,440 2,640
9.50%, due 02/27/2015 (d) 525 525
Freddie Mac
5.88%, due 03/21/2011 3,000 3,326
---------
Total U.S. Government Agency Obligations
(cost: $37,600) 39,245
---------
FOREIGN GOVERNMENT OBLIGATIONS (4.4%)
Federal Republic of Germany
5.00%, due 07/04/2012 4,250 5,057
Federal Republic of Germany-Series 140
4.50%, due 08/17/2007 775 908
Kingdom of Spain
5.00%, due 07/30/2012 350 392
United Mexican States
4.63%, due 10/08/2008 400 406
6.38%, due 01/16/2013 1,675 1,755
8.00%, due 09/24/2022 750 831
---------
Total Foreign Government Obligations (cost: $8,578) 9,349
---------
CORPORATE DEBT SECURITIES (57.9%)
Amusement & Recreation Services (0.1%)
Hard Rock Hotel, Inc.-Series B
9.25%, due 04/01/2005 250 255
Apparel Products (0.1%)
Cintas Corporation No. 2
6.00%, due 06/01/2012 245 269
Auto Repair, Services & Parking (0.4%)
PHH Corporation
6.00%, due 03/01/2008 775 812
Automotive Dealers & Service Stations (0.4%)
AutoZone, Inc.
5.88%, due 10/15/2012 750 784
Beverages (1.6%)
Anheuser-Busch Companies, Inc
5.95%, due 01/15/2033 375 400
Brown-Forman Corporation-144A
2.13%, due 03/15/2006 600 598
Coca Cola Enterprises Inc.
4.38%, due 09/15/2009 1,000 1,044
6.13%, due 08/15/2011 285 320
7.13%, due 08/01/2017 435 535
Coors (Adolph) Company
6.38%, due 05/15/2012 535 599
Business Credit Institutions (2.0%)
ChevronTexaco Capital Corporation
3.50%, due 09/17/2007 1,035 1,059
Deere (John) Capital Corporation
4.13%, due 07/15/2005 290 304
Ford Motor Credit Company
5.75%, due 02/23/2004 1,500 1,526
National Rural Utilities Cooperative
Finance Company
5.75%, due 08/28/2009 1,250 1,356
Business Services (0.6%)
ARAMARK Services, Inc.
7.00%, due 05/01/2007 430 461
6.38%, due 02/15/2008 575 606
Clear Channel Communications, Inc.
6.00%, due 11/01/2006 105 114
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Flexible Income 1
IDEX Janus Flexible Income
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Chemicals & Allied Products (1.1%)
Dial Corporation (The)
7.00%, due 08/15/2006 $ 890 $ 983
6.50%, due 09/15/2008 600 650
Proctor & Gamble Company (The)
4.75%, due 06/15/2007 645 691
Commercial Banks (1.7%)
Citigroup Inc.
4.88%, due 05/07/2015 775 775
Citizens Banking Corporation-144A
5.75%, due 02/01/2013 175 173
First Tennessee Bank National Association
4.63%, due 05/15/2013 250 251
Hudson United Bancorp
8.20%, due 09/15/2006 300 339
Mellon Funding Corporation
5.00%, due 12/01/2014 600 624
U.S. Bancorp
2.75%, due 03/30/2006 1,275 1,291
Wilmington Trust Corporation-144A
4.88%, due 04/15/2013 125 125
Communication (4.0%)
Comcast Cable Communications, Inc. (a)
6.38%, due 01/30/2006 1,000 1,084
Comcast Corporation
5.85%, due 01/15/2010 1,000 1,064
5.50%, due 03/15/2011 1,275 1,315
7.05%, due 03/15/2033 625 678
Cox Communications, Inc.
6.15%, due 08/01/2003 (d) 645 646
6.88%, due 06/15/2005 1,000 1,093
7.13%, due 10/01/2012 (a) 110 128
Echostar DBS Corporation
9.13%, due 01/15/2009 905 1,018
TCI Communications, Inc.
6.38%, due 05/01/2003 375 375
Viacom Inc.
6.40%, due 01/30/2006 500 552
Viacom, Inc.-Class A
5.63%, due 08/15/2012 400 433
Computer & Data Processing Services (0.2%)
Fiserv, Inc.-144A
4.00%, due 04/15/2008 375 381
Computer & Office Equipment (1.6%)
Apple Computer, Inc.
6.50%, due 02/15/2004 745 760
International Business Machines Corporation
4.25%, due 09/15/2009 500 521
4.75%, due 11/29/2012 525 540
5.88%, due 11/29/2032 650 682
Pitney Bowes Inc.
4.75%, due 05/15/2018 850 852
Construction (0.4%)
Pulte Homes, Inc.
6.25%, due 02/15/2013 575 621
Toll Brothers, Inc.-144A
6.88%, due 11/15/2012 250 277
Department Stores (1.3%)
J.C. Penney Company, Inc.
6.00%, due 05/01/2006 900 896
7.60%, due 04/01/2007 950 998
Meyer (Fred) Stores, Inc.
7.45%, due 03/01/2008 550 629
Saks Incorporated (a)
8.25%, due 11/15/2008 250 270
Drug Stores & Proprietary Stores (0.5%)
CVS Corporation
3.88%, due 11/01/2007 750 763
Rite Aid Corporation
7.63%, due 04/15/2005 100 100
7.13%, due 01/15/2007 (a) 100 97
Rite Aid Corporation-144A
8.13%, due 05/01/2010 200 205
Electric Services (2.7%)
Ameren Energy Generating
Company-Series F
7.95%, due 06/01/2032 295 360
CenterPoint Energy Resources Corp.
6.50%, due 02/01/2008 250 268
Dominion Resources, Inc.
2.80%, due 02/15/2005 825 831
4.13%, due 02/15/2008 625 639
5.13%, due 12/15/2009 650 677
5.00%, due 03/15/2013 775 780
Southwestern Public Service Company
5.13%, due 11/01/2006 500 524
TXU Corp.
6.38%, due 06/15/2006 250 266
6.38%, due 01/01/2008 750 795
TXU Energy Company LLC-144A
7.00%, due 03/15/2013 525 580
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Flexible Income 2
IDEX Janus Flexible Income
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Electric, Gas & Sanitary Services (1.8%)
Cinergy Corp. (f)
6.25%, due 09/01/2004 $ 1,000 $ 1,055
Public Service Company of
Colorado-144A
7.88%, due 10/01/2012 1,000 1,225
4.88%, due 03/01/2013 600 605
Public Service Company of
Colorado-Series A
6.88%, due 07/15/2009 100 113
Xcel Energy Inc.
7.00%, due 12/01/2010 675 743
Electronic Components & Accessories (0.6%)
Tyco International Ltd.
6.38%, due 06/15/2005 1,200 1,212
Environmental Services (1.8%)
Republic Services, Inc.
6.75%, due 08/15/2011 1,000 1,126
USA Waste Services, Inc.
7.00%, due 10/01/2004 1,250 1,328
Waste Management, Inc.
7.38%, due 08/01/2010 1,200 1,399
Fabricated Metal Products (0.2%)
Gillette Company (The)
4.13%, due 08/30/2007 500 522
Food & Kindred Products (2.2%)
Dean Foods Company
6.63%, due 05/15/2009 900 927
Del Monte Foods Company (a)
9.25%, due 05/15/2011 115 124
Del Monte Foods Company-144A
8.63%, due 12/15/2012 275 296
General Mills, Inc.
5.13%, due 02/15/2007 (a) 500 539
3.88%, due 11/30/2007 1,000 1,017
6.00%, due 02/15/2012 125 137
Kellogg Company
6.00%, due 04/01/2006 650 714
Kellogg Company-Series B
6.60%, due 04/01/2011 750 858
Food Stores (0.9%)
Kroger, Co. (The)
7.38%, due 03/01/2005 600 649
Safeway Inc.
6.15%, due 03/01/2006 570 618
Stater Bros. Holdings Inc.
10.75%, due 08/15/2006 225 239
Winn-Dixie Stores, Inc. (a)
8.88%, due 04/01/2008 400 430
Gas Production & Distribution (0.8%)
Kinder Morgan, Inc.
6.50%, due 09/01/2012 750 835
Southwest Gas Corporation
7.63%, due 05/15/2012 720 807
Health Services (3.8%)
Fresenius Finance BV-144A
7.75%, due 04/30/2009 150 167
Fresenius Medical Care Capital Trust IV
7.88%, due 06/15/2011 100 105
HCA Inc.
6.91%, due 06/15/2005 1,500 1,595
7.00%, due 07/01/2007 455 491
6.95%, due 05/01/2012 1,000 1,075
6.25%, due 02/15/2013 1,000 1,032
8.36%, due 04/15/2024 50 56
Laboratory Corporation of America Holdings
5.50%, due 02/01/2013 275 284
Manor Care, Inc.-144A
6.25%, due 05/01/2013 160 162
Quest Diagnostics Incorporated
6.75%, due 07/12/2006 1,250 1,382
7.50%, due 07/12/2011 775 912
Tenet Healthcare Corporation
5.38%, due 11/15/2006 650 627
Hotels & Other Lodging Places (0.9%)
HMH Properties, Inc.
7.88%, due 08/01/2005 500 505
Starwood Hotels & Resorts
Worldwide, Inc.
6.75%, due 11/15/2005 1,335 1,382
Industrial Machinery & Equipment (0.3%)
Kennametal Inc.
7.20%, due 06/15/2012 400 426
Timken Company (The)
5.75%, due 02/15/2010 250 255
Instruments & Related Products (0.8%)
Bausch & Lomb Incorporated
6.38%, due 08/01/2003 (d) 525 525
6.95%, due 11/15/2007 150 156
Raytheon Company
6.50%, due 07/15/2005 1,000 1,080
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Flexible Income 3
IDEX Janus Flexible Income
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Insurance (4.1%)
Aon Corporation (e)
6.70%, due 01/15/2007 $ 375 $ 409
Farmers Insurance Exchange-144A
8.50%, due 08/01/2004 200 203
First American Capital Trust I
8.50%, due 04/15/2012 300 299
Liberty Mutual Insurance
Company-144A
8.50%, due 05/15/2025 525 443
7.88%, due 10/15/2026 250 194
Markel Corporation
6.80%, due 02/15/2013 750 753
Progressive Corporation (The)
6.25%, due 12/01/2032 250 270
StanCorp Financial Group, Inc.
6.88%, due 10/01/2012 1,250 1,364
Travelers Property Casualty
Corp.-144A (a)
5.00%, due 03/15/2013 775 789
UnitedHealth Group Incorporated
7.50%, due 11/15/2005 360 405
5.20%, due 01/17/2007 643 686
4.88%, due 04/01/2013 525 537
W.R. Berkley Corporation
5.88%, due 02/15/2013 930 945
WellPoint Health Networks Inc.
6.38%, due 06/15/2006 1,185 1,309
Insurance Agents, Brokers & Service (0.1%)
Marsh & McLennan Companies, Inc.
6.25%, due 03/15/2012 215 241
Life Insurance (0.8%)
Americo Life, Inc.-144A
7.88%, due 05/01/2013 750 741
Delphi Financial Group, Inc.
8.00%, due 10/01/2003 500 508
Nationwide Financial Services, Inc.
5.63%, due 02/13/2015 550 559
Lumber & Wood Products (0.4%)
Weyerhaeuser Company
5.25%, due 12/15/2009 800 834
Metal Cans & Shipping Containers (0.1%)
Ball Corporation (a)
6.88%, due 12/15/2012 250 263
Metal Mining (0.4%)
Freeport-McMoRan Cooper & Gold
Inc.-144A (a)
10.13%, due 02/01/2010 800 866
Motion Pictures (0.7%)
AMC Entertainment Inc. (a)
9.88%, due 02/01/2012 300 315
AOL Time Warner Inc.
5.63%, due 05/01/2005 750 790
6.88%, due 05/01/2012 425 464
Motor Vehicles, Parts & Supplies (0.2%)
TRW Automotive Inc.-144A
10.13%, due 02/15/2013 425 493
Oil & Gas Extraction (2.0%)
Magnum Hunter Resources, Inc.
9.60%, due 03/15/2012 190 205
Occidental Petroleum Corporation
5.88%, due 01/15/2007 450 493
4.25%, due 03/15/2010 350 352
Pemex Project Funding Master Trust
7.38%, due 12/15/2014 (a) 1,250 1,356
8.63%, due 02/01/2022 500 555
Pemex Project Funding Master
Trust-144A
6.13%, due 08/15/2008 1,250 1,322
Westport Resources Corporation-144A
8.25%, due 11/04/2011 75 82
Paper & Allied Products (0.1%)
International Paper Company
5.85%, due 10/30/2012 250 267
Personal Credit Institutions (4.4%)
General Electric Capital Corporation
2.85%, due 01/30/2006 2,000 2,030
6.00%, due 06/15/2012 (a) 395 436
General Motors Acceptance Corporation
5.25%, due 05/16/2005 1,750 1,796
6.13%, due 08/28/2007 250 260
6.88%, due 08/28/2012 250 254
Household Finance Corporation
3.38%, due 02/21/2006 500 514
4.63%, due 01/15/2008 600 626
6.38%, due 11/27/2012 575 634
SLM Corporation
3.63%, due 03/17/2008 1,050 1,058
SLM Corporation-Series A
5.13%, due 08/27/2012 1,000 1,041
SLM Corporation-Series MTN
5.05%, due 11/14/2014 500 508
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Flexible Income 4
IDEX Janus Flexible Income
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Personal Services (0.5%)
Cendant Corporation
6.25%, due 03/15/2010 $ 775 $ 821
Service Corporation International
6.00%, due 12/15/2005 350 352
Petroleum & Petroleum Products (0.2%)
TEPPCO Partners, L.P.
7.63%, due 02/15/2012 305 349
Petroleum Refining (0.7%)
Conoco Funding Company
5.45%, due 10/15/2006 710 775
6.35%, due 10/15/2011 565 640
Printing & Publishing (1.6%)
Belo Corp.
7.13%, due 06/01/2007 575 640
8.00%, due 11/01/2008 275 325
Dex Media East LLC (Dex Media Finance
Co.)-144A (a)
9.88%, due 11/15/2009 125 143
12.13%, due 11/15/2012 350 417
Gannett Co., Inc.
4.95%, due 04/01/2005 865 916
News America Incorporated (a)
6.63%, due 01/09/2008 810 894
News America Incorporated-144A
4.75%, due 03/15/2010 45 46
Radio & Television Broadcasting (2.6%)
British Sky Broadcasting Group PLC
7.30%, due 10/15/2006 590 637
6.88%, due 02/23/2009 2,500 2,706
Corus Entertainment Inc.
8.75%, due 03/01/2012 295 317
Cox Enterprises, Inc.-144A
4.38%, due 05/01/2008 100 102
Liberty Media Corporation-Class A
5.70%, due 05/15/2013 425 426
USA Interactive
7.00%, due 01/15/2013 1,250 1,373
Railroads (0.1%)
CSX Corporation
4.88%, due 11/01/2009 250 260
Research & Testing Services (0.1%)
Vicar Operating, Inc.
9.88%, due 12/01/2009 200 221
Restaurants (0.0%)
YUM! Brands, Inc.
7.70%, due 07/01/2012 85 95
Retail Trade (0.2%)
Toys "R" Us, Inc.
7.88%, due 04/15/2013 500 520
Rubber & Misc. Plastic Products (0.1%)
Sealed Air Corporation-144A
5.38%, due 04/15/2008 250 258
Savings Institutions (0.5%)
Sovereign Bancorp, Inc.
5.13%, due 03/15/2013 600 599
Webster Bank
5.88%, due 01/15/2013 525 547
Security & Commodity Brokers (0.2%)
Franklin Resources, Inc.
3.70%, due 04/15/2008 500 501
Stone, Clay & Glass Products (1.3%)
Hanson Australia Funding Limited
5.25%, due 03/15/2013 450 449
Owens-Brockway Glass Container Inc.
8.88%, due 02/15/2009 280 300
8.75%, due 11/15/2012 350 374
Owens-Brockway Glass Container
Inc.-144A
7.75%, due 05/15/2011 250 258
Owens-Illinois, Inc. (a)
7.85%, due 05/15/2004 1,350 1,411
Telecommunications (2.6%)
AT&T Broadband, LLC
7.88%, due 08/01/2013 1,650 1,931
Nextel Communications, Inc. (a)
9.38%, due 11/15/2009 475 513
Verizon Global Funding Corp.
4.00%, due 01/15/2008 2,000 2,046
6.88%, due 06/15/2012 1,000 1,147
Transportation & Public Utilities (0.2%)
Kern River Funding Corp-144A
4.89%, due 04/30/2018 500 504
Variety Stores (0.9%)
Wal-Mart Stores, Inc.
6.88%, due 08/10/2009 1,000 1,184
4.55%, due 05/01/2013 775 784
---------
Total Corporate Debt Securities (cost: $116,699) 123,627
---------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Flexible Income 5
IDEX Janus Flexible Income
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
PREFERRED STOCKS (0.0%)
Savings Institutions (0.0%)
Chevy Chase Bank, F.S.B 3,500 $ 97
---------
Total Preferred Stocks (cost: $116) 97
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (20.2%)
Bank Notes (1.2%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 2,456 $ 2,456
Euro Dollar Overnight (2.1%)
Bank of Montreal
1.34%, due 05/01/2003 1,674 1,674
BNP Paribas SA
1.24%, due 05/06/2003 786 786
Royal Bank of Canada
1.35%, due 05/01/2003 1,965 1,965
Euro Dollar Term (6.0%)
American Express Centurion Bank
1.28%, due 05/30/2003 3,930 3,930
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 982 982
Credit Agricole Indosuez
1.27%, due 05/12/2003 295 295
1.26%, due 06/24/2003 1,965 1,965
Danske Bank A/S
1.25%, due 05/07/2003 2,456 2,456
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 982 982
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 2,456 2,456
Medium Term Notes (0.7%)
Parkland (USA) LLC
1.31%, due 11/26/2003 1,474 1,474
Money Market Funds (8.1%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 7,860 7,860
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 9,333 9,333
Promissory Notes (1.6%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 3,439 3,439
Repurchase Agreements (0.5%) (b)
Merrill Lynch & Co., Inc.
1.42%, due 05/01/2003 982 982
---------
Total Security Lending Collateral (cost: $43,035) 43,035
---------
Total Investment Securities (cost: $242,461) $ 253,265
=========
SUMMARY:
Investments, at market value 118.7 % $ 253,265
Liabilities in excess of other assets (18.7)% (39,912)
--------- ---------
Net assets 100.0 % $ 213,353
========= =========
FORWARD FOREIGN CURRENCY CONTRACTS:
- ----------------------------------------------------------------------
Amount in Net Unrealized
Bought Settlement U.S. Dollars Appreciation
Currency (Sold) Date Bought (Sold) (Depreciation)
- ------------- ----------- ------------ --------------- ---------------
Euro Dollar (5,700) 09/26/2003 $ (6,056) $ (269)
FUTURES CONTRACTS:
- ------------------------------------------------------------------------
Amount in Net Unrealized
Settlement U.S. Dollars Appreciation
Currency Contracts Date Bought (Sold) (Depreciation)
- --------------- ----------- ------------ --------------- ---------------
10-Year U.S.
Treasury Note 263 06/30/2003 $ (30,263) $ (15)
NOTES TO SCHEDULE OF INVESTMENTS:
(a) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$42,119.
(b) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $1,002.
(c) At April 30, 2003, all or a portion of this security is segregated with
the custodian to cover margin requirements for open futures contracts. The
market value of all securities segregated at April 30, 2003 is $398.
(d) Floating or variable rate note. Rate listed is as of April 30, 2003.
(e) Securities are stepbonds. Coupon steps up by 25BP for each rating
downgrade by Standard and Poor's or Moody's for each notch below A-/A3.
(f) Securities are stepbonds. Coupon subject to change for rating downgrade by
Standard and Poor's or Moody's.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Flexible Income 6
IDEX Janus Flexible Income
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $242,461)
(including $42,119 of securities loaned) $ 253,265
Cash 2,380
Foreign cash (cost: $164) 167
Receivables:
Investment securities sold 5,531
Shares of beneficial interest sold 794
Interest 2,996
Dividends 3
Other 56
---------
265,192
---------
Liabilities:
Investment securities purchased 6,549
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 1,447
Management and advisory fees 143
Distribution fees 121
Transfer agent fees and expenses 40
Payable for securities on loan 43,035
Forward foreign currency contracts 269
Variation margin 156
Other 79
---------
51,839
---------
Net Assets $ 213,353
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 202,208
Undistributed net investment income (loss) 373
Undistributed net realized gain (loss) from investments,
futures contracts and foreign currency transactions 231
Net unrealized appreciation (depreciation) of
investments, futures contracts and translation of
assets and liabilities in foreign currencies 10,541
---------
Net Assets $ 213,353
=========
Shares Outstanding:
Class A 9,288
Class B 7,621
Class C 1,801
Class L 548
Class M 1,535
Net Asset Value Per Share:
Class A $ 10.27
Class B 10.26
Class C 10.26
Class L 10.26
Class M 10.26
Maximum Offering Price Per Share (1):
Class A $ 10.78
Class M 10.36
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 4,800
Dividends 9
Income from loaned securities-net 45
---------
4,854
---------
Expenses:
Management and advisory fees 786
Transfer agent fees and expenses 146
Custody and accounting fees and expenses 28
Administration fees 12
Registration fees 39
Trustees fees and expenses 7
Professional fees 17
Other 27
Distribution and service fees:
Class A 148
Class B 358
Class C 81
Class L 10
Class M 71
---------
Total Expenses 1,730
---------
Net Investment Income (Loss) 3,124
---------
Net Realized Gain (Loss) on:
Net investment securities 1,808
Net futures contracts (696)
Net foreign currency transactions (283)
---------
829
---------
Net Unrealized Appreciation (Depreciation) on:
Net investment securities 5,542
Net futures contracts (26)
Translation of assets and liabilities denominated
in foreign currency (249)
---------
5,267
---------
Net Gain (Loss) on Investments, Futures Contracts
and Foreign Currency Transactions 6,096
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 9,220
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Flexible Income 7
IDEX Janus Flexible Income
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 3,124 $ 4,124
Net realized gain (loss) on investment
securities, futures contracts and foreign
currency transactions 829 (470)
Net unrealized appreciation (depreciation) on
investment securities, futures contracts and
foreign currency translation 5,267 1,873
--------- ---------
9,220 5,527
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A (1,475) (1,541)
Class B (1,008) (1,687)
Class C (225) (417)
Class L (30) --
Class M (229) (528)
--------- ---------
(2,967) (4,173)
--------- ---------
From net realized gains:
Class A -- (173)
Class B -- (251)
Class C -- (53)
Class L -- --
Class M -- (89)
--------- ---------
-- (566)
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 64,201 60,787
Class B 20,855 43,395
Class C 6,575 14,467
Class L 5,884 --
Class M 2,221 7,842
--------- ---------
99,736 126,491
--------- ---------
Dividends and distributions reinvested:
Class A 1,385 1,308
Class B 804 1,377
Class C 185 349
Class L 26 --
Class M 207 484
--------- ---------
2,607 3,518
--------- ---------
Cost of shares redeemed:
Class A (35,142) (30,444)
Class B (12,853) (18,221)
Class C (6,164) (8,785)
Class L (371) --
Class M (3,091) (6,995)
--------- ---------
(57,621) (64,445)
--------- ---------
44,722 65,564
--------- ---------
Net increase (decrease) in net assets 50,975 66,352
--------- ---------
Net Assets:
Beginning of period 162,378 96,026
--------- ---------
End of period $ 213,353 $ 162,378
========= =========
Undistributed Net Investment Income (Loss) $ 373 $ 216
========= =========
Share Activity:
Shares issued during the period:
Class A 6,415 6,285
Class B 2,055 4,452
Class C 649 1,492
Class L 582 --
Class M 217 806
--------- ---------
9,918 13,035
--------- ---------
Shares issued-reinvested from distributions:
Class A 138 135
Class B 80 143
Class C 18 36
Class L 3 --
Class M 21 50
--------- ---------
260 364
--------- ---------
Shares redeemed during the period:
Class A (3,483) (3,123)
Class B (1,277) (1,880)
Class C (616) (904)
Class L (37) --
Class M (308) (727)
--------- ---------
(5,721) (6,634)
--------- ---------
Net increase (decrease) in shares outstanding 4,457 6,765
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Flexible Income 8
IDEX Janus Flexible Income
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 9.94 $ 0.18 $ 0.32 $ 0.50
10/31/2002 9.99 0.40 0.02 0.42
10/31/2001 9.26 0.47 0.71 1.18
10/31/2000 9.46 0.57 (0.19) 0.38
10/31/1999 9.84 0.54 (0.38) 0.16
10/31/1998 9.75 0.61 0.10 0.71
- --------------------------------------------------------------------------------
Class B 04/30/2003 9.94 0.15 0.31 0.46
10/31/2002 9.99 0.34 0.02 0.36
10/31/2001 9.26 0.37 0.74 1.11
10/31/2000 9.46 0.51 (0.19) 0.32
10/31/1999 9.83 0.49 (0.38) 0.11
10/31/1998 9.75 0.54 0.10 0.64
- --------------------------------------------------------------------------------
Class C 04/30/2003 9.94 0.15 0.31 0.46
10/31/2002 9.99 0.35 0.01 0.36
10/31/2001 9.26 0.41 0.70 1.11
10/31/2000 9.46 0.51 (0.19) 0.32
- --------------------------------------------------------------------------------
Class L 04/30/2003 9.98 0.12 0.30 0.42
- --------------------------------------------------------------------------------
Class M 04/30/2003 9.94 0.17 0.29 0.46
10/31/2002 9.99 0.36 0.01 0.37
10/31/2001 9.26 0.42 0.70 1.12
10/31/2000 9.46 0.52 (0.19) 0.33
10/31/1999 9.84 0.49 (0.38) 0.11
10/31/1998 9.75 0.56 0.10 0.66
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
----------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ------------
Class A $ (0.17) $ -- $ (0.17) $ 10.27
(0.41) (0.06) (0.47) 9.94
(0.45) -- (0.45) 9.99
(0.58) -- (0.58) 9.26
(0.54) -- (0.54) 9.46
(0.62) -- (0.62) 9.84
- ------------------------------------------------------------
Class B (0.14) -- (0.14) 10.26
(0.35) (0.06) (0.41) 9.94
(0.38) -- (0.38) 9.99
(0.52) -- (0.52) 9.26
(0.48) -- (0.48) 9.46
(0.56) -- (0.56) 9.83
- ------------------------------------------------------------
Class C (0.14) -- (0.14) 10.26
(0.35) (0.06) (0.41) 9.94
(0.38) -- (0.38) 9.99
(0.52) -- (0.52) 9.26
- ------------------------------------------------------------
Class L (0.14) -- (0.14) 10.26
- ------------------------------------------------------------
Class M (0.14) -- (0.14) 10.26
(0.36) (0.06) (0.42) 9.94
(0.39) -- (0.39) 9.99
(0.53) -- (0.53) 9.26
(0.49) -- (0.49) 9.46
(0.57) -- (0.57) 9.84
- ------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------- ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 5.11% $ 95,345 1.47% 1.48% 3.64% 85.50%
10/31/2002 4.45 61,815 1.62 1.65 4.23 245.19
10/31/2001 13.14 29,600 1.68 1.70 4.84 314.67
10/31/2000 4.10 16,530 1.84 1.87 6.17 165.55
10/31/1999 1.70 14,963 1.85 2.00 5.72 100.22
10/31/1998 7.43 14,970 1.83 1.83 6.22 90.63
- --------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 4.66 78,173 2.12 2.13 2.99 85.50
10/31/2002 3.83 67,220 2.27 2.30 3.58 245.19
10/31/2001 12.28 40,435 2.33 2.35 4.19 314.67
10/31/2000 3.46 14,008 2.49 2.51 5.52 165.55
10/31/1999 1.01 9,006 2.50 2.65 5.07 100.22
10/31/1998 6.74 2,387 2.48 2.48 5.57 90.63
- --------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 4.66 18,471 2.12 2.13 2.99 85.50
10/31/2002 3.83 17,391 2.27 2.30 3.58 245.19
10/31/2001 12.28 11,246 2.33 2.35 4.19 314.67
10/31/2000 3.46 8,169 2.49 2.51 5.52 165.55
- --------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 4.24 5,617 2.12 2.13 2.99 85.50
- --------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 4.72 15,747 2.02 2.03 3.09 85.50
10/31/2002 3.93 15,952 2.17 2.20 3.68 245.19
10/31/2001 12.40 14,745 2.23 2.25 4.29 314.67
10/31/2000 3.56 6,220 2.39 2.41 5.62 165.55
10/31/1999 1.11 3,778 2.40 2.55 5.17 100.22
10/31/1998 6.84 2,207 2.38 2.38 5.67 90.63
- --------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Flexible Income 9
See notes to the Financial Highlights on page 10.
IDEX Janus Flexible Income
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less fee waivers and reimbursements by the
investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
fee waivers and reimbursements by the investment adviser or affiliated
brokerage and custody earnings credits, if any.
(g) The inception date for the Fund's offering of share classes C and L are as
follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Flexible Income 10
IDEX Janus Flexible Income
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Janus Flexible Income ("the Fund"), part of
IDEX Mutual Funds, began operations on June 29, 1987.
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or less are valued at
amortized cost, which approximates market. Other securities for which quotations
are not readily available are valued at fair value determined in such a manner
as the adviser and sub-adviser, under the supervision of the Board of Trustees
and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are included in
investment securities at market value on the Statement of Assets and Liabilities
and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities loans,
the collateral and securities loaned remain subject to fluctuation in market
value. IBT marks to market securities loaned and the collateral each business
day. If additional collateral is due (at least $1), IBT collects additional cash
collateral from the borrowers. Although securities loaned will be fully
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the event
the borrower fails to timely return a recalled security, IBT may indemnify the
Fund by purchasing replacement securities for the Fund at its own expense and
claiming the collateral to fund such a purchase. IBT absorbs the loss if the
collateral value is not sufficient to cover the cost of the replacement
securities. If replacement securities are not available, IBT will credit the
equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or, in
the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Foreign currency denominated investments: The accounting records of the Fund are
maintained in U.S. dollars. Securities and other assets and liabilities
denominated in foreign currencies are translated into U.S. dollars at the
closing exchange rate each day. The cost of foreign securities is translated at
the exchange rate in effect when the investment was acquired. The Fund combines
fluctuations from currency exchange rates and fluctuations in market value when
computing net realized and unrealized gains or losses from investments. Net
foreign currency gains and losses resulting from changes in exchange rates
include: 1) foreign currency fluctuations between trade date and settlement date
of investment security transactions; 2) gains and losses
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Flexible Income 11
IDEX Janus Flexible Income
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
on forward foreign currency contracts; and 3) the difference between the
receivable amounts of interest and dividends recorded in the accounting records
in U.S. dollars and the amounts actually received. Foreign currency denominated
assets may involve risks not typically associated with domestic transactions,
including unanticipated movements in exchange currency rates, the degree of
government supervision and regulation of security markets, and the possibility
of political or economic instability.
Forward foreign currency contracts: The Fund may enter into forward foreign
currency contracts to hedge against exchange rate risk arising from investments
in securities denominated in foreign currencies. Contracts are valued at the
contractual forward rate and are marked to market daily, with the change in
market value recorded as an unrealized gain or loss. When the contracts are
closed a realized gain or loss is incurred. Risks may arise from changes in
market value of the underlying currencies and from the possible inability of
counterparties to meet the terms of their contracts. Open forward currency
contracts at April 30, 2003, are listed in the Schedule of Investments.
Futures contracts: The Fund may enter into futures contracts to manage exposure
to market, interest rate or currency fluctuations. Futures contracts are valued
at the settlement price established each day by the board of trade or exchange
on which they are traded. The primary risks associated with futures contracts
are imperfect correlation between the change in market value of the securities
held and the prices of futures contracts; the possibility of an illiquid market
and inability of the counterparty to meet the contract terms.
The underlying face amounts of open futures contracts at April 30, 2003, are
listed in the Schedule of Investments. The variation margin payable, is included
in the accompanying Statement of Assets and Liabilities. Variation margin
payable represents the additional payments due in order to maintain the equity
account at the required margin level.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
0.875% of the first $100 million of ANA
0.775% of the next $150 million of ANA
0.675% of ANA over $250 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.50% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for the
Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 184
Retained by Underwriter 20
Contingent Sales Charges 142
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account charges
(not in thousands) of $15.39 for each open shareholder account, $2.73 for each
new account opened, $1.63 for each closed account maintained, and certain
out-of-pocket expenses.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Flexible Income 12
IDEX Janus Flexible Income
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan amounts
are included in Other assets, and the total liability of $5 for deferred
compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 107,045
U.S. Government 103,394
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 61,083
U.S. Government 95,029
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforward is available to offset future realized capital
gains through the period listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 564 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 242,513
==========
Unrealized Appreciation $ 10,840
Unrealized (Depreciation) (88)
----------
Net Unrealized Appreciation (Depreciation) $ 10,752
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Flexible Income 13
IDEX Janus Global
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
PREFERRED STOCKS (1.0%)
Brazil (0.7%)
Petroleo Brasileiro SA-Petrobras-ADR 175,455 $ 3,002
Germany (0.3%)
Porsche AG (b) 3,492 1,269
---------
Total Preferred Stocks (cost: $5,882) 4,271
---------
COMMON STOCKS (92.5%)
Australia (1.8%)
News Corporation Limited (The) (b) 702,000 4,999
News Corporation Limited (The)-ADR (b) 26,895 761
Westpac Banking Corporation 192,927 1,921
Bermuda (0.8%)
Tyco International Ltd. 99,345 1,550
Willis Group Holdings Limited 59,595 1,859
Brazil (0.5%)
Companhia Vale do Rio Doce-ADR 70,975 1,984
Petroleo Brasileiro SA-Petrobras-ADR 7,845 146
Canada (1.8%)
Canadian Natural Resources Ltd. 37,880 1,261
EnCana Corporation (b) 207,848 6,804
China (0.6%)
China Telecom Corporation, Ltd. (a) 7,076,000 1,352
China Telecom Corporation, Ltd.-ADR (a) 18,080 344
PetroChina Company Limited 4,748,000 1,084
Denmark (1.0%)
Danske Bank A/S 235,477 4,526
Finland (1.6%)
Nokia Oyj (b) 167,859 2,837
Nokia Oyj-ADR 48,052 796
UPM-Kymmene Oyj (b) 245,796 3,590
France (5.7%)
Air Liquide 16,089 2,434
Aventis SA 96,066 4,874
Groupe Danone SA 9,488 1,341
Schneider Electric SA 47,554 2,249
Societe Generale-Class A (b) 51,929 3,173
Total Fina Elf SA 83,518 10,941
Germany (1.1%)
adidas-Salomon AG 15,665 1,347
Bayerische Motoren Werke AG (BMW) (b) 72,110 2,404
SAP AG (b) 9,282 943
Hong Kong (1.4%)
China Mobile (Hong Kong) Limited 2,587,200 5,192
CNOOC Limited 801,375 1,053
Israel (1.6%)
Check Point Software Technologies, Ltd. (a) 200,610 3,156
Teva Pharmaceutical Industries Ltd.-ADR (b) 78,590 3,670
Italy (2.4%)
ENI-Ente Nazionale Idrocarburi (b) 460,510 6,565
Telecom Italia SpA (b) 180,008 1,468
Telecom Italia SpA-RNC (b) 284,500 1,393
UniCredito Italiano SpA (b) 285,442 1,248
Japan (8.2%)
Asahi Breweries, Ltd. 33,000 196
Canon Inc. 86,000 3,471
Eisai Company, Ltd. (b) 27,800 490
Fujisawa Pharmaceutical Company
Limited 57,200 967
Honda Motor Co., Ltd. 159,200 5,265
Hoya Corporation 28,005 1,653
Japan Tobacco Inc. 345 2,007
Kao Corporation 210,165 3,827
Nintendo Co., Ltd. 8,100 632
Nissan Motor Co., Ltd. (b) 341,270 2,614
Nomura Securities Co., Ltd. (The) 44,000 435
Rohm Company, Ltd. 23,000 2,367
Sony Corporation (b) 53,085 1,289
Takeda Chemical Industries, Ltd. (b) 151,200 5,532
Yamanouchi Pharmaceutical Co., Ltd. 211,975 5,342
Mexico (1.0%)
Grupo Televisa SA de CV-ADR (a) 134,395 4,078
Telefonos de Mexico SA de CV-ADR 16,910 511
Netherlands (3.6%)
Heineken N.V 83,825 3,109
STMicroelectronics NV (b) 379,914 7,844
Unilever NV-CVA 73,607 4,633
Norway (0.3%)
Statoil ASA (b) 190,677 1,511
Russia (0.5%)
YUKOS Oil Company-ADR (b) 13,220 2,320
South Korea (2.4%)
Kookmin Bank 74,930 2,104
Kookmin Bank-ADR 12,020 331
Samsung Electronics Co., Ltd. 32,870 8,255
Spain (0.9%)
Banco Popular Espanol SA 79,031 3,828
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Global 1
IDEX Janus Global
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Sweden (2.5%)
Assa Abloy AB-Class B Free (b) 338,981 $ 3,233
Atlas Copco AB-A Shares (b) 143,829 3,491
Securitas AB-Class B (b) 227,801 2,674
SKF AB-Class B 51,900 1,504
Switzerland (4.6%)
Givaudan SA-Registered Shares 5,794 2,242
Nestle SA-Registered Shares 14,361 2,926
Novartis AG 56,484 2,227
Roche Holdings AG 63,536 4,041
Serono SA-Class B (b) 2,340 1,269
STMicroelectronics NV-NY Registered
Shares 107,021 2,204
UBS AG-Registered Shares (b) 111,459 5,286
United Kingdom (9.8%)
Amersham PLC 327,697 2,355
Barclays PLC 541,861 3,742
BOC Group PLC (The) 346,091 4,362
BP PLC 491,610 3,114
Compass Group PLC 785,396 3,614
Diageo PLC 463,661 5,141
GlaxoSmithKline PLC 197,601 3,959
Reckitt Benckiser PLC 136,797 2,412
Royal Bank of Scotland Group PLC (The) 232,945 6,106
Vodafone Group PLC 1,901,377 3,751
Vodafone Group PLC-ADR (b) 42,945 849
WPP Group PLC 501,624 3,568
United States (38.4%)
Abbott Laboratories 108,285 4,400
Allstate Corporation (The) 128,445 4,854
Altria Group, Inc. 100,105 3,079
American Express Company 36,615 1,386
AOL Time Warner Inc. (a) 378,431 5,177
ARAMARK Corporation-Class B (a) 61,105 1,403
Bank of America Corporation 36,935 2,735
Bank of New York Company, Inc. (The) 108,535 2,871
Cendant Corporation (a) 94,255 1,346
Cisco Systems, Inc. (a) 215,910 3,247
Citigroup Inc. 294,470 11,558
Clear Channel Communications, Inc. (a) 123,015 4,811
Coca-Cola Company (The) 28,395 1,147
Comcast Corporation-Class A (a) 56,025 1,788
Comcast Corporation-Special Class A (a) 29,050 873
Computer Associates International, Inc. 72,160 1,172
Costco Wholesale Corporation (a) 80,570 2,790
Dell Computer Corporation (a) 133,895 3,871
Diebold, Incorporated 24,135 965
Disney (Walt) Company (The) 126,450 2,360
Electronic Arts Inc. (a) (b) 16,415 973
EOG Resources, Inc. 48,355 1,808
Fannie Mae 63,015 4,562
First Data Corporation (b) 36,125 1,417
Fiserv, Inc. (a) (b) 95,177 2,802
Gannett Co., Inc. 23,180 1,755
General Dynamics Corporation 64,280 3,990
Goldman Sachs Group, Inc. (The) (b) 16,250 1,233
International Business Machines
Corporation 31,240 2,652
International Game Technology (a) 15,450 1,333
Johnson & Johnson 37,725 2,126
Laboratory Corporation of America
Holdings (a) 35,905 1,058
Lauder (Estee) Companies Inc.
(The)-Class A 81,140 2,637
Liberty Media Corporation-Class A (a) 279,894 3,079
Lockheed Martin Corporation 49,410 2,473
Marsh & McLennan Companies, Inc. 131,130 6,251
McGraw-Hill Companies, Inc. (The) 70,045 4,090
Medtronic, Inc. 146,180 6,979
Microsoft Corporation 349,815 8,945
Moody's Corporation 35,225 1,701
New York Times Company (The)-Class A 44,290 2,054
NIKE, Inc.-Class B 39,595 2,120
Northern Trust Corporation 32,280 1,133
Northrop Grumman Corporation 65,455 5,757
Pfizer Inc. 255,510 7,857
Raytheon Company 97,515 2,919
SLM Corporation 23,930 2,680
Starwood Hotels & Resorts Worldwide,
Inc 61,815 1,659
State Street Corporation 31,680 1,110
SYSCO Corporation 50,155 1,441
Texas Instruments Incorporated 72,965 1,349
UnitedHealth Group Incorporated 59,610 5,492
USA Interactive (a) (b) 198,090 5,932
Viacom, Inc.-Class B (a) 46,860 2,034
Waste Management, Inc. 39,755 863
---------
Total Common Stocks (cost: $437,383) 406,043
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (15.7%)
Bank Notes (0.9%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 3,928 $ 3,928
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Global 2
IDEX Janus Global
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Euro Dollar Overnight (1.6%)
Bank of Montreal
1.34%, due 05/01/2003 $ 2,677 $ 2,677
BNP Paribas SA
1.24%, due 05/06/2003 1,257 1,257
Royal Bank of Canada
1.35%, due 05/01/2003 3,143 3,143
Euro Dollar Term (4.8%)
American Express Centurion Bank
1.28%, due 05/30/2003 6,285 6,285
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 1,571 1,571
Credit Agricole Indosuez
1.27%, due 05/12/2003 471 471
1.26%, due 06/24/2003 3,143 3,143
Danske Bank A/S
1.25%, due 05/07/2003 3,928 3,928
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 1,571 1,571
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 3,928 3,928
Medium Term Notes (0.5%)
Parkland (USA) LLC
1.31%, due 11/26/2003 2,357 2,357
Money Market Funds (6.2%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 12,570 12,570
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 14,928 14,928
Promissory Notes (1.3%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 5,499 5,499
Repurchase Agreements (0.4%) (c)
Merrill Lynch & Co., Inc.
1.42%, due 05/01/2003 1,571 1,571
---------
Total Security Lending Collateral (cost: $68,827) 68,827
---------
Total Investment Securities (cost: $512,092) $ 479,141
=========
SUMMARY:
Investments, at market value 109.2 % $ 479,141
Liabilities in excess of other assets (9.2)% (40,276)
--------- ---------
Net assets 100.0 % $ 438,865
========= =========
INVESTMENTS BY INDUSTRY:
Percentage of
Net Assets Value
- -------------------------------------------------------------------------------
Commercial Banks 11.9% $ 51,672
Pharmaceuticals 9.6% 41,880
Oil & Gas Extraction 6.9% 29,691
Chemicals & Allied Products 4.8% 20,546
Computer & Data Processing Services 4.2% 17,991
Electronic Components & Accessories 3.5% 15,314
Food & Kindred Products 3.2% 14,221
Computer & Office Equipment 3.2% 14,206
Business Services 3.2% 14,171
Telecommunications 2.7% 11,999
Automotive 2.6% 11,552
Motion Pictures 2.5% 10,937
Communication 2.4% 10,635
Insurance 2.4% 10,346
Electronic & Other Electric Equipment 2.3% 10,176
Radio & Television Broadcasting 2.3% 10,010
Beverages 2.1% 9,397
Medical Instruments & Supplies 2.1% 9,334
Aerospace 1.9% 8,230
Insurance Agents, Brokers & Service 1.8% 8,110
Printing & Publishing 1.8% 7,899
Electric Services 1.6% 6,804
Restaurants 1.1% 5,017
Instruments & Related Products 1.0% 4,572
Manufacturing Industries 1.0% 4,566
U.S. Government Agencies 1.0% 4,562
Transportation Equipment 0.9% 3,990
Communications Equipment 0.8% 3,633
Paper & Allied Products 0.8% 3,590
Industrial Machinery & Equipment 0.8% 3,491
Petroleum Refining 0.7% 3,114
Security & Commodity Brokers 0.7% 3,054
Variety Stores 0.6% 2,790
Personal Credit Institutions 0.6% 2,680
Amusement & Recreation Services 0.5% 2,360
Machinery, Equipment & Supplies 0.5% 2,249
Rubber & Misc. Plastic Products 0.5% 2,120
Tobacco Products 0.5% 2,007
Metal Mining 0.5% 1,984
Hotels & Other Lodging Places 0.4% 1,659
Fabricated Metal Products 0.3% 1,504
Wholesale Trade Nondurable Goods 0.3% 1,441
Apparel Products 0.3% 1,347
Personal Services 0.3% 1,346
Health Services 0.2% 1,058
Environmental Services 0.2% 863
Beer, Wine & Distilled Beverages 0.0% 196
--------- ---------
Investments, at market value 93.5% 410,314
Short-term investments 15.7% 68,827
Other assets in excess of liabilities (9.2)% (40,276)
--------- ---------
Net assets 100.0% $ 438,865
========= =========
FORWARD FOREIGN CURRENCY CONTRACTS:
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Global 3
IDEX Janus Global
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
- -----------------------------------------------------------------------------------
Amount in Net Unrealized
Bought Settlement U.S. Dollars Appreciation
Currency (Sold) Date Bought (Sold) (Depreciation)
- -----------------------------------------------------------------------------------
British Pound (114) 05/01/2003 $ (182) $ (1)
British Pound 260 05/06/2003 417 (1)
British Pound (2,800) 08/22/2003 (4,342) (101)
British Pound 2,200 08/22/2003 3,424 67
British Pound (600) 09/26/2003 (936) (14)
British Pound (900) 10/17/2003 (1,397) (26)
Euro Dollar (283) 05/02/2003 (311) (4)
Euro Dollar 21 05/02/2003 23 --
Euro Dollar 511 05/05/2003 570 (1)
Euro Dollar (9,300) 09/26/2003 (9,954) (367)
Euro Dollar 6,100 09/26/2003 6,567 202
Hong Kong Dollar (2,384) 05/05/2003 (306) --
Hong Kong Dollar (79,900) 08/08/2003 (10,237) (6)
Hong Kong Dollar 26,300 08/08/2003 3,370 2
Japanese Yen (80,827) 05/01/2003 (672) (4)
Japanese Yen 18,014 05/01/2003 150 1
- -----------------------------------------------------------------------------------
Amount in Net Unrealized
Bought Settlement U.S. Dollars Appreciation
Currency (Sold) Date Bought (Sold) (Depreciation)
- -----------------------------------------------------------------------------------
Japanese Yen (66,054) 05/02/2003 $ (548) $ (4)
Japanese Yen (54,265) 05/06/2003 (456) 1
Japanese Yen (1,130,000) 08/08/2003 (9,548) 55
Japanese Yen 610,000 08/08/2003 5,257 (133)
Japanese Yen (15,000) 09/26/2003 (126) (1)
Japanese Yen (215,000) 10/17/2003 (1,793) (17)
Korean Won (1,630,000) 05/09/2003 (1,374) 32
Korean Won (1,975,000) 05/27/2003 (1,631) 6
Korean Won 525,000 05/27/2003 420 13
Mexican New Peso (29,100) 08/08/2003 (2,599) (227)
Mexican New Peso 2,600 08/08/2003 225 27
Swedish Krona 446 05/02/2003 54 1
Swiss Franc 587 05/06/2003 433 --
Swiss Franc (2,800) 10/17/2003 (2,017) (55)
Swiss Franc 1,100 10/17/2003 815 (1)
---------- --------
$ (26,704) $ (556)
========== ========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$65,333.
(c) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $1,603.
DEFINITIONS:
ADR American Depositary Receipt
CVA Certificaaten van aandelen (share certificates)
RNC Saving Non-Convertible Shares
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Global 4
IDEX Janus Global
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $512,092)
(including $65,333 of securities loaned) $ 479,141
Cash 27,756
Foreign cash (cost: $51) 51
Receivables:
Investment securities sold 4,307
Shares of beneficial interest sold 32
Interest 8
Dividends 2,084
Forward foreign currency contracts 407
Other 141
---------
513,927
---------
Liabilities:
Investment securities purchased 2,349
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 1,643
Management and advisory fees 352
Distribution fees 246
Transfer agent fees and expenses 376
Payable for securities on loan 68,827
Forward foreign currency contracts 963
Other 306
---------
75,062
---------
Net Assets $ 438,865
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 917,827
Accumulated net investment income (loss) (992)
Accumulated net realized gain (loss) from investments
and foreign currency transactions (444,529)
Net unrealized appreciation (depreciation) of
investments and on translation of assets and liabilities
in foreign currencies (33,441)
---------
Net Assets $ 438,865
=========
Shares Outstanding:
Class A 10,567
Class B 9,187
Class C 1,206
Class L 35
Class M 3,506
Net Asset Value Per Share:
Class A $ 18.45
Class B 17.49
Class C 17.49
Class L 17.49
Class M 17.54
Maximum Offering Price Per Share (1):
Class A $ 19.52
Class M 17.71
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 36
Dividends 5,055
Income from loaned securities-net 117
Less withholding taxes on foreign dividends (444)
---------
4,764
---------
Expenses:
Management and advisory fees 2,338
Transfer agent fees and expenses 1,119
Custody fees 203
Administration fees 16
Registration fees 45
Trustees fees and expenses 23
Professional fees 46
Other 228
Distribution and service fees:
Class A 356
Class B 865
Class C 119
Class L --
Class M 304
---------
Total Expenses 5,662
---------
Net Investment Income (Loss) (898)
---------
Net Realized Gain (Loss) on:
Net investment securities (48,809)
Net foreign currency transactions (6,966)
---------
(55,775)
---------
Net Unrealized Appreciation (Depreciation) on:
Net investment securities 36,295
Net translation of assets and liabilities
denominated in foreign currency 1,744
---------
38,039
---------
Net Gain (Loss) on Investments and Foreign
Currency Transactions (17,736)
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ (18,634)
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Global 5
IDEX Janus Global
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (898) $ (6,417)
Net realized gain (loss) on investment
securities and foreign currency
transactions (55,775) (197,564)
Net unrealized appreciation (depreciation)
on investment securities and foreign
currency translation 38,039 60,154
--------- ---------
(18,634) (143,827)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 34,421 16,741
Class B 3,064 8,893
Class C 515 2,168
Class L 592 --
Class M 930 2,658
--------- ---------
39,522 30,460
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (57,749) (105,301)
Class B (28,261) (82,205)
Class C (5,716) (21,413)
Class L -- --
Class M (14,494) (52,127)
--------- ---------
(106,220) (261,046)
--------- ---------
(66,698) (230,586)
--------- ---------
Net increase (decrease) in net assets (85,332) (374,413)
--------- ---------
Net Assets:
Beginning of period 524,197 898,610
--------- ---------
End of period $ 438,865 $ 524,197
========= =========
Accumulated Net Investment Income (Loss) $ (992) $ (94)
========= =========
Share Activity:
Shares issued during the period:
Class A 1,896 744
Class B 175 399
Class C 30 97
Class L 35 --
Class M 53 118
--------- ---------
2,189 1,358
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (3,171) (4,726)
Class B (1,639) (3,863)
Class C (330) (977)
Class L -- --
Class M (832) (2,391)
--------- ---------
(5,972) (11,957)
--------- ---------
Net increase (decrease) in shares outstanding (3,783) (10,599)
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Global 6
IDEX Janus Global
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 19.06 $ -- $ (0.61) $ (0.61)
10/31/2002 23.67 (0.08) (4.53) (4.61)
10/31/2001 40.20 (0.07) (13.99) (14.06)
10/31/2000 33.80 -- 7.53 7.53
10/31/1999 24.09 0.22 9.49 9.71
10/31/1998 23.74 0.08 2.34 2.42
- --------------------------------------------------------------------------------
Class B 04/30/2003 18.14 (0.06) (0.59) (0.65)
10/31/2002 22.71 (0.22) (4.35) (4.57)
10/31/2001 38.97 (0.27) (13.52) (13.79)
10/31/2000 32.98 (0.41) 7.53 7.12
10/31/1999 23.62 (0.13) 9.49 9.36
10/31/1998 23.38 (0.03) 2.34 2.31
- --------------------------------------------------------------------------------
Class C 04/30/2003 18.14 (0.06) (0.59) (0.65)
10/31/2002 22.72 (0.22) (4.36) (4.58)
10/31/2001 38.98 (0.27) (13.52) (13.79)
10/31/2000 32.98 (0.40) 7.53 7.13
- --------------------------------------------------------------------------------
Class L 04/30/2003 18.00 (0.04) (0.47) (0.51)
- --------------------------------------------------------------------------------
Class M 04/30/2003 18.18 (0.06) (0.58) (0.64)
10/31/2002 22.72 (0.20) (4.34) (4.54)
10/31/2001 38.94 (0.24) (13.51) (13.75)
10/31/2000 32.91 (0.37) 7.53 7.16
10/31/1999 23.56 (0.14) 9.49 9.35
10/31/1998 23.30 (0.01) 2.34 2.33
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
----------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ------------
Class A $ -- $ -- $ -- $ 18.45
-- -- -- 19.06
-- (2.47) (2.47) 23.67
-- (1.13) (1.13) 40.20
-- -- -- 33.80
-- (2.07) (2.07) 24.09
- ------------------------------------------------------------
Class B -- -- -- 17.49
-- -- -- 18.14
-- (2.47) (2.47) 22.71
-- (1.13) (1.13) 38.97
-- -- -- 32.98
-- (2.07) (2.07) 23.62
- ------------------------------------------------------------
Class C -- -- -- 17.49
-- -- -- 18.14
-- (2.47) (2.47) 22.72
-- (1.13) (1.13) 38.98
- ------------------------------------------------------------
Class L -- -- -- 17.49
- ------------------------------------------------------------
Class M -- -- -- 17.54
-- -- -- 18.18
-- (2.47) (2.47) 22.72
-- (1.13) (1.13) 38.94
-- -- -- 32.91
-- (2.07) (2.07) 23.56
- ------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 (3.20)% $ 194,946 2.07% 2.07% (0.03)% 30.76%
10/31/2002 (19.46) 225,722 1.88 1.88 (0.34) 72.26
10/31/2001 (37.08) 374,626 1.63 1.63 (0.24) 78.87
10/31/2000 22.26 749,671 1.64 1.64 (0.56) 52.51
10/31/1999 40.31 487,787 1.73 1.73 (0.22) 145.40
10/31/1998 11.30 296,450 1.82 1.82 (0.45) 87.68
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 (3.64) 160,725 2.72 2.72 (0.68) 30.76
10/31/2002 (20.09) 193,259 2.53 2.53 (0.99) 72.26
10/31/2001 (37.58) 320,693 2.28 2.28 (0.89) 78.87
10/31/2000 21.62 614,789 2.29 2.29 (1.21) 52.51
10/31/1999 39.62 283,847 2.38 2.38 (0.87) 145.40
10/31/1998 10.93 110,630 2.47 2.47 (1.10) 87.68
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 (3.64) 21,098 2.72 2.72 (0.68) 30.76
10/31/2002 (20.09) 27,332 2.53 2.53 (0.99) 72.26
10/31/2001 (37.58) 54,221 2.28 2.28 (0.89) 78.87
10/31/2000 21.62 116,071 2.29 2.29 (1.21) 52.51
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 (2.83) 612 2.72 2.72 (0.68) 30.76
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 (3.52) 61,484 2.62 2.62 (0.58) 30.76
10/31/2002 (20.00) 77,884 2.43 2.43 (0.89) 72.26
10/31/2001 (37.48) 149,070 2.18 2.18 (0.79) 78.87
10/31/2000 21.72 306,667 2.19 2.19 (1.11) 52.51
10/31/1999 39.73 155,147 2.28 2.28 (0.77) 145.40
10/31/1998 11.08 63,552 2.37 2.37 (1.00) 87.68
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Global 7
IDEX Janus Global
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) The inception date for the Fund's offering of share Classes C and L are as
follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Global 8
IDEX Janus Global
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Janus Global ("the Fund"), part of IDEX
Mutual Funds, began operations on October 1, 1992.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or less are valued at
amortized cost, which approximates market. Other securities for which quotations
are not readily available are valued at fair value determined in such a manner
as the adviser and sub-adviser, under the supervision of the Board of Trustees
and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are included in
investment securities at market value on the Statement of Assets and Liabilities
and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at the inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities loans,
the collateral and securities loaned remain subject to fluctuation in market
value. IBT marks to market securities loaned and the collateral each business
day. If additional collateral is due (at least $1), IBT collects additional cash
collateral from the borrowers. Although securities loaned will be fully
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the event
the borrower fails to timely return a recalled security, IBT may indemnify the
Fund by purchasing replacement securities for the Fund at its own expense and
claiming the collateral to fund such a purchase. IBT absorbs the loss if the
collateral value is not sufficient to cover the cost of the replacement
securities. If replacement securities are not available, IBT will credit the
equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or, in
the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Foreign currency denominated investments: The accounting records of the Fund are
maintained in U.S. dollars. Securities and other assets and liabilities
denominated in foreign currencies are translated into U.S. dollars at the
closing exchange rate each day. The cost of foreign securities is translated at
the exchange rate in effect when the investment was acquired. The Fund combines
fluctuations from currency exchange rates and fluctuations in market value when
computing net realized and unrealized gains or losses from investments. Net
foreign currency gains and losses resulting from changes in exchange rates
include: 1) foreign currency fluctuations between trade date and
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Global 9
IDEX Janus Global
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
settlement date of investment security transactions; 2) gains and losses on
forward foreign currency contracts; and 3) the difference between the receivable
amounts of interest and dividends recorded in the accounting records in U.S.
dollars and the amounts actually received. Foreign currency denominated assets
may involve risks not typically associated with domestic transactions, including
unanticipated movements in exchange currency rates, the degree of government
supervision and regulation of security markets, and the possibility of political
or economic instability.
Forward foreign currency contracts: The Fund may enter into forward foreign
currency contracts to hedge against exchange rate risk arising from investments
in securities denominated in foreign currencies. Contracts are valued at the
contractual forward rate and are marked to market daily, with the change in
market value recorded as an unrealized gain or loss. When the contracts are
closed a realized gain or loss is incurred. Risks may arise from changes in
market value of the underlying currencies and from the possible inability of
counterparties to meet the terms of their contracts. Open forward currency
contracts at April 30, 2003, are listed in the Schedule of Investments.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
1.00% of the first $750 million of ANA
0.90% of the next $250 million of ANA
0.85% of ANA over $1 billion
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for the
Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 128
Retained by Underwriter 13
Contingent Sales Charges 229
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and other
legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account charges
(not in thousands) of $15.39 for each open shareholder account, $2.73 for each
new account opened, $1.63 for each closed account maintained, and certain
out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan amounts
are included in Other assets, and the total liability of $67 for deferred
compensation to Trustees is included in Other liabilities.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Global 10
IDEX Janus Global
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 139,015
U.S. Government 776
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 204,028
U.S. Government 3,035
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- ------------------------ ------------------
$ 176,064 October 31, 2009
205,203 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 522,617
==========
Unrealized Appreciation $ 20,465
Unrealized (Depreciation) (63,941)
----------
Net Unrealized Appreciation (Depreciation) $ (43,476)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Global 11
IDEX Janus Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS (88.2%)
Amusement & Recreation Services (0.5%)
Mandalay Resort Group (a) (b) 232,160 $ 6,134
Automotive (0.8%)
Harley-Davidson, Inc. (b) 216,785 9,634
Automotive Dealers & Service Stations (1.0%)
Advance Auto Parts, Inc. (a) 250,900 12,480
Business Services (8.0%)
Clear Channel Communications, Inc. (a) 1,632,065 63,830
eBay Inc. (a) 333,265 30,917
Chemicals & Allied Products (6.4%)
Avon Products, Inc. 233,190 13,565
Colgate-Palmolive Company 608,630 34,795
Lauder (Estee) Companies Inc.
(The)-Class A 381,620 12,403
Procter & Gamble Company (The) 166,115 14,925
Commercial Banks (1.4%)
Citigroup Inc. 437,245 17,162
Communication (12.2%)
Liberty Media Corporation-Class A (a) 5,650,991 62,161
Viacom, Inc.-Class B (a) (b) 1,922,495 83,456
Computer & Data Processing Services (6.7%)
Check Point Software
Technologies, Ltd. (a) (b) 730,670 11,493
Electronic Arts Inc. (a) 264,300 15,665
Mercury Interactive Corporation (a) (b) 352,455 11,962
VERITAS Software Corporation (a) 522,260 11,495
Yahoo! Inc. (a) 1,193,025 29,563
Computer & Office Equipment (2.1%)
Cisco Systems, Inc. (a) 742,647 11,169
Lexmark International Group, Inc. (a) (b) 181,740 13,541
Electronic Components & Accessories (4.9%)
Maxim Integrated Products 989,220 38,866
Xilinx, Inc. (a) 731,328 19,797
Food Stores (0.7%)
Krispy Kreme Doughnuts, Inc. (a) (b) 273,050 8,869
Hotels & Other Lodging Places (0.4%)
Starwood Hotels & Resorts Worldwide, Inc. 194,765 5,227
Insurance (7.1%)
AFLAC Incorporated 757,100 24,766
UnitedHealth Group Incorporated 255,960 23,582
WellPoint Health Networks Inc. (a) 478,920 36,369
Insurance Agents, Brokers & Service (1.6%)
Marsh & McLennan Companies, Inc. 399,835 $ 19,064
Manufacturing Industries (2.1%)
International Game Technology (a) 285,885 24,673
Medical Instruments & Supplies (7.3%)
Boston Scientific Corporation (a) 312,065 13,434
Medtronic, Inc. 1,543,420 73,683
Oil & Gas Extraction (3.4%)
Anadarko Petroleum Corporation 439,760 19,525
Devon Energy Corporation 79,835 3,772
EOG Resources, Inc. 186,885 6,986
Nabors Industries Ltd. (a) 247,580 9,705
Personal Credit Institutions (1.1%)
SLM Corporation 114,485 12,822
Personal Services (1.8%)
Cendant Corporation (a) 1,473,505 21,042
Pharmaceuticals (13.2%)
Alcon, Inc. (a) 142,745 6,288
Amgen Inc. (a) 918,340 56,303
Forest Laboratories, Inc. (a) 535,890 27,717
Genentech, Inc. (a) 648,930 24,654
Johnson & Johnson 207,455 11,692
Novartis AG-ADR 360,595 14,236
Teva Pharmaceutical Industries Ltd.-ADR (b) 336,025 15,692
Retail Trade (3.9%)
Amazon.com, Inc. (a) (b) 689,260 19,761
Staples, Inc. (a) 1,096,975 20,886
Tiffany & Co. 209,235 5,804
U.S. Government Agencies (1.6%)
Fannie Mae 261,705 18,945
---------
Total Common Stocks (cost: $1,058,221) 1,050,510
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (7.2%)
Bank Notes (0.4%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 4,875 $ 4,875
Euro Dollar Overnight (0.7%)
Bank of Montreal
1.34%, due 05/01/2003 3,323 3,323
BNP Paribas SA
1.24%, due 05/06/2003 1,560 1,560
Royal Bank of Canada
1.35%, due 05/01/2003 3,900 3,900
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth 1
IDEX Janus Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Euro Dollar Term (2.2%)
American Express Centurion Bank
1.28%, due 05/30/2003 $ 7,800 $ 7,800
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 1,950 1,950
Credit Agricole Indosuez
1.27%, due 05/12/2003 585 585
1.26%, due 06/24/2003 3,900 3,900
Danske Bank A/S
1.25%, due 05/07/2003 4,875 4,875
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 1,950 1,950
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 4,875 4,875
Medium Term Notes (0.2%)
Parkland (USA) LLC
1.31%, due 11/26/2003 2,925 2,925
Money Market Funds (2.9%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 15,602 15,602
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 18,527 18,527
Promissory Notes (0.6%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 6,825 6,825
Repurchase Agreements (0.2%) (c)
Merrill Lynch & Co., Inc.
1.42%, due 05/01/2003 1,950 1,950
-----------
Total Security Lending Collateral (cost: $85,422) 85,422
-----------
Total Investment Securities (cost: $1,143,643) $ 1,135,932
===========
SUMMARY:
Investments, at market value 95.4% $ 1,135,932
Other assets in excess of liabilities 4.6% 54,558
----------- -----------
Net assets 100.0% $ 1,190,490
=========== ===========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$82,693.
(c) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $812.
DEFINITIONS:
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth 2
IDEX Janus Growth
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $1,143,643)
(including $82,693 of securities loaned) $ 1,135,932
Cash 147,286
Receivables:
Investment securities sold 6,979
Shares of beneficial interest sold 614
Interest 41
Dividends 424
Other 419
------------
1,291,695
------------
Liabilities:
Investment securities purchased 12,030
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 1,075
Management and advisory fees 814
Distribution fees 385
Transfer agent fees and expenses 826
Payable for securities on loan 85,422
Other 653
------------
101,205
------------
Net Assets $ 1,190,490
============
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 2,196,179
Accumulated net investment income (loss) (8,002)
Accumulated net realized gain (loss) from investments (989,873)
Net unrealized appreciation (depreciation) of
investments (7,814)
------------
Net Assets $ 1,190,490
============
Shares Outstanding:
Class A 30,120
Class B 13,561
Class C 1,939
Class L 13
Class M 3,454
Class T 20,909
Net Asset Value Per Share:
Class A $ 17.11
Class B 16.04
Class C 16.04
Class L 16.04
Class M 16.20
Class T 17.71
Maximum Offering Price Per Share (1):
Class A $ 18.11
Class M 16.37
Class T 17.89
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 273
Dividends 2,302
Income from loaned securities-net 102
Less withholding taxes on foreign dividends (41)
------------
2,636
------------
Expenses:
Management and advisory fees 4,928
Transfer agent fees and expenses 2,336
Custody fees 70
Administration fees 13
Registration fees 59
Trustees fees and expenses 53
Professional fees 76
Other 436
Distribution and service fees:
Class A 862
Class B 1,078
Class C 153
Class L --
Class M 258
------------
Total Expenses 10,322
------------
Net Investment Income (Loss) (7,686)
------------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (95,739)
Net unrealized appreciation (depreciation) on
investment securities 189,687
------------
Net Gain (Loss) on Investments 93,948
------------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 86,262
============
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth 3
IDEX Janus Growth
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (7,686) $ (20,281)
Net realized gain (loss) on investment
securities (95,739) (243,324)
Net unrealized appreciation
(depreciation) on investment
securities 189,687 (49,886)
----------- -----------
86,262 (313,491)
----------- -----------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
Class T -- --
----------- -----------
-- --
----------- -----------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
Class T -- --
----------- -----------
-- --
----------- -----------
Capital Share Transactions:
Proceeds from shares sold:
Class A 40,853 72,760
Class B 8,395 33,355
Class C 2,337 8,945
Class L 200 --
Class M 1,356 7,095
Class T 10,563 27,028
----------- -----------
63,704 149,183
----------- -----------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
Class T -- --
----------- -----------
-- --
----------- -----------
Cost of shares redeemed:
Class A (68,366) (206,576)
Class B (30,373) (101,412)
Class C (5,562) (22,310)
Class L -- --
Class M (10,600) (43,151)
Class T (36,303) (110,925)
----------- -----------
(151,204) (484,374)
----------- -----------
(87,500) (335,191)
----------- -----------
Net increase (decrease) in net assets (1,238) (648,682)
----------- -----------
Net Assets:
Beginning of period 1,191,728 1,840,410
----------- -----------
End of period $ 1,190,490 $ 1,191,728
=========== ===========
Accumulated Net Investment Income (Loss) $ (8,002) $ (316)
=========== ===========
Share Activity:
Shares issued during the period:
Class A 2,490 3,665
Class B 549 1,747
Class C 152 450
Class L 13 --
Class M 87 363
Class T 628 1,349
----------- -----------
3,919 7,574
----------- -----------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
Class T -- --
----------- -----------
-- --
----------- -----------
Shares redeemed during the period:
Class A (4,227) (11,039)
Class B (2,009) (5,779)
Class C (367) (1,235)
Class L -- --
Class M (693) (2,361)
Class T (2,180) (5,930)
----------- -----------
(9,476) (26,344)
----------- -----------
Net increase (decrease) in shares
outstanding (5,557) (18,770)
=========== ===========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth 4
IDEX Janus Growth
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 15.87 $ (0.10) $ 1.34 $ 1.24
10/31/2002 19.64 (0.22) (3.55) (3.77)
10/31/2001 43.81 (0.24) (20.80) (21.04)
10/31/2000 46.72 0.03 5.35 5.38
10/31/1999 29.35 0.06 17.70 17.76
10/31/1998 25.04 (0.02) 7.64 7.62
- --------------------------------------------------------------------------------
Class B 04/30/2003 14.93 (0.15) 1.26 1.11
10/31/2002 18.63 (0.34) (3.36) (3.70)
10/31/2001 42.08 (0.41) (19.91) (20.32)
10/31/2000 45.38 (0.36) 5.35 4.99
10/31/1999 28.63 (0.56) 17.70 17.14
10/31/1998 24.55 (0.25) 7.64 7.39
- --------------------------------------------------------------------------------
Class C 04/30/2003 14.93 (0.15) 1.26 1.11
10/31/2002 18.63 (0.34) (3.36) (3.70)
10/31/2001 42.08 (0.42) (19.90) (20.32)
10/31/2000 45.38 (0.36) 5.35 4.99
- --------------------------------------------------------------------------------
Class L 04/30/2003 14.74 (0.10) 1.40 1.30
- --------------------------------------------------------------------------------
Class M 04/30/2003 15.08 (0.14) 1.26 1.12
10/31/2002 18.78 (0.32) (3.38) (3.70)
10/31/2001 42.35 (0.39) (20.05) (20.44)
10/31/2000 45.58 (0.29) 5.35 5.06
10/31/1999 28.74 (0.47) 17.70 17.23
10/31/1998 24.62 (0.21) 7.64 7.43
- --------------------------------------------------------------------------------
Class T 04/30/2003 16.40 (0.08) 1.39 1.31
10/31/2002 20.20 (0.16) (3.64) (3.80)
10/31/2001 44.76 (0.14) (21.29) (21.43)
10/31/2000 47.45 0.25 5.35 5.60
10/31/1999 29.74 0.40 17.70 18.10
10/31/1998 25.31 0.13 7.64 7.77
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
----------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ------------
Class A $ -- $ -- $ -- $ 17.11
-- -- -- 15.87
-- (3.13) (3.13) 19.64
-- (8.29) (8.29) 43.81
-- (0.39) (0.39) 46.72
-- (3.31) (3.31) 29.35
- ------------------------------------------------------------
Class B -- -- -- 16.04
-- -- -- 14.93
-- (3.13) (3.13) 18.63
-- (8.29) (8.29) 42.08
-- (0.39) (0.39) 45.38
-- (3.31) (3.31) 28.63
- ------------------------------------------------------------
Class C -- -- -- 16.04
-- -- -- 14.93
-- (3.13) (3.13) 18.63
-- (8.29) (8.29) 42.08
- ------------------------------------------------------------
Class L -- -- -- 16.04
- ------------------------------------------------------------
Class M -- -- -- 16.20
-- -- -- 15.08
-- (3.13) (3.13) 18.78
-- (8.29) (8.29) 42.35
-- (0.39) (0.39) 45.58
-- (3.31) (3.31) 28.74
- ------------------------------------------------------------
Class T -- -- -- 17.71
-- -- -- 16.40
-- (3.13) (3.13) 20.20
-- (8.29) (8.29) 44.76
-- (0.39) (0.39) 47.45
(0.03) (3.31) (3.34) 29.74
- ------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth 5
IDEX Janus Growth
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 7.81% $ 515,397 1.73% 1.76% (1.27)% 32.53%
10/31/2002 (19.21) 505,704 1.66 1.69 (1.10) 62.26
10/31/2001 (51.31) 770,590 1.49 1.49 (0.83) 64.22
10/31/2000 10.82 1,727,573 1.39 1.42 (0.61) 40.71
10/31/1999 61.00 1,467,595 1.40 1.43 (0.60) 70.97
10/31/1998 35.21 817,749 1.51 1.51 (0.55) 27.19
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 7.43 217,523 2.38 2.41 (1.92) 32.53
10/31/2002 (19.86) 224,348 2.31 2.35 (1.75) 62.26
10/31/2001 (51.74) 354,949 2.14 2.14 (1.48) 64.22
10/31/2000 10.11 775,252 2.04 2.07 (1.26) 40.71
10/31/1999 60.36 327,926 2.05 2.08 (1.25) 70.97
10/31/1998 34.96 40,809 2.16 2.16 (1.20) 27.19
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 7.43 31,099 2.38 2.41 (1.92) 32.53
10/31/2002 (19.86) 32,168 2.31 2.35 (1.75) 62.26
10/31/2001 (51.74) 54,760 2.14 2.14 (1.48) 64.22
10/31/2000 10.11 121,633 2.04 2.07 (1.26) 40.71
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 8.82 205 2.38 2.41 (1.92) 32.53
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 7.43 55,969 2.28 2.31 (1.82) 32.53
10/31/2002 (19.72) 61,207 2.21 2.25 (1.65) 62.26
10/31/2001 (51.68) 113,794 2.04 2.04 (1.38) 64.22
10/31/2000 10.22 287,530 1.94 1.97 (1.16) 40.71
10/31/1999 60.45 141,586 1.95 1.98 (1.15) 70.97
10/31/1998 35.00 58,265 2.06 2.06 (1.10) 27.19
- -------------------------------------------------------------------------------------------------------------
Class T 04/30/2003 7.99 370,297 1.38 1.41 (0.92) 32.53
10/31/2002 (18.82) 368,301 1.31 1.34 (0.75) 62.26
10/31/2001 (51.07) 546,317 1.14 1.14 (0.48) 64.22
10/31/2000 11.20 1,232,295 1.04 1.07 (0.26) 40.71
10/31/1999 61.34 1,166,965 1.05 1.08 (0.25) 70.97
10/31/1998 35.53 755,770 1.16 1.16 (0.20) 27.19
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth 6
IDEX Janus Growth
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less fee waivers and reimbursements by the
investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
fee waivers and reimbursements by the investment adviser or affiliated
brokerage and custody earnings credits, if any.
(g) The inception date for the Fund's offering of share classes C and L are as
follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth 7
IDEX Janus Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Janus Growth ("the Fund"), part of IDEX
Mutual Funds, began operations on May 8, 1986.
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers six classes of
shares, each with a public offering price that reflects different sales charges,
if any, and expense levels. Class T shares are not available to new investors.
Effective November 11, 2002, Class C and M shares were closed to new investors.
Income, non-class specific expenses and realized and unrealized gains and
losses, are allocated daily to each class, based upon the value of shares
outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class
bears its own specific expenses as well as a portion of general, common
expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or less are valued at
amortized cost, which approximates market. Other securities for which quotations
are not readily available are valued at fair value determined in such a manner
as the adviser and sub-adviser, under the supervision of the Board of Trustees
and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are included in
investment securities at market value on the Statement of Assets and Liabilities
and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities loans,
the collateral and securities loaned remain subject to fluctuation in market
value. IBT marks to market securities loaned and the collateral each business
day. If additional collateral is due (at least $1), IBT collects additional cash
collateral from the borrowers. Although securities loaned will be fully
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the event
the borrower fails to timely return a recalled security, IBT may indemnify the
Fund by purchasing replacement securities for the Fund at its own expense and
claiming the collateral to fund such a purchase. IBT absorbs the loss if the
collateral value is not sufficient to cover the cost of the replacement
securities. If replacement securities are not available, IBT will credit the
equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth 8
IDEX Janus Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
are wholly owned subsidiaries of Western Reserve Life Assurance Co. of Ohio
("WRL"). AUSA and WRL are wholly owned indirect subsidiaries of AEGON NV, a
Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated break points:
1.00% of the first $250 million of ANA
0.90% of the next $500 million of ANA
0.80% of the next $750 million of ANA
0.70% of ANA over $1.5 billion
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.50% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund, excluding Class T.
The 12b-1 fee for the Fund is comprised of a 0.25% service fee and the
remaining amount is an asset-based sales charge/distribution fee. The Fund is
authorized under the 12b-1 plan to pay fees on each class up to the following
limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 513
Retained by Underwriter 62
Contingent Sales Charges 362
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $224 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 337,895
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 413,039
U.S. Government 2,954
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- ------------------------ ------------------
$ 633,224 October 31, 2009
259,422 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $1,146,426
==========
Unrealized Appreciation $ 96,923
Unrealized (Depreciation) (107,417)
----------
Net Unrealized Appreciation (Depreciation) $ (10,494)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth 9
IDEX Janus Growth & Income
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS (4.5%)
U.S. Treasury Note
3.00%, due 01/31/2004 $ 830 $ 842
2.88%, due 06/30/2004 520 530
2.25%, due 07/31/2004 550 557
3.50%, due 11/15/2006 (b) 550 573
---------
Total U.S. Government Obligations (cost: $2,480) 2,502
---------
CORPORATE DEBT SECURITIES (2.1%)
Amusement & Recreation Services (0.1%)
Six Flags, Inc.
9.50%, due 02/01/2009 15 15
8.88%, due 02/01/2010 50 50
Communication (0.5%)
Cox Communications, Inc.
7.13%, due 10/01/2012 240 280
Electric, Gas & Sanitary Services (0.1%)
CMS Energy Corporation
7.63%, due 11/15/2004 60 60
Environmental Services (0.6%)
Allied Waste North America, Inc.
7.88%, due 04/15/2013 30 31
USA Waste Services, Inc.
7.00%, due 10/01/2004 130 138
Waste Management, Inc.
6.38%, due 12/01/2003 105 107
7.00%, due 05/15/2005 27 29
Gas Production & Distribution (0.1%)
El Paso Corporation-144A
7.88%, due 06/15/2012 45 40
Railroads (0.2%)
Canadian National Railway Company
6.63%, due 04/15/2008 115 131
Variety Stores (0.5%)
Wal-Mart Stores, Inc.
4.38%, due 08/01/2003 275 277
---------
Total Corporate Debt Securities (cost: $1,087) 1,158
---------
CONVERTIBLE BONDS (0.1%)
Business Services (0.1%)
Lamar Advertising Company
5.25%, due 09/15/2006 30 30
Oil & Gas Extraction (0.0%)
Devon Energy Corporation
Zero Coupon, due 06/27/2020 7 4
---------
Total Convertible Bonds (cost: $35) 34
---------
CONVERTIBLE PREFERRED STOCKS (0.7%)
Commercial Banks (0.1%)
State Street Corporation 400 76
Electric Services (0.5%)
CenterPoint Energy, Inc. 7,790 216
Environmental Services (0.1%)
Allied Waste Industries, Inc. 1,340 69
---------
Total Convertible Preferred Stocks (cost: 458) 361
---------
PREFERRED STOCKS (1.4%)
Automotive (1.4%)
General Motors Corporation 10,120 242
Porsche AG 1,504 547
---------
Total Preferred Stocks (cost: 877) 789
---------
COMMON STOCKS (82.1%)
Aerospace (1.1%)
Lockheed Martin Corporation 11,740 588
Air Transportation (0.4%)
Southwest Airlines Co. 14,305 228
Amusement & Recreation Services (0.8%)
Disney (Walt) Company (The) 22,470 419
Automotive (0.9%)
Harley-Davidson, Inc. 3,870 172
Honeywell International Inc. 14,125 333
Automotive Dealers & Service Stations (0.0%)
AutoZone, Inc. (a) 205 17
Beverages (3.1%)
Anheuser-Busch Companies, Inc. 22,360 1,116
PepsiCo, Inc. 13,444 582
Business Credit Institutions (1.1%)
CIT Group, Inc. (The) 29,310 597
Business Services (2.7%)
Accenture Ltd (a) 14,185 227
Clear Channel Communications, Inc. (a) 18,825 736
Lamar Advertising Company (a) 7,865 283
Valassis Communications, Inc. (a) (b) 9,055 241
Chemicals & Allied Products (4.8%)
Colgate-Palmolive Company 7,085 405
du Pont (E.I.) de Nemours and Company 24,175 1,028
International Flavors & Fragrances Inc. 1,415 45
Procter & Gamble Company (The) 11,960 1,075
Reckitt Benckiser PLC 5,951 105
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth & Income 1
IDEX Janus Growth & Income
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Commercial Banks (7.9%)
Bank of America Corporation 11,420 $ 846
Citigroup Inc. 59,980 2,355
Morgan Chase & Co. (J.P.) 9,710 285
Northern Trust Corporation 1,965 69
U.S. Bancorp 37,432 829
Communication (9.4%)
Comcast Corporation-Special Class A (a) (b) 45,450 1,366
Cox Communications, Inc.-Class A (a) (b) 25,760 853
Liberty Media Corporation-Class A (a) 135,340 1,489
Viacom, Inc.-Class B (a) 35,119 1,525
Communications Equipment (0.7%)
Nokia Oyj-ADR 24,540 407
Computer & Data Processing Services (5.1%)
Automatic Data Processing, Inc. 8,955 301
Ceridian Corporation (a) 21,240 296
Electronic Arts Inc. (a) 4,730 280
Microsoft Corporation 74,615 1,908
Computer & Office Equipment (3.6%)
Apple Computer, Inc. (a) 21,005 298
Cisco Systems, Inc. (a) 11,155 168
Dell Computer Corporation (a) 8,895 257
International Business Machines
Corporation 9,575 813
Lexmark International Group, Inc. (a) 5,815 433
Electric Services (1.3%)
EnCana Corporation (b) 21,683 713
Electronic & Other Electric Equipment (2.2%)
General Electric Company 41,425 1,220
Electronic Components & Accessories (2.5%)
Linear Technology Corporation 11,820 407
Maxim Integrated Products 24,360 957
Environmental Services (0.9%)
Waste Management, Inc. 23,025 500
Fabricated Metal Products (0.3%)
Stanley Works (The) 7,405 178
Gas Production & Distribution (0.7%)
Kinder Morgan, Inc. 8,005 376
Hotels & Other Lodging Places (2.4%)
Fairmont Hotels & Resorts Inc. 20,117 461
Four Seasons Hotels Inc. (b) 4,110 124
Park Place Entertainment Corporation (a) 31,990 238
Starwood Hotels & Resorts
Worldwide, Inc. 18,045 484
Insurance (5.5%)
AFLAC Incorporated 10,755 352
American International Group, Inc. 5,846 339
Berkshire Hathaway Inc.-Class B (a) 477 1,112
MGIC Investment Corporation 7,150 325
Travelers Property Casualty Corp.-Class B 20,786 338
UnitedHealth Group Incorporated 5,920 545
Insurance Agents, Brokers & Service (2.5%)
Marsh & McLennan Companies, Inc. 28,810 1,374
Life Insurance (0.8%)
John Hancock Financial Services, Inc. 15,430 448
Management Services (0.8%)
Paychex, Inc. 14,895 464
Manufacturing Industries (1.2%)
Mattel, Inc. 29,255 636
Medical Instruments & Supplies (1.4%)
Medtronic, Inc. 15,955 762
Motion Pictures (0.4%)
AOL Time Warner Inc. (a) 16,140 221
Oil & Gas Extraction (0.8%)
ConocoPhillips 8,918 449
Paper & Allied Products (1.1%)
3M Company 4,615 582
Petroleum Refining (3.1%)
Exxon Mobil Corporation 48,040 1,691
Pharmaceuticals (3.9%)
Abbott Laboratories 8,490 345
Johnson & Johnson 850 48
Merck & Co., Inc. 9,175 534
Pfizer Inc. 40,190 1,236
Primary Metal Industries (0.3%)
Nucor Corporation 4,390 179
Printing & Publishing (1.2%)
Gannett Co., Inc. 8,960 678
Radio & Television Broadcasting (1.2%)
USA Interactive (a) (b) 21,710 650
Railroads (0.6%)
Canadian National Railway Company (b) 6,520 317
Security & Commodity Brokers (1.0%)
Goldman Sachs Group, Inc. (The) 7,070 537
Telecommunications (0.4%)
SBC Communications Inc. 8,410 196
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth & Income 2
IDEX Janus Growth & Income
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Transportation & Public Utilities (0.4%)
C.H. Robinson Worldwide, Inc. 6,330 $ 233
Transportation Equipment (0.4%)
General Dynamics Corporation 3,405 211
U.S. Government Agencies (2.5%)
Fannie Mae 19,370 1,402
Variety Stores (0.7%)
Wal-Mart Stores, Inc. 7,175 404
---------
Total Common Stocks (cost: $44,707) 45,241
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (8.2%)
Bank Notes (0.5%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 257 $ 257
Euro Dollar Overnight (0.8%)
Bank of Montreal
1.34%, due 05/01/2003 175 175
BNP Paribas SA
1.24%, due 05/06/2003 82 82
Royal Bank of Canada
1.35%, due 05/01/2003 206 206
Euro Dollar Term (2.5%)
American Express Centurion Bank
1.28%, due 05/30/2003 411 411
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 103 103
Credit Agricole Indosuez
1.27%, due 05/12/2003 31 31
1.26%, due 06/24/2003 206 206
Danske Bank A/S
1.25%, due 05/07/2003 257 257
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 103 103
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 257 257
Medium Term Notes (0.3%)
Parkland (USA) LLC
1.31%, due 11/26/2003 154 154
Money Market Funds (3.2%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 822 821
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 976 975
Promissory Notes (0.7%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 360 360
Repurchase Agreements (0.2%)
Merrill Lynch & Co., Inc. (c)
1.42%, due 05/01/2003 103 103
---------
Total Security Lending Collateral (cost: $4,501) 4,501
---------
Total Investment Securities (cost: $54,145) $ 54,586
=========
SUMMARY:
Investments, at market value 99.1% $ 54,586
Other assets in excess of liabilities 0.9% 520
--------- ---------
Net assets 100.0% $ 55,106
========= =========
FORWARD FOREIGN CURRENCY CONTRACTS:
Amount in Net Unrealized
Bought Settlement U.S. Dollars Appreciation
Currency (Sold) Date Bought (Sold) (Depreciation)
- ------------- -------- ------------ --------------- ---------------
Euro Dollar 225 08/08/03 $ 239 $ 11
Euro Dollar (320) 08/08/03 (345) (11)
Euro Dollar (100) 09/26/03 (106) (5)
------ ----
$ (212) $ (5)
====== ====
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$4,345.
(c) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $105.
DEFINITIONS:
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth & Income 3
IDEX Janus Growth & Income
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $54,145)
(including $4,345 of securities loaned) $ 54,586
Cash 4,833
Receivables:
Investment securities sold 54
Shares of beneficial interest sold 175
Interest 40
Dividends 40
Unrealized appreciation on forward foreign currency
contracts 11
Other 5
---------
59,744
---------
Liabilities:
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 8
Management and advisory fees 39
Distribution fees 28
Transfer agent fees and expenses 24
Payable for securities on loan 4,501
Unrealized depreciation on forward foreign currency
contracts 16
Other 22
---------
4,638
---------
Net Assets $ 55,106
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized 61,255
Accumulated net investment income (loss) (171)
Accumulated net realized gain (loss) from investments
and foreign currency transactions (6,414)
Net unrealized appreciation (depreciation) of
investments and on translation of assets and liabilities
in foreign currencies 436
---------
Net Assets $ 55,106
=========
Shares Outstanding:
Class A 4,089
Class B 2,447
Class C 429
Class L 101
Class M 279
Net Asset Value Per Share:
Class A $ 7.56
Class B 7.43
Class C 7.43
Class L 7.43
Class M 7.45
Maximum Offering Price Per Share (1):
Class A $ 8.00
Class M 7.52
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 68
Dividends 294
Income from loaned securities-net 3
Less withholding taxes on foreign dividends (5)
---------
360
---------
Expenses:
Management and advisory fees 235
Transfer agent fees and expenses 66
Custody fees 13
Administration fees 12
Registration fees 43
Trustees fees and expenses 2
Professional fees 10
Other 13
Distribution and service fees:
Class A 43
Class B 82
Class C 16
Class L 1
Class M 10
---------
Total Expenses 546
Less reimbursements by the investment adviser (16)
---------
Net Expenses 530
---------
Net Investment Income (Loss) (170)
---------
Net Realized Gain (Loss) on:
Investment securities (1,196)
Foreign currency transactions (24)
---------
(1,220)
---------
Net Unrealized Appreciation (Depreciation) on:
Investment securities 3,479
Translation of assets and liabilities denominated in
foreign currency (5)
---------
3,474
---------
Net Gain (Loss) on Investments and Foreign
Currency Transactions 2,254
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 2,084
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth & Income 4
IDEX Janus Growth & Income
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (170) $ (276)
Net realized gain (loss) on investment
securities and foreign currency
transactions (1,220) (4,380)
Net unrealized appreciation (depreciation)
on investment securities and foreign
currency translations 3,474 (1,190)
--------- ---------
2,084 (5,846)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 13,099 17,574
Class B 3,787 11,751
Class C 555 3,030
Class L 896 --
Class M 840 1,169
--------- ---------
19,177 33,524
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (1,213) (1,938)
Class B (2,105) (4,711)
Class C (903) (1,382)
Class L (170) --
Class M (691) (652)
--------- ---------
(5,082) (8,683)
--------- ---------
14,095 24,841
--------- ---------
Net increase (decrease) in net assets 16,179 18,995
--------- ---------
Net Assets:
Beginning of period 38,927 19,932
--------- ---------
End of period $ 55,106 $ 38,927
========= =========
Accumulated Net Investment Income (Loss) $ (171) $ (1)
========= =========
Share Activity:
Shares issued during the period:
Class A 1,813 2,228
Class B 528 1,408
Class C 78 362
Class L 126 --
Class M 116 139
--------- ---------
2,661 4,137
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (168) (244)
Class B (297) (610)
Class C (129) (177)
Class L (25) --
Class M (97) (81)
--------- ---------
(716) (1,112)
--------- ---------
Net increase (decrease) in shares outstanding 1,945 3,025
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth & Income 5
IDEX Janus Growth & Income
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 7.26 $ (0.02) $ 0.32 $ 0.30
10/31/2002 8.44 (0.03) (1.15) (1.18)
10/31/2001 10.00 0.03 (1.59) (1.56)
- --------------------------------------------------------------------------------
Class B 04/30/2003 7.16 (0.04) 0.31 0.27
10/31/2002 8.38 (0.09) (1.13) (1.22)
10/31/2001 10.00 (0.03) (1.59) (1.62)
- --------------------------------------------------------------------------------
Class C 04/30/2003 7.16 (0.04) 0.31 0.27
10/31/2002 8.38 (0.10) (1.12) (1.22)
10/31/2001 10.00 (0.03) (1.59) (1.62)
- --------------------------------------------------------------------------------
Class L 04/30/2003 7.11 (0.03) 0.35 0.32
- --------------------------------------------------------------------------------
Class M 04/30/2003 7.17 (0.04) 0.32 0.28
10/31/2002 8.39 (0.09) (1.13) (1.22)
10/31/2001 10.00 (0.03) (1.58) (1.61)
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 7.56
-- -- -- 7.26
-- -- -- 8.44
- -----------------------------------------------------------
Class B -- -- -- 7.43
-- -- -- 7.16
-- -- -- 8.38
- -----------------------------------------------------------
Class C -- -- -- 7.43
-- -- -- 7.16
-- -- -- 8.38
- -----------------------------------------------------------
Class L -- -- -- 7.43
- -----------------------------------------------------------
Class M -- -- -- 7.45
-- -- -- 7.17
-- -- -- 8.39
- -----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 4.13% $ 30,914 1.95% 2.02% (0.42)% 9.25%
10/31/2002 (13.94) 17,754 1.93 2.28 (0.41) 52.81
10/31/2001 (15.64) 3,881 1.75 3.26 0.34 44.00
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 3.77 18,176 2.60 2.67 (1.07) 9.25
10/31/2002 (14.56) 15,868 2.58 2.93 (1.06) 52.81
10/31/2001 (16.20) 11,884 2.40 3.91 (0.31) 44.00
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 3.77 3,184 2.60 2.67 (1.07) 9.25
10/31/2002 (14.56) 3,441 2.58 2.93 (1.06) 52.81
10/31/2001 (16.20) 2,469 2.40 3.91 (0.31) 44.00
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 4.50 753 2.60 2.67 (1.07) 9.25
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 3.91 2,079 2.50 2.57 (0.97) 9.25
10/31/2002 (14.53) 1,864 2.48 2.83 (0.96) 52.81
10/31/2001 (16.11) 1,698 2.30 3.81 (0.21) 44.00
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth & Income 6
IDEX Janus Growth & Income
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Janus Growth & Income ("the Fund") commenced operations on December
15, 2000. The inception date for the Fund's offering of share Class L was
November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth & Income 7
IDEX Janus Growth & Income
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Janus Growth & Income ("the Fund"), part of
IDEX Mutual Funds, began operations on December 15, 2000.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and
a liability for the return of the collateral. Securities on loan are included
in investment securities at market value on the Statement of Assets and
Liabilities and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities
loans, the collateral and securities loaned remain subject to fluctuation in
market value. IBT marks to market securities loaned and the collateral each
business day. If additional collateral is due (at least $1), IBT collects
additional cash collateral from the borrowers. Although securities loaned will
be fully collateralized at all times, IBT may experience delays in, or may be
prevented from, recovering the collateral on behalf of the Fund. The Fund may
recall a loaned security position at any time from the borrower through IBT. In
the event the borrower fails to timely return a recalled security, IBT may
indemnify the Fund by purchasing replacement securities for the Fund at its own
expense and claiming the collateral to fund such a purchase. IBT absorbs the
loss if the collateral value is not sufficient to cover the cost of the
replacement securities. If replacement securities are not available, IBT will
credit the equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Foreign currency denominated investments: The accounting records of the Fund
are maintained in U.S. dollars. Securities and other assets and liabilities
denominated in foreign currencies are translated into U.S. dollars at the
closing exchange rate each day. The cost of foreign securities is translated at
the exchange rate in effect when the investment was acquired. The Fund combines
fluctuations from currency exchange rates and fluctuations in market value when
computing net realized and unrealized gains or losses from investments. Net
foreign currency gains and losses resulting from changes in exchange rates
include: 1) foreign currency fluctuations between trade date and settlement
date of investment security transactions; 2) gains and losses on forward
foreign currency
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth & Income 8
IDEX Janus Growth & Income
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
contracts; and 3) the difference between the receivable amounts of interest and
dividends recorded in the accounting records in U.S. dollars and the amounts
actually received. Foreign currency denominated assets may involve risks not
typically associated with domestic transactions, including unanticipated
movements in exchange currency rates, the degree of government supervision and
regulation of security markets, and the possibility of political or economic
instability.
Forward foreign currency contracts: The Fund may enter into forward foreign
currency contracts to hedge against exchange rate risk arising from investments
in securities denominated in foreign currencies. Contracts are valued at the
contractual forward rate and are marked to market daily, with the change in
market value recorded as an unrealized gain or loss. When the contracts are
closed a realized gain or loss is incurred. Risks may arise from changes in
market value of the underlying currencies and from the possible inability of
counterparties to meet the terms of their contracts. Open forward currency
contracts at April 30, 2003, are listed in the Schedule of Investments.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated break points:
1.00% of the first $100 million of ANA
0.95% of the next $400 million of ANA
0.85% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.60% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions are as follows:
Received by Underwriter $ 28
Retained by Underwriter 3
Contingent Sales Charges 34
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $1 for
deferred compensation to Trustees is included in Other liabilities.
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth & Income 9
IDEX Janus Growth & Income
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 19,463
U.S. Government 1,163
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 3,215
U.S. Government 563
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 658 October 31, 2009
3,893 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 54,803
==========
Unrealized Appreciation $ 1,840
Unrealized (Depreciation) (2,058)
----------
Net Unrealized Appreciation (Depreciation) $ (218)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Janus Growth & Income 10
IDEX Jennison Equity Opportunity
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
PREFERRED STOCKS (2.1%)
Motion Pictures (2.1%)
News Corporation Limited (The)-ADR 56,400 $ 1,323
---------
Total Preferred Stocks (cost: $1,204) 1,323
---------
COMMON STOCKS (92.4%)
Aerospace (3.4%)
Lockheed Martin Corporation 16,600 831
Northrop Grumman Corporation 15,400 1,354
Apparel Products (2.0%)
Polo Ralph Lauren Corporation (a)(b) 56,000 1,312
Automotive (3.0%)
General Motors Corporation-Class H (a) 87,200 1,029
Navistar International Corporation (a)(b) 32,300 901
Business Services (2.3%)
DoubleClick Inc. (a) 55,200 475
Manpower Inc. (b) 26,600 875
Robert Half International Inc. (a) 9,200 150
Chemicals & Allied Products (2.4%)
Aventis SA-ADR (b) 6,100 307
Monsanto Company 31,700 552
Olin Corporation (b) 36,800 667
Commercial Banks (3.0%)
Bank of New York Company, Inc. (The) 49,500 1,308
Southwest Bancorporation of Texas,
Inc. (a) 17,700 601
Communication (0.8%)
Echostar Communications
Corporation-Class A (a)(b) 17,400 521
Computer & Data Processing Services (9.1%)
Autodesk, Inc. 41,400 644
Ceridian Corporation (a) 96,400 1,345
Edwards (J.D.) & Company (a)(b) 82,400 987
Network Associates, Inc. (a)(b) 80,100 916
Parametric Technology Corporation (a) 142,400 470
Sybase, Inc. (a) 74,100 948
Synopsys, Inc. (a) 12,000 584
Computer & Office Equipment (3.4%)
Diebold, Incorporated 5,600 224
Hewlett-Packard Company 85,129 1,388
Symbol Technologies, Inc. 50,000 547
Department Stores (1.0%)
Federated Department Stores, Inc. (a) 21,100 646
Electronic Components & Accessories (3.2%)
Agere Systems Inc.-Class B (a) 414,300 708
Solectron Corporation (a) 224,100 715
Vishay Intertechnology, Inc. (a) 48,200 603
Finance (1.7%)
iShares NASDAQ Biotechnology Index
Fund (a)(b) 18,500 1,060
Food & Kindred Products (0.9%)
ConAgra Foods, Inc. 26,800 563
Health Services (1.3%)
Health Management Associates, Inc.-
Class A 47,000 802
Industrial Machinery & Equipment (1.5%)
FMC Technologies, Inc. (a) 49,870 939
Insurance (7.0%)
ACE Limited 26,200 867
Allstate Corporation (The) 17,300 654
CIGNA Corporation 9,600 502
Everest Re Group, Ltd. 8,900 620
XL Capital Ltd.-Class A 22,500 1,852
Insurance Agents, Brokers & Service (4.0%)
Hartford Financial Services Group,
Inc. (The) 36,400 1,484
Willis Group Holdings Limited 34,300 1,070
Management Services (1.4%)
BearingPoint, Inc. (a) 107,800 881
Medical Instruments & Supplies (1.7%)
Apogent Technologies, Inc. (a) 62,400 1,072
Metal Mining (1.3%)
Placer Dome, Inc. 84,200 833
Mining (1.7%)
Arch Coal, Inc. 61,700 1,116
Oil & Gas Extraction (9.8%)
Rowan Companies, Inc. 44,300 908
Schlumberger Limited 30,200 1,265
Spinnaker Exploration Company (a)(b) 44,900 961
Total Fina Elf SA-ADR 10,000 657
Transocean Inc. 51,600 983
Weatherford International Ltd. (a)(b) 38,200 1,537
Paper & Allied Products (4.5%)
Avery Dennison Corporation 9,300 493
Kimberly-Clark Corporation 19,700 980
MeadWestvaco Corporation 22,600 533
Temple-Inland Inc. (b) 19,400 879
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Jennison Equity Opportunity 1
IDEX Jennison Equity Opportunity
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Paper & Paper Products (2.4%)
Boise Cascade Corporation 66,600 $ 1,530
Pharmaceuticals (6.7%)
Abbott Laboratories 33,000 1,341
Cambrex Corporation 42,300 736
Pfizer Inc. 32,900 1,012
Sepracor Inc. (a) 30,500 584
Wyeth 14,200 618
Printing & Publishing (4.0%)
Knight-Ridder, Inc. (b) 13,000 839
New York Times Company (The)-
Class A 14,700 682
Pearson PLC-ADR (b) 68,700 583
Scholastic Corporation (a) 16,700 474
Railroads (1.8%)
CSX Corporation 36,200 1,157
Retail Trade (0.9%)
Toys "R" Us, Inc. (a) 56,000 574
Security & Commodity Brokers (3.9%)
A.G. Edwards, Inc. 36,500 1,089
Merrill Lynch & Co., Inc. 34,700 1,424
Wholesale Trade Durable Goods (2.3%)
Fisher Scientific International Inc. (a) 33,000 951
Tech Data Corporation (a) 20,700 497
---------
Total Common Stocks (cost: $62,597) 59,210
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (17.4%)
Bank Notes (1.0%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 635 $ 635
Euro Dollar Overnight (1.8%)
Bank of Montreal
1.34%, due 05/01/2003 433 433
BNP Paribas SA
1.24%, due 05/06/2003 203 203
Royal Bank of Canada
1.35%, due 05/01/2003 508 508
Euro Dollar Term (5.3%)
American Express Centurion Bank
1.28%, due 05/30/2003 1,017 1,017
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 254 254
Credit Agricole Indosuez
1.27%, due 05/12/2003 76 76
1.26%, due 06/24/2003 508 508
Danske Bank A/S
1.25%, due 05/07/2003 635 635
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 254 254
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 635 635
Medium Term Notes (0.6%)
Parkland (USA) LLC
1.31%, due 11/26/2003 381 381
Money Market Funds (6.9%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 2,034 2,034
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 2,416 2,416
Promissory Notes (1.4%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 890 890
Repurchase Agreements (0.4%)
Merrill Lynch & Co., Inc. (c)
1.42%, due 05/01/2003 254 254
---------
Total Security Lending Collateral (cost: $11,133) 11,133
---------
Total Investment Securities (cost: $74,934) $ 71,666
=========
SUMMARY:
Investments, at market value 111.9 % $ 71,666
Liabilities in excess of other assets (11.9)% (7,626)
--------- ---------
Net assets 100.0 % $ 64,040
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$10,647.
(c) Cash collateral for Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $259.
DEFINITIONS:
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Jennison Equity Opportunity 2
IDEX Jennison Equity Opportunity
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $74,934)
(including $10,647 of securities loaned) $ 71,666
Cash 3,541
Receivables:
Investment securities sold 1,014
Shares of beneficial interest sold 82
Interest 1
Dividends 63
Other 10
---------
76,377
---------
Liabilities:
Investment securities purchased 899
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 143
Management and advisory fees 21
Distribution fees 42
Transfer agent fees and expenses 58
Payable for securities on loan 11,133
Other 41
---------
12,337
---------
Net Assets $ 64,040
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 85,895
Accumulated net investment income (loss) (347)
Accumulated net realized gain (loss) from investments (18,240)
Net unrealized appreciation (depreciation) of
investments (3,268)
---------
Net Assets $ 64,040
=========
Shares Outstanding:
Class A 2,350
Class B 4,897
Class C 1,038
Class L 44
Class M 1,045
Net Asset Value Per Share:
Class A $ 7.06
Class B 6.75
Class C 6.75
Class L 6.75
Class M 6.79
Maximum Offering Price Per Share (1):
Class A $ 7.47
Class M 6.86
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 7
Dividends 414
Income from loaned securities-net 9
Less withholding taxes on foreign dividends (4)
---------
426
---------
Expenses:
Management and advisory fees 278
Transfer agent fees and expenses 153
Custody fees 14
Administration fees 13
Registration fees 43
Trustees fees and expenses 3
Professional fees 14
Other 27
Distribution and service fees:
Class A 32
Class B 176
Class C 41
Class L 1
Class M 35
---------
Total Expenses 830
Less reimbursements by the investment adviser (60)
---------
Net Expenses 770
---------
Net Investment Income (Loss) (344)
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (6,388)
Net unrealized appreciation (depreciation)
on investment securities 8,339
---------
Net Gain (Loss) on Investments 1,951
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 1,607
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Jennison Equity Opportunity 3
IDEX Jennison Equity Opportunity
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (344) $ (893)
Net realized gain (loss) on investment
securities (6,388) (8,820)
Net unrealized appreciation (depreciation)
on investment securities 8,339 (7,380)
--------- ---------
1,607 (17,093)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 2,567 21,526
Class B 2,239 27,698
Class C 1,209 8,934
Class L 355 --
Class M 608 7,158
--------- ---------
6,978 65,316
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (8,518) (12,762)
Class B (7,214) (13,882)
Class C (3,273) (5,074)
Class L (58) --
Class M (1,693) (3,091)
--------- ---------
(20,756) (34,809)
--------- ---------
(13,778) 30,507
--------- ---------
Net increase (decrease) in net assets (12,171) 13,414
--------- ---------
Net Assets:
Beginning of period 76,211 62,797
--------- ---------
End of period $ 64,040 $ 76,211
========= =========
Accumulated Net Investment Income (Loss) $ (347) $ (3)
========= =========
Share Activity:
Shares issued during the period:
Class A 363 2,604
Class B 335 3,439
Class C 178 1,118
Class L 53 --
Class M 89 864
--------- ---------
1,018 8,025
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (1,185) (1,629)
Class B (1,096) (1,887)
Class C (496) (690)
Class L (9) --
Class M (256) (419)
--------- ---------
(3,042) (4,625)
--------- ---------
Net increase (decrease) in shares outstanding (2,024) 3,400
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Jennison Equity Opportunity 4
IDEX Jennison Equity Opportunity
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 6.88 $ (0.02) $ 0.20 $ 0.18
10/31/2002 8.04 (0.05) (1.11) (1.16)
10/31/2001 10.26 (0.01) (1.17) (1.18)
10/31/2000 12.14 (0.13) (1.54) (1.67)
10/31/1999 10.14 0.06 2.78 2.84
10/31/1998 12.90 0.03 (1.84) (1.81)
- --------------------------------------------------------------------------------
Class B 04/30/2003 6.60 (0.04) 0.19 0.15
10/31/2002 7.77 (0.10) (1.07) (1.17)
10/31/2001 10.01 (0.05) (1.15) (1.20)
10/31/2000 11.93 (0.17) (1.54) (1.71)
10/31/1999 10.02 (0.03) 2.78 2.75
10/31/1998 12.85 (0.04) (1.84) (1.88)
- --------------------------------------------------------------------------------
Class C 04/30/2003 6.60 (0.04) 0.19 0.15
10/31/2002 7.77 (0.10) (1.07) (1.17)
10/31/2001 10.01 (0.05) (1.15) (1.20)
10/31/2000 11.93 (0.17) (1.54) (1.71)
- --------------------------------------------------------------------------------
Class L 04/30/2003 6.60 (0.03) 0.18 0.15
- --------------------------------------------------------------------------------
Class M 04/30/2003 6.65 (0.04) 0.18 0.14
10/31/2002 7.81 (0.10) (1.06) (1.16)
10/31/2001 10.05 (0.04) (1.16) (1.20)
10/31/2000 11.96 (0.16) (1.54) (1.70)
10/31/1999 10.04 (0.02) 2.78 2.76
10/31/1998 12.86 (0.03) (1.84) (1.87)
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 7.06
-- -- -- 6.88
-- (1.04) (1.04) 8.04
-- (0.21) (0.21) 10.26
-- (0.84) (0.84) 12.14
-- (0.95) (0.95) 10.14
- ----------------------------------------------------------
Class B -- -- -- 6.75
-- -- -- 6.60
-- (1.04) (1.04) 7.77
-- (0.21) (0.21) 10.01
-- (0.84) (0.84) 11.93
-- (0.95) (0.95) 10.02
- ----------------------------------------------------------
Class C -- -- -- 6.75
-- -- -- 6.60
-- (1.04) (1.04) 7.77
-- (0.21) (0.21) 10.01
- ----------------------------------------------------------
Class L -- -- -- 6.75
- ----------------------------------------------------------
Class M -- -- -- 6.79
-- -- -- 6.65
-- (1.04) (1.04) 7.81
-- (0.21) (0.21) 10.05
-- (0.84) (0.84) 11.96
-- (0.95) (0.95) 10.04
- ----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 2.62% $ 16,590 1.75% 1.92% (0.52)% 47.75%
10/31/2002 (14.47) 21,836 1.75 1.82 (0.52) 97.50
10/31/2001 (11.08) 17,670 1.55 2.44 (0.11) 157.51
10/31/2000 (14.06) 4,147 1.55 2.66 (0.87) 244.18
10/31/1999 30.07 4,537 1.64 2.87 (0.99) 125.60
10/31/1998 (14.83) 4,284 1.85 2.44 (0.73) 147.01
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 2.27 33,047 2.40 2.57 (1.17) 47.75
10/31/2002 (15.10) 37,363 2.40 2.47 (1.17) 97.50
10/31/2001 (11.54) 31,922 2.20 3.09 (0.76) 157.51
10/31/2000 (14.70) 3,483 2.20 3.31 (1.52) 244.18
10/31/1999 29.45 3,868 2.29 3.52 (1.64) 125.60
10/31/1998 (15.40) 2,460 2.50 3.09 (1.38) 147.01
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 2.27 7,006 2.40 2.57 (1.17) 47.75
10/31/2002 (15.10) 8,957 2.40 2.47 (1.17) 97.50
10/31/2001 (11.54) 7,211 2.20 3.09 (0.76) 157.51
10/31/2000 (14.70) 271 2.20 3.31 (1.52) 244.18
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 2.27 299 2.40 2.57 (1.17) 47.75
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 2.11 7,098 2.30 2.47 (1.07) 47.75
10/31/2002 (14.91) 8,055 2.30 2.37 (1.07) 97.50
10/31/2001 (11.48) 5,994 2.10 2.99 (0.66) 157.51
10/31/2000 (14.60) 946 2.10 3.21 (1.42) 244.18
10/31/1999 29.54 1,338 2.19 3.42 (1.54) 125.60
10/31/1998 (15.31) 879 2.40 2.99 (1.28) 147.01
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Jennison Equity Opportunity 5
IDEX Jennison Equity Opportunity
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) The inception date for the Fund's offering of share classes C and L are as
follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Jennison Equity Opportunity 6
IDEX Jennison Equity Opportunity
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Jennison Equity Opportunity ("the Fund"),
part of IDEX Mutual Funds, began operations on February 1, 1996.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or less are valued at
amortized cost, which approximates market. Other securities for which quotations
are not readily available are valued at fair value determined in such a manner
as the adviser and sub-adviser, under the supervision of the Board of Trustees
and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are included in
investment securities at market value on the Statement of Assets and Liabilities
and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities loans,
the collateral and securities loaned remain subject to fluctuation in market
value. IBT marks to market securities loaned and the collateral each business
day. If additional collateral is due (at least $1), IBT collects additional cash
collateral from the borrowers. Although securities loaned will be fully
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the event
the borrower fails to timely return a recalled security, IBT may indemnify the
Fund by purchasing replacement securities for the Fund at its own expense and
claiming the collateral to fund such a purchase. IBT absorbs the loss if the
collateral value is not sufficient to cover the cost of the replacement
securities. If replacement securities are not available, IBT will credit the
equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or, in
the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
IDEX Mutual Funds
Semi-Annual Report 2003
Jennison Equity Opportunity 7
IDEX Jennison Equity Opportunity
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.40% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for the
Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 40
Retained by Underwriter 2
Contingent Sales Charges 118
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and other
legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account charges
(not in thousands) of $15.39 for each open shareholder account, $2.73 for each
new account opened, $1.63 for each closed account maintained, and certain
out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan amounts
are included in Other assets, and the total liability of $2 for deferred
compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 31,806
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 44,912
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 2,778 October 31, 2009
8,055 October 31, 2010
IDEX Mutual Funds
Semi-Annual Report 2003
Jennison Equity Opportunity 8
IDEX Jennison Equity Opportunity
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 4-(continued)
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 76,149
==========
Unrealized Appreciation $ 2,905
Unrealized (Depreciation) (7,388)
----------
Net Unrealized Appreciation (Depreciation) $ (4,483)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Jennison Equity Opportunity 9
IDEX LKCM Strategic Total Return
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
CORPORATE DEBT SECURITIES (9.1%)
Chemicals & Allied Products (1.2%)
Procter & Gamble Company (The)
5.25%, due 09/15/2003 $ 600 $ 609
Electric Services (0.5%)
Kentucky Utilities Company
8.55%, due 05/15/2027 250 262
Electric, Gas & Sanitary Services (0.3%)
Interstate Power Company
8.63%, due 09/15/2021 140 149
Life Insurance (0.8%)
Hartford Life, Inc.
6.90%, due 06/15/2004 400 422
Paper & Allied Products (1.0%)
Kimberly-Clark Corporation
7.00%, due 08/15/2023 500 517
Personal Services (1.3%)
Block Financial Corp.
6.75%, due 11/01/2004 600 638
Telecommunications (2.7%)
ALLTEL Corporation
7.25%, due 04/01/2004 800 840
Verizon Hawaii Inc.-Series BB
6.75%, due 02/15/2005 500 540
Variety Stores (1.3%)
Wal-Mart Stores, Inc.
6.55%, due 08/10/2004 600 638
---------
Total Corporate Debt Securities (cost: $4,429) 4,615
---------
CONVERTIBLE BONDS (1.2%)
Printing & Publishing (1.2%)
Tribune Company-PHONES
2.00%, due 05/15/2029 8 630
---------
Total Convertible Bonds (cost: $976) 630
---------
Shares Value
- ------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS (3.5%)
Instruments & Related Products (1.5%)
Raytheon Company 14,000 $ 740
Life Insurance (2.0%)
Prudential Financial, Inc.-Units 19,000 1,045
---------
Total Convertible Preferred Stocks (cost: $1,691) 1,785
---------
COMMON STOCKS (77.2%)
Automotive (1.0%)
Honeywell International Inc. 21,000 496
Beverages (3.0%)
Coca-Cola Company (The) 19,000 768
PepsiCo, Inc. 17,000 736
Business Services (3.1%)
Clear Channel Communications, Inc. (a) 21,500 841
First Data Corporation 18,600 730
Chemicals & Allied Products (3.6%)
Colgate-Palmolive Company 17,500 1,000
du Pont (E.I.) de Nemours and Company 19,000 808
Commercial Banks (8.2%)
Bank of New York Company, Inc. (The) 26,500 702
Citigroup Inc. 22,800 895
Cullen/Frost Bankers, Inc. 26,000 853
Mellon Financial Corporation 29,800 788
Wells Fargo & Company 17,600 849
Communication (1.7%)
Viacom, Inc.-Class B (a) 20,344 883
Communications Equipment (1.5%)
Harris Corporation 18,000 514
Motorola, Inc. 29,700 235
Computer & Data Processing Services (5.3%)
Automatic Data Processing, Inc. 17,000 572
Microsoft Corporation 41,800 1,069
Oracle Corporation (a) 44,000 523
SunGard Data Systems Inc. (a) 24,000 516
Computer & Office Equipment (4.0%)
Cisco Systems, Inc. (a) 41,700 627
Dell Computer Corporation (a) 27,200 786
International Business Machines
Corporation 7,000 594
Electronic & Other Electric Equipment (2.2%)
General Electric Company 38,000 1,119
Electronic Components & Accessories (3.4%)
Intel Corporation 28,300 521
Texas Instruments Incorporated 37,000 684
Tyco International Ltd. 33,000 515
Environmental Services (1.5%)
Waste Management, Inc. 36,000 782
Food & Kindred Products (1.9%)
Altria Group, Inc. 14,300 440
Kraft Foods, Inc. 17,000 525
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
LKCM Strategic Total Return 1
IDEX LKCM Strategic Total Return
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Health Services (1.2%)
Triad Hospitals, Inc. (a) 28,700 $ 632
Insurance (1.5%)
American International Group, Inc. 13,275 769
Lumber & Other Building Materials (1.3%)
Home Depot, Inc. (The) 23,800 669
Medical Instruments & Supplies (2.0%)
Medtronic, Inc. 20,900 998
Oil & Gas Extraction (5.3%)
Anadarko Petroleum Corporation 20,500 909
EOG Resources, Inc. 14,800 553
Schlumberger Limited 16,400 688
Unocal Corporation 20,000 554
Paper & Allied Products (2.5%)
Kimberly-Clark Corporation 15,000 747
Temple-Inland Inc. (b) 11,500 521
Paper & Paper Products (1.9%)
Boise Cascade Corporation 42,200 969
Personal Services (0.8%)
Block (H&R), Inc. (b) 10,200 394
Petroleum Refining (2.6%)
BP PLC-ADR 9,500 366
Exxon Mobil Corporation 26,900 947
Pharmaceuticals (6.9%)
Alcon, Inc. (a) 25,100 1,106
Pfizer Inc. 29,700 912
Teva Pharmaceutical Industries Ltd.-ADR (b) 19,400 905
Wyeth 13,500 588
Printing & Publishing (0.7%)
Harte-Hanks Inc. 20,500 369
Rubber & Misc. Plastic Products (1.2%)
Newell Financial Trust I (b) 20,500 625
Savings Institutions (1.3%)
Charter One Financial, Inc. 23,500 683
Telecommunications (3.9%)
ALLTEL Corporation 21,600 1,012
Verizon Communications, Inc. 25,400 949
Transportation Equipment (0.9%)
General Dynamics Corporation 7,500 466
U.S. Government Agencies (1.1%)
Fannie Mae 8,000 579
Variety Stores (1.7%)
Wal-Mart Stores, Inc. 14,900 839
---------
Total Common Stocks (cost: $41,939) 39,120
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (4.9%)
Bank Notes (0.3%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 143 $ 143
Euro Dollar Overnight (0.5%)
Bank of Montreal
1.34%, due 05/01/2003 97 97
BNP Paribas SA
1.24%, due 05/06/2003 46 46
Royal Bank of Canada
1.35%, due 05/01/2003 114 114
Euro Dollar Term (1.5%)
American Express Centurion Bank
1.28%, due 05/30/2003 230 230
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 57 57
Credit Agricole Indosuez
1.27%, due 05/12/2003 17 17
1.26%, due 06/24/2003 114 114
Danske Bank A/S
1.25%, due 05/07/2003 143 143
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 57 57
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 143 143
Medium Term Notes (0.2%)
Parkland (USA) LLC
1.31%, due 11/26/2003 86 86
Money Market Funds (1.9%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 457 457
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 543 543
Promissory Notes (0.4%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 200 200
Repurchase Agreements (0.1%) (c)
Merrill Lynch & Co., Inc.
1.42%, due 05/01/2003 57 57
---------
Total Security Lending Collateral (cost: $2,504) 2,504
---------
Total Investment Securities (cost: $51,539) $ 48,654
=========
SUMMARY:
Investments, at market value 95.9% $ 48,654
Other assets in excess of liabilities 4.1% 2,078
--------- ---------
Net assets 100.0% $ 50,732
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
LKCM Strategic Total Return 2
IDEX LKCM Strategic Total Return
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$2,437.
(c) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $58.
DEFINITIONS:
ADR American Depositary Receipt
PHONES Participation Hybrid Option Note Exchangeable Securities
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
LKCM Strategic Total Return 3
IDEX LKCM Strategic Total Return
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $51,539)
(including $2,437 of securities loaned) $ 48,654
Cash 4,548
Receivables:
Shares of beneficial interest sold 28
Interest 76
Dividends 40
Other 10
---------
53,356
---------
Liabilities:
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 19
Management and advisory fees 6
Distribution fees 25
Transfer agent fees and expenses 43
Payable for securities on loan 2,504
Other 27
---------
2,624
---------
Net Assets $ 50,732
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 53,784
Undistributed net investment income (loss) 37
Accumulated net realized gain (loss) from investments (202)
Net unrealized appreciation (depreciation) of
investments (2,887)
=========
Net Assets $ 50,732
=========
Shares Outstanding:
Class A 2,069
Class B 1,019
Class C 175
Class L 5
Class M 239
Net Asset Value Per Share:
Class A $ 14.48
Class B 14.45
Class C 14.45
Class L 14.45
Class M 14.45
Maximum Offering Price Per Share (1):
Class A $ 15.32
Class M 14.60
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 462
Dividends 370
Income from loaned securities-net 2
---------
834
---------
Expenses:
Management and advisory fees 204
Transfer agent fees and expenses 118
Custody fees 9
Administration fees 16
Registration fees 39
Trustees fees and expenses 2
Professional fees 14
Other 19
Distribution and service fees:
Class A 52
Class B 75
Class C 13
Class L --
Class M 16
---------
Total Expenses 577
Less reimbursements by the investment adviser (115)
---------
Net Expenses 462
---------
Net Investment Income (Loss) 372
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities 1,163
Net unrealized appreciation (depreciation)
on investment securities (717)
---------
Net Gain (Loss) on Investments 446
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 818
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
LKCM Strategic Total Return 4
IDEX LKCM Strategic Total Return
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 372 $ 929
Net realized gain (loss) on investment
securities 1,163 (1,365)
Net unrealized appreciation (depreciation)
on investment securities (717) (3,157)
--------- ---------
818 (3,593)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A (313) (641)
Class B (109) (214)
Class C (19) (35)
Class L -- --
Class M (28) (62)
--------- ---------
(469) (952)
--------- ---------
From net realized gains:
Class A -- (39)
Class B -- (20)
Class C -- (3)
Class L -- --
Class M -- (6)
--------- ---------
-- (68)
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 2,103 5,720
Class B 749 3,555
Class C 144 1,424
Class L 67 --
Class M 146 665
--------- ---------
3,209 11,364
--------- ---------
Dividends and distributions reinvested:
Class A 300 655
Class B 105 226
Class C 18 37
Class L -- --
Class M 27 66
--------- ---------
450 984
--------- ---------
Cost of shares redeemed:
Class A (3,993) (9,723)
Class B (2,269) (5,525)
Class C (428) (1,421)
Class L (1) --
Class M (672) (2,004)
--------- ---------
(7,363) (18,673)
--------- ---------
(3,704) (6,325)
--------- ---------
Net increase (decrease) in net assets (3,355) (10,938)
--------- ---------
Net Assets:
Beginning of period 54,087 65,025
--------- ---------
End of period $ 50,732 $ 54,087
========= =========
Undistributed Net Investment Income (Loss) $ 37 $ 134
========= =========
Share Activity:
Shares issued during the period:
Class A 150 371
Class B 53 230
Class C 10 92
Class L 5 --
Class M 11 43
--------- ---------
229 736
--------- ---------
Shares issued-reinvested from distributions:
Class A 21 42
Class B 7 15
Class C 1 2
Class L -- --
Class M 2 4
--------- ---------
31 63
--------- ---------
Shares redeemed during the period:
Class A (285) (639)
Class B (163) (368)
Class C (30) (93)
Class L -- --
Class M (48) (132)
--------- ---------
(526) (1,232)
--------- ---------
Net increase (decrease) in shares outstanding (266) (433)
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
LKCM Strategic Total Return 5
IDEX LKCM Strategic Total Return
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 14.34 $ 0.12 $ 0.17 $ 0.29
10/31/2002 15.46 0.28 (1.11) (0.83)
10/31/2001 17.02 0.30 (1.51) (1.21)
10/31/2000 17.62 0.27 (0.15) 0.12
10/31/1999 16.18 0.20 1.65 1.85
10/31/1998 15.91 0.21 0.94 1.15
- --------------------------------------------------------------------------------
Class B 04/30/2003 14.33 0.07 0.15 0.22
10/31/2002 15.45 0.18 (1.11) (0.93)
10/31/2001 17.01 0.19 (1.50) (1.31)
10/31/2000 17.60 0.18 (0.15) 0.03
10/31/1999 16.17 0.09 1.65 1.74
10/31/1998 15.89 0.11 0.94 1.05
- --------------------------------------------------------------------------------
Class C 04/30/2003 14.33 0.07 0.15 0.22
10/31/2002 15.45 0.18 (1.11) (0.93)
10/31/2001 17.01 0.19 (1.50) (1.31)
10/31/2000 17.60 0.18 (0.15) 0.03
- --------------------------------------------------------------------------------
Class L 04/30/2003 14.06 0.06 0.43 0.49
- --------------------------------------------------------------------------------
Class M 04/30/2003 14.33 0.09 0.14 0.23
10/31/2002 15.45 0.19 (1.10) (0.91)
10/31/2001 17.01 0.20 (1.49) (1.29)
10/31/2000 17.61 0.18 (0.15) 0.03
10/31/1999 16.17 0.11 1.65 1.76
10/31/1998 15.90 0.12 0.94 1.06
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
----------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ------------
Class A $ (0.15) $ -- $ (0.15) $ 14.48
(0.27) (0.02) (0.29) 14.34
(0.26) (0.09) (0.35) 15.46
(0.30) (0.42) (0.72) 17.02
(0.20) (0.21) (0.41) 17.62
(0.21) (0.67) (0.88) 16.18
- ------------------------------------------------------------
Class B (0.10) -- (0.10) 14.45
(0.17) (0.02) (0.19) 14.33
(0.16) (0.09) (0.25) 15.45
(0.20) (0.42) (0.62) 17.01
(0.10) (0.21) (0.31) 17.60
(0.10) (0.67) (0.77) 16.17
- ------------------------------------------------------------
Class C (0.10) -- (0.10) 14.45
(0.17) (0.02) (0.19) 14.33
(0.16) (0.09) (0.25) 15.45
(0.20) (0.42) (0.62) 17.01
- ------------------------------------------------------------
Class L (0.10) -- (0.10) 14.45
- ------------------------------------------------------------
Class M (0.11) -- (0.11) 14.45
(0.19) (0.02) (0.21) 14.33
(0.18) (0.09) (0.27) 15.45
(0.21) (0.42) (0.63) 17.01
(0.11) (0.21) (0.32) 17.61
(0.12) (0.67) (0.79) 16.17
- ------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 2.02% $ 29,961 1.55% 2.00% 1.72% 18.24%
10/31/2002 (5.52) 31,303 1.55 1.85 1.77 13.92
10/31/2001 (7.13) 37,253 1.55 1.74 1.80 22.54
10/31/2000 0.64 40,919 1.55 1.69 1.59 56.08
10/31/1999 11.61 37,959 1.64 1.79 1.20 60.18
10/31/1998 7.43 32,055 1.85 1.92 1.30 32.12
---------------------------------------------------------------------------------------------------
Class B 04/30/2003 1.55 14,724 2.20 2.65 1.07 18.24
10/31/2002 (6.12) 16,072 2.20 2.51 1.12 13.92
10/31/2001 (7.72) 19,236 2.20 2.39 1.15 22.54
10/31/2000 0.03 19,375 2.20 2.34 0.94 56.08
10/31/1999 10.91 15,531 2.29 2.44 0.55 60.18
10/31/1998 6.74 9,789 2.50 2.57 0.65 32.12
---------------------------------------------------------------------------------------------------
Class C 04/30/2003 1.55 2,527 2.20 2.65 1.07 18.24
10/31/2002 (6.12) 2,778 2.20 2.50 1.12 13.92
10/31/2001 (7.72) 2,989 2.20 2.39 1.15 22.54
10/31/2000 0.03 2,523 2.20 2.34 0.94 56.08
---------------------------------------------------------------------------------------------------
Class L 04/30/2003 3.50 68 2.20 2.65 1.07 18.24
---------------------------------------------------------------------------------------------------
Class M 04/30/2003 1.60 3,452 2.10 2.55 1.17 18.24
10/31/2002 (6.04) 3,934 2.10 2.41 1.22 13.92
10/31/2001 (7.63) 5,547 2.10 2.29 1.25 22.54
10/31/2000 0.12 7,026 2.10 2.24 1.04 56.08
10/31/1999 11.02 8,779 2.19 2.34 0.65 60.18
10/31/1998 6.85 6,977 2.40 2.47 0.75 32.12
---------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
LKCM Strategic Total Return 6
IDEX LKCM Strategic Total Return
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) The inception date for the Fund's offering of share classes C and L are as
follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
LKCM Strategic Total Return 7
IDEX LKCM Strategic Total Return
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX LKCM Strategic Total Return ("the Fund"),
part of IDEX Mutual Funds, began operations on December 2, 1994.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or less are valued at
amortized cost, which approximates market. Other securities for which quotations
are not readily available are valued at fair value determined in such a manner
as the adviser and sub-adviser, under the supervision of the Board of Trustees
and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Directed Brokerage: The sub-adviser, to the extent consistent with the best
execution and usual commission rate policies and practices, may place security
transactions of the Fund with broker/dealers with which IDEX Mutual Funds has
established a Directed Brokerage Program. A Directed Brokerage Program is any
arrangement under which a broker/dealer applies a portion of the commissions
received by such broker/dealer on the security transactions to the payment of
operating expenses that would otherwise be borne by the Fund. In no event will
commissions paid by the Fund be used to pay expenses that would otherwise be
borne by any other funds within IDEX Mutual Funds, or by any other party.
Directed commissions during the six-months ended April 30, 2003, of $9 are
included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are to be
included in investment securities at market value on the Statement of Assets and
Liabilities and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities loans,
the collateral and securities loaned remain subject to fluctuation in market
value. IBT marks to market securities loaned and the collateral each business
day. If additional collateral is due (at least $1), IBT collects additional cash
collateral from the borrowers. Although securities loaned will be fully
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the event
the borrower fails to timely return a recalled security, IBT may indemnify the
Fund by purchasing replacement securities for the Fund at its own expense and
claiming the collateral to fund such a purchase. IBT absorbs the loss if the
collateral value is not sufficient to cover the cost of the replacement
securities. If replacement securities are not available, IBT will credit the
equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amounts of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
for on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as
IDEX Mutual Funds
Semi-Annual Report 2003
LKCM Strategic Total Return 8
IDEX LKCM Strategic Total Return
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
the Fund is informed of the ex-dividend date. Interest income, including
accretion of discounts and amortization of premiums, is recorded on the accrual
basis commencing on the settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.20% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 28
Retained by Underwriter 1
Contingent Sales Charges 23
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $5 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 9,074
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 17,166
U.S. Government --
IDEX Mutual Funds
Semi-Annual Report 2003
LKCM Strategic Total Return 9
IDEX LKCM Strategic Total Return
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforward is available to offset future realized capital
gains through the period listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 1,356 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 51,539
==========
Unrealized Appreciation $ 3,554
Unrealized (Depreciation) (6,439)
----------
Net Unrealized Appreciation (Depreciation) $ (2,885)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
LKCM Strategic Total Return 10
IDEX Marsico Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
PREFERRED STOCKS (0.9%)
Automotive (0.9%)
Porsche AG 1,320 $ 480
---------
Total Preferred Stocks (cost: $631) 480
---------
COMMON STOCKS (89.8%)
Air Transportation (3.2%)
FedEx Corporation 24,242 1,452
RyanAir Holdings PLC-ADR (a) (b) 7,222 286
Amusement & Recreation Services (3.0%)
Disney (Walt) Company (The) 48,460 904
MGM MIRAGE (a) 25,809 733
Beverages (1.2%)
Anheuser-Busch Companies, Inc. 12,428 620
Business Services (4.4%)
Clear Channel Communications, Inc. (a) 35,109 1,373
eBay Inc. (a) 10,644 987
Chemicals & Allied Products (3.4%)
Procter & Gamble Company (The) 20,370 1,830
Commercial Banks (4.8%)
Citigroup Inc. 66,205 2,599
Communication (4.4%)
Echostar Communications Corporation-
Class A (a) (b) 16,608 498
Viacom, Inc.-Class B (a) 42,744 1,856
Computer & Data Processing Services (7.3%)
Electronic Arts Inc. (a) 26,618 1,578
Intuit Inc. (a) 14,830 575
Microsoft Corporation 51,862 1,326
Oracle Corporation (a) 40,314 479
Computer & Office Equipment (5.6%)
Cisco Systems, Inc. (a) 96,446 1,451
Dell Computer Corporation (a) 54,690 1,580
Electronic & Other Electric Equipment (5.0%)
General Electric Company 91,901 2,706
Furniture & Home Furnishings Stores (0.6%)
Bed Bath & Beyond Inc. (a) 8,448 334
Health Services (4.8%)
HCA Inc. 27,272 875
Quest Diagnostics Incorporated (a) (b) 28,562 1,707
Insurance (5.7%)
UnitedHealth Group Incorporated 33,676 3,103
Lumber & Other Building Materials (3.1%)
Lowe's Companies, Inc. 38,606 1,693
Medical Instruments & Supplies (3.6%)
Medtronic, Inc. 18,140 866
Zimmer Holdings, Inc. (a) (b) 23,470 1,101
Personal Credit Institutions (6.0%)
SLM Corporation 28,702 3,215
Pharmaceuticals (9.2%)
Amgen Inc. (a) 30,112 1,846
Genentech, Inc. (a) 38,288 1,455
IDEC Pharmaceuticals Corporation (a) 25,318 829
Johnson & Johnson 14,812 835
Residential Building Construction (0.7%)
Lennar Corporation 6,272 340
Lennar Corporation-B Shares (b) 627 34
Retail Trade (1.2%)
Tiffany & Co. 22,410 622
Security & Commodity Brokers (2.2%)
Goldman Sachs Group, Inc. (The) 8,046 611
Lehman Brothers Holdings Inc. (b) 9,452 595
Telecommunications (4.0%)
Nextel Communications, Inc.-
Class A (a) (b) 146,052 2,160
U.S. Government Agencies (3.6%)
Fannie Mae 27,114 1,963
Variety Stores (2.8%)
Wal-Mart Stores, Inc. 27,364 1,541
---------
Total Common Stocks (cost: $47,171) 48,558
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (10.0%)
Bank Notes (0.6%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 309 $ 309
Euro Dollar Overnight (1.0%)
Bank of Montreal
1.34%, due 05/01/2003 210 210
BNP Paribas SA
1.24%, due 05/06/2003 99 99
Royal Bank of Canada
1.35%, due 05/01/2003 247 247
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Marsico Growth 1
IDEX Marsico Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Euro Dollar Term (3.0%)
American Express Centurion Bank
1.28%, due 05/30/2003 $ 494 $ 494
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 123 123
Credit Agricole Indosuez
1.27%, due 05/12/2003 37 37
1.26%, due 06/24/2003 247 247
Danske Bank A/S
1.25%, due 05/07/2003 309 309
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 123 123
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 309 309
Medium Term Notes (0.3%)
Parkland (USA) LLC
1.31%, due 11/26/2003 185 185
Money Market Funds (4.1%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 988 988
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 1,174 1,174
Promissory Notes (0.8%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 432 432
Repurchase Agreements (0.2%)
Merrill Lynch & Co., Inc.
1.42%, due 05/01/2003 123 123
---------
Total Security Lending Collateral (cost: $5,409) 5,409
---------
Total Investment Securities (cost: $53,211) $ 54,447
=========
SUMMARY:
Investments, at market value 100.7% $ 54,447
Liabilities in excess of other assets (0.7)% (360)
--------- ---------
Net assets 100.0 % $ 54,087
========= =========
FORWARD FOREIGN CURRENCY CONTRACTS:
- -------------------------------------------------------------------
Amount in Net Unrealized
Bought Settlement U.S. Dollars Appreciation
Currency (Sold) Date Bought (Sold) (Depreciation)
- -------------------------------------------------------------------
Euro Dollar (158) 05/05/2003 $ (176) $ 0
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$5,275.
(c) Cash collateral for Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $126.
DEFINITIONS:
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Marsico Growth 2
IDEX Marsico Growth
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $53,211 )
(including $5,275 of securities loaned) $ 54,447
Cash 4,816
Receivables:
Investment securities sold 176
Shares of beneficial interest sold 136
Interest 2
Dividends 21
Other 5
---------
59,603
---------
Liabilities:
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 21
Management and advisory fees 24
Distribution fees 25
Transfer agent fees and expenses 22
Payable for securities on loan 5,409
Other 15
---------
5,516
---------
Net Assets $ 54,087
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized 68,863
Accumulated net investment income (loss) (283)
Accumulated net realized gain (loss) from investments
and foreign currency transactions (15,729)
Net unrealized appreciation (depreciation) of
investments and on translation of assets and liabilities
in foreign currencies 1,236
---------
Net Assets $ 54,087
=========
Shares Outstanding:
Class A 4,652
Class B 1,898
Class C 303
Class L 53
Class M 418
Net Asset Value Per Share:
Class A $ 7.47
Class B 7.24
Class C 7.24
Class L 7.24
Class M 7.27
Maximum Offering Price Per Share (1):
Class A $ 7.90
Class M 7.34
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 14
Dividends 142
Income from loaned securities-net 3
Less withholding taxes on foreign dividends (5)
---------
154
---------
Expenses:
Management and advisory fees 172
Transfer agent fees and expenses 65
Custody fees 11
Administration fees 13
Registration fees 40
Trustees fees and expenses 1
Professional fees 11
Other 13
Distribution and service fees:
Class A 42
Class B 67
Class C 11
Class L 1
Class M 14
---------
Total Expenses 461
Less reimbursements by the investment adviser (25)
---------
Net Expenses 436
---------
Net Investment Income (Loss) (282)
---------
Net Realized Gain (Loss) on:
Net investment securities (8,844)
Net foreign currency transactions 1
---------
(8,843)
---------
Net Unrealized Appreciation (Depreciation) on:
Net investment securities 9,129
---------
9,129
---------
Net Gain (Loss) on Investments and Foreign
Currency Transactions 286
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 4
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Marsico Growth 3
IDEX Marsico Growth
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (282) $ (346)
Net realized gain (loss) on investment
securities and foreign currency
transactions (8,843) (4,975)
Net unrealized appreciation (depreciation)
on investment securities and foreign
currency translation 9,129 (1,760)
--------- ---------
4 (7,081)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 29,470 7,433
Class B 2,330 8,534
Class C 437 1,391
Class L 476 --
Class M 315 2,713
--------- ---------
33,028 20,071
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (889) (7,170)
Class B (2,433) (5,885)
Class C (496) (3,076)
Class L (93) --
Class M (537) (1,718)
--------- ---------
(4,448) (17,849)
--------- ---------
28,580 2,222
--------- ---------
Net increase (decrease) in net assets 28,584 (4,859)
--------- ---------
Net Assets:
Beginning of period 25,503 30,362
--------- ---------
End of period $ 54,087 $ 25,503
========= =========
Undistributed Net Investment Income (Loss) $ (283) $ (1)
========= =========
Share Activity:
Shares issued during the period:
Class A 4,014 816
Class B 326 963
Class C 62 157
Class L 67 --
Class M 45 304
--------- ---------
4,514 2,240
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (123) (864)
Class B (348) (733)
Class C (72) (373)
Class L (14) --
Class M (76) (213)
--------- ---------
(633) (2,183)
--------- ---------
Net increase (decrease) in shares outstanding 3,881 57
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Marsico Growth 4
IDEX Marsico Growth
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 7.56 $ (0.04) $ (0.05) $ (0.09)
10/31/2002 9.10 (0.06) (1.48) (1.54)
10/31/2001 12.54 (0.05) (3.25) (3.30)
10/31/2000 11.40 0.02 1.15 1.17
10/31/1999 10.00 0.03 1.37 1.40
- ---------------------------------------------------------------------------------
Class B 04/30/2003 7.36 (0.06) (0.06) (0.12)
10/31/2002 8.92 (0.11) (1.45) (1.56)
10/31/2001 12.41 (0.11) (3.24) (3.35)
10/31/2000 11.35 (0.06) 1.15 1.09
10/31/1999 10.00 (0.02) 1.37 1.35
- ---------------------------------------------------------------------------------
Class C 04/30/2003 7.36 (0.06) (0.06) (0.12)
10/31/2002 8.92 (0.12) (1.44) (1.56)
10/31/2001 12.41 (0.12) (3.23) (3.35)
10/31/2000 11.35 (0.06) 1.15 1.09
- ---------------------------------------------------------------------------------
Class L 04/30/2003 7.18 (0.05) 0.11 0.06
- ---------------------------------------------------------------------------------
Class M 04/30/2003 7.39 (0.06) (0.06) (0.12)
10/31/2002 8.95 (0.11) (1.45) (1.56)
10/31/2001 12.43 (0.11) (3.23) (3.34)
10/31/2000 11.36 (0.05) 1.15 1.10
10/31/1999 10.00 (0.01) 1.37 1.36
- ---------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 7.47
-- -- -- 7.56
-- (0.14) (0.14) 9.10
-- (0.03) (0.03) 12.54
-- -- -- 11.40
- ----------------------------------------------------------
Class B -- -- -- 7.24
-- -- -- 7.36
-- (0.14) (0.14) 8.92
-- (0.03) (0.03) 12.41
-- -- -- 11.35
- ----------------------------------------------------------
Class C -- -- -- 7.24
-- -- -- 7.36
-- (0.14) (0.14) 8.92
-- (0.03) (0.03) 12.41
- ----------------------------------------------------------
Class L -- -- -- 7.24
- ----------------------------------------------------------
Class M -- -- -- 7.27
-- -- -- 7.39
-- (0.14) (0.14) 8.95
-- (0.03) (0.03) 12.43
-- -- -- 11.36
- ----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 (1.19)% $ 34,731 1.75% 1.86% (1.04)% 89.86%
10/31/2002 (16.88) 5,752 1.73 2.05 (0.56) 33.59
10/31/2001 (26.63) 7,361 1.55 2.03 (0.43) 14.72
10/31/2000 10.29 6,587 1.55 2.53 (0.47) 25.10
10/31/1999 13.97 1,978 1.55 7.65 (0.55) 21.91
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 (1.63) 13,740 2.40 2.52 (1.69) 89.86
10/31/2002 (17.52) 14,130 2.38 2.70 (1.21) 33.59
10/31/2001 (27.25) 15,081 2.20 2.68 (1.08) 14.72
10/31/2000 9.54 7,908 2.20 3.18 (1.12) 25.10
10/31/1999 13.54 2,261 2.20 8.30 (1.20) 21.91
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 (1.63) 2,196 2.40 2.52 (1.69) 89.86
10/31/2002 (17.52) 2,301 2.38 2.70 (1.21) 33.59
10/31/2001 (27.25) 4,719 2.20 2.68 (1.08) 14.72
10/31/2000 9.54 6,484 2.20 3.18 (1.12) 25.10
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 0.84 382 2.40 2.51 (1.69) 89.86
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 (1.62) 3,038 2.30 2.42 (1.59) 89.86
10/31/2002 (17.43) 3,320 2.28 2.60 (1.11) 33.59
10/31/2001 (27.15) 3,201 2.10 2.58 (0.98) 14.72
10/31/2000 9.65 2,976 2.10 3.08 (1.02) 25.10
10/31/1999 13.61 748 2.10 8.20 (1.10) 21.91
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Marsico Growth 5
IDEX Marsico Growth
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Marsico Growth ("the Fund") commenced operations on March 1, 1999.
The inception date for the Fund's offering of share classes C and L are as
follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Marsico Growth 6
IDEX Marsico Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Marsico Growth ("the Fund"), part of IDEX
Mutual Funds, began operations on March 1, 1999. The Fund changed its name from
IDEX Goldman Sachs Growth on 11/01/2002. Banc of America Capital Management, LLC
replaced Goldman Sachs Asset Management as sub-adviser to the Fund.
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a portion
of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter market
and listed securities for which no sale was reported on that date are valued at
the last quoted bid price. Debt securities are valued by independent pricing
services; however, those that mature in sixty days or are valued at amortized
cost, which approximates market. Other securities for which quotations are not
readily available are valued at fair value determined in such a manner as the
adviser and sub-adviser, under the supervision of the Board of Trustees and the
Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the
Fund to invest the excess cash into a savings account, which at April 30, 2003,
was paying an interest rate of 1.00%.
Directed Brokerage: The sub-adviser, to the extent consistent with the best
execution and usual commission rate policies and practices, may place security
transactions of the Fund with broker/dealers with which IDEX Mutual Funds has
established a Directed Brokerage Program. A Directed Brokerage Program is any
arrangement under which a broker/dealer applies a portion of the commissions
received by such broker/dealer on the security transactions to the payment of
operating expenses that would otherwise be borne by the Fund. In no event will
commissions paid by the Fund be used to pay expenses that would otherwise be
borne by any other funds within IDEX Mutual Funds, or by any other party.
Directed commissions during the six-months ended April 30, 2003, of $4 are
included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and a
liability for the return of the collateral. Securities on loan are included in
investment securities at market value on the Statement of Assets and Liabilities
and remain on the Schedule of Investments.
Loans of securities are required at all times to be secured by collateral at
least equal to 102% of the market value of the securities at inception of the
loan, and not less then 100% thereafter. The Fund may invest cash collateral in
short-term money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities loans,
the collateral and securities loaned remain subject to fluctuation in market
value. IBT marks to market securities loaned and the collateral each business
day. If additional collateral is due (at least $1), IBT collects additional cash
collateral from the borrowers. Although securities loaned will be fully
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the event
the borrower fails to timely return a recalled security, IBT may indemnify the
Fund by purchasing replacement securities for the Fund at its own expense and
claiming the collateral to fund such a purchase. IBT absorbs the loss if the
collateral value is not sufficient to cover the cost of the replacement
securities. If replacement securities are not available, IBT will credit the
equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amounts of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as in the Schedule of Investments.
IDEX Mutual Funds
Semi-Annual Report 2003
Marsico Growth 7
IDEX Marsico Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or, in
the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Foreign currency denominated investments: The accounting records of the Fund are
maintained in U.S. dollars. Securities and other assets and liabilities
denominated in foreign currencies are translated into U.S. dollars at the
closing exchange rate each day. The cost of foreign securities is translated at
the exchange rate in effect when the investment was acquired. The Fund combines
fluctuations from currency exchange rates and fluctuations in market value when
computing net realized and unrealized gains or losses from investments. Net
foreign currency gains and losses resulting from changes in exchange rates
include: 1) foreign currency fluctuations between trade date and settlement date
of investment security transactions; 2) gains and losses on forward foreign
currency contracts; and 3) the difference between the receivable amounts of
interest and dividends recorded in the accounting records in U.S. dollars and
the amounts actually received. Foreign currency denominated assets may involve
risks not typically associated with domestic transactions, including
unanticipated movements in exchange currency rates, the degree of government
supervision and regulation of security markets, and the possibility of political
or economic instability.
Forward foreign currency contracts: The Fund may enter into forward foreign
currency contracts to hedge against exchange rate risk arising from investments
in securities denominated in foreign currencies. Contracts are valued at the
contractual forward rate and are marked to market daily, with the change in
market value recorded as an unrealized gain or loss. When the contracts are
closed a realized gain or loss is incurred. Risks may arise from changes in
market value of the underlying currencies and from the possible inability of
counterparties to meet the terms of their contracts. Open forward currency
contracts at April 30, 2003, are listed in the Schedule of Investments.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of Western
Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly owned
indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on average
daily net assets ("ANA") at the following stated break points:
0.80% of the first $250 million of ANA
0.75% of the next $250 million of ANA
0.70% of the next $500 million of ANA
0.60% of ANA over $1 billion
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.40% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for the
Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 27
Retained by Underwriter 3
Contingent Sales Charges 30
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
IDEX Mutual Funds
Semi-Annual Report 2003
Marsico Growth 8
IDEX Marsico Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Transfer agency fees and expenses: The Fund pays ATIS annual per-account charges
(not in thousands) of $15.39 for each open shareholder account, $2.73 for each
new account opened, $1.63 for each closed account maintained, and certain
out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan amounts
are included in Other assets, and the total liability of $1 for deferred
compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 55,172
U.S. Government 1,186
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 32,335
U.S. Government 627
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 1,802 October 31, 2009
4,581 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, were as
follows:
Federal Tax Cost Basis $ 53,565
==========
Unrealized Appreciation $ 2,402
Unrealized (Depreciation) (1,520)
----------
Net Unrealized Appreciation (Depreciation) $ 882
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Marsico Growth 9
IDEX PBHG Mid Cap Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS (98.3%)
Apparel & Accessory Stores (2.3%)
Chico's FAS, Inc. (a) (b) 27,000 $ 657
Pacific Sunwear of California, Inc. (a) (b) 27,450 627
Business Services (4.2%)
CheckFree Holdings Corporation (a) (b) 38,700 1,067
eBay Inc. (a) 9,130 847
Getty Images, Inc. (a) 12,800 433
Chemicals & Allied Products (1.3%)
Airgas, Inc. (a) 22,000 445
Smith International, Inc. (a) 7,500 267
Communications Equipment (1.2%)
ADTRAN, Inc. (a) (b) 16,000 648
Nokia Oyj-ADR 800 13
QUALCOMM Incorporated 300 10
Computer & Data Processing Services (7.6%)
Adobe Systems Incorporated 25,700 888
Amdocs Limited (a) 38,100 673
CACI International Inc.-Class A (a) 16,500 576
Documentum, Inc. (a) 26,100 480
Electronic Arts Inc. (a) 11,500 682
Microsoft Corporation 1,800 46
Oracle Corporation (a) 2,400 29
Symantec Corporation (a) 18,100 795
Yahoo! Inc. (a) 3,600 89
Computer & Office Equipment (4.5%)
Cisco Systems, Inc. (a) 4,400 66
Cray Inc. (a) 91,900 694
Dell Computer Corporation (a) 1,000 29
Emulex Corporation (a) 9,700 199
Foundry Networks, Inc. (a) 39,500 430
Juniper Networks, Inc. (a) (b) 47,500 485
NetScreen Technologies, Inc. (a) (b) 13,800 280
Network Appliance, Inc. (a) 27,000 359
Construction (2.0%)
Jacobs Engineering Group Inc. (a) 27,500 1,132
Drug Stores & Proprietary Stores (0.6%)
Omnicare, Inc. 13,000 345
Educational Services (8.9%)
Apollo Group, Inc.-Class A (a) 30,200 1,637
Career Education Corporation (a) 17,482 1,051
Corinthian Colleges, Inc. (a) 20,401 934
Education Management Corporation (a) 19,400 947
University of Phoenix Online (a) 11,700 516
Electronic & Other Electric Equipment (1.1%)
Wilson Greatbatch Technologies, Inc. (a) 18,700 613
Electronic Components & Accessories (9.6%)
Altera Corporation (a) 28,600 452
Analog Devices, Inc. (a) 18,000 596
Broadcom Corporation-Class A (a) 21,400 383
Cree, Inc. (a) (b) 22,500 449
Integrated Circuit Systems, Inc. (a) (b) 21,200 460
Linear Technology Corporation 17,400 600
Marvell Technology Group Ltd. (a) (b) 22,000 508
Power Integrations, Inc. (a) 22,000 487
QLogic Corporation (a) (b) 25,900 1,139
Silicon Laboratories Inc. (a) (b) 13,400 381
Environmental Services (1.8%)
Stericycle, Inc. (a) (b) 25,300 994
Food & Kindred Products (1.0%)
Wrigley (Wm.) Jr. Company 9,500 539
Food Stores (1.4%)
Whole Foods Market, Inc. (a) (b) 13,300 789
Furniture & Home Furnishings Stores (1.2%)
Bed Bath & Beyond Inc. (a) 17,000 672
Health Services (3.6%)
Caremark Rx, Inc. (a) 36,700 731
Odyssey HealthCare, Inc. (a) (b) 18,600 481
Renal Care Group, Inc. (a) 13,400 434
United Surgical Partners International,
Inc. (a) (b) 20,100 372
Industrial Machinery & Equipment (4.6%)
FMC Technologies, Inc. (a) 37,800 711
Lam Research Corporation (a) 23,900 347
Pall Corporation 21,000 444
Varco International Inc. (a) 19,600 345
Zebra Technologies Corporation-
Class A (a) 11,300 753
Instruments & Related Products (3.4%)
Cooper Companies, Inc. (The) (b) 27,400 764
Danaher Corporation (b) 8,000 552
KLA-Tencor Corporation (a) (b) 14,600 599
Insurance (4.3%)
Coventry Health Care, Inc. (a) 26,100 1,065
Mid Atlantic Medical Services, Inc. (a) 18,300 797
WellPoint Health Networks Inc. (a) 7,500 570
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PBHG Mid Cap Growth 1
IDEX PBHG Mid Cap Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Insurance Agents, Brokers & Service (4.0%)
Brown & Brown, Inc. 21,900 $ 783
Express Scripts, Inc.-Class A (a) 24,500 1,445
Leather & Leather Products (1.4%)
Coach, Inc. (a) 17,600 766
Management Services (3.7%)
Corporate Executive Board Company
(The) (a) (b) 29,000 1,189
FTI Consulting, Inc. (a) (b) 20,100 910
Medical Instruments & Supplies (7.9%)
Biomet, Incorporated 21,500 655
DENTSPLY International Inc. 9,200 345
Guidant Corporation (a) 11,000 429
ResMed Inc. (a) 9,500 348
Respironics, Inc. (a) 9,500 365
St. Jude Medical, Inc. (a) 11,500 603
STERIS Corporation (a) 8,600 195
Varian Medical Systems, Inc. (a) 22,000 1,185
Zimmer Holdings, Inc. (a) 7,600 356
Mortgage Bankers & Brokers (1.3%)
Countrywide Credit Industries, Inc. 11,000 744
Oil & Gas Extraction (2.3%)
BJ Services Company (a) 9,500 347
Nabors Industries Ltd. (a) 19,000 745
Pride International, Inc. (a) 15,000 233
Pharmaceuticals (3.4%)
Gilead Sciences, Inc. (a) 16,200 747
Medicis Pharmaceutical
Corporation-Class A (a) 4,800 277
SICOR Inc. (a) 27,400 491
Taro Pharmaceutical Industries Ltd. (a) (b) 9,000 412
Radio & Television Broadcasting (0.8%)
USA Interactive (a) (b) 16,000 479
Research & Testing Services (1.3%)
Gen-Probe Incorporated (a) 24,100 748
Restaurants (1.3%)
Brinker International, Inc. (a) 13,000 413
Outback Steakhouse, Inc. (b) 8,500 304
Retail Trade (1.2%)
Amazon.com, Inc. (a) 8,700 249
Staples, Inc. (a) 23,000 438
Savings Institutions (1.9%)
New York Community Bancorp, Inc. (b) 30,400 1,055
Variety Stores (2.1%)
99 Cents Only Stores (a) 19,500 574
Family Dollar Stores, Inc. 18,300 626
Wholesale Trade Nondurable Goods (1.1%)
Performance Food Group Company (a) (b) 17,100 600
---------
Total Common Stocks (cost: $48,773) 55,459
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (19.2%)
Bank Notes (1.1%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 618 $ 618
Euro Dollar Overnight (2.0%)
Bank of Montreal
1.34%, due 05/01/2003 421 421
BNP Paribas SA
1.24%, due 05/06/2003 198 198
Royal Bank of Canada
1.35%, due 05/01/2003 494 494
Euro Dollar Term (5.8%)
American Express Centurion Bank
1.28%, due 05/30/2003 989 989
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 247 247
Credit Agricole Indosuez
1.27%, due 05/12/2003 74 74
1.26%, due 06/24/2003 494 494
Danske Bank A/S
1.25%, due 05/07/2003 618 618
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 247 247
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 618 618
Medium Term Notes (0.7%)
Parkland (USA) LLC
1.31%, due 11/26/2003 371 371
Money Market Funds (7.7%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 1,977 1,977
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 2,349 2,349
Promissory Notes (1.5%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 865 865
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PBHG Mid Cap Growth 2
IDEX PBHG Mid Cap Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Repurchase Agreements (0.4%)
Merrill Lynch & Co., Inc. (c)
1.42%, due 05/01/2003 $ 247 $ 247
---------
Total Security Lending Collateral (cost: $10,827) 10,827
---------
Total Investment Securities (cost: $59,600) $ 66,286
=========
SUMMARY:
Investments, at market value 117.5 % $ 66,286
Liabilities in excess of other assets (17.5)% (9,891)
--------- ---------
Net assets 100.0 % $ 56,395
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$10,455.
(c) Cash collateral for Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $252.
DEFINITIONS:
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PBHG Mid Cap Growth 3
IDEX PBHG Mid Cap Growth
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $59,600)
(including $10,455 of securities loaned) $ 66,286
Cash 7,455
Receivables:
Investment securities sold 799
Shares of beneficial interest sold 67
Interest 20
Dividends 2
Due from investment adviser 207
Other 14
---------
74,850
---------
Liabilities:
Investment securities purchased 7,309
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 51
Distribution fees 36
Transfer agent fees and expenses 186
Payable for securities on loan 10,827
Other 46
---------
18,455
---------
Net Assets $ 56,395
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 279,121
Accumulated net investment income (loss) (585)
Accumulated net realized gain (loss) from investments (228,826)
Net unrealized appreciation (depreciation) of
investments 6,685
---------
Net Assets $ 56,395
=========
Shares Outstanding:
Class A 2,627
Class B 3,869
Class C 880
Class L 6
Class M 505
Net Asset Value Per Share:
Class A $ 7.31
Class B 7.07
Class C 7.07
Class L 7.07
Class M 7.10
Maximum Offering Price Per Share (1):
Class A $ 7.73
Class M 7.18
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 7
Dividends 29
Income from loaned securities-net 12
---------
48
---------
Expenses:
Management and advisory fees 188
Transfer agent fees and expenses 406
Custody fees 16
Administration fees 11
Registration fees 103
Trustees fees and expenses 2
Professional fees 50
Other 41
Distribution and service fees:
Class A 29
Class B 113
Class C 26
Class L --
Class M 14
---------
Total Expenses 999
Less reimbursements by the investment adviser (488)
---------
Net Expenses 511
---------
Net Investment Income (Loss) (463)
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (4,546)
Net unrealized appreciation (depreciation)
on investment securities 4,722
---------
Net Gain (Loss) on Investments 176
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ (287)
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PBHG Mid Cap Growth 4
IDEX PBHG Mid Cap Growth
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (463) $ (1,304)
Net realized gain (loss) on investment
securities (4,546) (16,341)
Net unrealized appreciation (depreciation)
on investment securities 4,722 4,123
--------- ---------
(287) (13,522)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold (1):
Class A 6,849 10,716
Class B 9,109 5,413
Class C 2,511 3,175
Class L 58 --
Class M 1,228 1,464
--------- ---------
19,755 20,768
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (3,922) (13,492)
Class B (3,816) (10,908)
Class C (1,581) (4,987)
Class L (19) --
Class M (658) (3,002)
--------- ---------
(9,996) (32,389)
--------- ---------
9,759 (11,621)
--------- ---------
Net increase (decrease) in net assets 9,472 (25,143)
--------- ---------
Net Assets:
Beginning of period 46,923 72,066
--------- ---------
End of period $ 56,395 $ 46,923
========= =========
Accumulated Net Investment Income (Loss) $ (585) $ (3)
========= =========
Share Activity:
Shares issued during the period (1):
Class A 935 1,183
Class B 1,346 602
Class C 381 356
Class L 9 --
Class M 175 179
--------- ---------
2,846 2,320
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (551) (1,533)
Class B (556) (1,282)
Class C (230) (577)
Class L (3) --
Class M (95) (360)
--------- ---------
(1,435) (3,752)
--------- ---------
Net increase (decrease) in shares outstanding 1,411 (1,432)
========= =========
(1) Includes proceeds in connection with the acquisition on March 1, 2003. See
Note 1 on page 8.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PBHG Mid Cap Growth 5
IDEX PBHG Mid Cap Growth
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 7.38 $ (0.06) $ (0.01) $ (0.07)
10/31/2002 9.24 (0.14) (1.72) (1.86)
10/31/2001 20.94 (0.12) (11.58) (11.70)
10/31/2000 14.80 (0.02) 6.47 6.45
10/31/1999 10.00 0.02 4.78 4.80
- --------------------------------------------------------------------------------
Class B 04/30/2003 7.17 (0.08) (0.02) (0.10)
10/31/2002 9.05 (0.19) (1.69) (1.88)
10/31/2001 20.76 (0.21) (11.50) (11.71)
10/31/2000 14.76 (0.16) 6.47 6.31
10/31/1999 10.00 (0.02) 4.78 4.76
- --------------------------------------------------------------------------------
Class C 04/30/2003 7.17 (0.08) (0.02) (0.10)
10/31/2002 9.05 (0.19) (1.69) (1.88)
10/31/2001 20.76 (0.22) (11.49) (11.71)
10/31/2000 14.76 (0.16) 6.47 6.31
- --------------------------------------------------------------------------------
Class L 04/30/2003 6.96 (0.07) 0.18 0.11
- --------------------------------------------------------------------------------
Class M 04/30/2003 7.20 (0.08) (0.02) (0.10)
10/31/2002 9.08 (0.18) (1.70) (1.88)
10/31/2001 20.79 (0.20) (11.51) (11.71)
10/31/2000 14.77 (0.14) 6.47 6.33
10/31/1999 10.00 (0.01) 4.78 4.77
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 7.31
-- -- -- 7.38
-- -- -- 9.24
-- (0.31) (0.31) 20.94
-- -- -- 14.80
- ----------------------------------------------------------
Class B -- -- -- 7.07
-- -- -- 7.17
-- -- -- 9.05
-- (0.31) (0.31) 20.76
-- -- -- 14.76
- ----------------------------------------------------------
Class C -- -- -- 7.07
-- -- -- 7.17
-- -- -- 9.05
-- (0.31) (0.31) 20.76
- ----------------------------------------------------------
Class L -- -- -- 7.07
- ----------------------------------------------------------
Class M -- -- -- 7.10
-- -- -- 7.20
-- -- -- 9.08
-- (0.31) (0.31) 20.79
-- -- -- 14.77
- ----------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ------------
Class A 04/30/2003 (0.95)% $ 19,187 1.75% 3.83% (1.55)% 127.50%
10/31/2002 (20.11) 16,555 1.73 2.75 (1.51) 176.30
10/31/2001 (55.87) 23,952 1.55 2.12 (0.91) 171.89
10/31/2000 43.78 48,842 1.55 2.06 (0.80) 129.20
10/31/1999 48.06 2,571 1.55 6.95 (0.88) 150.78
- ---------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 (1.39) 27,352 2.40 4.48 (2.20) 127.50
10/31/2002 (20.78) 22,081 2.38 3.40 (2.16) 176.30
10/31/2001 (56.42) 34,017 2.20 2.77 (1.56) 171.89
10/31/2000 43.07 68,184 2.20 2.71 (1.45) 129.20
10/31/1999 47.63 2,875 2.20 7.60 (1.53) 150.78
- ---------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 (1.39) 6,221 2.40 4.48 (2.20) 127.50
10/31/2002 (20.78) 5,226 2.38 3.40 (2.16) 176.30
10/31/2001 (56.42) 8,595 2.20 2.77 (1.56) 171.89
10/31/2000 43.07 16,972 2.20 2.71 (1.45) 129.20
- ---------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 1.58 46 2.40 4.48 (2.20) 127.50
- ---------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 (1.39) 3,589 2.30 4.38 (2.10) 127.50
10/31/2002 (20.69) 3,061 2.28 3.30 (2.06) 176.30
10/31/2001 (56.33) 5,502 2.10 2.67 (1.46) 171.89
10/31/2000 43.17 14,734 2.10 2.61 (1.35) 129.20
10/31/1999 47.70 1,016 2.10 7.50 (1.43) 150.78
- ---------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PBHG Mid Cap Growth 6
IDEX PBHG Mid Cap Growth
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX PBHG Mid Cap Growth ("the Fund") commenced operations on March 1,
1999. The inception date for the Fund's offering of share classes C and L
are as follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PBHG Mid Cap Growth 7
IDEX PBHG Mid Cap Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX PBHG Mid Cap Growth ("the Fund"), part of
IDEX Mutual Funds, began operations on March 1, 1999.
On March 1, 2003, the Fund acquired all the net assets of IDEX Munder Net50 and
IDEX PBHG Technology & Communications pursuant to a plan of reorganization
approved by shareholders of IDEX Munder Net50 and IDEX PBHG Technology &
Communications on February 12, 2003. The acquisition was accomplished by a
tax-free exchange of 2,350 shares of the Fund for the 332 shares of IDEX Munder
Net50 and for the 16,322 shares of IDEX PBHG Technology & Communications
outstanding on February 28, 2003. IDEX Munder Net50 and IDEX PBHG Technology &
Communications' net assets at that date ($935 and $14,908, respectively),
including ($38 and $325, respectively) unrealized depreciation, were combined
with those of the Fund. Proceeds in connection with the acquisitions were as
follows:
IDEX Munder Net50:
Shares Amount
-------- -------
Proceeds in connection with the
acquisition
Class A 43 $ 294
Class B 64 429
Class C 23 150
Class L 1 9
Class M 8 53
-----
$ 935
=====
IDEX PBHG Technology & Communications:
Shares Amount
-------- -----------
Proceeds in connection with the
acquisition
Class A 639 $ 4,401
Class B 1,120 7,480
Class C 302 2,015
Class L 1 11
Class M 149 1,001
--------
$ 14,908
========
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Directed Brokerage: The sub-adviser, to the extent consistent with the best
execution and usual commission rate policies and practices, may place security
transactions of the Fund with broker/dealers with which IDEX Mutual Funds has
established a Directed Brokerage Program. A Directed Brokerage Program is any
arrangement under which a broker/dealer applies a portion of the commissions
received by such broker/dealer on the security transactions to the payment of
operating expenses that would otherwise be borne by the Fund. In no event will
commissions paid by the Fund be used to pay expenses that would otherwise be
borne by any other funds within IDEX Mutual Funds, or by any other party.
Directed commissions during the six-months ended April 30, 2003, of $3 are
included in net realized gains in the Statement of Operations.
IDEX Mutual Funds
Semi-Annual Report 2003
PBHG Mid Cap Growth 8
IDEX PBHG Mid Cap Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and
a liability for the return of the collateral. Securities on loan are included
in investment securities at market value on the Statement of Assets and
Liabilities and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities
loans, the collateral and securities loaned remain subject to fluctuation in
market value. IBT marks to market securities loaned and the collateral each
business day. If additional collateral is due (at least $1), IBT collects
additional cash collateral from the borrowers. Although securities loaned will
be fully collateralized at all times, IBT may experience delays in, or may be
prevented from, recovering the collateral on behalf of the Fund. The Fund may
recall a loaned security position at any time from the borrower through IBT. In
the event the borrower fails to timely return a recalled security, IBT may
indemnify the Fund by purchasing replacement securities for the Fund at its own
expense and claiming the collateral to fund such a purchase. IBT absorbs the
loss if the collateral value is not sufficient to cover the cost of the
replacement securities. If replacement securities are not available, IBT will
credit the equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated break points:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.40% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 39
Retained by Underwriter 3
Contingent Sales Charges 41
IDEX Mutual Funds
Semi-Annual Report 2003
PBHG Mid Cap Growth 9
IDEX PBHG Mid Cap Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $3 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 56,842
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 58,777
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- --------------------- ------------------
$ 7,293 October 31, 2008
169,875 October 31, 2009
43,146 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 60,711
==========
Unrealized Appreciation $ 6,684
Unrealized (Depreciation) (1,109)
----------
Net Unrealized Appreciation (Depreciation) $ 5,575
==========
IDEX Mutual Funds
Semi-Annual Report 2003
PBHG Mid Cap Growth 10
IDEX MUTUAL FUNDS
RESULTS OF SHAREHOLDER PROXY (unaudited)
Section 270.30d-1 under the Investment Company Act of 1940, as amended, titled,
"Reports to Stockholders of Management Companies," requires regulated
investment companies to report on all subject matters put to the vote of
shareholders and provide final results. Accordingly, IDEX Mutual Funds
solicited a vote by the shareholders for:
At a special meeting of shareholders held on February 12, 2003, the results of
the Proposals, were as follows:
IDEX Munder Net50
Proposal 1: Approval of an Agreement and Plan of Reorganization.
For Against Abstentions/Broker Non-Votes
- ------------- ----------- -----------------------------
87.77% 10.13% 2.10%
IDEX PBHG Technology & Communications
Proposal 1: Approval of an Agreement and Plan of Reorganization.
For Against Abstentions/Broker Non-Votes
- ------------- --------- -----------------------------
83.63% 8.37% 8.00%
IDEX Mutual Funds
Semi-Annual Report 2003
PBHG Mid Cap Growth 11
IDEX PIMCO Real Return TIPS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS (133.8%)
U.S. Treasury Inflation Index
3.38%, due 01/15/2007 $ 7,510 $ 8,180
3.63%, due 01/15/2008 3,399 3,759
3.88%, due 01/15/2009 11,608 13,040
3.38%, due 01/15/2012 880 972
3.00%, due 07/15/2012 1,324 1,422
3.88%, due 04/15/2029 4,610 5,587
---------
Total U.S. Government Obligations (cost: $33,011) 32,960
---------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (0.1%)
U.S. Treasury Bill (a)
1.11%, due 05/15/2003 30 30
---------
Total Short-Term U.S. Government Obligations
(cost: $30) 30
---------
COMMERCIAL PAPER (9.7%)
Australia and New Zealand Banking
Group Limited
1.23%, due 07/22/2003 400 399
Danske Corporation
1.23%, due 07/28/2003 600 598
Royal Bank of Scotland Group PLC (The)
1.22%, due 07/16/2003 900 898
Westpac Trust Securities NZ Ltd.
1.18%, due 08/05/2003 500 498
---------
Total Commercial Paper (cost: $2,393) 2,393
---------
Total Investment Securities (cost: $35,434) $ 35,383
=========
Contracts (b) Value
- -------------------------------------------------------------------------------
WRITTEN OPTIONS (0.0%)
Covered Call Options (0.0%)
10-Year U.S. Treasury Note Future
Call Strike $116.00
Expires 08/23/2003 8 $ (8)
Put Options (0.0%)
10-Year U.S. Treasury Note Future
Put Strike $110.00
Expires 08/23/2003 9 (4)
---------
Total Written Options (premium: $15) (12)
---------
SUMMARY:
Investments, at market value 143.6% $ 35,383
Written options 0.0% (12)
Liabilities in excess of other assets (43.6)% (10,732)
--------- ---------
Net assets 100.0% $ 24,639
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) At April 30, 2003, all or a portion of this security is segregated with the
custodian to cover margin requirements for open option contracts. The
market value of all securities segregated at April 30, 2003, is $30.
(b) Contract amounts are not in thousands.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Real Return TIPS 1
IDEX PIMCO Real Return TIPS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $35,434) $ 35,383
Cash 377
Receivables:
Shares of beneficial interest sold 33
Interest 285
Due from investment adviser 1
---------
36,079
---------
Liabilities:
Investment securities purchased 11,408
Accounts payable and accrued liabilities:
Distribution fees 9
Transfer agent fees and expenses 1
Written options (premium: $15) 12
Other 10
---------
11,440
---------
Net Assets $ 24,639
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 24,826
Undistributed net investment income (loss) 85
Accumulated net realized gain (loss) from investments,
and options contracts (224)
Net unrealized appreciation (depreciation) of
investments and options contracts (48)
---------
Net Assets $ 24,639
=========
Shares Outstanding:
Class A 2,048
Class B 139
Class C 26
Class L 282
Class M 25
Net Asset Value Per Share:
Class A $ 9.78
Class B 9.77
Class C 9.77
Class L 9.77
Class M 9.77
Maximum Offering Price Per Share (1):
Class A $ 10.35
Class M 9.87
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
From March 1, 2003 to April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 201
---------
Expenses:
Management and advisory fees 19
Transfer agent fees and expenses 20
Custody fees 1
Administration fees 5
Registration fees 5
Professional fees 3
Other 2
Distribution and service fees:
Class A 8
Class B 1
Class C --
Class L 2
Class M --
---------
Total Expenses 66
Less reimbursements by the investment adviser (17)
---------
Net Expenses 49
---------
Net Investment Income (Loss) 152
---------
Net Realized Gain (Loss) on:
Net investment securities (224)
---------
Net Unrealized Appreciation (Depreciation) on:
Net investment securities (50)
Net written options 2
---------
(48)
---------
Net Gain (Loss) on Investments and Options
Contracts (272)
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ (120)
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Real Return TIPS 2
IDEX PIMCO Real Return TIPS
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 (a)
(unaudited)
-------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 152
Net realized gain (loss) on investment
securities and options contracts (224)
Net unrealized appreciation (depreciation)
on investment securities and options
contracts (48)
---------
(120)
---------
Distributions to Shareholders:
From net investment income:
Class A (59)
Class B (2)
Class C --
Class L (5)
Class M (1)
---------
(67)
---------
From net realized gains:
Class A --
Class B --
Class C --
Class L --
Class M --
---------
--
---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 25,253
Class B 1,357
Class C 262
Class L 2,767
Class M 260
---------
29,899
---------
Dividends and distributions reinvested:
Class A 59
Class B 2
Class C --
Class L 5
Class M 1
---------
67
---------
Cost of shares redeemed:
Class A (5,130)
Class B --
Class C --
Class L --
Class M (10)
---------
(5,140)
---------
24,826
---------
Net increase (decrease) in net assets 24,639
---------
Net Assets:
Beginning of period --
---------
End of period $ 24,639
=========
Undistributed Net Investment Income (Loss) $ 85
=========
Share Activity:
Shares issued during the period:
Class A 2,568
Class B 139
Class C 26
Class L 282
Class M 26
---------
3,041
---------
Shares issued-reinvested from distributions:
Class A 6
Class B --
Class C --
Class L --
Class M --
---------
6
---------
Shares redeemed during the period:
Class A (526)
Class B --
Class C --
Class L --
Class M (1)
---------
(527)
---------
Net increase (decrease) in shares outstanding 2,520
=========
(a) Commenced operations on March 1, 2003
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Real Return TIPS 3
IDEX PIMCO Real Return TIPS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 10.00 $ 0.07 $ (0.21) $ (0.14)
- --------------------------------------------------------------------------------
Class B 04/30/2003 10.00 0.05 (0.26) (0.21)
- --------------------------------------------------------------------------------
Class C 04/30/2003 10.00 0.07 (0.28) (0.21)
- --------------------------------------------------------------------------------
Class L 04/30/2003 10.00 0.06 (0.27) (0.21)
- --------------------------------------------------------------------------------
Class M 04/30/2003 10.00 0.08 (0.28) (0.20)
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ (0.08) $ -- $ (0.08) $ 9.78
- -----------------------------------------------------------
Class B (0.02) -- (0.02) 9.77
- -----------------------------------------------------------
Class C (0.02) -- (0.02) 9.77
- -----------------------------------------------------------
Class L (0.02) -- (0.02) 9.77
- -----------------------------------------------------------
Class M (0.03) -- (0.03) 9.77
- -----------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ------------
Class A 04/30/2003 (1.91)% $ 20,021 1.65% 2.28% 5.38% 138.93%
- ---------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 (2.07) 1,355 2.30 2.93 4.75 138.93
- ---------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 (2.07) 258 2.30 2.93 4.75 138.93
- ---------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 (2.07) 2,760 2.30 2.93 4.75 138.93
- ---------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 (2.06) 245 2.20 2.83 4.84 138.93
- ---------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Real Return TIPS 4
IDEX PIMCO Real Return TIPS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the period ending 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) Commenced operations on March 1, 2003.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Real Return TIPS 5
IDEX PIMCO Real Return TIPS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX PIMCO Real Return TIPS ("the Fund"), part
of IDEX Mutual Funds, began operations on March 1, 2003. The Fund is
"non-diversified" under the 1940 Act.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Class C and M shares are not available to
new investors. Income, non-class specific expenses and realized and unrealized
gains and losses, are allocated daily to each class, based upon the value of
shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each
class bears its own specific expenses as well as a portion of general, common
expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Option contracts: The Fund may enter into option contracts to manage exposure
to market or interest rate fluctuations. Option contracts are valued at the
average of the bid and ask ("Mean Quote") established each day at the close of
the board of trade or exchange on which they are traded. The primary risks
associated with options are imperfect correlation between the change in market
value of the securities held and the prices of options; the possibility of an
illiquid market and inability of the counterparty to meet the contract terms.
When the Fund writes a covered call or put option, an amount equal to the
premium received by the Fund is included in the Fund's Statement of Assets and
Liabilities as an asset and as an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current value of the
option written. The underlying face amounts of any open option contracts at
April 30, 2003, are listed in the Schedule of Investments.
Transactions in written options were as follows:
Premium Contracts*
--------- -----------
Balance at 03/01/2003 $ -- --
Sales 15 17
Closing Buys -- --
Expirations -- --
Exercised -- --
---- --
Balance at 04/30/2003 $ 15 17
==== ==
*Contracts not in thousands.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated rate:
0.70% of ANA
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Real Return TIPS 6
IDEX PIMCO Real Return TIPS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.30% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 3
Retained by Underwriter --
Contingent Sales Charges --
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges of (not in thousands) $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the period ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ --
U.S. Government 76,327
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government --
U.S. Government 43,215
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, net operating losses and capital loss
carryforwards.
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 35,561
==========
Unrealized Appreciation $ 23
Unrealized (Depreciation) (201)
----------
Net Unrealized Appreciation (Depreciation) $ (178)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Real Return TIPS 7
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS (5.0%)
U.S. Treasury Bond
6.25%, due 08/15/2023 $ 1,400 $ 1,658
5.50%, due 08/15/2028 700 761
U.S. Treasury Inflation Index
3.63%, due 01/15/2008 1,133 1,253
3.88%, due 04/15/2029 557 675
U.S. Treasury Note (a)
4.00%, due 11/15/2012 1,000 1,012
---------
Total U.S. Government Obligations (cost: $5,209) 5,359
---------
U.S. GOVERNMENT AGENCY OBLIGATIONS (24.0%)
Fannie Mae
5.00%, due 07/01/2018 1,500 1,533
4.55%, due 01/01/2028 (f) 236 245
6.00%, due 06/01/2033 1,000 1,037
Fannie Mae-Conventional Pool
5.50%, due 12/01/2016 425 442
5.50%, due 02/01/2017 395 411
5.50%, due 03/01/2017 32 33
5.50%, due 05/01/2017 405 422
6.50%, due 07/01/2032 607 634
Fannie Mae-July TBA
5.50%, due 07/01/2033 1,700 1,732
Fannie Mae-May TBA
5.50%, due 05/01/2018 3,900 4,055
Fannie Mae-Series 1999-13
6.00%, due 09/25/2011 31 31
Freddie Mac-Gold Pool
6.50%, due 08/01/2032 2,459 2,567
Freddie Mac-May TBA
6.00%, due 05/01/2033 150 156
Freddie Mac-Series 2142
6.50%, due 04/15/2029 26 28
Freddie Mac-Series 2429
6.00%, due 12/15/2028 4 4
Freddie Mac-Series 2434 TA
5.63%, due 07/15/2028 607 618
Ginnie Mae
6.50%, due 05/01/2033 2,800 2,942
Ginnie Mae-FHA/VA Pool
6.50%, due 01/15/2030 46 48
6.50%, due 06/15/2031 1,624 1,708
6.50%, due 04/15/2032 1,617 1,701
6.50%, due 07/15/2032 371 391
Ginnie Mae-May TBA
5.50%, due 05/01/2033 5,000 5,161
Ginnie Mae-Series 2002-40
6.50%, due 06/20/2032 42 45
---------
Total U.S. Government Agency Obligations
(cost: $25,696) 25,944
---------
FOREIGN GOVERNMENT OBLIGATIONS (3.3%)
Federal Republic of Germany-Series 130
3.25%, due 02/17/2004 100 112
Federative Republic of Brazil
2.13%, due 04/15/2006 (f) 96 90
11.50%, due 03/12/2008 70 72
2.19%, due 04/15/2009 (f) 176 146
11.00%, due 01/11/2012 100 97
8.00%, due 04/15/2014 (f) 517 451
8.88%, due 04/15/2024 150 113
Malaysia
7.50%, due 07/15/2011 10 12
Republic of Chile
7.13%, due 01/11/2012 500 568
Republic of Panama
8.25%, due 04/22/2008 40 43
9.63%, due 02/08/2011 230 263
2.25%, due 07/17/2016 (f) 172 144
9.38%, due 01/16/2023 300 324
Republic of Peru
9.13%, due 02/21/2012 320 351
9.88%, due 02/06/2015 300 337
4.50%, due 03/07/2017 (f) 150 123
United Mexican States
9.88%, due 02/01/2010 150 191
6.38%, due 01/16/2013 150 157
---------
Total Foreign Government Obligations (cost: $3,153) 3,594
---------
MORTGAGE-BACKED SECURITIES (6.2%)
Amortizing Residential Collateral Trust (f)
1.63%, due 06/25/2004 242 242
1.59%, due 06/25/2032 (e) 158 158
Bank of America Mortgage
Securities, Inc. (f)
6.18%, due 07/25/2031 30 30
5.77%, due 10/20/2032 638 652
Bear Stearns Adjustable Rate
Mortgage Trust (f)
6.07%, due 06/25/2032 87 90
CDC Mortgage Capital Trust (f)
1.60%, due 01/25/2033 327 327
Countrywide Home Loan Trust-
Series 2002-1 (f)
5.66%, due 03/19/2032 300 302
Countrywide Home Loans, Inc. (f)
4.98%, due 09/19/2032 532 541
CS First Boston Mortgage
Securities Corp. (e)
1.75%, due 03/25/2032 259 256
1.53%, due 03/28/2032 (f) 24 24
1.90%, due 09/27/2032 (f) 670 670
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 1
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
GSR Mortgage Loan Trust 2002-11F
6.00%, due 07/25/2032 $ 396 $ 402
Home Equity Asset Trust (f)
1.61%, due 11/25/2032 313 313
Household Mortgage Loan Trust (f)
1.64%, due 05/20/2032 207 207
Merrill Lynch Mortgage Investors, Inc. (f)
1.69%, due 09/25/2032 10 10
PNC Mortgage Securtities Corp.
6.30%, due 07/25/2029 352 354
Sequoia Mortgage Funding
Corporation-Series 10 (f)
1.66%, due 10/20/2027 487 492
Structured Asset Mortgage
Investments Inc. (f)
1.67%, due 09/19/2032 289 290
Structured Asset Securities Corporation
1.62%, due 10/25/2027 (f) 72 70
6.35%, due 09/25/2031 138 138
6.50%, due 01/25/2032 28 28
1.61%, due 01/25/2033 (f) 70 69
Washington Mutual (f)
6.40%, due 10/19/2039 409 410
Washington Mutual Mortgage Securities
Corporation (f)
6.01%, due 01/25/2031 6 6
3.50%, due 12/25/2040 383 386
Wells Fargo Mortgage Backed Securities
Trust-Series 2002-E (f)
5.16%, due 09/25/2032 204 209
---------
Total Mortgage-Backed Securities (cost: $6,680) 6,676
---------
ASSET-BACKED SECURITIES (0.7%)
Bear Stearns Asset Backed
Securities, Inc. (f)
1.65%, due 10/25/2032 258 258
First Horizon Asset Securities Inc.
7.00%, due 09/25/2030 16 16
RACERS SER 1997-R-8-3-144A (e)(f)
1.64%, due 08/15/2007 300 297
Vanderbilt Acquistion Loan Trust
3.28%, due 01/07/2013 192 194
---------
Total Asset-Backed Securities (cost: $762) 765
---------
CORPORATE DEBT SECURITIES (31.1%)
Air Transportation (1.1%)
Continental Airlines, Inc.
7.06%, due 09/15/2009 400 342
Delta Air Lines, Inc.
7.57%, due 11/18/2010 100 97
7.11%, due 09/18/2011 410 394
UAL Corporation
6.20%, due 09/01/2008 300 214
6.60%, due 09/01/2013 130 91
Amusement & Recreation Services (1.4%)
Disney (Walt) Company (The)
5.13%, due 12/15/2003 800 818
MGM MIRAGE
6.95%, due 02/01/2005 150 156
6.63%, due 02/01/2005 20 21
8.50%, due 09/15/2010 470 526
Station Casinos, Inc.
8.38%, due 02/15/2008 10 11
Automotive (0.6%)
DaimlerChrysler North America
Holding Corporation
7.75%, due 05/27/2003 600 602
1.66%, due 08/16/2004 (f) 50 50
Business Credit Institutions (2.3%)
CIT Group, Inc. (The)
2.66%, due 07/30/2004 (f) 600 601
6.00%, due 02/21/2012 180 201
7.75%, due 04/02/2012 (a) 100 116
Ford Motor Credit Company
1.61%, due 06/02/2003 (f) 700 700
7.50%, due 06/15/2003 500 502
1.57%, due 04/26/2004 (f) 200 196
1.77%, due 07/18/2005 (f) 100 94
National Rural Utilities Cooperative
Finance Corporation (f)
2.32%, due 04/26/2004 100 101
Business Services (0.9%)
Clear Channel Communications, Inc.
7.25%, due 09/15/2003 750 763
7.25%, due 10/15/2027 150 168
Commercial Banks (2.2%)
Citigroup Inc.
5.63%, due 08/27/2012 220 237
5.88%, due 02/22/2033 400 411
HSBC Capital Funding LP-144A (f)
10.18%, due 12/31/2049 150 226
KBC Bank Fund Trust III-144A
9.86%, due 11/29/2049 15 19
Morgan Chase & Co. (J.P.)
6.63%, due 03/15/2012 800 902
5.30%, due 03/01/2013 460 477
Popular, Inc. (f)
2.94%, due 10/15/2003 100 100
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 2
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Communication (1.6%)
Continential Cablevision, Inc.
8.30%, due 05/15/2006 $ 100 $ 113
Cox Communications, Inc.
6.15%, due 08/01/2003 700 701
CSC Holdings, Inc.
7.63%, due 04/01/2011 150 158
Rogers Cablesystems Ltd.
10.00%, due 03/15/2005 10 11
TCI Communications, Inc.
6.38%, due 05/01/2003 600 600
8.65%, due 09/15/2004 100 108
Electric Services (3.0%)
AEP Texas Central Co.-144A
6.65%, due 02/15/2033 570 615
Entergy Gulf States, Inc.-144A(f)
2.64%, due 09/01/2004 500 499
FirstEnergy Corp.
7.38%, due 06/01/2003 600 603
Florida Power Corporation
4.80%, due 03/01/2013 450 458
IPALCO Enterprises, Inc. (j)
8.38%, due 11/14/2008 10 11
Oncor Electric Delivery Company-144A
6.38%, due 01/15/2015 170 190
Progress Energy, Inc.
6.55%, due 03/01/2004 600 623
PSEG Power LLC
6.95%, due 06/01/2012 210 240
Electric, Gas & Sanitary Services (0.3%)
Niagara Mohawk Power Corporation
7.38%, due 07/01/2003 15 15
7.75%, due 10/01/2008 250 295
Electronic Components & Accessories (0.2%)
Tyco International Group SA (a)
6.38%, due 10/15/2011 200 197
Environmental Services (0.8%)
Waste Management, Inc.
6.38%, due 12/01/2003 100 102
7.38%, due 08/01/2010 200 233
6.38%, due 11/15/2012 75 83
7.10%, due 08/01/2026 400 446
Food Stores (1.1%)
Kroger Co. (The)
6.20%, due 06/15/2012 500 538
Safeway Inc.
3.63%, due 11/05/2003 700 704
Gas Production & Distribution (0.5%)
El Paso Corporation
7.75%, due 01/15/2032 125 99
Sonat Inc.
7.63%, due 07/15/2011 370 322
Southern Natural Gas Company
8.00%, due 03/01/2032 100 102
General Obligation-County (0.4%)
Cook County, Illinois Public
Improvement,
General Obligation Bonds,
5.13%, due 11/15/2026 450 462
Health Services (0.7%)
HCA Inc.
6.87%, due 09/15/2003 600 608
HEALTHSOUTH Corporation (a)
8.38%, due 10/01/2011 10 6
7.63%, due 06/01/2012 250 159
Hotels & Other Lodging Places (1.0%)
Harrah's Operating Company, Inc.
7.50%, due 01/15/2009 10 11
Hilton Hotels Corporation
7.00%, due 07/15/2004 150 153
Park Place Entertainment Corporation
7.95%, due 08/01/2003 300 304
7.50%, due 09/01/2009 350 372
Starwood Hotels & Resorts
Worldwide, Inc
6.75%, due 11/15/2003 10 10
7.88%, due 05/01/2012 200 209
Insurance (0.3%)
Travelers Property Casualty Corp.-144A
5.00%, due 03/15/2013 195 199
6.38%, due 03/15/2033 100 106
Lumber & Wood Products (0.0%)
Weyerhaeuser Company (f)
2.54%, due 09/15/2003 10 10
Motion Pictures (0.3%)
AOL Time Warner Inc.
8.11%, due 08/15/2006 200 223
6.88%, due 05/01/2012 20 22
7.63%, due 04/15/2031 60 66
Oil & Gas Extraction (1.2%)
Dynegy Holdings Inc. (a)
8.75%, due 02/15/2012 200 190
Kerr-McGee Corporation-144A (f)
2.04%, due 06/28/2004 25 25
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 3
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Oil & Gas Extraction (continued)
Pemex Project Funding Master Trust
9.13%, due 10/13/2010 $ 400 $ 480
7.38%, due 12/15/2014 (a) 325 353
Pemex Project Funding Master
Trust-144A
8.63%, due 02/01/2022 250 278
Paper & Allied Products (0.0%)
Bowater Canada Finance
Corporation-144A
7.95%, due 11/15/2011 10 10
Personal Credit Institutions (2.2%)
General Electric Capital Corporation
5.45%, due 01/15/2013 850 903
General Motors Acceptance Corporation (f)
1.68%, due 08/04/2003 300 300
2.75%, due 10/16/2003 500 502
2.05%, due 01/20/2004 400 399
Household Finance Corporation (f)
2.56%, due 03/11/2004 320 323
Radio & Television Broadcasting (0.2%)
British Sky Broadcasting Group PLC
8.20%, due 07/15/2009 50 57
Turner Broadcasting System, Inc.
7.40%, due 02/01/2004 200 205
Railroads (0.4%)
Norfolk Southern Corporation
2.04%, due 02/28/2005 (f) 100 100
6.75%, due 02/15/2011 270 308
Revenue-Tobacco (0.3%)
Tobacco Settlement Financing
Corporation, Revenue Bonds
6.38%, due 06/01/2032 420 373
Revenue-Utilities (0.4%)
San Antonio, Texas Water Utility
Improvements, Revenue Bond
5.00%, due 05/15/2032 450 457
Security & Commodity Brokers (1.3%)
Bear Stearns Companies Inc. (The)
7.63%, due 12/07/2009 180 215
Credit Suisse First Boston (USA), Inc.
4.63%, due 01/15/2008 325 341
Goldman Sachs Group, Inc. (The)
4.13%, due 01/15/2008 325 335
5.70%, due 09/01/2012 (a) 500 533
Telecommunications (5.3%)
AT&T Corp. (k)
7.00%, due 11/15/2006 150 161
7.80%, due 11/15/2011 300 329
AT&T Wireless Services, Inc.
8.13%, due 05/01/2012 500 588
BT Group PLC (f) (i)
2.55%, due 12/15/2003 900 904
Cingular Wireless
6.50%, due 12/15/2011 180 201
Deutsche Telekom AG (g)
8.25%, due 06/15/2005 205 228
Deutsche Telekom International
Finance BV (g)
8.50%, due 06/15/2010 150 181
France Telecom (h)
9.25%, due 03/01/2011 10 12
10.00%, due 03/01/2031 (a) 600 798
Qwest Corporation
7.63%, due 06/09/2003 50 50
6.88%, due 09/15/2033 200 172
Qwest Corporation-144A
8.88%, due 03/15/2012 200 219
Sprint Capital Corporation
5.70%, due 11/15/2003 250 254
6.88%, due 11/15/2028 560 518
Sprint Capital Corporation-144A
8.75%, due 03/15/2032 110 120
Verizon Global Funding Corp.
6.13%, due 06/15/2007 325 362
Verizon Wireless Capital LLC (f)
1.66%, due 12/17/2003 600 600
WorldCom, Inc.-WorldCom Group (d)
7.38%, due 01/15/2049 10 3
Tobacco Products (0.9%)
R.J. Reynolds Tobacco Holdings, Inc.
7.38%, due 05/15/2003 960 957
Transportation & Public Utilities (0.2%)
CMS Panhandle Holdings, LLC
6.50%, due 07/15/2009 190 194
---------
Total Corporate Debt Securities (cost: $32,291) 33,660
---------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (16.0%)
Fannie Mae
1.23%, due 06/12/2003 10,000 9,987
1.24%, due 06/24/2003 2,000 1,996
1.23%, due 07/01/2003 1,000 998
Freddie Mac
1.22%, due 06/05/2003 700 699
1.24%, due 06/16/2003 600 599
1.23%, due 06/24/2003 2,000 1,996
1.23%, due 06/24/2003 100 100
1.18%, due 09/12/2003 600 597
U.S. Treasury Bill (c)
1.15%, due 05/08/2003 325 325
1.15%, due 05/15/2003 20 20
1.16%, due 05/15/2003 10 10
---------
Total Short-Term U.S. Government Obligations
(cost: $17,327) 17,327
---------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 4
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
COMMERCIAL PAPER (27.5%)
Australia and New Zealand Banking
Group Limited
1.23%, due 07/22/2003 $ 500 $ 499
Barclays U.S. Funding Corporation
1.26%, due 05/28/2003 4,900 4,895
Danske Corporation
1.24%, due 07/14/2003 1,400 1,396
1.23%, due 07/28/2003 1,600 1,595
HBOS Treasury Services PLC
1.26%, due 05/23/2003 5,000 4,996
1.21%, due 07/02/2003 500 499
Lloyds TSB Group PLC
1.24%, due 07/29/2003 2,000 1,994
Rabobank Nederland
1.23%, due 05/05/2003 5,500 5,500
Royal Bank of Scotland Group PLC (The)
1.22%, due 07/16/2003 1,000 997
Svenska Handelsbanken AB
1.24%, due 06/26/2003 300 299
1.24%, due 07/02/2003 800 798
UBS Finance (Delaware) LLC
1.24%, due 05/21/2003 1,500 1,499
Westpac Banking Corporation
1.20%, due 07/09/2003 4,800 4,789
---------
Total Commercial Paper (cost: $29,756) 29,756
---------
SECURITY LENDING COLLATERAL (3.0%)
Bank Notes (0.2%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 188 188
Euro Dollar Overnight (0.3%)
Bank of Montreal
1.34%, due 05/01/2003 128 128
BNP Paribas SA
1.24%, due 05/06/2003 60 60
Royal Bank of Canada
1.35%, due 05/01/2003 150 150
Euro Dollar Term (0.9%)
American Express Centurion Bank
1.28%, due 05/30/2003 300 300
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 75 75
Credit Agricole Indosuez
1.27%, due 05/12/2003 23 23
1.26%, due 06/24/2003 150 150
Danske Bank A/S
1.25%, due 05/07/2003 188 188
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 75 75
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 188 188
Medium Term Notes (0.1%)
Parkland (USA) LLC
1.31%, due 11/26/2003 113 113
Money Market Funds (1.2%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 601 601
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 713 713
Promissory Notes (0.2%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 263 263
Repurchase Agreements (0.1%)
Merrill Lynch & Co., Inc. (b)
1.42%, due 05/01/2003 75 75
---------
Total Security Lending Collateral (cost: $3,290) 3,290
---------
Total Investment Securities (cost: $124,164) $ 126,371
=========
Notional
Amount Value
- -------------------------------------------------------------------------------
WRITTEN SWAPTIONS (-0.2%)
Covered Call Swaptions (-0.2%)
LIBOR Rate Swaption (e) (l)
Call Strike 3.00%,
Expires 11/12/2003 $ 5,200 $ (32)
LIBOR Rate Swaption (e) (l)
Call Strike 3.25%,
Expires 03/03/2004 5,100 (50)
LIBOR Rate Swaption (e) (l)
Call Strike 4.00%,
Expires 03/03/2004 4,700 (63)
LIBOR Rate Swaption (e) (l)
Call Strike 4.00%,
Expires 01/07/2005 900 (16)
LIBOR Rate Swaption (e) (l)
Call Strike 4.00%,
Expires 01/07/2005 900 (16)
Put Swaptions (0.0%)
LIBOR Rate Swaption (e) (m)
Put Strike 5.50%,
Expires 06/18/2003 4,700 (j)
LIBOR Rate Swaption (e) (m)
Put Strike 7.00%,
Expires 01/07/2005 1,900 (14)
---------
Total Written Swaptions (premium: $323) $ (191)
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 5
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Contracts Value
- -------------------------------------------------------------------------------
WRITTEN OPTIONS (0.0%)
Covered Call Options (0.0%)
U.S. Treasury Note Future
Call Strike $116.00,
Expires 05/24/2003 25 $ (9)
---------
Total Written Options (premium: $19) $ (9)
=========
SUMMARY:
Investments, at market value 116.8% $ 126,371
Written swaptions (0.2)% (191)
Written options 0.0% (9)
Liabilities in excess of other assets (16.6)% (17,997)
--------- ---------
Net assets 100.0% $ 108,174
========= =========
SWAP AGREEMENTS:
- ----------------------------------------------------------------------------------
Net Unrealized
Expiration Notional Appreciation
Date Amount (Depreciation)
- ----------------------------------------------------------------------------------
Receive a fixed rate equal to 5.00%
and pay floating rate based on
3-month LIBOR.
Counterparty: Merrill Lynch &
Co., Inc. 06/18/2003 1,100 8
Receive a fixed rate equal to 4.00%
and pay floating rate based on
6-month British Pound-- LIBOR.
Counterparty: Morgan Stanley
Dean Witter 03/17/2004 99,000 (21)
Receive a fixed rate equal to 4.00%
and pay floating rate based on
6-month Euro-- LIBOR.
Counterparty: J.P. Morgan
Chase & Co. 03/15/2005 3,200 9
Receive a fixed rate equal to 1.31%
and the Fund will pay to the
counterparty at par in the event of
default of United Mexican States,
11.50%, due 05/15/2026.
Counterparty: Goldman Sachs & Co. 01/29/2005 200 2
--------- ---------
$ 103,500 $ (2)
========= =========
FORWARD FOREIGN CURRENCY CONTRACTS:
- ----------------------------------------------------------------------------------
Amount in Net Unrealized
Bought Settlement U.S. Dollars Appreciation
Currency (Sold) Date Bought (Sold) (Depreciation)
- ------------------------------------------------------------------------------
Euro Dollar (8) 05/01/2003 $ (9) $ 0
Euro Dollar (299) 05/15/2003 (322) (12)
------- ------
$ (331) $ (12)
======= ======
FUTURES CONTRACTS:
- ----------------------------------------------------------------------------------
Net Unrealized
Settlement Appreciation
Contracts Date Amount (Depreciation)
- --------------------------------------------------------------------------------
Euro-BOBL (o) 22 06/10/2003 $ 2,741 $ (19)
Euro-BUND (p) 33 06/10/2003 4,224 (39)
U.S. Treasury Long Bond 26 06/30/2003 2,965 (6)
10-Year U.S. Treasury Note 69 06/30/2003 7,944 (3)
-------- -----
$ 17,874 $ (67)
======== =====
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 6
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
NOTES TO SCHEDULE OF INVESTMENTS:
(a) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$3,213.
(b) Cash collateral for Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $77.
(c) At April 30, 2003, all or a portion of this security is segregated with
the custodian to cover margin requirements for open futures and option
contracts. The market value of all securities segregated at April 30,
2003, is $355.
(d) WorldCom, Inc.-WorldCom Group is currently in default on interest
payments.
(e) Securities valued as determined in good faith in accordance with
procedures established by the Fund's Board of Trustees.
(f) Floating or variable rate note. Rate is listed as of April 30, 2003.
(g) Securities are stepbonds. Coupon steps up by 50BP if rating is downgraded
below Standard and Poor's or Moody's single A rating. Coupon steps down by
50BP if rating is raised above Standard and Poor's or Moody's BBB/Baa
rating.
(h) Securities are stepbonds. Coupon steps up or down by 25BP for each rating
upgrade or downgrade by Standard and Poor's or Moody's for each notch
below A-/A3.
(i) Securities are stepbonds. Current coupon rate is 3-month U.S. LIBOR
(London Interbank Offer Rate) plus 129.5 BP. Coupon steps up or down by
25BP for each rating upgrade or downgrade by Standard and Poor's or
Moody's for each notch below A-/A3.
(j) Securities are stepbonds. Coupon steps up by 50BP if rating is decreased
below Standard and Poor's or Moody's BBB-/Baa3 rating.
(k) Securities are stepbonds. Coupon steps up or down by 25BP for each rating
upgrade or downgrade by Standard and Poor's or Moody's for each notch
below BBB+/A3.
(l) An option on an interest rate swap. If exercised, the fund will pay the
strike rate in order to receive the 3 Month LIBOR (London Interbank Offer
Rate).
(m) An option on an interest rate swap. If exercised, the fund will pay the 3
Month LIBOR (London Interbank Offer Rate) in order to receive the strike
rate.
(n) Market value is less than $1.
(o) Notional medium-term debt instrument issued by the German Federal
Government.
(p) Notional long-term debt instrument issued by the German Federal
Government.
DEFINITIONS:
TBA Mortgage-backed securities traded under delayed delivery commitments.
Income on TBA's are not earned until settlement date.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 7
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $124,164)
(including $3,213 of securities loaned) $ 126,371
Cash 556
Foreign cash (cost: $249) 257
Receivables:
Investment securities sold 4,105
Shares of beneficial interest sold 527
Interest 723
Swap premiums paid 115
Variation Margin 85
Other 6
Unrealized appreciation on swaps 19
---------
132,764
---------
Liabilities:
Investment securities purchased 20,577
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 316
Management and advisory fees 60
Distribution fees 67
Transfer agent fees and expenses 26
Payable for securities on loan 3,290
Unrealized depreciation on forward
foreign currency contracts 12
Written options and swaptions (premium: $342) 200
Swap premiums received 1
Unrealized depreciation on swaps 21
Other 20
---------
24,590
---------
Net Assets $ 108,174
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 104,052
Undistributed net investment income (loss) 101
Undistributed net realized gain (loss) from investments,
futures/options/swaption contracts, swaps, and foreign
currency transactions 1,756
Net unrealized appreciation (depreciation) of investments,
futures/options/swaption contracts, swaps, and on
translation of assets and liabilities in foreign currencies 2,265
---------
Net Assets $ 108,174
=========
Shares Outstanding:
Class A 3,992
Class B 4,085
Class C 1,264
Class L 462
Class M 432
Net Asset Value Per Share:
Class A $ 10.57
Class B 10.57
Class C 10.57
Class L 10.57
Class M 10.57
Maximum Offering Price Per Share (1):
Class A $ 11.10
Class M 10.68
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 2,154
Income from loaned securities-net 5
---------
2,159
---------
Expenses:
Management and advisory fees 368
Transfer agent fees and expenses 78
Custody fees 30
Administration fees 14
Registration fees 52
Trustees fees and expenses 4
Professional fees 15
Other 12
Distribution and service fees:
Class A 85
Class B 185
Class C 64
Class L 12
Class M 20
---------
Total Expenses 939
Less reimbursements by the investment adviser (6)
---------
Net Expenses 933
---------
Net Investment Income (Loss) 1,226
---------
Net Realized Gain (Loss):
Net investment securities 987
Net futures contracts 817
Net written options 29
Net swap agreements (22)
Net foreign currency transactions 32
---------
1,843
---------
Net Unrealized Appreciation (Depreciation) :
Net investment securities 2,163
Net futures contracts (273)
Net written options 124
Net swap agreements (2)
Net translation of assets and liabilities
denominated in foreign currency (6)
---------
2,006
---------
Net Gain (Loss) on Investments, Futures/Options
Contracts and Foreign Currency Transactions 3,849
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 5,075
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 8
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002 (a)
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 1,226 $ 455
Net realized gain (loss) on investment
securities, futures/options/swaption
contracts, swaps, and foreign currency
transactions 1,843 1,261
Net unrealized appreciation (depreciation)
on investment securities, futures/option/
swaption contracts, swaps, and foreign
currency translation 2,006 259
--------- ---------
5,075 1,975
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A (659) (205)
Class B (372) (100)
Class C (130) (38)
Class L (22) --
Class M (48) (17)
--------- ---------
(1,231) (360)
--------- ---------
From net realized gains:
Class A (659) --
Class B (450) --
Class C (163) --
Class L (16) --
Class M (60) --
--------- ---------
(1,348) --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 31,660 44,137
Class B 17,253 33,741
Class C 4,514 13,400
Class L 5,283 --
Class M 955 5,159
--------- ---------
59,665 96,437
--------- ---------
Dividends and distributions reinvested:
Class A 1,238 199
Class B 676 82
Class C 255 33
Class L 37 --
Class M 104 16
--------- ---------
2,310 330
--------- ---------
Cost of shares redeemed:
Class A (32,578) (4,312)
Class B (6,573) (3,479)
Class C (3,390) (1,984)
Class L (500) --
Class M (932) (931)
--------- ---------
(43,973) (10,706)
--------- ---------
18,002 86,061
--------- ---------
Net increase (decrease) in net assets 20,498 87,676
--------- ---------
Net Assets:
Beginning of period 87,676 --
--------- ---------
End of period $ 108,174 $ 87,676
========= =========
Undistributed Net Investment Income (Loss) $ 101 $ 106
========= =========
Share Activity:
Shares issued during the period:
Class A 3,042 4,358
Class B 1,655 3,331
Class C 433 1,323
Class L 506 --
Class M 91 510
--------- ---------
5,727 9,522
--------- ---------
Shares issued-reinvested from distributions:
Class A 119 20
Class B 65 8
Class C 25 3
Class L 4 --
Class M 10 2
--------- ---------
223 33
--------- ---------
Shares redeemed during the period:
Class A (3,120) (427)
Class B (630) (344)
Class C (325) (195)
Class L (48) --
Class M (89) (92)
--------- ---------
(4,212) (1,058)
--------- ---------
Net increase (decrease) in shares outstanding 1,738 8,497
========= =========
(a) Commenced operations on March 1, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 9
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 10.32 $ 0.14 $ 0.39 $ 0.53
10/31/2002 10.00 0.13 0.28 0.41
- --------------------------------------------------------------------------------
Class B 04/30/2003 10.32 0.10 0.40 0.50
10/31/2002 10.00 0.09 0.29 0.38
- --------------------------------------------------------------------------------
Class C 04/30/2003 10.32 0.10 0.40 0.50
10/31/2002 10.00 0.09 0.29 0.38
- --------------------------------------------------------------------------------
Class L 04/30/2003 10.38 0.09 0.35 0.44
- --------------------------------------------------------------------------------
Class M 04/30/2003 10.32 0.11 0.39 0.50
10/31/2002 10.00 0.11 0.27 0.38
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
------------------------------------------------------
Distributions
-----------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ------------ --------------- ------------
Class A $ (0.14) $ (0.14) $ (0.28) $ 10.57
(0.09) -- (0.09) 10.32
- --------------------------------------------------------------
Class B (0.11) (0.14) (0.25) 10.57
(0.06) -- (0.06) 10.32
- --------------------------------------------------------------
Class C (0.11) (0.14) (0.25) 10.57
(0.06) -- (0.06) 10.32
- --------------------------------------------------------------
Class L (0.11) (0.14) (0.25) 10.57
- --------------------------------------------------------------
Class M (0.11) (0.14) (0.25) 10.57
(0.06) -- (0.06) 10.32
- --------------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ------------
Class A 04/30/2003 5.26% $ 42,199 1.43% 1.43% 2.68% 155.43%
10/31/2002 4.13 40,767 1.65 1.81 2.28 240.42
- ---------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 4.91 43,171 2.08 2.08 2.03 155.43
10/31/2002 3.80 30,909 2.30 2.46 1.63 240.42
- ---------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 4.91 13,353 2.08 2.08 2.03 155.43
10/31/2002 3.80 11,667 2.30 2.46 1.63 240.42
- ---------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 4.30 4,885 2.08 2.08 2.03 155.43
- ---------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 4.96 4,566 1.98 1.98 2.13 155.43
10/31/2002 3.85 4,333 2.20 2.36 1.73 240.42
- ---------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 10
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX PIMCO Total Return ("the Fund") commenced operations on March 1,
2002. The inception date for the Fund's offering of share Class L was
November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 11
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX PIMCO Total Return ("the Fund"), part of
IDEX Mutual Funds, began operations on March 1, 2002.
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
TBA purchase commitments: The fund may enter into "TBA" (to be announced)
purchase commitments to purchase securities for a fixed price at a future date,
typically not to exceed 45 days. TBA purchase commitments are considered
securities in themselves, and involve a risk of loss if the value of the
security to be purchased declines prior to settlement date, which is in
addition to the risk of decline in the value of the Fund's other assets.
Unsettled TBA purchase commitments are valued at the current market value of
the underlying securities, according to the procedures described under Security
Valuations. TBA purchase commitments are included in the Schedule of
Investments.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and
a liability for the return of the collateral. Securities on loan are included
in investment securities at market value in the Statement of Assets and
Liabilities and remain in the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities
loans, the collateral and securities loaned remain subject to fluctuation in
market value. IBT marks to market securities loaned and the collateral each
business day. If additional collateral is due (at least $1), IBT collects
additional cash collateral from the borrowers. Although securities loaned will
be fully collateralized at all times, IBT may experience delays in, or may be
prevented from, recovering the collateral on behalf of the Fund. The Fund may
recall a loaned security position at any time from the borrower through IBT. In
the event the borrower fails to timely return a recalled security, IBT may
indemnify the Fund by purchasing replacement securities for the Fund at its own
expense and claiming the collateral to fund such a purchase. IBT absorbs the
loss if the collateral value is not sufficient to cover the cost of the
replacement securities. If replacement securities are not available, IBT will
credit the equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as in the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 12
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
Foreign currency denominated investments: The accounting records of the Fund
are maintained in U.S. dollars. Securities and other assets and liabilities
denominated in foreign currencies are translated into U.S. dollars at the
closing exchange rate each day. The cost of foreign securities is translated at
the exchange rate in effect when the investment was acquired. The Fund combines
fluctuations from currency exchange rates and fluctuations in market value when
computing net realized and unrealized gains or losses from investments. Net
foreign currency gains and losses resulting from changes in exchange rates
include: 1) foreign currency fluctuations between trade date and settlement
date of investment security transactions; 2) gains and losses on forward
foreign currency contracts; and 3) the difference between the receivable
amounts of interest and dividends recorded in the accounting records in U.S.
dollars and the amounts actually received. Foreign currency denominated assets
may involve risks not typically associated with domestic transactions,
including unanticipated movements in exchange currency rates, the degree of
government supervision and regulation of security markets, and the possibility
of political or economic instability.
Forward foreign currency contracts: The Fund may enter into forward foreign
currency contracts to hedge against exchange rate risk arising from investments
in securities denominated in foreign currencies. Contracts are valued at the
contractual forward rate and are marked to market daily, with the change in
market value recorded as an unrealized gain or loss. When the contracts are
closed a realized gain or loss is incurred. Risks may arise from changes in
market value of the underlying currencies and from the possible inability of
counterparties to meet the terms of their contracts. Open forward currency
contracts at April 30, 2003, are listed in the Schedule of Investments.
Swap Agreements: The Fund may invest in swap agreements. A swap is an agreement
to exchange the return generated by one instrument for the return generated by
another instrument. The Fund may enter into total return and credit default
swap agreements to manage its exposure to interest rates and credit risk. Total
return swap agreements involve commitments to pay interest in exchange for a
market-linked return, both based on notional amounts. To the extent the total
return of the security or index underlying the transaction exceeds or falls
short of the offsetting interest rate obligation, the Fund will receive a
payment from or make a payment to the counterparty. In a credit default swap,
one party makes a stream of payments to another party in exchange for the right
to receive a specified return in the event of a default by a third party,
typically corporate issues or sovereign issues of an emerging country, on its
obligation. The Fund may use credit default swaps to provide a measure of
protection against defaults of sovereign issuers (i.e., to reduce risk where
the Fund owns or has exposure to the sovereign issuer) or to take an active
long or short position with respect to the likelihood of a particular issuer's
default. Swaps are marked to market daily based upon quotations from market
makers and vendors and the change in value, if any, is recorded as unrealized
gain or loss in the Statement of Operations. Payments received or made at the
beginning of the measurement period are reflected as such on the Statement of
Assets and Liabilities. A liquidation payment received or made at the
termination of the swap is recorded as realized gain or loss in the Statement
of Operations. Net periodic payments are included as part of interest income on
the Statement of Operations. Entering into these agreements involves, to
varying degrees, elements of credit, market and documentation risk in excess of
the amounts recognized on the Statement of Assets and Liabilities. Such risks
involve the possibility that there will be no liquid market for these
agreements, that the counterparty to the agreements may default on its
obligation to perform or disagree as to the meaning of contractual terms in the
agreements, and that there may be unfavorable changes in interest rates. Open
Swap Agreements at April 30, 2003, are listed in the Schedule of Investments.
Futures, options and swaptions contracts: The Fund may enter into futures
and/or options contracts to manage exposure to market, interest rate or
currency fluctuations. Futures contracts are valued at the settlement price
established each day by the board of trade or exchange on which they are
traded. Option contracts are valued at the average of the bid and ask ("Mean
Quote") established each day at the close of the board of trade or exchange on
which they are traded. The primary risks associated with futures contracts and
options are imperfect correlation between the change in market value of the
securities held and the prices of futures contracts and options; the
possibility of an illiquid market and inability of the counterparty to meet the
contract terms. When the Fund writes a covered call or put option, an amount
equal to the premium received by the Fund is included in the Fund's Statement
of Assets and Liabilities as an asset and as an equivalent liability. The
amount of the liability is subsequently marked-to-market to reflect the current
value of the option written.
The Fund is authorized to write swaption contracts to manage exposure to
fluctuations in interest rates and to enhance portfolio yield. Swaption
contracts written by the Fund represents an option that gives the purchaser the
right, but not the obligation, to enter into a previously agreed upon swap
contract on a future date. If a written call option is exercised, the writer
will enter a swap and is obligated to pay the fixed rate and receive a fixed
rate in exchange. Swaptions are marked-to-market daily based upon quotations
from market makers.
When a portfolio writes a swaption, the premium received is recorded as a
liability and is subsequently adjusted to the current market value of the
swaption. Changes in the value of the swaption are reported as unrealized gains
or losses in options in the Statement of Assets and Liabilities. Gain or loss
is recognized when the swaption contract expires or is closed. Premiums
received from writing swaptions that expire or are exercised are treated by the
portfolio as realized gains from written options. The difference between the
premium and the amount paid on effecting a closing purchase transaction is also
treated as a realized gain, or if the premium is less than the amount paid for
the closing purchase, as a realized loss.
Entering into a swaption contract involves, to varying degrees, the elements of
credit, market and interest rate risk in excess of the amounts
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 13
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
reported in the Statement of Assets and Liabilities, associated with both
option contracts and swap contracts. To reduce credit risk from potential
counterparty default, the portfolio enters into swaption contracts with
counterparties whose creditworthiness has been approved by the Board of
Trustees. The portfolio bears the market risk arising from any changes in index
values or interest rates.
The underlying face amounts of open futures, option, and swaption contracts at
April 30, 2003, are listed in the Schedule of Investments. The variation margin
receivable is included in the accompanying Statement of Assets and Liabilities.
Variation margin represents excess deposits made in order to maintain the
equity account at the required margin level.
Transactions in written options and swaptions were as follows:
Premium Contracts*
--------- ---------------
Balance at 10/31/2002 $ 72 113
Sales 434 33,200,025
Closing Buys (92) (9,800,000)
Expirations (72) (113)
----- ----------
Balance at 04/30/2003 $ 342 23,400,025
===== ==========
*Contracts not in thousands. The Contract Balance as of 04/30/03, includes
$23,400,000 Notional Amount of Swaption Contracts.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following rate:
0.70% of ANA
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.30% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 114
Retained by Underwriter 16
Contingent Sales Charges 61
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $1 for
deferred compensation to Trustees is included in Other liabilities.
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 14
IDEX PIMCO Total Return
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 19,626
U.S. Government 116,947
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 29,450
U.S. Government 122,830
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 124,175
==========
Unrealized appreciation $ 2,406
Unrealized (Depreciation) (210)
----------
Net Unrealized Appreciation (Depreciation) $ 2,196
==========
IDEX Mutual Funds
Semi-Annual Report 2003
PIMCO Total Return 15
IDEX Protected Principal Stock
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS (100.3%) (b)
Aerospace (1.1%)
Boeing Company (The) 6,500 $ 177
Goodrich Corporation 900 13
Lockheed Martin Corporation 3,500 175
Northrop Grumman Corporation 1,435 126
Textron Inc. 1,000 29
United Technologies Corporation 3,700 229
Air Transportation (0.4%)
Delta Air Lines, Inc. 900 12
FedEx Corporation 2,300 138
Southwest Airlines Co. 6,100 97
Amusement & Recreation Services (0.5%)
Disney (Walt) Company (The) 15,600 291
Harrah's Entertainment, Inc. (a) 900 35
Apparel & Accessory Stores (0.4%)
Gap, Inc. (The) 6,900 115
Limited, Inc. (The) 4,100 60
Nordstrom, Inc. 1,000 17
TJX Companies, Inc. (The) 4,100 79
Apparel Products (0.2%)
Cintas Corporation 1,300 47
Jones Apparel Group, Inc. (a) 1,000 29
Liz Claiborne, Inc. 800 26
V.F. Corporation 900 35
Auto Repair, Services & Parking (0.0%)
Ryder System, Inc. 500 12
Automotive (1.0%)
Dana Corporation 1,100 10
Delphi Corporation 4,400 37
Ford Motor Company 14,000 144
General Motors Corporation 4,400 159
Harley-Davidson, Inc. 2,300 102
Honeywell International Inc. 6,500 153
Navistar International Corporation (a) 500 14
PACCAR Inc. 900 53
Visteon Corporation 1,000 7
Automotive Dealers & Service Stations (0.1%)
AutoNation, Inc. (a) 2,450 34
AutoZone, Inc. (a) 800 65
Beverages (2.7%)
Anheuser-Busch Companies, Inc. 6,600 329
Brown-Forman Corporation-Class B 600 46
Coca-Cola Company (The) 19,200 776
Coca-Cola Enterprises Inc. 3,500 68
Coors (Adolph) Company 300 16
Pepsi Bottling Group, Inc. (The) 2,100 43
PepsiCo, Inc. 13,300 576
Business Services (1.3%)
Clear Channel Communications, Inc. (a) 4,600 180
eBay Inc. (a) 2,400 223
Equifax Inc. 1,100 26
First Data Corporation 5,900 231
Hudson Highland Group, Inc. (a) 67 1
Interpublic Group of Companies, Inc. (The) 2,900 33
Moody's Corporation 1,200 58
Omnicom Group, Inc. 1,500 93
Robert Half International Inc. (a) 1,300 21
TMP Worldwide Inc. 900 15
Chemicals & Allied Products (3.5%)
Air Products and Chemicals, Inc. 1,700 73
Avon Products, Inc. 1,800 105
Clorox Company (The) 1,600 72
Colgate-Palmolive Company 4,200 240
Dow Chemical Company (The) 7,100 232
du Pont (E.I.) de Nemours and Company 7,800 332
Eastman Chemical Company 600 18
Ecolab Inc. 1,000 51
Great Lakes Chemical Corporation 400 10
Hercules Incorporated (a) 900 9
International Flavors & Fragrances Inc. 800 25
Monsanto Company 1,971 34
PPG Industries, Inc. 1,300 63
Praxair, Inc. 1,300 76
Procter & Gamble Company (The) 10,100 906
Rohm and Haas Company 1,600 53
Sherwin-Williams Company (The) 1,200 33
Sigma-Aldrich Corporation 600 30
Commercial Banks (10.0%)
AmSouth Bancorporation 2,700 57
Bank of America Corporation 11,600 858
Bank of New York Company, Inc. (The) 5,600 148
Bank One Corporation 9,000 324
BB&T Corporation 3,700 121
Citigroup Inc. 39,700 1,558
Comerica Incorporated 1,400 61
Concord EFS, Inc. (a) 4,000 55
Fifth Third Bancorp 4,500 222
First Tennessee National Corporation 900 39
FleetBoston Financial Corporation 8,200 217
Huntington Bancshares Incorporated 1,800 35
KeyCorp 3,200 77
Marshall & Ilsley Corporation 1,600 47
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Protected Principal Stock 1
IDEX Protected Principal Stock
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Commercial Banks (continued)
MBNA Corporation 10,000 $ 189
Mellon Financial Corporation 3,300 87
Morgan Chase & Co. (J.P.) 15,400 452
National City Corporation 4,600 138
North Fork Bancorporation, Inc. 1,200 39
Northern Trust Corporation 1,600 56
PNC Financial Services Group, Inc. (The) 2,200 97
Providian Financial Corporation (a) 2,200 16
Regions Financial Corporation 1,600 54
SouthTrust Corporation 2,700 73
State Street Corporation 2,500 88
SunTrust Banks, Inc. 2,200 126
Synovus Financial Corp. 2,300 45
U.S. Bancorp 14,700 326
Union Planters Corporation 1,500 43
Wachovia Corporation 10,500 401
Wells Fargo & Company 13,000 627
Zions Bancorporation 800 39
Communication (1.7%)
Comcast Corporation-Class A (a) 17,819 569
Viacom, Inc.-Class B (a) 13,600 590
Communications Equipment (0.8%)
ADC Telecommunications, Incorporated (a) 6,300 15
Avaya Inc. (a) 2,700 11
Ciena Corporation (a) 3,300 16
Comverse Technology, Inc. (a) 1,500 20
Corning Incorporated (a) 8,900 48
Lucent Technologies Inc. (a) 26,700 48
Motorola, Inc. 17,700 140
QUALCOMM Incorporated 6,100 195
Rockwell Collins, Inc. 1,400 30
Scientific-Atlanta, Inc. 1,200 20
Tellabs, Inc. (a) 3,100 19
Computer & Data Processing Services (5.5%)
Adobe Systems Incorporated 1,800 62
Autodesk, Inc. 900 14
Automatic Data Processing, Inc. 4,600 155
BMC Software, Inc. (a) 1,800 27
Citrix Systems, Inc. (a) 1,300 25
Computer Associates International, Inc. 4,500 73
Computer Sciences Corporation (a) 1,300 43
Compuware Corporation (a) 2,900 13
Convergys Corporation (a) 1,300 21
Electronic Arts Inc. (a) 1,100 65
Electronic Data Systems Corporation 3,700 67
Fiserv, Inc. (a) 1,500 44
IMS Health Incorporated 2,100 32
Intuit Inc. (a) 1,500 58
Mercury Interactive Corporation (a) 700 24
Microsoft Corporation 82,800 2,117
Novell, Inc. (a) 2,700 7
Oracle Corporation (a) 41,600 494
Parametric Technology Corporation (a) 2,000 7
PeopleSoft, Inc. (a) 2,400 36
Sabre Holdings Corporation 1,100 23
Siebel Systems, Inc. (a) 3,700 32
SunGard Data Systems Inc. (a) 2,200 47
Symantec Corporation (a) 1,175 52
Unisys Corporation (a) 2,500 26
VERITAS Software Corporation (a) 3,100 68
Yahoo! Inc. (a) 4,600 114
Computer & Office Equipment (5.1%)
Apple Computer, Inc. (a) 2,700 38
Cisco Systems, Inc. (a) 55,900 841
Dell Computer Corporation (a) 20,000 578
EMC Corporation (a) 17,100 155
Gateway, Inc. (a) 2,500 7
Hewlett-Packard Company 23,500 383
International Business Machines Corporation 13,000 1,104
Lexmark International Group, Inc. (a) 1,000 75
NCR Corporation (a) 800 18
Network Appliance, Inc. (a) 2,600 35
Pitney Bowes Inc. 1,800 63
Sun Microsystems, Inc. (a) 23,900 79
Symbol Technologies, Inc. 1,700 19
Xerox Corporation (a) 5,600 55
Construction (0.2%)
Ashland Inc. 600 18
Centex Corporation 500 33
Fluor Corporation 700 24
KB Home 400 20
Pulte Corporation 500 29
Department Stores (0.5%)
Dillard's, Inc.-Class A 700 10
Federated Department Stores, Inc. (a) 1,500 46
J.C. Penney Company, Inc. 2,000 34
Kohl's Corporation (a) 2,600 148
May Department Stores Company (The) 2,200 48
Sears, Roebuck and Co. 2,400 68
Drug Stores & Proprietary Stores (0.5%)
CVS Corporation 3,000 73
Walgreen Co. 8,000 247
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Protected Principal Stock 2
IDEX Protected Principal Stock
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Educational Services (0.1%)
Apollo Group, Inc.-Class A (a) 1,400 $ 76
Electric Services (1.7%)
AES Corporation (The) (a) 4,300 26
Allegheny Energy, Inc. 900 7
American Electric Power Company, Inc. 2,600 69
Calpine Corporation (a) 2,900 16
CenterPoint Energy, Inc. 2,300 18
Constellation Energy Group, Inc. 1,300 38
Dominion Resources, Inc. 2,400 142
DTE Energy Company 1,300 52
Duke Energy Corporation 6,900 121
Edison International (a) 2,500 36
Entergy Corporation 1,700 79
FirstEnergy Corp. 2,300 78
FPL Group, Inc. 1,400 85
Mirant Corporation (a) 3,000 10
Pinnacle West Capital Corporation 800 27
PPL Corporation 1,300 47
Progress Energy, Inc. 1,800 75
Southern Company (The) 5,500 160
TECO Energy, Inc. 1,400 15
TXU Corp. 2,500 50
Electric, Gas & Sanitary Services (0.8%)
Ameren Corporation 1,200 49
Cinergy Corp. 1,300 44
Citizens Communications Company (a) 2,200 24
CMS Energy Corporation 1,100 7
Consolidated Edison, Inc. 1,600 62
Exelon Corporation 2,500 133
NiSource Inc. 1,800 34
PG&E Corporation (a) 3,100 46
Public Service Enterprise Group Incorporated 1,700 65
Sempra Energy 1,600 43
Xcel Energy Inc. 3,000 41
Electronic & Other Electric Equipment (3.8%)
American Power Conversion Corporation (a) 1,500 23
Cooper Industries, Inc.-Class A 800 30
Eaton Corporation 600 49
Emerson Electric Co. 3,200 162
General Electric Company 76,900 2,265
Maytag Corporation 700 15
Thomas & Betts Corporation (a) 500 8
Whirlpool Corp. 600 32
Electronic Components & Accessories (3.2%)
Advanced Micro Devices, Inc. (a) 2,700 20
Altera Corporation (a) 2,900 46
Analog Devices, Inc. (a) 2,800 93
Applied Micro Circuits Corporation (a) 2,300 10
Broadcom Corporation-Class A (a) 2,100 38
Intel Corporation 51,200 941
Jabil Circuit, Inc. (a) 1,500 28
JDS Uniphase Corporation (a) 11,000 36
Linear Technology Corporation 2,400 83
LSI Logic Corporation (a) 2,800 15
Maxim Integrated Products 2,500 98
Micron Technology, Inc. (a) 4,600 39
Molex Incorporated 1,500 35
National Semiconductor Corporation (a) 1,400 26
NVIDIA Corporation (a) 1,200 17
PMC-Sierra, Inc. (a) 1,300 11
Power-One, Inc. (a) 700 4
QLogic Corporation (a) 800 35
Sanmina Corporation (a) 4,100 20
Solectron Corporation (a) 6,500 21
Texas Instruments Incorporated 13,400 248
Tyco International Ltd. 15,400 240
Xilinx, Inc. (a) 2,600 70
Environmental Services (0.2%)
Allied Waste Industries, Inc. (a) 1,500 12
Waste Management, Inc. 4,600 100
Fabricated Metal Products (0.5%)
Crane Co. 500 10
Fortune Brands, Inc. 1,100 53
Gillette Company (The) 8,200 250
McDermott International, Inc. (a) 500 2
Parker-Hannifin Corporation 900 37
Stanley Works (The) 700 17
Finance (4.2%)
Standard & Poor's 500 Depositary Receipt 31,000 2,851
Food & Kindred Products (1.9%)
Altria Group, Inc. 15,900 489
Archer Daniels Midland Co. 4,900 54
Campbell Soup Company 3,100 68
ConAgra Foods, Inc. 4,200 88
General Mills, Inc. 2,800 126
Heinz (H.J.) Company 2,700 81
Hershey Foods Corporation 1,000 65
Kellogg Company 3,100 101
McCormick & Company, Incorporated 1,100 27
Sara Lee Corporation 6,100 102
Wrigley (Wm.) Jr. Company 1,700 96
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Protected Principal Stock 3
IDEX Protected Principal Stock
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Food Stores (0.3%)
Albertson's, Inc. 2,900 $ 58
Kroger Co. (The) (a) 6,100 87
Safeway Inc. (a) 3,400 57
Winn-Dixie Stores, Inc. 1,100 14
Furniture & Fixtures (0.1%)
Johnson Controls, Inc. 700 58
Leggett & Platt, Incorporated 1,500 31
Furniture & Home Furnishings Stores (0.1%)
Bed Bath & Beyond Inc. (a) 2,200 87
Gas Production & Distribution (0.2%)
El Paso Corporation 4,600 35
KeySpan Corporation 1,100 37
Kinder Morgan, Inc. 900 42
Nicor Inc. 400 12
Peoples Energy Corporation 300 12
Williams Companies, Inc. (The) 4,000 28
Health Services (0.4%)
HCA Inc. 4,000 128
Health Management Associates, Inc.-Class A 1,800 31
Manor Care, Inc. (a) 800 16
Quest Diagnostics Incorporated (a) 800 48
Tenet Healthcare Corporation (a) 3,800 56
Holding & Other Investment Offices (0 4%)
Apartment Investment & Management Co.-Class A 540 20
Equity Office Properties Trust 3,100 81
Equity Residential 2,100 54
Janus Capital Group, Inc. 1,700 24
Plum Creek Timber Company, Inc. 1,400 33
Simon Property Group, Inc. 1,500 55
Hotels & Other Lodging Places (0.2%)
Hilton Hotels Corporation 2,800 37
Marriott International, Inc.-Class A 1,800 65
Starwood Hotels & Resorts Worldwide, Inc. 1,500 40
Industrial Machinery & Equipment (1.4%)
American Standard Companies Inc. (a) 600 43
Applied Materials, Inc. (a) 12,600 184
Baker Hughes Incorporated 2,600 73
Black & Decker Corporation (The) 700 29
Brunswick Corporation 800 17
Caterpillar, Inc. 2,700 142
Cummins Inc. 300 8
Deere & Company 1,800 79
Dover Corporation 1,500 43
Illinois Tool Works Inc. 2,400 154
Ingersoll-Rand Company-Class A 1,300 57
ITT Industries, Inc. 800 47
Novellus Systems, Inc. (a) 1,100 31
Pall Corporation 900 19
Instruments & Related Products (0.8%)
Agilent Technologies, Inc. (a) 3,600 58
Applera Corporation-Applied Biosystems Group 1,500 26
Bausch & Lomb Incorporated 500 18
Danaher Corporation 1,200 83
Eastman Kodak Company 2,200 66
KLA -Tencor Corporation (a) 1,500 62
Millipore Corporation (a) 400 14
PerkinElmer, Inc. 1,000 10
Raytheon Company 3,100 93
Rockwell International Corporation 1,500 34
Snap-on Incoporated 500 15
Tektronix, Inc. (a) 700 13
Teradyne, Inc. (a) 1,400 16
Thermo Electron Corporation (a) 1,300 24
Waters Corporation (a) 1,000 24
Insurance (4.3%)
ACE Limited 2,000 66
Aetna Inc. 1,200 60
AFLAC Incorporated 4,000 131
Allstate Corporation (The) 5,400 204
Ambac Financial Group, Inc. 900 53
American International Group, Inc. 20,200 1,171
Anthem, Inc. (a) 1,100 76
Aon Corporation 2,400 53
Chubb Corporation 1,300 69
CIGNA Corporation 1,100 58
Cincinnati Financial Corporation 1,200 44
Humana Inc. (a) 1,200 13
Loews Corporation 1,400 58
MBIA, Inc. 1,100 49
MGIC Investment Corporation 800 36
Principal Financial Group, Inc. 2,600 76
Progressive Corporation (The) 1,600 109
SAFECO Corporation 1,000 39
St. Paul Companies, Inc. (The) 1,700 58
Travelers Property Casualty Corp.-Class B 7,808 127
UnitedHealth Group Incorporated 2,300 212
UnumProvident Corporation 1,800 21
WellPoint Health Networks Inc. (a) 1,100 84
XL Capital Ltd.-Class A 1,000 82
Insurance Agents, Brokers & Service (0.6%)
Hartford Financial Services Group, Inc. (The) 1,900 77
Marsh & McLennan Companies, Inc. 4,200 200
MetLife, Inc. 5,300 152
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Protected Principal Stock 4
IDEX Protected Principal Stock
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Life Insurance (0.5%)
Jefferson-Pilot Corporation 1,100 $ 44
John Hancock Financial Services, Inc. 2,200 64
Lincoln National Corporation 1,400 45
Prudential Financial, Inc. 4,400 141
Torchmark Corporation 900 35
Lumber & Other Building Materials (1.1%)
Home Depot, Inc. (The) 17,900 504
Lowe's Companies, Inc. 6,100 268
Lumber & Wood Products (0.3%)
Georgia-Pacific Corporation 1,900 29
Louisiana-Pacific Corporation (a) 900 7
Masco Corporation 3,800 80
Weyerhaeuser Company 1,600 79
Management Services (0.1%)
Paychex, Inc. 2,800 87
Manufacturing Industries (0.2%)
Hasbro Inc. 1,300 21
International Game Technology (a) 700 60
Mattel, Inc. 3,400 74
Medical Instruments & Supplies (1.7%)
Bard, (C.R.) Inc. 400 25
Baxter International Inc. 4,600 106
Becton, Dickinson and Company 1,900 67
Biomet, Incorporated 2,000 61
Boston Scientific Corporation (a) 3,100 133
Guidant Corporation (a) 2,300 90
Medtronic, Inc. 9,500 454
St. Jude Medical, Inc. (a) 1,400 73
Stryker Corporation 1,500 101
Zimmer Holdings, Inc. (a) 1,500 70
Metal Cans & Shipping Containers (0.0%)
Ball Corporation 500 28
Metal Mining (0.2%)
Freeport-McMoRan Copper &
Gold Inc.-Class B 1,100 19
Newmont Mining Corporation 3,100 84
Mining (0.0%)
Vulcan Materials Company 800 28
Mortgage Bankers & Brokers (0.1%)
Countrywide Credit Industries, Inc. 1,000 68
Motion Pictures (0.7%)
AOL Time Warner Inc. (a) 34,600 473
Motor Vehicles, Parts & Supplies (0.1%)
Genuine Parts Company 1,400 45
Oil & Gas Extraction (1.8%)
Anadarko Petroleum Corporation 1,900 84
Apache Corporation 1,155 66
BJ Services Company (a) 1,200 44
Burlington Resources Inc. 1,500 69
ConocoPhillips 5,104 257
Devon Energy Corporation 1,200 57
Dynegy Inc. 2,800 12
EOG Resources, Inc. 900 34
Halliburton Company 3,300 71
Kerr-McGee Corporation 800 34
Nabors Industries Ltd. (a) 1,100 43
Noble Corporation 1,000 31
Occidental Petroleum Corporation 2,800 84
Rowan Companies, Inc. 800 16
Schlumberger Limited 4,600 193
Transocean Inc. 2,500 48
Unocal Corporation 2,000 55
Paper & Allied Products (1.3%)
3M Company 3,000 378
Avery Dennison Corporation 900 48
Bemis Company, Inc. 400 18
International Paper Company 3,700 132
Kimberly-Clark Corporation 4,000 199
MeadWestvaco Corporation 1,500 35
Pactiv Corporation (a) 1,200 25
Temple-Inland Inc. 400 18
Paper & Paper Products (0.0%)
Boise Cascade Corporation 500 11
Personal Credit Institutions (0.3%)
Capital One Financial Corporation 1,700 71
SLM Corporation 1,200 134
Personal Services (0.2%)
Block (H&R), Inc. 1,400 54
Cendant Corporation (a) 8,000 114
Petroleum Refining (3.6%)
Amerada Hess Corporation 700 32
ChevronTexaco Corporation 8,300 521
Exxon Mobil Corporation 52,100 1,834
Marathon Oil Corporation 2,400 55
Sunoco, Inc. 600 22
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Protected Principal Stock 5
IDEX Protected Principal Stock
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Pharmaceuticals (11.4%)
Abbott Laboratories 11,900 $ 483
Allergan, Inc. 1,000 70
AmerisourceBergen Corporation 900 52
Amgen Inc. (a) 10,072 618
Biogen, Inc. (a) 1,100 42
Bristol-Myers Squibb Co. 14,900 381
Cardinal Health, Inc. 3,400 188
Chiron Corporation (a) 1,500 61
Forest Laboratories, Inc. (a) 2,800 145
Genzyme Corporation-General Division (a) 1,600 64
Johnson & Johnson 23,000 1,296
King Pharmaceuticals, Inc. (a) 1,800 23
Lilly (Eli) and Company 8,700 555
McKesson HBOC, Inc. 2,200 61
Medimmune, Inc. (a) 1,900 67
Merck & Co., Inc. 17,300 1,006
Pfizer Inc. 61,740 1,899
Schering-Plough Corporation 11,300 205
Watson Pharmaceuticals, Inc. (a) 900 26
Wyeth 10,300 448
Primary Metal Industries (0.4%)
Alcoa Inc. 6,600 151
Allegheny Technologies Incorporated 700 3
Andrew Corporation (a) 800 6
Engelhard Corporation 1,000 25
Nucor Corporation 700 29
Phelps Dodge Corporation (a) 700 22
United States Steel Corporation 900 13
Worthington Industries, Inc. 700 9
Printing & Publishing (0.8%)
American Greetings Corporation-Class A (a) 500 7
Deluxe Corporation 500 22
Donnelley (R.R.) & Sons Company 900 18
Dow Jones & Company, Inc. 700 28
Gannett Co., Inc. 2,000 151
Knight-Ridder, Inc. 700 45
McGraw-Hill Companies, Inc. (The) 1,500 88
Meredith Corporation 400 17
New York Times Company (The)-Class A 1,200 56
Tribune Company 2,300 113
Radio & Television Broadcasting (0.1%)
Univision Communications Inc.-Class A (a) 1,700 51
Radio, Television & Computer Stores (0.2%)
Best Buy Co., Inc. (a) 2,500 86
Circuit City Stores, Inc.-Circuit City Group 1,600 9
RadioShack Corporation 1,300 31
Railroads (0.5%)
Burlington Northern Santa Fe Corp. 2,900 82
CSX Corporation 1,600 51
Norfolk Southern Corporation 2,900 62
Union Pacific Corporation 1,900 113
Research & Testing Services (0.0%)
Quintiles Transnational Corp. (a) 900 13
Restaurants (0.5%)
Darden Restaurants, Inc. 1,300 23
McDonald's Corporation 9,900 169
Starbucks Corporation (a) 2,900 68
Wendy's International, Inc. 900 26
YUM! Brands, Inc. (a) 2,300 57
Retail Trade (0.3%)
Alberto-Culver Company-Class B 500 25
Office Depot, Inc. (a) 2,400 30
Staples, Inc. (a) 3,600 69
Tiffany & Co. 1,100 31
Toys "R" Us, Inc. (a) 1,600 16
Rubber & Misc. Plastic Products (0.3%)
Cooper Tire & Rubber Company 600 8
Goodyear Tire & Rubber Company (The) 1,400 8
Newell Financial Trust I 2,000 61
NIKE, Inc.-Class B 2,000 107
Reebok International Ltd. (a) 500 16
Sealed Air Corporation (a) 700 30
Tupperware Corporation 500 7
Savings Institutions (0.6%)
Charter One Financial, Inc. 1,690 49
Golden West Financial Corporation 1,200 91
Washington Mutual, Inc. 7,400 292
Security & Commodity Brokers (2.5%)
American Express Company 10,200 386
Bear Stearns Companies Inc. (The) 800 53
Federated Investors, Inc.-Class B 750 20
Franklin Resources, Inc. 2,000 70
Goldman Sachs Group, Inc. (The) 3,700 281
Lehman Brothers Holdings Inc. 1,800 113
Merrill Lynch & Co., Inc. 6,700 275
Morgan Stanley Dean Witter & Co. 8,400 376
Schwab (Charles) Corporation (The) 10,400 90
T. Rowe Price Group, Inc. 900 27
Telecommunications (3.5%)
ALLTEL Corporation 2,400 112
AT&T Corp. 6,000 102
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Protected Principal Stock 6
IDEX Protected Principal Stock
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Telecommunications (continued)
AT&T Wireless Services, Inc. (a) 20,800 $ 134
BellSouth Corporation 14,200 362
CenturyTel, Inc. 1,100 32
Nextel Communications, Inc.-Class A (a) 7,500 111
Qwest Communications International Inc. (a) 13,000 49
SBC Communications Inc. 25,600 598
Sprint Corporation (FON Group) 7,000 81
Sprint Corporation (PCS Group) (a) 7,800 27
Verizon Communications, Inc. 21,100 789
Tobacco Products (0.1%)
R.J. Reynolds Tobacco Holdings, Inc. 700 20
UST Inc. 1,300 41
Transportation Equipment (0.1%)
General Dynamics Corporation 1,500 93
Trucking & Warehousing (0.8%)
United Parcel Service, Inc.-Class B 8,600 534
U.S. Government Agencies (1.3%)
Fannie Mae 7,800 565
Freddie Mac 5,300 307
Variety Stores (3.5%)
Big Lots, Inc. (a) 900 11
Costco Wholesale Corporation (a) 3,500 121
Dollar General Corporation 2,600 38
Family Dollar Stores, Inc. 1,300 44
Target Corporation 7,100 237
Wal-Mart Stores, Inc. 34,200 1,926
Water Transportation (0.2%)
Carnival Corporation 4,600 127
Wholesale Trade Durable Goods (0.1%)
Grainger (W.W.), Inc. 800 37
Wholesale Trade Nondurable Goods (0.2%)
SUPERVALU INC 1,000 16
SYSCO Corporation 5,000 144
---------
Total Common Stocks (cost: $70,714) 68,200
---------
Contracts (c) Value
- -------------------------------------------------------------------------------
PURCHASED OPTIONS (0.8%)
Put Options (0.8%)
S & P 500 Index
Put Strike $800.00
Expires 06/21/2003 278 92
S & P 500 Index
Put Strike $825.00
Expires 07/19/2003 466 423
---------
Total Purchased Options (cost: $715) 515
---------
Total Investment Securities (cost: $71,429) $ 68,715
=========
WRITTEN OPTIONS (-3.6%)
Covered Call Options (-3.6%)
S & P 500 Index
Call Strike $875.00
Expires 05/17/2003 137 $ (609)
S & P 500 Index
Call Strike $875.00
Expires 06/21/2003 128 (686)
S & P 500 Index
Call Strike $900.00
Expires 05/17/2003 171 (423)
S & P 500 Index
Call Strike $900.00
Expires 06/21/2003 127 (457)
S & P 500 Index
Call Strike $925.00
Expires 05/17/2003 90 (95)
S & P 500 Index
Call Strike $925.00
Expires 06/21/2003 90 (198)
---------
Total Written Options (premium: $1,911) $ (2,468)
=========
SUMMARY:
Investments, at market value 101.1% $ 68,715
Written options (3.6)% (2,468)
Other assets in excess of liabilities 2.5% 1,743
--------- ---------
Net assets 100.0% $ 67,990
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) Substantially all of the funds common stocks are memo pledged as collateral
by the custodian for the listed short index option contracts written by the
fund (See Note 1).
(c) Contract amounts are not in thousands.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Protected Principal Stock 7
IDEX Protected Principal Stock
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $71,429) $ 68,715
Cash 1,833
Receivables:
Shares of beneficial interest sold 33
Interest 1
Dividends 94
Due from investment adviser 133
---------
70,809
---------
Liabilities:
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 78
Management and advisory fees 168
Distribution fees 50
Transfer agent fees and expenses 37
Written options (premium: $1,911) 2,468
Other 18
---------
2,819
---------
Net Assets $ 67,990
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 69,908
Accumulated net investment income (loss) (330)
Undistributed net realized gain (loss) from investments
and options contracts 1,683
Net unrealized appreciation (depreciation) of
investments and options contracts (3,271)
---------
Net Assets $ 67,990
=========
Shares Outstanding:
Class A 1,004
Class B 4,838
Class C 745
Class M 411
Net Asset Value Per Share:
Class A $ 9.72
Class B 9.72
Class C 9.72
Class M 9.72
Maximum Offering Price Per Share (1):
Class A $ 10.28
Class M 9.81
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B and C shares represents
offering price. The redemption price for Classes B and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 7
Dividends 599
---------
606
---------
Expenses:
Management and advisory fees 435
Transfer agent fees and expenses 67
Custody fees 27
Administration fees 15
Registration fees 23
Trustees fees and expenses 3
Professional fees 100
Other 18
Distribution and service fees:
Class A 17
Class B 231
Class C 35
Class M 18
---------
Total Expenses 989
Less reimbursements by the investment adviser (53)
---------
Net Expenses 936
---------
Net Investment Income (Loss) (330)
---------
Net Realized Gain (Loss) on:
Investment securities (2,495)
Written options 4,305
---------
1,810
---------
Net Unrealized Appreciation (Depreciation) on:
Investment securities 2,649
Written options (952)
---------
1,697
---------
Net Gain (Loss) on Investments and Options
Contracts 3,507
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 3,177
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Protected Principal Stock 8
IDEX Protected Principal Stock
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002 (a)
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (330) $ (283)
Net realized gain (loss) on investment
securities and options contracts 1,810 5,178
Net unrealized appreciation (depreciation)
on investment securities and option
contracts 1,697 (4,968)
--------- ---------
3,177 (73)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A (728) --
Class B (3,474) --
Class C (519) --
Class M (301) --
--------- ---------
(5,022) --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 100 10,820
Class B (97) 48,436
Class C 5 7,097
Class M -- 4,100
--------- ---------
8 70,453
--------- ---------
Dividends and distributions reinvested:
Class A 728 --
Class B 3,474 --
Class C 519 --
Class M 301 --
--------- ---------
5,022 --
--------- ---------
Cost of shares redeemed:
Class A (1,213) (431)
Class B (2,237) (1,200)
Class C (68) (128)
Class M (273) (25)
--------- ---------
(3,791) (1,784)
--------- ---------
1,239 68,669
--------- ---------
Net increase (decrease) in net assets (606) 68,596
--------- ---------
Net Assets:
Beginning of period 68,596 --
--------- ---------
End of period $ 67,990 $ 68,596
========= =========
Accumulated Net Investment Income (Loss) $ (330) $ --
========= =========
Share Activity:
Shares issued during the period:
Class A 11 1,082
Class B -- 4,841
Class C -- 710
Class M -- 410
--------- ---------
11 7,043
--------- ---------
Shares issued-reinvested from distributions:
Class A 77 --
Class B 370 --
Class C 55 --
Class M 32 --
--------- ---------
534 --
--------- ---------
Shares redeemed during the period:
Class A (121) (45)
Class B (247) (126)
Class C (7) (13)
Class M (28) (3)
--------- ---------
(403) (187)
--------- ---------
Net increase (decrease) in shares outstanding 142 6,856
========= =========
(a) Commenced operations on July 1, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Protected Principal Stock 9
IDEX Protected Principal Stock
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 10.01 $ (0.02) $ 0.47 $ 0.45
10/31/2002 10.00 (0.02) 0.03 0.01
- --------------------------------------------------------------------------------
Class B 04/30/2003 10.01 (0.05) 0.50 0.45
10/31/2002 10.00 (0.04) 0.05 0.01
- --------------------------------------------------------------------------------
Class C 04/30/2003 10.01 (0.05) 0.50 0.45
10/31/2002 10.00 (0.04) 0.05 0.01
- --------------------------------------------------------------------------------
Class M 04/30/2003 10.01 (0.05) 0.50 0.45
10/31/2002 10.00 (0.04) 0.05 0.01
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- (0.74) (0.74) $ 9.72
-- -- -- 10.01
- ----------------------------------------------------------
Class B -- (0.74) (0.74) 9.72
-- -- -- 10.01
- ----------------------------------------------------------
Class C -- (0.74) (0.74) 9.72
-- -- -- 10.01
- ----------------------------------------------------------
Class M -- (0.74) (0.74) 9.72
-- -- -- 10.01
- ----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 4.80% $ 9,750 2.25% 2.40% (0.44)% 2.91%
10/31/2002 0.10 10,381 2.25 2.62 (0.70) 14.30
---------------------------------------------------------------------------------------------------
Class B 04/30/2003 4.80 47,004 2.90 3.05 (1.09) 2.91
10/31/2002 0.10 47,170 2.90 3.28 (1.35) 14.30
---------------------------------------------------------------------------------------------------
Class C 04/30/2003 4.80 7,242 2.90 3.05 (1.09) 2.91
10/31/2002 0.10 6,969 2.90 3.28 (1.35) 14.30
---------------------------------------------------------------------------------------------------
Class M 04/30/2003 4.80 3,994 2.80 2.95 (0.99) 2.91
10/31/2002 0.10 4,076 2.80 3.18 (1.25) 14.30
---------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Protected Principal Stock 10
IDEX Protected Principal Stock
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Protected Principal Stock commenced operations on July 1, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Protected Principal Stock 11
IDEX Protected Principal Stock
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Protected Principal Stock ("the Fund"),
part of IDEX Mutual Funds, began operations on July 1, 2002.
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers four classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Currently all share classes are closed to
new investors. Income, non-class specific expenses and realized and unrealized
gains and losses, are allocated daily to each class, based upon the value of
shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each
class bears its own specific expenses as well as a portion of general, common
expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Options contracts: The Fund may enter into options contracts to manage exposure
to market fluctuations. Option contracts are valued at the average of the bid
and ask ("Mean Quote") established each day at the close of the board of trade
or exchange on which they are traded. The primary risks associated with options
are imperfect correlation between the change in market value of the securities
held and the prices of options; the possibility of an illiquid market and
inability of the counterparty to meet the contract terms. When the Fund writes
a covered call or put option, an amount equal to the premium received by the
Fund is included in the Fund's Statement of Assets and Liabilities as an asset
and as an equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the current value of the option written. The
underlying face amounts of open contracts at April 30, 2003, are listed in the
Schedule of Investments.
Substantially all the Fund's common stocks are memo pledged as collateral by
the custodian for the listed short index option contracts written by the Fund.
The custodian uses the escrow receipt depository of the Options Clearing
Corporation ("OCC") to effect pledging while maintaining custody of the stock
positions, rather than delivering them to broker-dealers. The OCC guarantees
the obligations of the contracts that they clear are fulfilled.
Transactions in written call and put options were as follows:
Premium Contracts*
------------ -----------
Balance at 10/31/2002 $ 1,670 727
Sales 5,880 2,682
Closing Buys (4,234) (1,937)
Expirations (1,405) (729)
------- -------
Balance at 04/30/2003 $ 1,911 743
======= =======
*Contracts not in thousands
IDEX Protected Principal Stock Guarantee: The Fund's investment adviser,
AEGON/Transamerica Fund Advisers, Inc. ("ATFA"), guarantees shareholders a
Guaranteed Amount five years after the end of the Offering Period. The
Guaranteed Amount will be no less than the value of that shareholder's account
on the Investment Date, less extraordinary charges, provided that shareholders
have reinvested all dividends and distributions in additional shares and have
redeemed no shares ("Guarantee"). Please see the Prospectus and the Statement
of Additional Information for further information on the Guarantee.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
IDEX Mutual Funds
Semi-Annual Report 2003
Protected Principal Stock 12
IDEX Protected Principal Stock
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
ATFA is the Fund's investment adviser. AEGON/Transamerica Fund Services, Inc.
("ATFS") is the Fund's administrator. AFSG Securities Corp. ("AFSG") is the
Fund's distributor/principal underwriter. AEGON/
Transamerica Investor Services, Inc. ("ATIS") is the Fund's transfer agent.
ATIS and AFSG are 100% owned by AUSA Holding Company ("AUSA"). ATFA and ATFS
are wholly owned subsidiaries of Western Reserve Life Assurance Co. of Ohio
("WRL"). AUSA and WRL are wholly owned indirect subsidiaries of AEGON NV, a
Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated break points:
1.30% of the first $100 million of ANA
1.25% of ANA over $100 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.90% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $-
Retained by Underwriter --
Contingent Sales Charges 94
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $1 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities ) for the six-months ended April 30, 2003, are as
follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 5,627
U.S. Government 39
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 1,899
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 71,429
==========
Unrealized Appreciation $ 3,445
Unrealized (Depreciation) (6,159)
----------
Net Unrealized Appreciation (Depreciation) $ (2,714)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Protected Principal Stock 13
IDEX Salomon All Cap
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
PREFERRED STOCKS (1.9%)
Motion Pictures (1.9%)
News Corporation Limited (The)-ADR 209,000 $ 4,903
---------
Total Preferred Stocks (cost: $5,838) 4,903
---------
COMMON STOCKS (95.2%)
Aerospace (0.3%)
Goodrich Corporation 53,900 758
Amusement & Recreation Services (1.7%)
Disney (Walt) Company (The) 243,900 4,551
Apparel & Accessory Stores (0.3%)
Gap, Inc. (The) 41,000 682
Automotive (1.0%)
Honeywell International Inc. 110,000 2,596
Chemicals & Allied Products (2.5%)
Cabot Corporation (b) 109,900 3,063
Dow Chemical Company (The) 105,100 3,430
Commercial Banks (2.0%)
Bank One Corporation 78,700 2,837
State Street Corporation 69,400 2,431
Communication (5.4%)
Comcast Corporation-Special Class A (a) (b) 245,000 7,365
Liberty Media Corporation-Class A (a) 630,300 6,933
Communications Equipment (4.8%)
Motorola, Inc. (b) 471,000 3,726
Nokia Oyj-ADR 286,200 4,743
Telefonaktiebolaget LM Ericsson-ADR (a) (b) 464,660 4,210
Computer & Data Processing Services (6.0%)
IMS Health Incorporated 100,000 1,540
Micromuse Inc. (a) 618,000 4,042
RealNetworks, Inc. (a) 710,000 3,642
Sabre Holdings Corporation 83,000 1,736
Transaction Systems Architects, Inc.
Class A (a) 62,200 432
Unisys Corporation (a) 414,700 4,313
Computer & Office Equipment (5.4%)
3Com Corporation (a) 958,700 4,985
Electronics for Imaging, Inc. (a) 101,000 1,939
Hewlett-Packard Company 209,900 3,421
Maxtor Corporation (a) 703,100 3,867
Electronic Components & Accessories (5.4%)
Intel Corporation 224,900 4,138
Lattice Semiconductor Corporation (a) 124,000 1,076
LSI Logic Corporation (a) 413,200 2,215
Solectron Corporation (a) 1,250,000 3,988
Taiwan Semiconductor Manufacturing
Company Ltd.-ADR (a) 339,500 2,842
Environmental Services (1.6%)
Waste Management, Inc. 193,600 4,205
Food & Kindred Products (0.6%)
Archer Daniels Midland Co. 131,700 1,459
Food Stores (0.3%)
Safeway Inc. (a) 51,200 851
Health Services (0.6%)
Enzo Biochemical, Inc. (a) (b) 100,000 1,497
Hotels & Other Lodging Places (0.5%)
Extended Stay America, Inc. (a) 110,300 1,308
Industrial Machinery & Equipment (1.9%)
Caterpillar, Inc. 29,500 1,552
Deere & Company 40,000 1,761
Ingersoll-Rand Company-Class A 40,300 1,776
Instruments & Related Products (3.8%)
Agilent Technologies, Inc. (a) 257,900 4,132
Eastman Kodak Company (b) 98,100 2,934
Raytheon Company 102,600 3,071
Insurance (8.1%)
Ambac Financial Group, Inc. 69,900 4,079
Chubb Corporation 81,200 4,295
MBIA, Inc. 61,200 2,736
MGIC Investment Corporation 67,000 3,046
Radian Group, Inc. 69,200 2,747
St. Paul Companies, Inc. (The) (b) 129,600 4,450
Insurance Agents, Brokers & Service (1.0%)
Hartford Financial Services Group, Inc. (The) 64,100 2,613
Lumber & Other Building Materials (1.2%)
Home Depot, Inc. (The) 116,000 3,263
Lumber & Wood Products (1.7%)
Weyerhaeuser Company (b) 92,100 4,567
Manufacturing Industries (1.9%)
Hasbro Inc. (b) 311,900 4,990
Mortgage Bankers & Brokers (2.2%)
Countrywide Credit Industries, Inc. 85,100 5,753
Motion Pictures (4.8%)
AOL Time Warner Inc. (a) 364,800 4,990
Metro-Goldwyn-Mayer Inc. (a) 315,000 3,512
News Corporation Limited (The)-ADR (b) 149,900 4,239
Oil & Gas Extraction (3.0%)
Anadarko Petroleum Corporation 73,400 3,259
GlobalSantaFe Corporation (b) 108,200 2,290
Schlumberger Limited 57,300 2,403
Petroleum Refining (2.0%)
Amerada Hess Corporation 22,700 1,025
ChevronTexaco Corporation 66,300 4,164
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon All Cap 1
IDEX Salomon All Cap
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Pharmaceuticals (13.0%)
Abbott Laboratories 120,500 $ 4,897
Aphton Corporation (a) 173,000 578
Bristol-Myers Squibb Co. 198,900 5,080
Elan Corporation PLC-ADR (a) 1,018,500 3,443
Johnson & Johnson 72,000 4,058
McKesson HBOC, Inc. 24,000 666
Merck & Co., Inc. 54,300 3,159
Novartis AG-ADR 111,100 4,386
Pfizer Inc. 133,500 4,105
Wyeth 84,300 3,670
Primary Metal Industries (2.4%)
Alcoa Inc. 188,000 4,311
Brush Engineered Materials Inc. (a) 92,500 490
Engelhard Corporation (b) 65,900 1,618
Residential Building Construction (0.2%)
Clayton Homes, Inc. 53,000 658
Restaurants (1.4%)
McDonald's Corporation 209,700 3,586
Security & Commodity Brokers (1.9%)
American Express Company 134,000 5,073
Telecommunications (4.2%)
Nippon Telegraph and Telephone
Corporation-ADR 100,000 1,744
SBC Communications Inc. 175,700 4,104
Vodafone Group PLC-ADR (b) 268,800 5,311
Transportation Equipment (0.2%)
Fleetwood Enterprises, Inc. (a) (b) 103,700 523
Variety Stores (1.8%)
Costco Wholesale Corporation (a) 135,300 4,685
Wholesale Trade Durable Goods (0.1%)
IKON Office Solutions, Inc. 33,800 262
---------
Total Common Stocks (cost: $283,864) 250,875
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (11.2%)
Bank Notes (0.6%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 1,684 $ 1,684
Euro Dollar Overnight (1.2%)
Bank of Montreal
1.34%, due 05/01/2003 1,147 1,147
BNP Paribas SA
1.24%, due 05/06/2003 539 539
Royal Bank of Canada
1.35%, due 05/01/2003 1,347 1,347
Euro Dollar Term (3.4%)
American Express Centurion Bank
1.28%, due 05/30/2003 2,694 2,694
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 673 673
Credit Agricole Indosuez
1.27%, due 05/12/2003 202 202
1.26%, due 06/24/2003 1,347 1,347
Danske Bank A/S
1.25%, due 05/07/2003 1,684 1,684
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 673 673
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 1,684 1,684
Medium Term Notes (0.4%)
Parkland (USA) LLC
1.31%, due 11/26/2003 1,010 1,010
Money Market Funds (4.4%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 5,387 5,387
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 6,397 6,397
Promissory Notes (0.9%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 2,357 2,357
Repurchase Agreements (0.3%)
Merrill Lynch & Co., Inc. (c)
1.42%, due 05/01/2003 673 673
---------
Total Security Lending Collateral (cost: $29,498) 29,498
---------
Total Investment Securities (cost: $319,200) $ 285,276
=========
SUMMARY:
Investments, at market value 108.3% $ 285,276
Liabilities in excess of other assets (8.3)% (21,956)
--------- ---------
Net assets 100.0% $ 263,320
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$27,854.
(c) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $687.
DEFINITIONS:
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon All Cap 2
IDEX Salomon All Cap
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $319,200)
(including $27,854 of securities loaned) $ 285,276
Cash 8,111
Receivables:
Investment securities sold 1,199
Shares of beneficial interest sold 432
Interest 4
Dividends 342
Other 32
---------
295,396
---------
Liabilities:
Investment securities purchased 1,541
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 419
Management and advisory fees 113
Distribution fees 167
Transfer agent fees and expenses 200
Payable for securities on loan 29,498
Other 138
---------
32,076
---------
Net Assets $ 263,320
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 376,859
Accumulated net investment income (loss) (695)
Accumulated net realized gain (loss) from investments (78,919)
Net unrealized appreciation (depreciation) of
investments (33,925)
---------
Net Assets $ 263,320
=========
Shares Outstanding:
Class A 6,550
Class B 11,496
Class C 2,705
Class L 74
Class M 2,961
Net Asset Value Per Share:
Class A $ 11.29
Class B 10.98
Class C 10.98
Class L 10.98
Class M 11.03
Maximum Offering Price Per Share (1):
Class A $ 11.95
Class M 11.14
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 3
Dividends 1,910
Income from loaned securities-net 30
Less withholding taxes on foreign dividends (23)
---------
1,920
---------
Expenses:
Management and advisory fees 1,026
Transfer agent fees and expenses 576
Custody fees 22
Administration fees 14
Registration fees 59
Trustees fees and expenses 12
Professional fees 24
Other 100
Distribution and service fees:
Class A 106
Class B 641
Class C 163
Class L 2
Class M 157
---------
Total Expenses 2,902
Less reimbursements by the investment adviser (296)
---------
Net Expenses 2,606
---------
Net Investment Income (Loss) (686)
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (18,089)
Net unrealized appreciation (depreciation)
on investment securities 41,127
---------
Net Gain (Loss) on Investments 23,038
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 22,352
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon All Cap 3
IDEX Salomon All Cap
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (686) $ (2,108)
Net realized gain (loss) on investment
securities (18,089) (57,945)
Net unrealized appreciation (depreciation)
on investment securities 41,127 (41,773)
--------- ---------
22,352 (101,826)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- (816)
Class B -- (1,809)
Class C -- (508)
Class L -- --
Class M -- (573)
--------- ---------
-- (3,706)
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 25,562 43,149
Class B 8,275 76,368
Class C 2,449 26,084
Class L 799 --
Class M 799 17,215
--------- ---------
37,884 162,816
--------- ---------
Dividends and distributions reinvested:
Class A -- 753
Class B -- 1,663
Class C -- 490
Class L -- --
Class M -- 520
--------- ---------
-- 3,426
--------- ---------
Cost of shares redeemed:
Class A (15,424) (41,366)
Class B (23,332) (61,846)
Class C (10,637) (22,540)
Class L (4) --
Class M (8,475) (18,060)
--------- ---------
(57,872) (143,812)
--------- ---------
(19,988) 22,430
--------- ---------
Net increase (decrease) in net assets 2,364 (83,102)
--------- ---------
Net Assets:
Beginning of period 260,956 344,058
--------- ---------
End of period $ 263,320 $ 260,956
========= =========
Accumulated Net Investment Income (Loss) $ (695) $ (9)
========= =========
Share Activity:
Shares issued during the period:
Class A 2,434 3,144
Class B 782 5,624
Class C 232 1,918
Class L 74 --
Class M 76 1,257
--------- ---------
3,598 11,943
--------- ---------
Shares issued-reinvested from distributions:
Class A -- 53
Class B -- 118
Class C -- 35
Class L -- --
Class M -- 37
--------- ---------
-- 243
--------- ---------
Shares redeemed during the period:
Class A (1,449) (3,337)
Class B (2,250) (5,247)
Class C (1,024) (1,913)
Class L -- --
Class M (817) (1,510)
--------- ---------
(5,540) (12,007)
--------- ---------
Net increase (decrease) in shares outstanding (1,942) 179
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon All Cap 4
IDEX Salomon All Cap
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 10.34 $ -- $ 0.95 $ 0.95
10/31/2002 13.63 -- (3.15) (3.15)
10/31/2001 15.51 0.12 (1.58) (1.46)
10/31/2000 11.70 0.08 3.92 4.00
10/31/1999 10.00 0.02 1.68 1.70
- --------------------------------------------------------------------------------
Class B 04/30/2003 10.08 (0.04) 0.94 0.90
10/31/2002 13.41 (0.10) (3.09) (3.19)
10/31/2001 15.36 0.02 (1.55) (1.53)
10/31/2000 11.66 (0.03) 3.92 3.89
10/31/1999 10.00 (0.02) 1.68 1.66
- --------------------------------------------------------------------------------
Class C 04/30/2003 10.08 (0.04) 0.94 0.90
10/31/2002 13.42 (0.10) (3.10) (3.20)
10/31/2001 15.36 0.02 (1.54) (1.52)
10/31/2000 11.66 (0.03) 3.92 3.89
- --------------------------------------------------------------------------------
Class L 04/30/2003 10.26 (0.03) 0.75 0.72
- --------------------------------------------------------------------------------
Class M 04/30/2003 10.12 (0.04) 0.95 0.91
10/31/2002 13.44 (0.08) (3.10) (3.18)
10/31/2001 15.38 0.04 (1.56) (1.52)
10/31/2000 11.67 (0.02) 3.92 3.90
10/31/1999 10.00 (0.01) 1.68 1.67
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
----------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ------------
Class A $ -- $ -- $ -- $ 11.29
-- (0.14) (0.14) 10.34
-- (0.42) (0.42) 13.63
-- (0.19) (0.19) 15.51
-- -- -- 11.70
- ------------------------------------------------------------
Class B -- -- -- 10.98
-- (0.14) (0.14) 10.08
-- (0.42) (0.42) 13.41
-- (0.19) (0.19) 15.36
-- -- -- 11.66
- ------------------------------------------------------------
Class C -- -- -- 10.98
-- (0.14) (0.14) 10.08
-- (0.42) (0.42) 13.42
-- (0.19) (0.19) 15.36
- ------------------------------------------------------------
Class L -- -- -- 10.98
- ------------------------------------------------------------
Class M -- -- -- 11.03
-- (0.14) (0.14) 10.12
-- (0.42) (0.42) 13.44
-- (0.19) (0.19) 15.38
-- -- -- 11.67
- ------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
-------------- ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 9.19% $ 73,961 1.55% 1.78% (0.05)% 8.27%
10/31/2002 (23.44) 57,528 1.55 1.65 (0.03) 162.46
10/31/2001 (9.49) 77,791 1.58 1.68 0.75 81.62
10/31/2000 34.50 25,575 1.55 2.41 0.45 91.39
10/31/1999 17.03 1,880 1.55 8.85 0.35 82.70
- ---------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 8.93 126,208 2.20 2.43 (0.70) 8.27
10/31/2002 (24.11) 130,709 2.20 2.30 (0.68) 162.46
10/31/2001 (10.09) 167,214 2.23 2.33 0.10 81.62
10/31/2000 33.72 38,203 2.20 3.06 (0.20) 91.39
10/31/1999 16.60 1,571 2.20 9.50 (0.30) 82.70
- ---------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 8.93 29,691 2.20 2.43 (0.70) 8.27
10/31/2002 (24.11) 35,248 2.20 2.30 (0.68) 162.46
10/31/2001 (10.09) 46,369 2.23 2.33 0.10 81.62
10/31/2000 33.72 10,675 2.20 3.06 (0.20) 91.39
- ---------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 7.02 816 2.20 2.43 (0.70) 8.27
- ---------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 8.99 32,644 2.10 2.33 (0.60) 8.27
10/31/2002 (24.00) 37,471 2.10 2.20 (0.58) 162.46
10/31/2001 (10.00) 52,684 2.13 2.23 0.20 81.62
10/31/2000 33.84 10,785 2.10 2.96 (0.10) 91.39
10/31/1999 16.67 728 2.10 9.40 (0.20) 82.70
- ---------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon All Cap 5
IDEX Salomon All Cap
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Salomon All Cap ("the Fund") commenced operations on March 1, 1999.
The inception date for the Fund's offering of share classes C and L are as
follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon All Cap 6
IDEX Salomon All Cap
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Salomon All Cap ("the Fund"), part of IDEX
Mutual Funds, began operations on March 1, 1999. The fund is "non-diversified"
under the 1940 Act.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and
a liability for the return of the collateral. Securities on loan are included
in investment securities at market value on the Statement of Assets and
Liabilities and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities
loans, the collateral and securities loaned remain subject to fluctuation in
market value. IBT marks to market securities loaned and the collateral each
business day. If additional collateral is due (at least $1), IBT collects
additional cash collateral from the borrowers. Although securities loaned will
be fully collateralized at all times, IBT may experience delays in, or may be
prevented from, recovering the collateral on behalf of the Fund. The Fund may
recall a loaned security position at any time from the borrower through IBT. In
the event the borrower fails to timely return a recalled security, IBT may
indemnify the Fund by purchasing replacement securities for the Fund at its own
expense and claiming the collateral to fund such a purchase. IBT absorbs the
loss if the collateral value is not sufficient to cover the cost of the
replacement securities. If replacement securities are not available, IBT will
credit the equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon All Cap 7
IDEX Salomon All Cap
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated break points:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.20% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 117
Retained by Underwriter 9
Contingent Sales Charges 327
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Brokerage commissions: Brokerage commissions incurred on security transactions
placed with an affiliate of the sub-adviser for the six-months ended April 30,
2003, were $1.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $7 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 21,217
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 50,496
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforward is available to offset future realized capital
gains through the period listed:
Capital Loss
Carryforward Available through
- ----------------------- ------------------
$ 60,548 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 319,832
==========
Unrealized Appreciation $ 13,253
Unrealized (Depreciation) (47,809)
----------
Net Unrealized Appreciation (Depreciation) $ (34,556)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon All Cap 8
IDEX Salomon Investors Value
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
PREFERRED STOCKS (1.8%)
Motion Pictures (1.8%)
News Corporation Limited (The)-ADR 95,300 $ 2,236
---------
Total Preferred Stocks (cost: $2,083) 2,236
---------
COMMON STOCKS (89.3%)
Aerospace (1.3%)
United Technologies Corporation 25,800 1,595
Amusement & Recreation Services (0.7%)
MGM MIRAGE (a) 29,100 827
Apparel & Accessory Stores (1.3%)
Gap, Inc. (The) 101,300 1,685
Automotive (1.2%)
Honeywell International Inc. 66,300 1,565
Chemicals & Allied Products (1.0%)
Dow Chemical Company (The) 38,400 1,253
Commercial Banks (10.9%)
Bank of America Corporation 20,500 1,518
Bank of New York Company, Inc. (The) 80,600 2,132
FleetBoston Financial Corporation 60,500 1,604
MBNA Corporation 78,500 1,484
Morgan Chase & Co. (J.P.) 66,100 1,940
U.S. Bancorp 85,000 1,883
Wachovia Corporation 38,800 1,483
Wells Fargo & Company 32,200 1,554
Communication (3.8%)
Comcast Corporation-Class A (a) (b) 45,600 1,455
Comcast Corporation-Special Class A (a) 35,500 1,067
Liberty Media Corporation-Class A (a) 209,700 2,307
Communications Equipment (5.1%)
Comverse Technology, Inc. (a) 96,400 1,260
Lucent Technologies Inc. (a) 903,700 1,627
Motorola, Inc. 136,100 1,077
Nokia Oyj-ADR 149,600 2,479
Computer & Office Equipment (4.3%)
3Com Corporation (a) 105,700 550
Hewlett-Packard Company 138,300 2,254
International Business Machines
Corporation 11,300 959
Sun Microsystems, Inc. (a) 493,400 1,628
Department Stores (1.1%)
Federated Department Stores, Inc. (a) 46,500 1,424
Electric Services (1.3%)
Progress Energy, Inc. 38,200 1,596
Electric, Gas & Sanitary Services (1.6%)
NiSource Inc. 78,200 1,478
Xcel Energy Inc. 36,200 489
Electronic Components & Accessories (2.0%)
Agere Systems Inc.-Class B (a) 96,399 165
Intel Corporation 10,100 186
LSI Logic Corporation (a) 42,700 229
Micron Technology, Inc. (a) 81,700 694
Solectron Corporation (a) 379,100 1,209
Fabricated Metal Products (1.2%)
Fortune Brands, Inc. 30,500 1,476
Food & Kindred Products (3.0%)
Altria Group, Inc. 86,100 2,648
General Mills, Inc. (b) 6,500 293
Kraft Foods, Inc. 26,900 831
Food Stores (1.1%)
Safeway Inc. (a) 85,800 1,426
Health Services (2.3%)
HCA Inc. 48,000 1,541
Tenet Healthcare Corporation (a) 93,200 1,383
Holding & Other Investment Offices (1.4%)
Equity Office Properties Trust 69,100 1,795
Insurance (4.0%)
American International Group, Inc. 40,200 2,330
St. Paul Companies, Inc. (The) (b) 37,900 1,301
XL Capital Ltd.-Class A 16,700 1,374
Insurance Agents, Brokers & Service (0.5%)
Hartford Financial Services Group, Inc.
(The) 16,700 681
Lumber & Other Building Materials (1.7%)
Home Depot, Inc. (The) 75,700 2,129
Oil & Gas Extraction (3.8%)
ConocoPhillips 29,399 1,479
ENSCO International Incorporated 19,900 505
Total Fina Elf SA-ADR (b) 22,200 1,459
Transocean Inc. 69,000 1,314
Paper & Allied Products (2.9%)
International Paper Company 41,600 1,487
Kimberly-Clark Corporation 43,900 2,185
Petroleum Refining (4.2%)
BP PLC-ADR 46,500 1,792
ChevronTexaco Corporation 26,500 1,664
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon Investors Value 1
IDEX Salomon Investors Value
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Petroleum Refining (continued)
Marathon Oil Corporation 14,600 $ 332
Royal Dutch Petroleum
Company-NY Registered Shares 35,200 1,439
Pharmaceuticals (6.2%)
Bristol-Myers Squibb Co. 48,500 1,239
King Pharmaceuticals, Inc. (a) 6,300 79
Pfizer Inc. 96,780 2,976
Schering-Plough Corporation 100,800 1,824
Wyeth 38,900 1,693
Primary Metal Industries (1.7%)
Alcoa Inc. 91,200 2,091
Restaurants (1.7%)
McDonald's Corporation 125,600 2,148
Savings Institutions (1.4%)
Washington Mutual, Inc. 44,400 1,754
Security & Commodity Brokers (6.6%)
American Express Company 41,200 1,560
Goldman Sachs Group, Inc. (The) 21,200 1,609
Merrill Lynch & Co., Inc. 47,400 1,946
Morgan Stanley Dean Witter & Co. 39,400 1,763
Waddell & Reed Financial, Inc.-Class A 65,200 1,304
Telecommunications (5.9%)
AT&T Corp. 46,000 784
AT&T Wireless Services, Inc. (a) 313,400 2,025
SBC Communications Inc. 86,400 2,018
Verizon Communications, Inc. 70,600 2,639
Tobacco Products (0.8%)
R.J. Reynolds Tobacco Holdings, Inc. (b) 35,700 1,006
U.S. Government Agencies (1.0%)
Freddie Mac 22,000 1,274
Variety Stores (2.3%)
Costco Wholesale Corporation (a) 30,900 1,070
Target Corporation 56,000 1,873
---------
Total Common Stocks (cost: $117,678) 112,195
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (3.9%)
Bank Notes (0.2%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 278 $ 278
Euro Dollar Overnight (0.4%)
Bank of Montreal
1.34%, due 05/01/2003 189 189
BNP Paribas SA
1.24%, due 05/06/2003 89 89
Royal Bank of Canada
1.35%, due 05/01/2003 222 222
Euro Dollar Term (1.2%)
American Express Centurion Bank
1.28%, due 05/30/2003 444 444
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 111 111
Credit Agricole Indosuez
1.27%, due 05/12/2003 33 33
1.26%, due 06/24/2003 222 222
Danske Bank A/S
1.25%, due 05/07/2003 278 278
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 111 111
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 278 278
Medium Term Notes (0.1%)
Parkland (USA) LLC
1.31%, due 11/26/2003 167 167
Money Market Funds (1.6%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 889 889
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 1,055 1,056
Promissory Notes (0.3%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 389 389
Repurchase Agreements (0.1%) (c)
Merrill Lynch & Co., Inc.
1.42%, due 05/01/2003 111 111
---------
Total Security Lending Collateral (cost: $4,867) 4,867
---------
Total Investment Securities (cost: $124,628) $ 119,298
=========
SUMMARY:
Investments, at market value 95.0% $ 119,298
Other assets in excess of liabilities 5.0% 6,299
--------- ---------
Net assets 100.0% $ 125,597
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$4,691.
(c) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $113.
DEFINITIONS:
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon Investors Value 2
IDEX Salomon Investors Value
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $124,628)
(including $4,691 of securities loaned) $ 119,298
Cash 10,679
Receivables:
Investment securities sold 638
Shares of beneficial interest sold 566
Interest 3
Dividends 277
Other 6
---------
131,467
---------
Liabilities:
Investment securities purchased 787
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 40
Management and advisory fees 77
Distribution fees 44
Transfer agent fees and expenses 32
Payable for securities on loan 4,867
Other 23
---------
5,870
---------
Net Assets $ 125,597
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 133,104
Undistributed net investment income (loss) 272
Accumulated net realized gain (loss) from investments (2,449)
Net unrealized appreciation (depreciation) of
investments (5,330)
---------
Net Assets $ 125,597
=========
Shares Outstanding:
Class A 9,772
Class B 1,662
Class C 253
Class L 23
Class M 192
Net Asset Value Per Share:
Class A $ 10.63
Class B 10.21
Class C 10.21
Class L 10.21
Class M 10.27
Maximum Offering Price Per Share (1):
Class A $ 11.25
Class M 10.37
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 61
Dividends 1,088
Income from loaned securities-net 5
Less withholding taxes on foreign dividends (15)
---------
1,139
---------
Expenses:
Management and advisory fees 376
Transfer agent fees and expenses 85
Custody fees 14
Administration fees 13
Registration fees 40
Trustees fees and expenses 3
Professional fees 14
Other 15
Distribution and service fees:
Class A 126
Class B 85
Class C 12
Class L 1
Class M 10
---------
Total Expenses 794
Less reimbursements by the investment adviser (2)
---------
Net Expenses 792
---------
Net Investment Income (Loss) 347
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (2,268)
Net unrealized appreciation (depreciation)
on investment securities 6,556
---------
Net Gain (Loss) on Investments 4,288
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 4,635
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon Investors Value 3
IDEX Salomon Investors Value
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 347 $ 77
Net realized gain (loss) on investment
securities (2,268) 396
Net unrealized appreciation (depreciation)
on investment securities 6,556 (10,705)
--------- ---------
4,635 (10,232)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A (100) --
Class B (30) --
Class C (4) --
Class L -- --
Class M (4) --
--------- ---------
(138) --
--------- ---------
From net realized gains:
Class A (420) (279)
Class B (127) (472)
Class C (17) (55)
Class L (1) --
Class M (16) (78)
--------- ---------
(581) (884)
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 56,092 45,626
Class B 2,496 9,096
Class C 475 2,830
Class L 223 --
Class M 64 1,216
--------- ---------
59,350 58,768
--------- ---------
Dividends and distributions reinvested:
Class A 517 271
Class B 148 443
Class C 20 53
Class L -- --
Class M 19 76
--------- ---------
704 843
--------- ---------
Cost of shares redeemed:
Class A (2,927) (5,758)
Class B (3,192) (8,071)
Class C (299) (2,219)
Class L -- --
Class M (474) (1,799)
--------- ---------
(6,892) (17,847)
--------- ---------
53,162 41,764
--------- ---------
Net increase (decrease) in net assets 57,078 30,648
--------- ---------
Net Assets:
Beginning of period 68,519 37,871
--------- ---------
End of period $ 125,597 $ 68,519
========= =========
Undistributed Net Investment Income (Loss) $ 272 $ 63
========= =========
Share Activity:
Shares issued during the period:
Class A 5,409 4,098
Class B 247 762
Class C 49 240
Class L 23 --
Class M 7 103
--------- ---------
5,735 5,203
--------- ---------
Shares issued-reinvested from distributions:
Class A 50 21
Class B 15 35
Class C 2 4
Class L -- --
Class M 2 6
--------- ---------
69 66
--------- ---------
Shares redeemed during the period:
Class A (285) (491)
Class B (325) (715)
Class C (30) (199)
Class L -- --
Class M (48) (153)
--------- ---------
(688) (1,558)
--------- ---------
Net increase (decrease) in shares outstanding 5,116 3,711
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon Investors Value 4
IDEX Salomon Investors Value
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 10.21 $ 0.05 $ 0.46 $ 0.51
10/31/2002 12.55 0.04 (2.10) (2.06)
10/31/2001 12.91 0.07 (0.42) (0.35)
10/31/2000 11.28 0.09 1.54 1.63
10/31/1999 11.09 0.05 0.41 0.46
10/31/1998 11.71 0.03 (0.61) (0.58)
- --------------------------------------------------------------------------------
Class B 04/30/2003 9.84 0.01 0.45 0.46
10/31/2002 12.19 (0.01) (2.06) (2.07)
10/31/2001 12.61 (0.02) (0.39) (0.41)
10/31/2000 11.09 (0.02) 1.54 1.52
10/31/1999 10.98 (0.03) 0.41 0.38
10/31/1998 11.67 (0.04) (0.61) (0.65)
- --------------------------------------------------------------------------------
Class C 04/30/2003 9.84 0.01 0.45 0.46
10/31/2002 12.19 (0.01) (2.06) (2.07)
10/31/2001 12.61 (0.02) (0.39) (0.41)
10/31/2000 11.09 (0.02) 1.54 1.52
- --------------------------------------------------------------------------------
Class L 04/30/2003 9.77 0.01 0.52 0.53
- --------------------------------------------------------------------------------
Class M 04/30/2003 9.90 0.02 0.44 0.46
10/31/2002 12.25 -- (2.07) (2.07)
10/31/2001 12.66 (0.01) (0.39) (0.40)
10/31/2000 11.12 -- 1.54 1.54
10/31/1999 11.00 (0.02) 0.41 0.39
10/31/1998 11.67 (0.02) (0.61) (0.63)
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
------------------------------------------------------
Distributions
-----------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ------------ --------------- ------------
Class A $ (0.02) $ (0.07) $ (0.09) $ 10.63
-- (0.28) (0.28) 10.21
-- (0.01) (0.01) 12.55
-- -- -- 12.91
-- (0.27) (0.27) 11.28
-- (0.04) (0.04) 11.09
- --------------------------------------------------------------
Class B (0.02) (0.07) (0.09) 10.21
-- (0.28) (0.28) 9.84
-- (0.01) (0.01) 12.19
-- -- -- 12.61
-- (0.27) (0.27) 11.09
-- (0.04) (0.04) 10.98
- --------------------------------------------------------------
Class C (0.02) (0.07) (0.09) 10.21
-- (0.28) (0.28) 9.84
-- (0.01) (0.01) 12.19
-- -- -- 12.61
- --------------------------------------------------------------
Class L (0.02) (0.07) (0.09) 10.21
- --------------------------------------------------------------
Class M (0.02) (0.07) (0.09) 10.27
-- (0.28) (0.28) 9.90
-- (0.01) (0.01) 12.25
-- -- -- 12.66
-- (0.27) (0.27) 11.12
-- (0.04) (0.04) 11.00
- --------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 5.00% $103,854 1.54% 1.54% 0.88% 13.24%
10/31/2002 (16.90) 46,960 1.55 1.91 0.56 100.83
10/31/2001 (2.68) 12,176 1.55 1.93 0.48 29.40
10/31/2000 14.38 8,431 1.55 2.20 0.40 49.75
10/31/1999 4.34 7,972 1.64 2.28 0.21 26.29
10/31/1998 (4.96) 8,035 1.85 2.51 -- 30.43
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 4.68 16,964 2.19 2.19 0.23 13.24
10/31/2002 (17.47) 16,980 2.20 2.56 (0.09) 100.83
10/31/2001 (3.31) 20,034 2.20 2.58 (0.17) 29.40
10/31/2000 13.72 10,448 2.20 2.85 (0.25) 49.75
10/31/1999 3.68 7,311 2.29 2.93 (0.44) 26.29
10/31/1998 (5.55) 5,020 2.50 3.16 (0.65) 30.43
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 4.68 2,582 2.19 2.19 0.23 13.24
10/31/2002 (17.47) 2,295 2.20 2.56 (0.09) 100.83
10/31/2001 (3.31) 2,288 2.20 2.58 (0.17) 29.40
10/31/2000 13.72 1,094 2.20 2.85 (0.25) 49.75
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 5.43 230 2.19 2.19 0.23 13.24
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 4.65 1,967 2.09 2.09 0.33 13.24
10/31/2002 (17.35) 2,284 2.10 2.46 0.01 100.83
10/31/2001 (3.21) 3,373 2.10 2.48 (0.07) 29.40
10/31/2000 13.82 2,508 2.10 2.75 (0.15) 49.75
10/31/1999 3.79 2,204 2.19 2.83 (0.34) 26.29
10/31/1998 (5.46) 2,013 2.40 3.06 (0.55) 30.43
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon Investors Value 5
IDEX Salomon Investors Value
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) The inception date for the Fund's offering of share Classes C and L are as
follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon Investors Value 6
IDEX Salomon Investors Value
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Salomon Investors Value ("the Fund"), part
of IDEX Mutual Funds, began operations on February 2, 1997.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and
a liability for the return of the collateral. Securities on loan are included
in investment securities at market value on the Statement of Assets and
Liabilities and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities
loans, the collateral and securities loaned remain subject to fluctuation in
market value. IBT marks to market securities loaned and the collateral each
business day. If additional collateral is due (at least $1), IBT collects
additional cash collateral from the borrowers. Although securities loaned will
be fully collateralized at all times, IBT may experience delays in, or may be
prevented from, recovering the collateral on behalf of the Fund. The Fund may
recall a loaned security position at any time from the borrower through IBT. In
the event the borrower fails to timely return a recalled security, IBT may
indemnify the Fund by purchasing replacement securities for the Fund at its own
expense and claiming the collateral to fund such a purchase. IBT absorbs the
loss if the collateral value is not sufficient to cover the cost of the
replacement securities. If replacement securities are not available, IBT will
credit the equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100%
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon Investors Value 7
IDEX Salomon Investors Value
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
owned by AUSA Holding Company ("AUSA"). ATFA and ATFS are wholly owned
subsidiaries of Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and
WRL are wholly owned indirect subsidiaries of AEGON NV, a Netherlands
corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated break points:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.20% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 27
Retained by Underwriter 1
Contingent Sales Charges 36
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Brokerage commissions: Brokerage commissions incurred on security transactions
placed with an affiliate of the sub-adviser for the six-months ended April 30,
2003, was $6.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $1 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003 are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 58,525
U.S. Government 519
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 11,605
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 125,316
==========
Unrealized Appreciation $ 3,822
Unrealized (Depreciation) (9,840)
----------
Net Unrealized Appreciation (Depreciation) $ (6,018)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Salomon Investors Value 8
IDEX Transamerica Conservative High-Yield Bond
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS (0.6%)
Republic of Colombia
9.75%, due 04/23/2009 $ 1,000 $ 1,095
---------
Total Foreign Government Obligations
(cost: $925) 1,095
---------
CORPORATE DEBT SECURITIES (89.6%)
Aerospace (1.6%)
AAR CORP
7.25%, due 10/15/2003 2,000 1,980
K&F Industries, Inc.
9.63%, due 12/15/2010 1,000 1,078
Air Transportation (0.2%)
Piedmont Airlines, Inc.-Series K
10.10%, due 05/13/2007 1,048 314
Amusement & Recreation Services (2.1%)
MGM MIRAGE
6.88%, due 02/06/2008 2,000 2,060
Premier Parks Inc. (b)
9.75%, due 06/15/2007 2,000 2,075
Apparel Products (1.0%)
Levi Strauss & Co (b)
6.80%, due 11/01/2003 2,000 2,030
Automotive (4.0%)
ArvinMeritor, Inc.
6.75%, due 03/15/2008 3,000 3,015
Dana Corporation
6.25%, due 03/01/2004 1,000 1,010
Ford Motor Company
6.63%, due 10/01/2028 2,000 1,646
Navistar International Corporation
9.38%, due 06/01/2006 2,000 2,140
Automotive Dealers & Service Stations (0.5%)
Asbury Automotive Group, Inc.
9.00%, due 06/15/2012 1,000 925
Business Credit Institutions (0.7%)
Ford Motor Credit Company
6.50%, due 01/25/2007 500 512
HVB Funding Trust III-144A
9.00%, due 10/22/2031 1,000 926
Business Services (1.2%)
Exodus Communications, Inc. (e)
11.63%, due 07/15/2010 839 13
R.H. Donnelley Financial
Corporation I-144A (c)
10.88%, due 12/15/2012 2,000 2,309
Chemicals & Allied Products (2.2%)
Elizabeth Arden, Inc. (b)
11.75%, due 02/01/2011 1,000 1,100
Equistar Chemicals, LP-144A (b)
10.63%, due 05/01/2011 2,000 2,100
Huntsman International LLC (b)
9.88%, due 03/01/2009 1,000 1,085
Commercial Banks (0.6%)
Popular, Inc.
6.13%, due 10/15/2006 1,000 1,084
Communication (1.4%)
Adelphia Communications
Corporation (b) (e)
10.25%, due 11/01/2006 1,000 500
Charter Communications Holdings LLC
8.63%, due 04/01/2009 (b) 1,000 665
0.00%, due 04/01/2011 (f) 1,000 580
CSC Holdings, Inc.
7.88%, due 12/15/2007 1,000 1,053
Communications Equipment (1.6%)
L-3 Communications Corporation
7.63%, due 06/15/2012 1,000 1,103
Lucent Technologies Inc. (b)
7.25%, due 07/15/2006 1,000 950
Nortel Networks Corporation (b)
6.13%, due 02/15/2006 1,000 970
Computer & Data Processing Services (1.1%)
Unisys Corporation
7.88%, due 04/01/2008 2,000 2,080
Computer & Office Equipment (0.8%)
Seagate Technology HDD Holdings
8.00%, due 05/15/2009 1,500 1,620
Construction (0.4%)
Centex Corporation
5.80%, due 09/15/2009 750 798
Drug Stores & Proprietary Stores (0.6%)
Rite Aid Corporation-144A
9.50%, due 02/15/2011 1,000 1,075
Electric Services (7.1%)
Calpine Canada Energy Finance ULC
8.50%, due 05/01/2008 1,000 740
Calpine Corporation
7.75%, due 04/15/2009 2,000 1,440
CenterPoint Energy Resources
Corp.-144A (c)
7.88%, due 04/01/2013 2,000 2,298
Dynegy Holdings Inc.
7.67%, due 11/08/2016 2,000 1,620
Elwood Energy LLC
8.16%, due 07/05/2026 1,901 1,483
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Conservative High-Yield Bond 1
IDEX Transamerica Conservative High-Yield Bond
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Electric Services (continued)
Nevada Power Company
8.25%, due 06/01/2011 $ 4,000 $ 3,840
Westar Energy, Inc.
7.88%, due 05/01/2007 2,000 2,224
Electric, Gas & Sanitary Services (0.6%)
Illinois Power Company-144A
11.50%, due 12/15/2010 1,000 1,115
Electronic Components & Accessories (2.5%)
ON Semiconductor Corporation
13.00%, due 05/15/2008 1,000 950
Tyco International Group SA
5.88%, due 11/01/2004 2,000 2,010
6.38%, due 02/15/2006 2,000 2,000
Environmental Services (1.6%)
Allied Waste North America, Inc.
10.00%, due 08/01/2009 2,000 2,143
7.88%, due 04/15/2013 (b) 1,000 1,035
Food & Kindred Products (3.3%)
Altria Group, Inc (b)
7.20%, due 02/01/2007 2,000 2,090
Del Monte Foods Company-144A
8.63%, due 12/15/2012 3,000 3,225
Tyson Foods, Inc.
8.25%, due 10/01/2011 1,000 1,154
Food Stores (0.5%)
Ingles Markets, Incorporated
8.88%, due 12/01/2011 1,000 1,015
Gas Production & Distribution (1.1%)
Northwest Pipeline Corporation
8.13%, due 03/01/2010 2,000 2,179
Health Services (2.8%)
Insight Health Services Corp.
9.88%, due 11/01/2011 500 465
Manor Care, Inc.-144A
6.25%, due 05/01/2013 2,000 2,049
Tenet Healthcare Corporation
5.38%, due 11/15/2006 1,000 970
7.38%, due 02/01/2013 2,000 1,955
Hotels & Other Lodging Places (4.6%)
Hilton Hotels Corporation (b)
7.63%, due 12/01/2012 2,000 2,100
John Q. Hammons Hotels, Inc.-Series B
8.88%, due 05/15/2012 1,500 1,551
Las Vegas Sands, Inc. (Venetian Casino
Resort LLC)
11.00%, due 06/15/2010 1,000 1,098
Park Place Entertainment Corporation
7.50%, due 09/01/2009 2,000 2,115
7.00%, due 04/15/2013-144A 1,000 1,018
8.13%, due 05/15/2011 (b) 1,000 1,055
Industrial Machinery & Equipment (1.8%)
Columbus McKinnon Corporation (b)
8.50%, due 04/01/2008 2,000 1,360
SPX Corporation
7.50%, due 01/01/2013 2,000 2,150
Lumber & Wood Products (1.3%)
Georgia-Pacific Corporation-144A
8.88%, due 02/01/2010 1,000 1,078
Scotia Pacific Company LLC
7.11%, due 01/20/2014 2,000 1,495
Medical Instruments & Supplies (0.8%)
C.R. Bard, Inc.
6.70%, due 12/01/2026 1,500 1,636
Metal Cans & Shipping Containers (1.1%)
BWAY Corporation-144A
10.00%, due 10/15/2010 1,000 1,035
Crown European Holdings SA-144A (b)
10.88%, due 03/01/2013 1,000 1,090
Metal Mining (0.6%)
Newmont Yandal Operations Limited
8.88%, due 04/01/2008 2,000 1,200
Mining (1.1%)
Peabody Energy Corporation-144A
6.88%, due 03/15/2013 2,000 2,080
Motion Pictures (3.5%)
AOL Time Warner Inc.
7.75%, due 06/15/2005 1,000 1,092
7.48%, due 01/15/2008 1,500 1,696
Time Warner Entertainment Company, LP
10.15%, due 05/01/2012 1,000 1,301
Vivendi Universal-144A (b)
9.25%, due 04/15/2010 2,500 2,804
Motor Vehicles, Parts & Supplies (1.1%)
TRW Automotive Inc.-144A (b)
11.00%, due 02/15/2013 2,000 2,159
Oil & Gas Extraction (7.2%)
Alberta Energy Company Ltd.
7.38%, due 11/01/2031 1,000 1,196
Chesapeake Energy Corporation
8.38%, due 11/01/2008 1,000 1,070
7.50%, due 09/15/2013-144A 1,000 1,055
Forest Oil Corporation
8.00%, due 12/15/2011 500 525
7.75%, due 05/01/2014 1,000 1,018
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Conservative High-Yield Bond 2
IDEX Transamerica Conservative High-Yield Bond
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Oil & Gas Extraction (continued)
Louisana Land and Exploration
Company (The)
7.63%, due 04/15/2013 $ 2,000 $ 2,382
PDVSA Finance Ltd.
6.65%, due 02/15/2006 1,500 1,320
6.45%, due 02/15/2004 (b) 1,500 1,463
Petroleum Geo-Sevices ASA
6.63%, due 03/30/2008 2,300 920
Stone Energy Corporation
8.25%, due 12/15/2011 1,000 1,045
XTO Energy, Inc. (b)
6.25%, due 04/15/2013 2,000 2,090
Paper & Allied Products (1.1%)
Cascades, Inc.-144A (b)
7.25%, due 02/15/2013 1,000 1,055
Smurfit-Stone Container Corporation
8.25%, due 10/01/2012 1,000 1,088
Paper & Paper Products (1.1%)
MDP Acquisitions PLC-144A
9.63%, due 10/01/2012 2,000 2,179
Personal Services (1.0%)
Service Corporation International
7.70%, due 04/15/2009 2,000 2,020
Petroleum & Petroleum Products (0.3%)
Enron Corp. (e)
6.75%, due 08/01/2009 3,000 540
Petroleum Refining (1.6%)
Frontier Oil Escrow Corporation-144A
8.00%, due 04/15/2013 1,000 1,030
Tesoro Petroleum Corporation-144A
8.00%, due 04/15/2008 2,000 2,070
Pharmaceuticals (0.5%)
Alpharma Inc.-144A
8.63%, due 05/01/2011 1,000 1,030
Primary Metal Industries (0.5%)
Oregon Steel Mills, Inc. (b)
10.00%, due 07/15/2009 1,000 1,010
Printing & Publishing (5.5%)
Dex Media East LLC (Dex Media Finance
Co.)-144A (b)
9.88%, due 11/15/2009 1,000 1,145
Houghton Mifflin Company-144A (b)
9.88%, due 02/01/2013 2,000 2,159
Moore North America Finance, Inc.-144A
7.88%, due 01/15/2011 2,000 2,120
News America Incorporated
7.25%, due 05/18/2018 1,000 1,138
Primedia Inc.
8.88%, due 05/15/2011 2,000 2,130
Quebecor World Inc.
7.75%, due 02/15/2009 2,000 2,065
Radio & Television Broadcasting (2.2%)
CanWest Media Inc.
10.63%, due 05/15/2011 1,000 1,138
7.63%, due 04/15/2013-144A 1,000 1,043
Susquehanna Media Co.-144A
7.38%, due 04/15/2013 2,000 2,085
Railroads (1.1%)
Kansas City Southern
9.50%, due 10/01/2008 2,000 2,209
Restaurants (0.6%)
YUM! Brands, Inc.
7.70%, due 07/01/2012 1,000 1,105
Savings Institutions (1.3%)
People's Bank
7.20%, due 12/01/2006 2,300 2,464
Security & Commodity Brokers (1.1%)
Morgan Stanley Tracers-144A
9.41%, due 12/15/2012 2,000 2,125
Stone, Clay & Glass Products (2.7%)
Anchor Glass Container
Corporation-144A
11.00%, due 02/15/2013 1,000 1,060
Owens-Brockway Glass Container Inc.
8.75%, due 11/15/2012 1,000 1,068
7.75%, due 05/15/2011-144A 1,000 1,036
Owens-Illinois, Inc.
7.15%, due 05/15/2005 2,000 2,040
Telecommunications (2.6%)
Nextel Communications, Inc. (b)
9.38%, due 11/15/2009 1,000 1,080
Qwest Capital Funding, Inc.
5.88%, due 08/03/2004 1,000 940
7.00%, due 08/03/2009 2,000 1,660
7.90%, due 08/15/2010 1,000 840
WorldCom, Inc. (e)
7.50%, due 05/15/2011 2,000 570
Trucking & Warehousing (1.1%)
Iron Mountain Incorporated
7.75%, due 01/15/2015 2,000 2,130
Water Transportation (1.6%)
Royal Caribbean Cruises Ltd.
7.00%, due 10/15/2007 1,000 960
8.75%, due 02/02/2011 (b) 2,000 2,040
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Conservative High-Yield Bond 3
IDEX Transamerica Conservative High-Yield Bond
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Wholesale Trade Nondurable Goods (1.1%)
Nash-Finch Company-Series B
8.50%, due 05/01/2008 $ 2,500 $ 2,138
---------
Total Corporate Debt Securities (cost: $ 175,094) 174,503
=========
Shares Value
- ------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS (0.0%)
Telecommunications (0.0%)
McLeodUSA Incorporated-Series A 6,840 $ 21
---------
Total Convertible Preferred Stocks (cost: $1,466) 21
---------
PREFERRED STOCKS (1.0%)
Holding & Other Investment Offices (1 0%)
Duke Realty Corporation 40 2,010
---------
Total Preferred Stocks (cost: $2,008) 2,010
---------
COMMON STOCKS (0.0%)
Printing & Publishing (0.0%)
Golden Books Family Entertainment, Inc. (a) 63,750 (d)
Telecommunications (0.0%)
McLeodUSA Incorporated-warrants
Expires 04/16/2007 15,158 3
---------
Total Common Stocks (cost: $168) 3
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (17.9%)
Bank Note (1.0%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 1,989 $ 1,989
Euro Dollar Overnight (1.8%)
Bank of Montreal
1.34%, due 05/01/2003 1,356 1,356
BNP Paribas SA
1.24%, due 05/06/2003 637 637
Royal Bank of Canada
1.35%, due 05/01/2003 1,591 1,591
Euro Dollar Term (5.4%)
American Express Centurion Bank
1.28%, due 05/30/2003 3,183 3,183
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 796 796
Credit Agricole Indosuez
1.27%, due 05/12/2003 239 239
1.26%, due 06/24/2003 1,591 1,591
Danske Bank A/S
1.25%, due 05/07/2003 1,989 1,989
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 796 796
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 1,989 1,989
Medium Term Note (0.6%)
Parkland (USA) LLC
1.31%, due 11/26/2003 1,193 1,193
Money Market Fund (7.3%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 6,365 6,365
Merrimac Cash Series Fund-Premium Class
1-day yield of 1.23% 7,557 7,557
Promissory Note (1.4%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 2,785 2,785
Repurchase Agreement (0.4%)
Merrill Lynch & Co., Inc. (c)
1.42%, due 05/01/2003 796 796
---------
Total Security Lending Collateral (cost: $34,852) 34,852
---------
Total Investment Securities (cost: $214,513) $ 212,484
=========
SUMMARY:
Investments, at market value 109.1% $ 212,484
Liabilities in excess of other assets (9.1)% (17,797)
--------- ---------
Net assets 100.0% $ 194,687
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$33,997.
(c) Cash Collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $812.
(d) Market value is less than $1.
(e) Securities are currently in default on interest payments.
(f) Securities are stepbonds. Charter Communications Holdings LLC has an
interest rate of 0.00% until 04/01/2004, thereafter the coupon rate will
be 9.92%.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Conservative High-Yield Bond 4
IDEX Transamerica Conservative High-Yield Bond
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $214,513)
(including $33,997 of securities loaned) $ 212,484
Cash 13,250
Receivables:
Shares of beneficial interest sold 2,045
Interest 3,749
Other 40
---------
231,568
---------
Liabilities:
Investment securities purchased 1,000
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 766
Management and advisory fees 87
Distribution fees 87
Transfer agent fees and expenses 35
Payable for securities on loan 34,852
Other 54
---------
36,881
---------
Net Assets $ 194,687
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 205,167
Accumulated net investment income (loss) (209)
Accumulated net realized gain (loss) from investments (8,238)
Net unrealized appreciation (depreciation) of
investments (2,033)
---------
Net Assets $ 194,687
=========
Shares Outstanding:
Class A 14,018
Class B 5,483
Class C 1,601
Class L 376
Class M 730
Net Asset Value Per Share:
Class A $ 8.77
Class B 8.76
Class C 8.76
Class L 8.76
Class M 8.76
Maximum Offering Price Per Share (1):
Class A $ 9.28
Class M 8.85
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, M, and L shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 5,365
Dividends 80
Income from loaned securities-net 22
---------
5,467
---------
Expenses:
Management and advisory fees 394
Transfer agent fees and expenses 109
Custody fees 11
Administration fees 13
Registration fees 41
Trustees fees and expenses 5
Professional fees 16
Other 20
Distribution and service fees:
Class A 138
Class B 182
Class C 51
Class L 4
Class M 26
---------
Total Expenses 1,010
---------
Net Investment Income (Loss) 4,457
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities 728
Net unrealized appreciation (depreciation)
on investment securities 13,669
---------
Net Gain (Loss) on Investments 14,397
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 18,854
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Conservative High-Yield Bond 5
IDEX Transamerica Conservative High-Yield Bond
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 4,457 $ 6,448
Net realized gain (loss) on investment
securities 728 (5,400)
Net unrealized appreciation (depreciation)
on investment securities 13,669 (10,432)
--------- ---------
18,854 (9,384)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A (2,887) (3,645)
Class B (1,230) (2,090)
Class C (340) (482)
Class L (26) --
Class M (195) (459)
--------- ---------
(4,678) (6,676)
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 74,427 38,187
Class B 17,220 15,891
Class C 8,469 7,572
Class L 3,272 --
Class M 968 2,479
--------- ---------
104,356 64,129
--------- ---------
Dividends and distributions reinvested:
Class A 2,497 2,915
Class B 731 1,419
Class C 156 333
Class L 14 --
Class M 137 300
--------- ---------
3,535 4,967
--------- ---------
Cost of shares redeemed:
Class A (22,901) (23,048)
Class B (5,080) (16,144)
Class C (1,991) (8,655)
Class L (110) --
Class M (1,240) (3,745)
--------- ---------
(31,322) (51,592)
--------- ---------
76,569 17,504
--------- ---------
Net increase (decrease) in net assets 90,745 1,444
--------- ---------
Net Assets:
Beginning of period 103,942 102,498
--------- ---------
End of period $ 194,687 $ 103,942
========= =========
Accumulated Net Investment Income (Loss) $ (209) $ 12
========= =========
Share Activity:
Shares issued during the period:
Class A 8,854 4,469
Class B 2,053 1,842
Class C 1,020 864
Class L 387 --
Class M 116 283
--------- ---------
12,430 7,458
--------- ---------
Shares issued-reinvested from distributions:
Class A 301 341
Class B 88 165
Class C 19 38
Class L 2 --
Class M 16 35
--------- ---------
426 579
--------- ---------
Shares redeemed during the period:
Class A (2,748) (2,678)
Class B (613) (1,883)
Class C (238) (995)
Class L (13) --
Class M (151) (433)
--------- ---------
(3,763) (5,989)
--------- ---------
Net increase (decrease) in shares outstanding 9,093 2,048
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Conservative High-Yield Bond 6
IDEX Transamerica Conservative High-Yield Bond
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 7.93 $ 0.29 $ 0.86 $ 1.15
10/31/2002 9.26 0.57 (1.31) (0.74)
10/31/2001 9.24 0.72 0.01 0.73
10/31/2000 9.67 0.69 (0.37) 0.32
10/31/1999 10.43 0.65 (0.54) 0.11
10/31/1998 10.96 0.69 (0.30) 0.39
- --------------------------------------------------------------------------------
Class B 04/30/2003 7.93 0.26 0.85 1.11
10/31/2002 9.26 0.52 (1.32) (0.80)
10/31/2001 9.24 0.57 0.10 0.67
10/31/2000 9.67 0.63 (0.37) 0.26
10/31/1999 10.42 0.59 (0.54) 0.05
10/31/1998 10.96 0.61 (0.30) 0.31
- --------------------------------------------------------------------------------
Class C 04/30/2003 7.92 0.26 0.86 1.12
10/31/2002 9.26 0.51 (1.32) (0.81)
10/31/2001 9.24 0.52 0.15 0.67
10/31/2000 9.67 0.63 (0.37) 0.26
- --------------------------------------------------------------------------------
Class L 04/30/2003 8.08 0.20 0.76 0.96
- --------------------------------------------------------------------------------
Class M 04/30/2003 7.93 0.35 0.77 1.12
10/31/2002 9.26 0.53 (1.32) (0.79)
10/31/2001 9.24 0.63 0.05 0.68
10/31/2000 9.67 0.64 (0.37) 0.27
10/31/1999 10.42 0.60 (0.54) 0.06
10/31/1998 10.96 0.62 (0.30) 0.32
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ (0.31) $ -- $ (0.31) $ 8.77
(0.59) -- (0.59) 7.93
(0.71) -- (0.71) 9.26
(0.69) (0.06) (0.75) 9.24
(0.67) (0.20) (0.87) 9.67
(0.70) (0.22) (0.92) 10.43
- ----------------------------------------------------------
Class B (0.28) -- (0.28) 8.76
(0.53) -- (0.53) 7.93
(0.65) -- (0.65) 9.26
(0.63) (0.06) (0.69) 9.24
(0.60) (0.20) (0.80) 9.67
(0.63) (0.22) (0.85) 10.42
- ----------------------------------------------------------
Class C (0.28) -- (0.28) 8.76
(0.53) -- (0.53) 7.92
(0.65) -- (0.65) 9.26
(0.63) (0.06) (0.69) 9.24
- ----------------------------------------------------------
Class L (0.28) -- (0.28) 8.76
- ----------------------------------------------------------
Class M (0.29) -- (0.29) 8.76
(0.54) -- (0.54) 7.93
(0.66) -- (0.66) 9.26
(0.64) (0.06) (0.70) 9.24
(0.61) (0.20) (0.81) 9.67
(0.64) (0.22) (0.86) 10.42
- ----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 14.92% $ 122,924 1.27% 1.27% 7.01% 20.13%
10/31/2002 (8.48) 60,332 1.35 1.35 6.61 64.29
10/31/2001 8.12 50,755 1.41 1.41 7.35 16.01
10/31/2000 3.37 49,259 1.36 1.36 7.34 11.37
10/31/1999 1.09 59,082 1.38 1.38 6.41 26.95
10/31/1998 3.54 63,494 1.24 1.24 6.38 53.09
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 14.41 48,045 1.92 1.92 6.36 20.13
10/31/2002 (9.03) 31,336 2.00 2.00 5.96 64.29
10/31/2001 7.45 35,471 2.06 2.06 6.70 16.01
10/31/2000 2.74 13,808 2.01 2.01 6.69 11.37
10/31/1999 0.38 12,930 2.03 2.03 5.76 26.95
10/31/1998 2.87 5,041 1.89 1.89 5.73 53.09
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 14.41 14,031 1.92 1.92 6.36 20.13
10/31/2002 (9.03) 6,340 2.00 2.00 5.96 64.29
10/31/2001 7.45 8,267 2.06 2.06 6.70 16.01
10/31/2000 2.74 1,025 2.01 2.01 6.69 11.37
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 12.14 3,292 1.92 1.92 6.36 20.13
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 14.47 6,395 1.82 1.82 6.46 20.13
10/31/2002 (8.95) 5,934 1.90 1.90 6.06 64.29
10/31/2001 7.56 8,005 1.96 1.96 6.80 16.01
10/31/2000 2.84 4,319 1.91 1.91 6.79 11.37
10/31/1999 0.54 5,515 1.93 1.93 5.86 26.95
10/31/1998 2.97 4,073 1.79 1.79 5.83 53.09
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Conservative High-Yield Bond 7
IDEX Transamerica Conservative High-Yield Bond
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) The inception date for the Fund's offering of share classes C and L are as
follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Conservative High-Yield Bond 8
IDEX Transamerica Conservative High-Yield Bond
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Transamerica Conservative High-Yield Bond
("the Fund"), part of IDEX Mutual Funds, began operations on June 14, 1985.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and
a liability for the return of the collateral. Securities on loan are included
in investment securities at market value on the Statement of Assets and
Liabilities and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities
loans, the collateral and securities loaned remain subject to fluctuation in
market value. IBT marks to market securities loaned and the collateral each
business day. If additional collateral is due (at least $1), IBT collects
additional cash collateral from the borrowers. Although securities loaned will
be fully collateralized at all times, IBT may experience delays in, or may be
prevented from, recovering the collateral on behalf of the Fund. The Fund may
recall a loaned security position at any time from the borrower through IBT. In
the event the borrower fails to timely return a recalled security, IBT may
indemnify the Fund by purchasing replacement securities for the Fund at its own
expense and claiming the collateral to fund such a purchase. IBT absorbs the
loss if the collateral value is not sufficient to cover the cost of the
replacement securities. If replacement securities are not available, IBT will
credit the equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Conservative High-Yield Bond 9
IDEX Transamerica Conservative High-Yield Bond
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
wholly owned subsidiaries of Western Reserve Life Assurance Co. of Ohio
("WRL"). AUSA and WRL are a wholly owned indirect subsidiary of AEGON NV, a
Netherlands corporation. AEGON USA Investments Management, Inc. and
Transamerica Investment Management, LLC are both affiliates of the Fund. AEGON
USA Investments Management, Inc. is the sub-adviser to the Fund.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following rate:
0.60% of ANA
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.25% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 147
Retained by Underwriter 4
Contingent Sales Charges 65
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $10 deferred
compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 90,856
U.S. Government 1,497
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 22,776
U.S. Government 1,487
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 1,984 October 31, 2008
1,519 October 31, 2009
5,464 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 214,513
==========
Unrealized Appreciation $ 9,820
Unrealized (Depreciation) (11,849)
----------
Net Unrealized Appreciation (Depreciation) $ (2,029)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Conservative High-Yield Bond 10
IDEX Transamerica Convertible Securities
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
CORPORATE DEBT SECURITIES (1.6%)
Electronic Components & Accessories (1.6%)
LSI Logic Corporation
4.25%, due 03/15/2004 $ 1,000 $ 979
---------
Total Corporate Debt Securities (cost: $989) 979
---------
CONVERTIBLE BONDS (66.8%)
Apparel & Accessory Stores (2.7%)
TJX Companies, Inc. (The)
Zero Coupon, due 02/13/2021 2,000 1,600
Commercial Banks (3.9%)
Deutsche Bank Luxembourg SA-144A (c)(d)
1.54%, due 05/01/2012 1,000 1,578
Wachovia Bank, National Association-144A
5.00%, due 01/27/2004 750 776
Communication (3.2%)
Echostar Communications Corporation
4.88%, due 01/01/2007 430 428
5.75%, due 05/15/2008 (a) 1,000 1,049
Liberty Media Corporation
3.25%, due 03/15/2031 450 467
Communications Equipment (2.6%)
L-3 Communications Holdings, Inc.
4.00%, due 09/15/2011 249 272
McDATA Corporation-144A (a)
2.25%, due 02/15/2010 1,000 1,276
Computer & Data Processing Services (9.6%)
Affiliated Computer Services, Inc. (a)
3.50%, due 02/15/2006 723 908
BEA Systems, Inc.
4.00%, due 12/15/2006 750 711
GTECH Holdings Corporation (a)
1.75%, due 12/15/2021 550 782
Network Associates, Inc.
5.25%, due 08/15/2006 1,250 1,327
Siebel Systems, Inc.
5.50%, due 09/15/2006 500 502
Symantec Corporation (a)
3.00%, due 11/01/2006 1,050 1,532
Computer & Office Equipment (2.3%)
Juniper Networks, Inc.
4.75%, due 03/15/2007 1,550 1,402
Electronic Components & Accessories (14.6%)
Atmel Corporation
Zero Coupon, due 05/23/2021 2,500 841
Cypress Semiconductor Corporation
3.75%, due 07/01/2005 1,500 1,343
Hutchinson Technology
Incorporated-144A
2.25%, due 03/15/2010 1,000 1,071
International Rectifier Corporation
4.25%, due 07/15/2007 1,500 1,373
LSI Logic Corporation
4.00%, due 11/01/2006 1,410 1,236
Micron Technology, Inc.-144A (a)
2.50%, due 02/01/2010 1,000 1,013
STMicroelectronics NV
Zero Coupon, due 09/22/2009 1,000 888
Tyco International Group SA-144A
3.13%, due 01/15/2023 (a) 500 507
2.75%, due 01/15/2018 500 507
Health Services (1.3%)
Province Healthcare Company
4.50%, due 11/20/2005 825 788
Industrial Machinery & Equipment (4.1%)
ASML Holding NV-144A
5.75%, due 10/15/2006 1,000 995
DuPont Photomasks, Inc.-144A
1.25%, due 05/15/2008 1,500 1,500
Instruments & Related Products (0.8%)
Agilent Technologies, Inc. (a)(e)
3.00%, due 12/01/2021 500 482
Manufacturing Industries (2.0%)
International Game Technology-144A
Zero Coupon, due 01/29/2033 1,900 1,176
Pharmaceuticals (8.5%)
Allergan, Inc. (a)
Zero Coupon, due 11/06/2022 1,000 948
Charles River Laboratories, Inc. (f)
3.50%, due 02/01/2022 750 777
Gilead Sciences, Inc.-144A
2.00%, due 12/15/2007 1,000 1,213
IVAX Corporation
4.50%, due 05/15/2008 1,000 926
Teva Pharmaceutical Finance BV-144A
0.38%, due 11/15/2022 1,000 1,226
Radio, Television & Computer Stores (2.1%)
Best Buy Co., Inc. (a)
2.25%, due 01/15/2022 1,310 1,272
Security & Commodity Brokers (0.8%)
Salomon Smith Barney Holdings Inc.
8.00%, due 12/05/2003 500 469
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Convertible Securities 1
IDEX Transamerica Convertible Securities
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Telecommunications (5.3%)
Nextel Communications, Inc.
4.75%, due 07/01/2007 $ 500 $ 494
6.00%, due 06/01/2011 1,500 1,528
Verizon Global Funding Corp.
Zero Coupon, due 05/15/2021 2,000 1,183
Water Transportation (3.0%)
Carnival Corporation (a)
Zero Coupon, due 10/24/2021 3,000 1,823
---------
Total Convertible Bonds (cost: $38,307) 40,189
---------
Shares Value
- -----------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS (26.0%)
Aerospace (0.8%)
Northrop Grumman Corporation (a) 4,450 $ 455
Commercial Banks (2.5%)
State Street Corporation 8,000 1,529
Electric Services (6.4%)
American Electric Power Company, Inc. (a) 30,000 1,245
DTE Energy Company 39,500 999
TXU Corp. 50,000 1,575
Electric, Gas & Sanitary Services (3.8%)
Ameren Corporation (a) 40,300 1,098
Citizens Utilities Trust 15,000 742
Citizens Communications Company 20,000 455
Environmental Services (2.1%)
Allied Waste Industries, Inc. (a) 25,000 1,288
Insurance (2.8%)
Anthem, Inc. 7,250 609
Travelers Property Casualty Corp. 43,400 1,063
Life Insurance (1.4%)
Prudential Financial, Inc.-Units 14,800 814
Medical Instruments & Supplies (2.2%)
Baxter International Inc. 30,000 1,323
Oil & Gas Extraction (0.7%)
Chesapeake Energy Corporation-144A (a) 8,000 434
Telecommunications (3.3%)
ALLTEL Corporation 20,800 1,001
CenturyTel, Inc. 39,000 996
---------
Total Convertible Preferred Stocks (cost: $15,229) 15,626
---------
PREFERRED STOCKS (0.9%)
Water Transportation (0.9%)
Teekay Shipping Corporation 20,000 529
---------
Total Preferred Stocks (cost: $500) 529
---------
COMMON STOCKS (0.8%)
Finance (0.8%)
Express Scripts Automatic Exchange
Securities Trust (a) 4,900 504
---------
Total Common Stocks (cost: $453) 504
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (23.1%)
Bank Notes (1.3%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 793 $ 793
Euro Dollar Overnight (2.4%)
Bank of Montreal
1.34%, due 05/01/2003 541 541
BNP Paribas SA
1.24%, due 05/06/2003 254 254
Royal Bank of Canada
1.35%, due 05/01/2003 635 635
Euro Dollar Term (7.1%)
American Express Centurion Bank
1.28%, due 05/30/2003 1,269 1,269
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 317 317
Credit Agricole Indosuez
1.27%, due 05/12/2003 95 95
1.26%, due 06/24/2003 635 635
Danske Bank A/S
1.25%, due 05/07/2003 793 793
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 317 317
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 793 793
Medium Term Notes (0.8%)
Parkland (USA) LLC
1.31%, due 11/26/2003 476 476
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Convertible Securities 2
IDEX Transamerica Convertible Securities
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Money Market Funds (9.2%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% $ 2,540 $ 2,540
Merrimac Cash Series Fund-Premium Class
1-day yield of 1.23% 3,015 3,015
Promissory Notes (1.8%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 1,111 1,111
Repurchase Agreements (0.5%)
Merrill Lynch & Co., Inc. (b)
1.42%, due 05/01/2003 317 317
---------
Total Security Lending Collateral (cost: $13,901) 13,901
---------
Total Investment Securities (cost: $69,379) $ 71,728
=========
SUMMARY:
Investments, at market value 119.2% $ 71,728
Liabilities in excess of other assets (19.2)% (11,581)
--------- ---------
Net assets 100.0% $ 60,147
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$13,580.
(b) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $324.
(c) Securities valued as determined in good faith in accordance with
procedures established by the Fund's Board of Trustees.
(d) Floating or variable rate note. Rate is listed as of April 30, 2003.
(e) Securities are stepbonds. Agilent Technologies, Inc. has a coupon rate of
3.00% until 06/01/2006, thereafter the coupon rate will be 3.16% .
(f) Securities are stepbonds. Charles River Laboratories, Inc. has a coupon
rate of 3.50% until 08/01/2007, thereafter the coupon rate reset to the
5-Year U.S. Treasury Note Rate less 0.72% .
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Convertible Securities 3
IDEX Transamerica Convertible Securities
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $69,379)
(including $13,580 of securities loaned) $ 71,728
Cash 3,307
Receivables:
Investment securities sold 252
Shares of beneficial interest sold 1,288
Interest 332
Dividends 85
Other 7
---------
76,999
---------
Liabilities:
Investment securities purchased 2,880
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 3
Management and advisory fees 30
Distribution fees 17
Transfer agent fees and expenses 6
Payable for securities on loan 13,901
Other 15
---------
16,852
---------
Net Assets $ 60,147
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 57,595
Undistributed net investment income (loss) 124
Undistributed net realized gain (loss) from investments 79
Net unrealized appreciation (depreciation) of
investments 2,349
---------
Net Assets $ 60,147
=========
Shares Outstanding:
Class A 5,350
Class B 375
Class C 102
Class L 75
Class M 45
Net Asset Value Per Share:
Class A $ 10.11
Class B 10.11
Class C 10.11
Class L 10.11
Class M 10.11
Maximum Offering Price Per Share (1):
Class A $ 10.61
Class M 10.21
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 416
Dividends 214
Income from loaned securities-net 1
---------
631
---------
Expenses:
Management and advisory fees 102
Transfer agent fees and expenses 11
Custody fees 7
Administration fees 13
Registration fees 47
Trustees fees and expenses 1
Professional fees 10
Distribution and service fees:
Class A 42
Class B 10
Class C 4
Class L 1
Class M 2
---------
Total Expenses 250
Less reimbursements by the investment adviser (9)
---------
Net Expenses 241
---------
Net Investment Income (Loss) 390
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities 456
Net unrealized appreciation (depreciation)
on investment securities 2,488
---------
Net Gain (Loss) on Investments 2,944
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 3,334
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Convertible Securities 4
IDEX Transamerica Convertible Securities
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002 (a)
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 390 $ 94
Net realized gain (loss) on investment
securities 456 (377)
Net unrealized appreciation (depreciation)
on investment securities 2,488 (139)
--------- ---------
3,334 (422)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A (270) (55)
Class B (15) (5)
Class C (8) (3)
Class L (1) --
Class M (4) (1)
--------- ---------
(298) (64)
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 41,318 10,852
Class B 2,732 1,469
Class C 230 1,054
Class L 739 --
Class M 212 359
--------- ---------
45,231 13,734
--------- ---------
Dividends and distributions reinvested:
Class A 270 55
Class B 11 5
Class C 6 3
Class L 1 --
Class M 3 1
--------- ---------
291 64
--------- ---------
Cost of shares redeemed:
Class A (384) (321)
Class B (291) (271)
Class C (214) (94)
Class L (8) --
Class M (99) (41)
--------- ---------
(996) (727)
--------- ---------
44,526 13,071
--------- ---------
Net increase (decrease) in net assets 47,562 12,585
--------- ---------
Net Assets:
Beginning of period 12,585 --
--------- ---------
End of period $ 60,147 $ 12,585
========= =========
Undistributed Net Investment Income (Loss) $ 124 $ 32
========= =========
Share Activity:
Shares issued during the period:
Class A 4,274 1,115
Class B 284 149
Class C 23 110
Class L 76 --
Class M 22 37
--------- ---------
4,679 1,411
--------- ---------
Shares issued-reinvested from distributions:
Class A 28 6
Class B 1 1
Class C 1 --
Class L -- --
Class M -- --
--------- ---------
30 7
--------- ---------
Shares redeemed during the period:
Class A (39) (34)
Class B (31) (29)
Class C (22) (10)
Class L (1) --
Class M (10) (4)
--------- ---------
(103) (77)
--------- ---------
Net increase (decrease) in shares outstanding 4,606 1,341
========= =========
(a) Commenced operations on March 1, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Convertible Securities 5
IDEX Transamerica Convertible Securities
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 9.39 $ 0.14 $ 0.58 $ 0.72
10/31/2002 10.00 0.14 (0.67) (0.53)
- --------------------------------------------------------------------------------
Class B 04/30/2003 9.38 0.10 0.63 0.73
10/31/2002 10.00 0.11 (0.68) (0.57)
- --------------------------------------------------------------------------------
Class C 04/30/2003 9.38 0.11 0.62 0.73
10/31/2002 10.00 0.11 (0.68) (0.57)
- --------------------------------------------------------------------------------
Class L 04/30/2003 9.36 0.08 0.67 0.75
- --------------------------------------------------------------------------------
Class M 04/30/2003 9.38 0.13 0.60 0.73
10/31/2002 10.00 0.12 (0.68) (0.56)
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
----------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ------------
Class A $ -- $ -- $ -- $ 10.11
(0.08) -- (0.08) 9.39
- ------------------------------------------------------------
Class B -- -- -- 10.11
(0.05) -- (0.05) 9.38
- ------------------------------------------------------------
Class C -- -- -- 10.11
(0.05) -- (0.05) 9.38
- ------------------------------------------------------------
Class L -- -- -- 10.11
- ------------------------------------------------------------
Class M -- -- -- 10.11
(0.06) -- (0.06) 9.38
- ------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 9.17% $ 54,118 1.70% 1.77% 2.95% 67.70%
10/31/2002 (5.42) 10,205 1.73 3.85 2.59 170.42
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 8.81 3,787 2.35 2.42 2.30 67.70
10/31/2002 (5.68) 1,138 2.38 4.50 1.94 170.42
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 8.81 1,027 2.35 2.42 2.30 67.70
10/31/2002 (5.68) 934 2.38 4.50 1.94 170.42
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 9.04 760 2.35 2.42 2.30 67.70
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 8.86 455 2.25 2.32 2.40 67.70
10/31/2002 (5.64) 308 2.28 4.40 2.04 170.42
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Convertible Securities 6
IDEX Transamerica Convertible Securities
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Transamerica Convertible Securities ("the Fund") commenced operations
on March 1, 2002. The inception date for the Fund's offering of share
Class L was November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Convertible Securities 7
IDEX Transamerica Convertible Securities
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Transamerica Convertible Securities ("the
Fund"), part of IDEX Mutual Funds, began operations on March 1, 2002.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust ("IBT"). IBT has been contracted on behalf of the Fund
to invest the excess cash into a savings account, which at April 30, 2003, was
paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and
a liability for the return of the collateral. Securities on loan are included
in investment securities at market value on the Statement of Assets and
Liabilities and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities
loans, the collateral and securities loaned remain subject to fluctuation in
market value. IBT marks to market securities loaned and the collateral each
business day. If additional collateral is due (at least $1), IBT collects
additional cash collateral from the borrowers. Although securities loaned will
be fully collateralized at all times, IBT may experience delays in, or may be
prevented from, recovering the collateral on behalf of the Fund. The Fund may
recall a loaned security position at any time from the borrower through IBT. In
the event the borrower fails to timely return a recalled security, IBT may
indemnify the Fund by purchasing replacement securities for the Fund at its own
expense and claiming the collateral to fund such a purchase. IBT absorbs the
loss if the collateral value is not sufficient to cover the cost of the
replacement securities. If replacement securities are not available, IBT will
credit the equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amounts of collateral and market value of securities on loan are included in
the Statement of Assets and Liabilities as well as on the Schedule of
Investments.
Security transactions and investment income: Security transactions are recorded
for on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent.
IDEX Mutual Funds
ATIS and AFSG
Semi-Annual Report 2003
Transamerica Convertible Securities 8
IDEX Transamerica Convertible Securities
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
are 100% owned by AUSA Holding Company ("AUSA"). ATFA and ATFS are wholly owned
subsidiaries of Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and
WRL are wholly owned indirect subsidiaries of AEGON NV, a Netherlands
corporation. Transamerica Investment Management, LLC is both an affiliate of
the Fund and a sub-adviser to the Fund.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated rate:
0.75% of ANA
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.35% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 22
Retained by Underwriter 3
Contingent Sales Charges 6
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 60,917
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 18,557
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforward is available to offset future realized capital
gains through the period listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 377 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 69,380
==========
Unrealized Appreciation $ 2,637
Unrealized (Depreciation) (289)
----------
Net Unrealized Appreciation (Depreciation) $ 2,348
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Convertible Securities 9
IDEX Transamerica Equity
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS (90.7%)
Business Services (13.7%)
Clear Channel Communications, Inc. (a) 60,000 $ 2,347
First Data Corporation (b) 100,000 3,923
Moody's Corporation 65,000 3,139
Chemicals & Allied Products (3.4%)
Praxair, Inc. 40,000 2,323
Commercial Banks (6.2%)
Northern Trust Corporation 70,000 2,457
State Street Corporation 50,000 1,752
Communication (12.8%)
Cox Communications, Inc.-Class A (a) (b) 90,000 2,979
Echostar Communications
Corporation-Class A (a) (b) 100,000 2,996
Liberty Media Corporation-Class A (a) 250,000 2,750
Communications Equipment (4.0%)
QUALCOMM Incorporated 85,000 2,711
Computer & Data Processing Services (4.7%)
Microsoft Corporation 125,000 3,196
Drug Stores & Proprietary Stores (3.2%)
Walgreen Co. 70,000 2,160
Electronic Components & Accessories (2.7%)
Intel Corporation 100,000 1,840
Fabricated Metal Products (3.6%)
Gillette Company (The) 80,000 2,436
Food Stores (0.1%)
Safeway Inc. (a) 5,000 83
Hotels & Other Lodging Places (2.9%)
Marriott International, Inc.-Class A (b) 55,000 1,975
Management Services (3.9%)
Paychex, Inc. 85,000 2,646
Pharmaceuticals (7.4%)
Allergan, Inc. 35,000 2,459
Pfizer Inc. 85,000 2,613
Retail Trade (3.6%)
Staples, Inc. (a) 130,000 2,474
Security & Commodity Brokers (1.9%)
Schwab (Charles) Corporation (The) 150,000 1,295
Transportation & Public Utilities (7.5%)
Expedia, Inc.-Class A (a) (b) 35,000 2,023
Expeditors International of Washington, Inc. 85,000 3,091
Trucking & Warehousing (4.6%)
United Parcel Service, Inc.-Class B 50,000 3,106
Variety Stores (4.5%)
Wal-Mart Stores, Inc. 55,000 3,098
---------
Total Common Stocks (cost: $59,071) 61,872
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (16.1%)
Bank Notes (0.9%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 627 $ 627
Euro Dollar Overnight (1.7%)
Bank of Montreal
1.34%, due 05/01/2003 428 428
BNP Paribas SA
1.24%, due 05/06/2003 201 201
Royal Bank of Canada
1.35%, due 05/01/2003 502 502
Euro Dollar Term (4.9%)
American Express Centurion Bank
1.28%, due 05/30/2003 1,004 1,004
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 251 251
Credit Agricole Indosuez
1.27%, due 05/12/2003 75 75
1.26%, due 06/24/2003 502 502
Danske Bank A/S
1.25%, due 05/07/2003 628 628
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 251 251
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 627 627
Medium Term Notes (0.6%)
Parkland (USA) LLC
1.31%, due 11/26/2003 377 377
Money Market Funds (6.3%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 2,008 2,008
Merrimac Cash Series Fund-Premium Class
1-day yield of 1.23% 2,385 2,385
Promissory Notes (1.3%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 879 879
Repurchase Agreements (0.4%) (c)
Merrill Lynch & Co., Inc.
1.42%, due 05/01/2003 251 251
---------
Total Security Lending Collateral (cost: $10,996) 10,996
---------
Total Investment Securities (cost: $70,067) $ 72,868
=========
SUMMARY:
Investments, at market value 106.8% $ 72,868
Liabilities in excess of other assets (6.8)% (4,639)
--------- ---------
Net assets 100.0% $ 68,229
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Equity 1
IDEX Transamerica Equity
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$10,652.
(c) Cash collateral for Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $256.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Equity 2
IDEX Transamerica Equity
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $70,067)
(including $10,652 of securities loaned) $ 72,868
Cash 5,408
Receivables:
Investment securities sold 489
Shares of beneficial interest sold 554
Interest 2
Dividends 25
Other 9
---------
79,355
---------
Liabilities:
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 36
Management and advisory fees 42
Distribution fees 21
Transfer agent fees and expenses 13
Payable for securities on loan 10,996
Other 18
---------
11,126
---------
Net Assets $ 68,229
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 71,112
Accumulated net investment income (loss) (221)
Accumulated net realized gain (loss) from investments (5,463)
Net unrealized appreciation (depreciation) of
investments 2,801
---------
Net Assets $ 68,229
=========
Shares Outstanding:
Class A 10,737
Class B 627
Class C 108
Class L 30
Class M 102
Net Asset Value Per Share:
Class A $ 5.89
Class B 5.75
Class C 5.75
Class L 5.75
Class M 5.77
Maximum Offering Price Per Share (1):
Class A $ 6.23
Class M 5.83
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 10
Dividends 149
Income from loaned securities-net 2
---------
161
---------
Expenses:
Management and advisory fees 181
Transfer agent fees and expenses 27
Custody fees 8
Administration fees 15
Registration fees 42
Trustees fees and expenses 1
Professional fees 11
Other 4
Distribution and service fees:
Class A 72
Class B 14
Class C 4
Class L --
Class M 3
---------
Total Expenses 382
Less reimbursements by the investment adviser (1)
---------
Net Expenses 381
---------
Net Investment Income (Loss) (220)
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (1,570)
Net unrealized appreciation (depreciation)
on investment securities 5,338
---------
Net Gain (Loss) on Investments 3,768
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 3,548
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Equity 3
IDEX Transamerica Equity
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (220) $ (211)
Net realized gain (loss) on investment
securities (1,570) (1,308)
Net unrealized appreciation (depreciation)
on investment securities 5,338 (1,066)
--------- ---------
3,548 (2,585)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 35,711 25,376
Class B 1,189 1,357
Class C 245 620
Class L 168 --
Class M 71 340
--------- ---------
37,384 27,693
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (869) (1,293)
Class B (505) (1,146)
Class C (578) (843)
Class L -- --
Class M (259) (250)
--------- ---------
(2,211) (3,532)
--------- ---------
35,173 24,161
--------- ---------
Net increase (decrease) in net assets 38,721 21,576
--------- ---------
Net Assets:
Beginning of period 29,508 7,932
--------- ---------
End of period $ 68,229 $ 29,508
========= =========
Accumulated Net Investment Income (Loss) $ (221) $ (1)
========= =========
Share Activity:
Shares issued during the period:
Class A 6,338 4,332
Class B 213 214
Class C 43 107
Class L 30 --
Class M 12 51
--------- ---------
6,636 4,704
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (155) (209)
Class B (92) (196)
Class C (105) (147)
Class L -- --
Class M (46) (41)
--------- ---------
(398) (593)
--------- ---------
Net increase (decrease) in shares outstanding 6,238 4,111
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Equity 4
IDEX Transamerica Equity
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 5.52 $ (0.03) $ 0.40 $ 0.37
10/31/2002 6.38 (0.07) (0.79) (0.86)
10/31/2001 10.16 (0.10) (3.68) (3.78)
10/31/2000 10.00 (0.02) 0.18 0.16
- --------------------------------------------------------------------------------
Class B 04/30/2003 5.40 (0.04) 0.39 0.35
10/31/2002 6.29 (0.12) (0.77) (0.89)
10/31/2001 10.12 (0.16) (3.67) (3.83)
10/31/2000 10.00 (0.06) 0.18 0.12
- --------------------------------------------------------------------------------
Class C 04/30/2003 5.40 (0.04) 0.39 0.35
10/31/2002 6.29 (0.12) (0.77) (0.89)
10/31/2001 10.12 (0.16) (3.67) (3.83)
10/31/2000 10.00 (0.06) 0.18 0.12
- --------------------------------------------------------------------------------
Class L 04/30/2003 5.30 (0.04) 0.49 0.45
- --------------------------------------------------------------------------------
Class M 04/30/2003 5.42 (0.05) 0.40 0.35
10/31/2002 6.31 (0.11) (0.78) (0.89)
10/31/2001 10.12 (0.14) (3.67) (3.81)
10/31/2000 10.00 (0.06) 0.18 0.12
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 5.89
-- -- -- 5.52
-- -- -- 6.38
-- -- -- 10.16
- ----------------------------------------------------------
Class B -- -- -- 5.75
-- -- -- 5.40
-- -- -- 6.29
-- -- -- 10.12
- ----------------------------------------------------------
Class C -- -- -- 5.75
-- -- -- 5.40
-- -- -- 6.29
-- -- -- 10.12
- ----------------------------------------------------------
Class L -- -- -- 5.75
- ----------------------------------------------------------
Class M -- -- -- 5.77
-- -- -- 5.42
-- -- -- 6.31
-- -- -- 10.12
- ----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 6.70% $ 63,243 1.63% 1.63% (0.91)% 10.72%
10/31/2002 (13.50) 25,127 1.74 2.32 (1.19) 19.45
10/31/2001 (37.20) 2,750 1.55 2.75 (1.15) 41.51
10/31/2000 1.60 3,053 1.55 6.10 (1.18) 12.86
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 6.48 3,601 2.28 2.28 (1.56) 10.72
10/31/2002 (14.22) 2,732 2.39 2.98 (1.84) 19.45
10/31/2001 (37.78) 3,070 2.20 3.40 (1.80) 41.51
10/31/2000 1.17 2,840 2.20 6.75 (1.83) 12.86
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 6.48 623 2.28 2.28 (1.56) 10.72
10/31/2002 (14.22) 914 2.39 2.98 (1.84) 19.45
10/31/2001 (37.78) 1,318 2.20 3.40 (1.80) 41.51
10/31/2000 1.17 1,118 2.20 6.75 (1.83) 12.86
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 8.49 174 2.28 2.28 (1.56) 10.72
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 6.46 588 2.18 2.18 (1.46) 10.72
10/31/2002 (14.08) 735 2.29 2.88 (1.74) 19.45
10/31/2001 (37.69) 794 2.10 3.30 (1.70) 41.51
10/31/2000 1.24 969 2.10 6.65 (1.73) 12.86
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Equity 5
IDEX Transamerica Equity
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Transamerica Equity commenced operations on March 1, 2000. The
inception date for the Fund's offering of share Class L was November 11,
2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Equity 6
IDEX Transamerica Equity
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Transamerica Equity ("the Fund"), part of
IDEX Mutual Funds, began operations on March 1, 2000.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank and Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Directed Brokerage: The sub-adviser, to the extent consistent with the best
execution and usual commission rate policies and practices, may place security
transactions of the Fund with broker/dealers with which IDEX Mutual Funds has
established a Directed Brokerage Program. A Directed Brokerage Program is any
arrangement under which a broker/dealer applies a portion of the commissions
received by such broker/dealer on the security transactions to the payment of
operating expenses that would otherwise be borne by the Fund. In no event will
commissions paid by the Fund be used to pay expenses that would otherwise be
borne by any other funds within IDEX Mutual Funds, or by any other party.
Directed commissions during the six-months ended April 30, 2003, of $10 are
included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and
a liability for the return of the collateral. Securities on loan are included
in investment securities at market value on the Statement of Assets and
Liabilities and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities
loans, the collateral and securities loaned remain subject to fluctuation in
market value. IBT marks to market securities loaned and the collateral each
business day. If additional collateral is due (at least $1), IBT collects
additional cash collateral from the borrowers. Although securities loaned will
be fully collateralized at all times, IBT may experience delays in, or may be
prevented from, recovering the collateral on behalf of the Fund. The Fund may
recall a loaned security position at any time from the borrower through IBT. In
the event the borrower fails to timely return a recalled security, IBT may
indemnify the Fund by purchasing replacement securities for the Fund at its own
expense and claiming the collateral to fund such a purchase. IBT absorbs the
loss if the collateral value is not sufficient to cover the cost of the
replacement securities. If replacement securities are not available, IBT will
credit the equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Equity 7
IDEX Transamerica Equity
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1--(continued)
accretion of discounts and amortization of premiums, is recorded on the accrual
basis commencing on the settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a
sub-adviser to the Fund.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated break points:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.40% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 14
Retained by Underwriter 2
Contingent Sales Charges 6
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $1 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 35,946
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 4,527
U.S. Government --
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Equity 8
IDEX Transamerica Equity
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 71 October 31, 2008
2,496 October 31, 2009
1,197 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 70,433
==========
Unrealized Appreciation $ 4,302
Unrealized (Depreciation) (1,867)
----------
Net Unrealized Appreciation (Depreciation) $ 2,435
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Equity 9
IDEX Transamerica Growth Opportunities
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS (86.5%)
Amusement & Recreation Services (0.8%)
Westwood One, Inc. (a) 30,185 $ 1,053
Automotive (4.8%)
Gentex Corporation (a) (b) 210,000 6,342
Business Credit Institutions (2.5%)
Financial Federal Corporation (a) 150,000 3,360
Business Services (6.9%)
Moody's Corporation (b) 98,400 4,752
Robert Half International Inc. (a) 242,955 3,955
Valassis Communications, Inc. (a) (b) 17,350 462
Chemicals & Allied Products (0.9%)
Praxair, Inc. 5,795 337
Smith International, Inc. (a) 23,390 832
Commercial Banks (0.6%)
M&T Bank Corporation 8,675 733
Communication (6.4%)
Echostar Communications
Corporation-Class A (a) (b) 68,285 2,046
Global Payments Inc. 210,000 6,512
Computer & Data Processing Services (8.3%)
BARRA, Inc. (a) 137,000 4,473
SkillSoft PLC-ADR (a) 1,725,000 6,400
Educational Services (4.7%)
DeVRY Inc. (a) 272,000 6,294
Electronic & Other Electric Equipment (0.7%)
American Power Conversion Corporation (a) 63,635 991
Electronic Components & Accessories (0.3%)
TriQuint Semiconductor, Inc. (a) 125,000 439
Health Services (0.5%)
Quest Diagnostics Incorporated (a) (b) 10,875 650
Industrial Machinery & Equipment (1.3%)
Cymer, Inc. (a) (b) 38,000 1,085
Graco Inc. 6,000 184
SPX Corporation (a) 12,605 426
Instruments & Related Products (0.7%)
Millipore Corporation (a) 27,420 936
Lumber & Other Building Materials (0.2%)
Fastenal Company (b) 6,180 214
Management Services (5.5%)
Paychex, Inc. 47,968 1,494
ServiceMaster Company (The) 650,000 5,883
Manufacturing Industries (2.1%)
International Game Technology (a) 32,935 $ 2,842
Medical Instruments & Supplies (0.8%)
Bard, (C.R.) Inc. 17,705 1,122
Metal Cans & Shipping Containers (1.2%)
Ball Corporation 28,575 1,605
Oil & Gas Extraction (5.5%)
Devon Energy Corporation 17,208 813
EOG Resources, Inc. 175,000 6,542
Paper & Allied Products (2.3%)
Pactiv Corporation (a) 150,000 3,078
Paperboard Containers & Boxes (2.1%)
Packaging Corporation of America (a) 145,600 2,739
Personal Services (1.5%)
Weight Watchers International, Inc. (a) (b) 43,000 2,020
Pharmaceuticals (4.0%)
Techne Corporation (a) (b) 240,000 5,330
Printing & Publishing (0.5%)
McClatchy Company (The) 10,835 635
Radio & Television Broadcasting (0.6%)
Entercom Communications Corp. (a) 17,130 832
Radio, Television & Computer Stores (4.9%)
RadioShack Corporation (b) 275,000 6,520
Railroads (0.5%)
Canadian National Railway Company 12,515 609
Retail Trade (0.7%)
Staples, Inc. (a) 51,380 978
Security & Commodity Brokers (4.6%)
BlackRock, Inc. (a) 111,000 5,047
T. Rowe Price Group, Inc. (b) 36,235 1,106
Textile Mill Products (1.0%)
Mohawk Industries, Inc. (a) 24,895 1,381
Transportation & Public Utilities (8.4%)
C.H. Robinson Worldwide, Inc. 151,000 5,555
Expeditors International of Washington, Inc. 150,000 5,454
Trucking & Warehousing (0.7%)
CNF Transportation Inc. 31,310 950
---------
Total Common Stocks (cost: $107,722) 115,011
---------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Growth Opportunities 1
IDEX Transamerica Growth Opportunities
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (14.5%)
Bank Notes (0.8%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 1,101 $ 1,101
Euro Dollar Overnight (1.5%)
Bank of Montreal
1.34%, due 05/01/2003 751 751
BNP Paribas SA
1.24%, due 05/06/2003 352 352
Royal Bank of Canada
1.35%, due 05/01/2003 881 881
Euro Dollar Term (4.4%)
American Express Centurion Bank
1.28%, due 05/30/2003 1,762 1,762
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 441 441
Credit Agricole Indosuez
1.27%, due 05/12/2003 132 132
1.26%, due 06/24/2003 881 881
Danske Bank A/S
1.25%, due 05/07/2003 1,101 1,101
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 441 441
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 1,101 1,101
Medium Term Notes (0.5%)
Parkland (USA) LLC
1.31%, due 11/26/2003 661 661
Money Market Funds (5.8%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 3,525 3,525
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 4,186 4,186
Promissory Notes (1.2%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 1,542 1,542
Repurchase Agreements (0.3%)
Merrill Lynch & Co., Inc. (c)
1.42%, due 05/01/2003 441 441
---------
Total Security Lending Collateral (cost: $19,299) 19,299
---------
Total Investment Securities (cost: $127,021) $ 134,310
=========
SUMMARY:
Investments, at market value 101.0% $ 134,310
Liabilities in excess of other assets (1.0)% (1,304)
--------- ---------
Net assets 100.0% $ 133,006
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$18,622.
(c) Cash collateral for Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $449.
DEFINITIONS:
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Growth Opportunities 2
IDEX Transamerica Growth Opportunities
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $127,021)
(including $18,622 of securities loaned) $ 134,310
Cash 19,188
Receivables:
Shares of beneficial interest sold 178
Interest 6
Dividends 81
Due from investment adviser 53
Other 34
---------
153,850
---------
Liabilities:
Investment securities purchased 1,108
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 103
Distribution fees 75
Transfer agent fees and expenses 196
Payable for securities on loan 19,299
Other 63
---------
20,844
---------
Net Assets $ 133,006
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 458,772
Accumulated net investment income (loss) (951)
Accumulated net realized gain (loss) from investments (332,104)
Net unrealized appreciation (depreciation) of
investments 7,289
---------
Net Assets $ 133,006
=========
Shares Outstanding:
Class A 13,872
Class B 9,675
Class C 1,810
Class L 105
Class M 1,909
Net Asset Value Per Share:
Class A $ 4.92
Class B 4.80
Class C 4.80
Class L 4.80
Class M 4.82
Maximum Offering Price Per Share (1):
Class A $ 5.21
Class M 4.87
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 18
Dividends 137
Income from loaned securities-net 2
---------
157
---------
Expenses:
Management and advisory fees 233
Transfer agent fees and expenses 215
Custody fees 10
Administration fees 18
Registration fees 59
Trustees fees and expenses 3
Professional fees 37
Other 14
Distribution and service fees:
Class A 56
Class B 94
Class C 19
Class L 1
Class M 16
---------
Total Expenses 775
Less reimbursements by the investment adviser (181)
---------
Net Expenses 594
---------
Net Investment Income (Loss) (437)
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (10,343)
Net unrealized appreciation (depreciation)
on investment securities 7,893
---------
Net Gain (Loss) on Investments (2,450)
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ (2,887)
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Growth Opportunities 3
IDEX Transamerica Growth Opportunities
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (437) $ (274)
Net realized gain (loss) on investment
securities (10,343) (1,294)
Net unrealized appreciation (depreciation)
on investment securities 7,893 162
--------- ---------
(2,887) (1,406)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold (1):
Class A 58,940 13,110
Class B 45,112 3,651
Class C 8,333 943
Class L 610 --
Class M 9,658 296
--------- ---------
122,653 18,000
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (3,016) (3,315)
Class B (2,943) (1,833)
Class C (822) (845)
Class L (117) --
Class M (924) (563)
--------- ---------
(7,822) (6,556)
--------- ---------
114,831 11,444
--------- ---------
Net increase (decrease) in net assets 111,944 10,038
--------- ---------
Net Assets:
Beginning of period 21,062 11,024
--------- ---------
End of period $ 133,006 $ 21,062
========= =========
Accumulated Net Investment Income (Loss) $ (951) $ 1
========= =========
Share Activity:
Shares issued during the period (1):
Class A 11,871 2,468
Class B 9,067 687
Class C 1,658 177
Class L 131 --
Class M 1,920 55
--------- ---------
24,647 3,387
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (639) (620)
Class B (647) (385)
Class C (182) (166)
Class L (26) --
Class M (204) (109)
--------- ---------
(1,698) (1,280)
--------- ---------
Net increase (decrease) in shares outstanding 22,949 2,107
========= =========
(1) Includes proceeds in connection with the acquisition on March 1, 2003. See
Note 1 on page 7.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Growth Opportunities 4
IDEX Transamerica Growth Opportunities
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 4.81 $ (0.03) $ 0.14 $ 0.11
10/31/2002 4.81 (0.06) 0.06 --
10/31/2001 8.70 (0.07) (3.82) (3.89)
10/31/2000 10.00 (0.02) (1.28) (1.30)
- --------------------------------------------------------------------------------
Class B 04/30/2003 4.70 (0.05) 0.15 0.10
10/31/2002 4.73 (0.11) 0.08 (0.03)
10/31/2001 8.66 (0.10) (3.83) (3.93)
10/31/2000 10.00 (0.06) (1.28) (1.34)
- --------------------------------------------------------------------------------
Class C 04/30/2003 4.70 (0.05) 0.15 0.10
10/31/2002 4.74 (0.10) 0.06 (0.04)
10/31/2001 8.66 (0.11) (3.81) (3.92)
10/31/2000 10.00 (0.06) (1.28) (1.34)
- --------------------------------------------------------------------------------
Class L 04/30/2003 4.62 (0.04) 0.22 0.18
- --------------------------------------------------------------------------------
Class M 04/30/2003 4.72 (0.05) 0.15 0.10
10/31/2002 4.75 (0.10) 0.07 (0.03)
10/31/2001 8.67 (0.10) (3.82) (3.92)
10/31/2000 10.00 (0.05) (1.28) (1.33)
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 4.92
-- -- -- 4.81
-- -- -- 4.81
-- -- -- 8.70
- -----------------------------------------------------------
Class B -- -- -- 4.80
-- -- -- 4.70
-- -- -- 4.73
-- -- -- 8.66
- -----------------------------------------------------------
Class C -- -- -- 4.80
-- -- -- 4.70
-- -- -- 4.74
-- -- -- 8.66
- -----------------------------------------------------------
Class L -- -- -- 4.80
- -----------------------------------------------------------
Class M -- -- -- 4.82
-- -- -- 4.72
-- -- -- 4.75
-- -- -- 8.67
- -----------------------------------------------------------
Ratios/Supplemental Data
-------------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ------------
Class A 04/30/2003 2.29% $ 68,244 1.75% 2.37% (1.21)% 133.00%
10/31/2002 0.05 12,687 1.74 2.53 (1.35) 31.83
10/31/2001 (44.76) 3,807 1.55 2.83 (1.11) 58.64
10/31/2000 (12.96) 3,726 1.55 4.54 (1.23) 18.58
- ---------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 2.13 46,389 2.40 3.02 (1.86) 133.00
10/31/2002 (0.70) 5,897 2.39 3.18 (2.00) 31.83
10/31/2001 (45.35) 4,513 2.20 3.48 (1.76) 58.64
10/31/2000 (13.39) 4,366 2.20 5.19 (1.88) 18.58
- ---------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 2.13 8,678 2.40 3.02 (1.86) 133.00
10/31/2002 (0.70) 1,569 2.39 3.18 (2.00) 31.83
10/31/2001 (45.35) 1,530 2.20 3.48 (1.76) 58.64
10/31/2000 (13.39) 1,704 2.20 5.19 (1.88) 18.58
- ---------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 3.90 504 2.40 3.02 (1.86) 133.00
- ---------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 2.12 9,191 2.30 2.92 (1.76) 133.00
10/31/2002 (0.52) 909 2.29 3.08 (1.90) 31.83
10/31/2001 (45.26) 1,174 2.10 3.38 (1.66) 58.64
10/31/2000 (13.33) 2,090 2.10 5.09 (1.78) 18.58
- ---------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Growth Opportunities 5
IDEX Transamerica Growth Opportunities
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX Transamerica Growth Opportunities ("the Fund") commenced operations
on March 1, 2000. The inception date for the Fund's offering of share
Class L was November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Growth Opportunities 6
IDEX Transamerica Growth Opportunities
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Transamerica Growth Opportunities ("the
Fund"), part of IDEX Mutual Funds, began operations on March 1, 2000.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
On March 1, 2003, the Fund acquired all the net assets of IDEX Janus Capital
Appreciation, pursuant to a plan of reorganization approved by shareholders of
IDEX Janus Capital Appreciation on February 12, 2003. The acquisition was
accomplished by a tax-free exchange of 19,786 shares of the Fund for the 8,814
shares of IDEX Janus Capital Appreciation outstanding on February 28, 2003.
IDEX Janus Capital Appreciation's net assets at that date $88,560, including
$11,239 unrealized depreciation, were combined with those of the Fund. Proceeds
in connection with the acquisition were as follows:
Shares Amount
----------- -----------
Proceeds in connection with the
acquisition
(amounts except shares in thousands)
Class A 7,471,119 $ 33,925
Class B 8,782,161 38,948
Class C 1,584,680 7,034
Class L 63,181 280
Class M 1,885,406 8,373
--------
$ 88,560
========
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Directed Brokerage: The sub-adviser, to the extent consistent with the best
execution and usual commission rate policies and practices, may place security
transactions of the Fund with broker/dealers with which IDEX Mutual Funds has
established a Directed Brokerage Program. A Direct Brokerage Program is any
arrangement under which a broker/dealer applies a portion of the commissions
received by such broker/dealer on the security transactions to the payment of
operating expenses that would otherwise be borne by the Fund. In no event will
commissions paid by the Fund be used to pay expenses that would otherwise be
borne by any other funds within IDEX Mutual Funds, or by any other party.
Directed commissions during the six-months ended April 30, 2003, of $3 are
included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and
a liability for the return of the collateral. Securities on loan are to be
included in investment securities at market value on the Statement of Assets
and Liabilities and remain on the Schedule of Investments.
Loans of securities are required at all times to be secured by collateral at
least equal to 102% of the market value of the securities at inception of the
loan, and not less then 100% thereafter. The Fund may invest cash collateral in
short-term money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities
loans, the collateral and securities loaned remain subject to fluctuation in
market value. IBT marks to market securities loaned and the collateral each
business day. If additional collateral is due (at least $1), IBT collects
additional cash collateral from the borrowers. Although securities loaned will
be fully
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Growth Opportunities 7
IDEX Transamerica Growth Opportunities
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
collateralized at all times, IBT may experience delays in, or may be prevented
from, recovering the collateral on behalf of the Fund. The Fund may recall a
loaned security position at any time from the borrower through IBT. In the
event the borrower fails to timely return a recalled security, IBT may
indemnify the Fund by purchasing replacement securities for the Fund at its own
expense and claiming the collateral to fund such a purchase. IBT absorbs the
loss if the collateral value is not sufficient to cover the cost of the
replacement securities. If replacement securities are not available, IBT will
credit the equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a
sub-adviser to the Fund.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated break points:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.40% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 31
Retained by Underwriter 3
Contingent Sales Charges 33
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Growth Opportunities 8
IDEX Transamerica Growth Opportunities
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $1 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 67,581
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 63,422
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- ------------------------ ------------------
$ 26,589 October 31, 2008
207,096 October 31, 2009
84,704 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 127,897
==========
Unrealized Appreciation $ 11,144
Unrealized (Depreciation) (4,731)
----------
Net Unrealized Appreciation (Depreciation) $ 6,413
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Growth Opportunities 9
IDEX MUTUAL FUNDS
RESULTS OF SHAREHOLDER PROXY (unaudited)
Section 270.30d-1 under the Investment Company Act of 1940, as amended, titled,
"Reports to Stockholders of Management Companies," requires regulated
investment companies to report on all subject matters put to the vote of
shareholders and provide final results. Accordingly, IDEX Mutual Funds
solicited a vote by the shareholders for:
At a special meeting of shareholders held on February 12, 2003, the results of
the Proposal, was as follows:
IDEX Janus Capital Appreciation
Proposal 1: Approval of an Agreement and Plan of Reorganization.
For Against Abstentions/Broker Non-Votes
- ------------- --------- -----------------------------
86.47% 3.98% 9.55%
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Growth Opportunities 10
IDEX Transamerica Money Market
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (11.4%)
Fannie Mae
1.22%, due 05/21/2003 $ 1,700 $ 1,699
1.13%, due 06/04/2003 3,000 2,997
1.17%, due 09/24/2003 1,180 1,174
1.23%, due 09/30/2003 3,400 3,382
Federal Home Loan Bank
1.19%, due 06/06/2003 1,000 999
1.17%, due 06/27/2003 3,400 3,394
Freddie Mac
1.16%, due 06/19/2003 2,000 1,997
1.17%, due 06/19/2003 1,700 1,697
1.19%, due 07/21/2003 2,200 2,194
1.13%, due 07/28/2003 3,000 2,992
1.18%, due 09/11/2003 520 518
1.20%, due 10/30/2003 2,600 2,584
---------
Total Short-Term U.S. Government Obligations
(cost: $25,627) 25,627
---------
COMMERCIAL PAPER (84.8%)
Asset-Backed (15.6%)
Asset Securitization Cooperative
Corporation-144A
1.24%, due 05/02/2003 2,500 2,500
1.21%, due 05/05/2003 2,500 2,500
1.24%, due 05/21/2003 4,000 3,998
1.21%, due 06/23/2003 1,900 1,897
Ciesco LP-144A
1.23%, due 05/02/2003 1,000 1,000
1.24%, due 06/24/2003 1,200 1,198
1.21%, due 06/25/2003 700 699
Corporate Asset Funding Co., Inc.-144A
1.24%, due 05/27/2003 1,000 999
1.22%, due 06/04/2003 1,850 1,848
1.23%, due 06/04/2003 1,300 1,298
1.20%, due 06/09/2003 1,400 1,398
1.20%, due 09/15/2003 2,500 2,489
Delaware Funding Corporation-144A
1.25%, due 05/14/2003 1,148 1,147
1.23%, due 06/02/2003 2,000 1,998
Receivables Capital Corporation-144A
1.25%, due 05/20/2003 1,000 999
1.22%, due 06/06/2003 2,500 2,497
1.18%, due 06/12/2003 2,500 2,497
1.18%, due 06/16/2003 2,300 2,297
1.22%, due 06/19/2003 1,000 998
1.22%, due 06/20/2003 1,000 998
Beverages (5.0%)
Coca-Cola Company (The)
1.22%, due 05/15/2003 2,500 2,499
1.23%, due 05/15/2003 2,000 1,999
1.23%, due 05/16/2003 1,800 1,799
1.23%, due 05/16/2003 1,000 999
1.11%, due 06/13/2003 1,000 999
1.23%, due 06/13/2003 600 599
1.18%, due 06/27/2003 2,000 1,996
1.15%, due 06/27/2003 500 499
Business Credit Institutions (5.3%)
Caterpillar Financial Services Corporation
1.22%, due 06/12/2003 2,200 2,197
1.20%, due 06/30/2003 1,800 1,796
1.24%, due 07/15/2003 3,000 2,992
1.24%, due 07/15/2003 865 863
Export Development Canada
1.21%, due 05/08/2003 4,000 4,000
Chemicals & Allied Products (4.7%)
du Pont (E.I.) de Nemours and Company
1.22%, due 05/13/2003 2,000 1,999
1.11%, due 06/11/2003 400 399
1.22%, due 06/12/2003 2,000 1,997
1.17%, due 06/13/2003 1,300 1,298
1.17%, due 06/17/2003 2,000 1,997
1.18%, due 07/08/2003 3,000 2,993
Commercial Banks (18.1%)
Abbey National North America LLC
1.25%, due 05/12/2003 2,000 1,999
1.25%, due 05/19/2003 2,400 2,399
1.25%, due 05/19/2003 2,000 1,999
1.25%, due 05/19/2003 2,000 1,999
1.14%, due 06/10/2003 3,000 2,996
Toronto Dominion Holdings (USA), Inc.
1.25%, due 05/12/2003 1,000 1,000
1.30%, due 05/30/2003 3,700 3,696
1.29%, due 06/19/2003 2,000 1,996
1.21%, due 06/24/2003 2,000 1,996
1.23%, due 07/21/2003 2,300 2,294
UBS Finance (Delaware) LLC
1.19%, due 05/22/2003 1,100 1,099
1.18%, due 05/27/2003 2,800 2,798
1.18%, due 06/02/2003 1,000 999
1.16%, due 06/13/2003 650 649
1.12%, due 07/17/2003 2,700 2,694
1.12%, due 07/18/2003 2,000 1,995
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Money Market 1
IDEX Transamerica Money Market
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Commercial Banks (continued)
Wells Fargo & Company
1.21%, due 05/28/2003 $ 2,000 $ 1,998
1.21%, due 06/02/2003 1,200 1,199
1.21%, due 06/04/2003 3,000 2,997
1.21%, due 06/09/2003 1,000 999
1.20%, due 06/09/2003 1,000 999
Computer & Office Equipment (4.6%)
International Business Machines Corporation
1.20%, due 07/23/2003 1,000 997
1.25%, due 09/04/2003 2,400 2,389
1.25%, due 09/05/2003 2,000 1,991
1.24%, due 09/08/2003 5,000 4,979
Electronic & Other Electric Equipment (0.4%)
Emerson Electric Co.-144A
1.20%, due 05/05/2003 1,000 1,000
Food & Kindred Products (0.4%)
Unilever Capital Corporation-144A
1.19%, due 05/01/2003 800 800
Insurance (1.4%)
USAA Capital Corporation
1.23%, due 05/14/2003 3,200 3,199
Life Insurance (5.1%)
AIG Funding, Inc.
1.24%, due 05/13/2003 2,000 1,999
1.26%, due 06/03/2003 4,000 3,996
1.10%, due 07/09/2003 1,500 1,497
1.10%, due 07/10/2003 1,500 1,497
1.23%, due 08/11/2003 2,500 2,491
Paper & Allied Products (1.2%)
Minnesota Mining & Manufacturing Company
1.23%, due 05/29/2003 2,800 2,797
Personal Credit Institutions (9.9%)
General Electric Capital Corporation
1.27%, due 05/13/2003 2,000 1,999
1.27%, due 05/14/2003 1,900 1,899
1.19%, due 06/24/2003 1,000 998
1.17%, due 06/25/2003 2,000 1,996
1.22%, due 07/07/2003 700 698
1.24%, due 10/03/2003 2,000 1,989
1.25%, due 10/03/2003 1,000 995
1.23%, due 10/06/2003 1,000 995
Toyota Motor Credit Corporation -144A
1.15%, due 05/09/2003 3,000 2,999
1.20%, due 06/05/2003 3,000 2,997
1.21%, due 06/06/2003 2,400 2,397
1.20%, due 06/18/2003 1,800 1,797
1.21%, due 06/18/2003 460 459
Petroleum Refining (3.7%)
ChevronTexaco Corporation
1.19%, due 05/09/2003 3,900 3,899
1.19%, due 05/16/2003 2,000 1,999
1.21%, due 05/20/2003 2,500 2,498
Public Administration (5.9%)
Canadian Wheat Board
1.20%, due 06/11/2003 2,100 2,097
1.23%, due 06/11/2003 100 100
1.25%, due 06/17/2003 500 499
1.16%, due 07/02/2003 2,000 1,996
1.13%, due 07/07/2003 1,200 1,197
1.22%, due 07/22/2003 1,000 997
1.11%, due 07/29/2003 2,700 2,693
1.24%, due 08/14/2003 1,000 996
Province of Ontario
1.31%, due 06/05/2003 2,700 2,697
Security & Commodity Brokers (3.5%)
Goldman Sachs Group, Inc. (The)
1.27%, due 07/15/2003 1,000 997
1.16%, due 08/18/2003 3,000 2,989
1.16%, due 08/19/2003 1,000 996
Merrill Lynch & Co., Inc.
1.10%, due 06/20/2003 3,000 2,995
---------
Total Commercial Paper (cost: $191,470) 191,470
---------
CERTIFICATES OF DEPOSITS (3.8%)
Canadian Imperial Bank of Commerce
1.21%, due 07/16/2003 900 900
1.29%, due 05/06/2003 4,000 4,000
1.22%, due 06/18/2003 1,500 1,500
1.22%, due 06/25/2003 1,600 1,600
1.25%, due 07/07/2003 500 500
---------
Total Certificates of Deposits (cost: $8,500) 8,500
---------
Total Investment Securities (cost: $225,597) $ 225,597
=========
SUMMARY:
Investments, at market value 100.0% $ 225,597
Other assets in excess of liabilities 0.0% 5
--------- ---------
Net assets 100.0% $ 225,602
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Money Market 2
IDEX Transamerica Money Market
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $225,597) $ 225,597
Cash 101
Receivables:
Shares of beneficial interest sold 1,213
Interest 20
Due from investment adviser 11
Other 7
---------
226,949
---------
Liabilities:
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 1,088
Distribution fees 93
Transfer agent fees and expenses 98
Other 68
---------
1,347
---------
Net Assets $ 225,602
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 225,517
Undistributed net investment income (loss) 85
Undistributed net realized gain (loss) from investments --
---------
Net Assets $ 225,602
=========
Shares Outstanding:
Class A 124,271
Class B 75,047
Class C 17,110
Class L 1,937
Class M 7,232
Net Asset Value Per Share:
Class A $ 1.00
Class B 1.00
Class C 1.00
Class L 1.00
Class M 1.00
Maximum Offering Price Per Share (1):
Class M $ 1.01
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes A, B, C, and L shares
represents offering price. The redemption price for Classes B, L, and M shares
equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 1,597
---------
1,597
---------
Expenses:
Management and advisory fees 469
Transfer agent fees and expenses 334
Custody fees 18
Administration fees 13
Registration fees 75
Trustees fees and expenses 11
Professional fees 22
Other 52
Distribution and service fees:
Class A 221
Class B 316
Class C 81
Class L 4
Class M 35
---------
Total Expenses 1,651
Less reimbursements by the investment adviser (431)
---------
Net Expenses 1,220
---------
Net Investment Income (Loss) 377
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities 1
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 378
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Money Market 3
IDEX Transamerica Money Market
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002 (a)
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 377 $ 661
Net realized gain (loss) on investment
securities 1 --
--------- ---------
378 661
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A (304) (483)
Class B (53) (123)
Class C (13) (36)
Class L (1) --
Class M (6) (19)
--------- ---------
(377) (661)
--------- ---------
From net realized gains:
Class A (1) --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
(1) --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 129,773 299,057
Class B 29,768 154,591
Class C 11,476 42,694
Class L 3,735 --
Class M 4,279 23,062
--------- ---------
179,031 519,404
--------- ---------
Dividends and distributions reinvested:
Class A 311 400
Class B 58 103
Class C 15 31
Class L -- --
Class M 7 16
--------- ---------
391 550
--------- ---------
Cost of shares redeemed:
Class A (137,763) (167,508)
Class B (36,461) (73,011)
Class C (14,520) (22,585)
Class L (1,798) --
Class M (6,911) (13,217)
--------- ---------
(197,453) (276,321)
--------- ---------
(18,031) 243,633
--------- ---------
Net increase (decrease) in net assets (18,031) 243,633
--------- ---------
Net Assets:
Beginning of period 243,633 --
--------- ---------
End of period $ 225,602 $ 243,633
========= =========
Undistributed Net Investment Income (Loss) $ 85 $ 85
========= =========
Share Activity:
Shares issued during the period:
Class A 129,773 299,058
Class B 29,767 154,591
Class C 11,476 42,693
Class L 3,735 --
Class M 4,278 23,059
--------- ---------
179,029 519,401
--------- ---------
Shares issued-reinvested from distributions:
Class A 311 400
Class B 58 103
Class C 15 31
Class L -- --
Class M 7 16
--------- ---------
391 550
--------- ---------
Shares redeemed during the period:
Class A (137,763) (167,508)
Class B (36,461) (73,011)
Class C (14,520) (22,585)
Class L (1,798) --
Class M (6,911) (13,217)
--------- ---------
(197,453) (276,321)
--------- ---------
Net increase (decrease) in shares outstanding (18,033) 243,630
========= =========
(a) Commenced operations on March 1, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Money Market 4
IDEX Transamerica Money Market
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (c)(f) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 1.00 $ -- $ -- $ --
10/31/2002 1.00 0.01 -- 0.01
- -------------------------------------------------------------------------------
Class B 04/30/2003 1.00 -- -- --
10/31/2002 1.00 -- -- --
- -------------------------------------------------------------------------------
Class C 04/30/2003 1.00 -- -- --
10/31/2002 1.00 -- -- --
- -------------------------------------------------------------------------------
Class L 04/30/2003 1.00 -- -- --
- -------------------------------------------------------------------------------
Class M 04/30/2003 1.00 -- -- --
10/31/2002 1.00 -- -- --
- -------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 1.00
(0.01) -- (0.01) 1.00
- -----------------------------------------------------------
Class B -- -- -- 1.00
-- -- -- 1.00
- -----------------------------------------------------------
Class C -- -- -- 1.00
-- -- -- 1.00
- -----------------------------------------------------------
Class L -- -- -- 1.00
- -----------------------------------------------------------
Class M -- -- -- 1.00
-- -- -- 1.00
- -----------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss)
Period Total Period ----------------------- to Average
Ended Return (b) (000's) Net (d) Total (e) Net Assets (a)
------------ ------------ ------------- --------- ----------- ---------------
Class A 04/30/2003 0.24% $ 124,271 0.83% 1.20% 0.83%
10/31/2002 0.56 131,949 0.83 1.36 0.93
- --------------------------------------------------------------------------------------------
Class B 04/30/2003 0.07 75,047 1.29 1.66 1.29
10/31/2002 0.28 81,683 1.48 2.01 0.28
- --------------------------------------------------------------------------------------------
Class C 04/30/2003 0.07 17,110 1.29 1.66 1.29
10/31/2002 0.28 20,139 1.48 2.01 0.28
- --------------------------------------------------------------------------------------------
Class L 04/30/2003 0.07 1,937 1.29 1.66 1.29
- --------------------------------------------------------------------------------------------
Class M 04/30/2003 0.07 7,237 1.19 1.56 1.18
10/31/2002 0.30 9,862 1.38 1.91 0.38
- --------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Money Market 5
IDEX Transamerica Money Market
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(c) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2002, and 04/30/2003.
(d) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(e) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(f) IDEX Transamerica Money Market ("the Fund") commenced operations on March
1, 2002. The inception date for the Fund's offering of share Class L was
November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Money Market 6
IDEX Transamerica Money Market
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Transamerica Money Market ("the Fund"),
part of IDEX Mutual Funds, began operations on March 1, 2002.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: The securities held by the Fund are valued on the basis of
amortized cost, which approximates market value.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a
sub-adviser to the Fund.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following rate:
0.40% of ANA
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
0.48% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
In order to maintain a positive yield to shareholders, the Fund has waived a
portion of the 12b-1 fees for all classes. The amount waived for the six-months
ended April 30, 2003, was $102.
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 8
Retained by Underwriter (3)
Contingent Sales Charges 493
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Money Market 7
IDEX Transamerica Money Market
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 2-(continued)
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $4 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, net operating losses and capital loss
carryforwards.
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 225,597
==========
Unrealized Appreciation $ --
Unrealized (Depreciation) --
----------
Net Unrealized Appreciation (Depreciation) $ --
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Money Market 8
IDEX Transamerica Value Balanced
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS (9.6%)
U.S. Treasury Bond (d)
3.63%, due 03/31/2004 $ 1,250 $ 1,278
3.50%, due 11/15/2006 (b) 1,250 1,303
4.00%, due 11/15/2012 (b) 200 203
---------
Total U.S. Government Obligations (cost: $2,655) 2,784
---------
U.S. GOVERNMENT AGENCY OBLIGATIONS (4.5%)
Freddie Mac-Gold Pool
7.00%, due 10/01/2028 406 428
6.50%, due 04/01/2029 423 442
Ginnie Mae-FHA/VA Pool
6.50%, due 10/15/2027 421 444
---------
Total U.S. Government Agency Obligations
(cost: $1,317) 1,314
---------
CORPORATE DEBT SECURITIES (20.1%)
Amusement & Recreation Services (0.9%)
Disney (Walt) Company (The)
4.88%, due 07/02/2004 250 258
Business Credit Institutions (0.9%)
Deere (John) Capital Corporation
3.90%, due 01/15/2008 250 255
Chemicals & Allied Products (0.9%)
Dow Chemical Company (The)
5.25%, due 05/14/2004 250 258
Commercial Banks (2.4%)
Abbey National PLC (f)
7.35%, due 10/29/2049 250 277
CS First Boston-144A (g)
7.90%, due 05/01/2007 125 139
Korea Development Bank (The) (b)
5.50%, due 11/13/2012 250 257
Computer & Office Equipment (0.9%)
Hewlett-Packard Company
5.50%, due 07/01/2007 250 269
Department Stores (0.5%)
J.C. Penney Company, Inc.
7.40%, due 04/01/2037 150 156
Electric Services (1.9%)
AEP Texas Central Co.-144A
6.65%, due 02/15/2033 250 270
TXU Energy Company LLC-144A
7.00%, due 03/15/2013 250 276
Electric, Gas & Sanitary Services (0.9%)
NiSource Finance Corporation
6.15%, due 03/01/2013 250 271
Health Services (0.9%)
HCA Inc.
7.13%, due 06/01/2006 $ 250 $ 269
Holding & Other Investment Offices (1 8%)
Duke Realty Corporation
7.30%, due 06/30/2003 250 252
EOP Operating Limited Partnership
8.38%, due 03/15/2006 250 285
Insurance (0.9%)
St. Paul Companies, Inc. (The)
5.75%, due 03/15/2007 250 265
Motion Pictures (1.1%)
AOL Time Warner Inc.
9.13%, due 01/15/2013 250 306
Personal Credit Institutions (0.9%)
General Motors Acceptance Corporation
6.75%, due 01/15/2006 250 264
Petroleum Refining (0.4%)
Premcor Refining Group, Inc. (The)-144A
9.25%, due 02/01/2010 100 110
Printing & Publishing (1.0%)
News Corporation Limited (The)
7.75%, due 12/01/2045 250 284
Radio & Television Broadcasting (0.9%)
USA Interactive
7.00%, due 01/15/2013 250 275
Security & Commodity Brokers (0.9%)
Bear Stearns Companies Inc. (The)
5.70%, due 11/15/2014 125 133
Goldman Sachs Group, Inc. (The)
6.60%, due 01/15/2012 125 141
Telecommunications (2.0%)
AT&T Wireless Services, Inc.
8.75%, due 03/01/2031 250 311
Sprint Capital Corporation
5.88%, due 05/01/2004 250 256
---------
Total Corporate Debt Securities (cost: $5,496) 5,837
---------
Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS (59.1%)
Air Transportation (0.9%)
FedEx Corporation (d) 4,500 $ 269
Amusement & Recreation Services (3.4%)
Disney (Walt) Company (The) 52,200 974
Chemicals & Allied Products (2.2%)
du Pont (E.I.) de Nemours and Company 15,000 638
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Value Balanced 1
IDEX Transamerica Value Balanced
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Commercial Banks (9.6%)
Bank of America Corporation (d) 6,000 $ 444
FleetBoston Financial Corporation 61,010 1,618
Morgan Chase & Co. (J.P.) (d) 10,000 294
Wachovia Corporation 11,000 420
Communication (2.5%)
Cox Communications, Inc.-Class A (a)(b) 22,300 738
Electronic & Other Electric Equipment (0.8%)
Cooper Industries, Inc.-Class A 6,000 223
Electronic Components & Accessories (2.3%)
Intel Corporation (d) 35,800 659
Food & Kindred Products (1.1%)
Altria Group, Inc. 10,000 308
Holding & Other Investment Offices (0 1%)
Host Marriott Corporation (a)(b) 5,000 39
Insurance (1.5%)
St. Paul Companies, Inc. (The) (b) 13,000 446
Life Insurance (2.2%)
John Hancock Financial Services, Inc. (d) 13,000 377
Lincoln National Corporation (d) 8,000 256
Lumber & Wood Products (1.1%)
Louisiana-Pacific Corporation (a)(d) 40,000 323
Motion Pictures (0.3%)
AOL Time Warner Inc. (a) 6,000 82
Petroleum Refining (0.9%)
ChevronTexaco Corporation 2,000 126
Exxon Mobil Corporation 4,200 148
Pharmaceuticals (8.9%)
Bristol-Myers Squibb Co. 34,450 880
Merck & Co., Inc. (d) 19,000 1,105
Schering-Plough Corporation 33,580 608
Savings Institutions (6.3%)
Washington Mutual, Inc. 46,400 1,833
Security & Commodity Brokers (5.3%)
Alliance Capital Management
Holding L.P. (d) 9,500 303
Jefferies Group, Inc. (d) 11,000 427
Raymond James Financial, Inc. 11,000 315
T. Rowe Price Group, Inc. 16,000 488
Telecommunications (5.6%)
ALLTEL Corporation 9,000 422
Sprint Corporation (FON Group) 91,100 1,049
Verizon Communications, Inc. 4,000 150
U.S. Government Agencies (4.1%)
Fannie Mae 16,500 1,194
---------
Total Common Stocks (cost: $19,504) 17,156
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (10.3%)
Bank Notes (0.6%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 171 $ 171
Euro Dollar Overnight (1.1%)
Bank of Montreal
1.34%, due 05/01/2003 117 117
BNP Paribas SA
1.24%, due 05/06/2003 55 55
Royal Bank of Canada
1.35%, due 05/01/2003 137 137
Euro Dollar Term (3.1%)
American Express Centurion Bank
1.28%, due 05/30/2003 274 274
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 69 69
Credit Agricole Indosuez
1.27%, due 05/12/2003 21 21
1.26%, due 06/24/2003 137 137
Danske Bank A/S
1.25%, due 05/07/2003 171 171
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 69 69
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 171 171
Medium Term Notes (0.4%)
Parkland (USA) LLC
1.31%, due 11/26/2003 103 103
Money Market Funds (4.1%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 548 548
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 650 650
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Value Balanced 2
IDEX Transamerica Value Balanced
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Promissory Notes (0.8%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 $ 240 $ 240
Repurchase Agreements (0.2%)
Merrill Lynch & Co., Inc. (c)
1.42%, due 05/01/2003 69 69
---------
Total Security Lending Collateral (cost: $3,002) 3,002
---------
Total Investment Securities (cost: $31,974) $ 30,093
=========
Contracts (h) Value
- -------------------------------------------------------------------------------
WRITTEN OPTIONS (-2.1%)
Covered Call Options (-0.5%)
Alliance Capital Management Holding L.P.
Call Strike $30.00
Expires 10/18/2003 60 $ (17)
Bank of America Corporation
Call Strike $75.00
Expires 05/17/2003 10 (1)
Bank of America Corporation
Call Strike $80.00
Expires 05/17/2003 5 (e)
FedEx Corporation
Call Strike $60.00
Expires 01/17/2004 35 (20)
Intel Corporation
Call Strike $20.00
Expires 07/19/2003 50 (4)
Intel Corporation
Call Strike $30.00
Expires 01/17/2004 50 (1)
Jeffries Group Inc. (New)
Call Strike $50.00
Expires 07/19/2003 60 (2)
John Hancock Financial Services, Inc.
Call Strike $40.00
Expires 01/17/2004 50 (1)
Lincoln National Corporation
Call Strike $30.00
Expires 10/18/2003 100 (34)
Louisiana-Pacific Corporation
Call Strike $10.00
Expires 08/16/2003 130 (3)
Merck & Co., Inc.
Call Strike $60.00
Expires 10/18/2003 40 (10)
Merck & Co., Inc.
Call Strike $75.00
Expires 01/17/2004 50 (1)
Morgan Chase & Co. (J.P.)
Call Strike $27.50
Expires 06/21/2003 100 (27)
Morgan Chase & Co. (J.P.)
Call Strike $30.00
Expires 01/17/2004 50 (14)
Put Options (-1.6%)
ALLTEL Corporation
Put Strike $40.00
Expires 01/17/2004 100 (21)
Altria Group, Inc.
Put Strike $30.00
Expires 01/22/2005 100 (63)
AOL Time Warner Inc.
Put Strike $7.50
Expires 01/17/2004 280 (6)
AOL Time Warner Inc.
Put Strike $10.00
Expires 01/17/2004 200 (12)
Disney (Walt) Company (The)
Put Strike $15.00
Expires 01/17/2004 150 (13)
Duke Energy Corporation
Put Strike $12.50
Expires 01/17/2004 250 (10)
Fannie Mae
Put Strike $70.00
Expires 01/17/2004 50 (26)
Fannie Mae
Put Strike $60.00
Expires 01/22/2005 35 (18)
FleetBoston Financial Corporation
Put Strike $20.00
Expires 01/17/2004 120 (9)
Heinz (H.J.) Company
Put Strike $40.00
Expires 01/17/2004 120 (90)
Microsoft Corporation
Put Strike $22.50
Expires 01/17/2004 200 (35)
Microsoft Corporation
Put Strike $15.00
Expires 01/22/2005 100 (9)
Raymond James Financial, Inc.
Put Strike $25.00
Expires 08/16/2003 100 (7)
Schering-Plough Corporation
Put Strike $20.00
Expires 01/17/2004 100 (33)
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Value Balanced 3
IDEX Transamerica Value Balanced
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Contracts (h) Value
- -------------------------------------------------------------------------------
Put Options (continued)
Sprint Corporation (FON Group)
Put Strike $15.00
Expires 01/17/2004 170 $ (70)
Verizon Communications, Inc.
Put Strike $40.00
Expires 07/19/2003 100 (37)
Wilmington Trust Corporation
Put Strike $25.00
Expires 08/16/2003 130 (7)
---------
Total Written Options (premium: $672) (601)
---------
SUMMARY:
Investments, at market value 103.6% $ 30,093
Written Options (2.1)% (601)
Liabilities in excess of other assets (1.5)% (437)
--------- ---------
Net assets 100.0% $ 29,055
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$2,913.
(c) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $70.
(d) At April 30, 2003, all or a portion of this security is segregated with
the custodian to cover margin requirements for open option contracts. The
market value of all securities segregated at April 30, 2003, is $5,036.
(e) Market value is less than $1.
(f) Securities are stepbonds. Abbey National PLC has a coupon rate 7.35% until
10/01/2006, thereafter the coupon rate will reset every 5 years at the
5-year current month treasury rate + 178BP.
(g) Securities are stepbonds. CS First Boston has a coupon rate 7.90% until
05/01/2007, thereafter the coupon rate will reset every 5 years at the
5-year current month treasury rate + 200BP if not called.
(h) Contract amounts are not in thousands.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Value Balanced 4
IDEX Transamerica Value Balanced
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $31,974)
(including $2,913 of securities loaned) $ 30,093
Cash 2,474
Receivables:
Shares of beneficial interest sold 4
Interest 139
Dividends 43
Due from investment adviser 4
Other 7
---------
32,764
---------
Liabilities:
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 27
Distribution fees 17
Transfer agent fees and expenses 31
Payable for securities on loan 3,002
Written options (premium: $672) 601
Other 31
---------
3,709
---------
Net Assets $ 29,055
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 35,916
Accumulated net investment income (loss) (20)
Accumulated net realized gain (loss) from investments
and options contracts (5,030)
Net unrealized appreciation (depreciation) of
investments and options contracts (1,811)
---------
Net Assets $ 29,055
=========
Shares Outstanding:
Class A 1,050
Class B 1,121
Class C 345
Class L 17
Class M 296
Net Asset Value Per Share:
Class A $ 10.29
Class B 10.26
Class C 10.26
Class L 10.26
Class M 10.27
Maximum Offering Price Per Share (1):
Class A $ 10.89
Class M 10.37
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 290
Dividends 266
Income from loaned securities-net 4
---------
560
---------
Expenses:
Management and advisory fees 110
Transfer agent fees and expenses 72
Custody fees 11
Administration fees 15
Registration fees 34
Trustees fees and expenses 1
Professional fees 12
Other 14
Distribution and service fees:
Class A 19
Class B 58
Class C 18
Class L --
Class M 14
---------
Total Expenses 378
Less reimbursements by the investment adviser (93)
---------
Net Expenses 285
---------
Net Investment Income (Loss) 275
---------
Net Realized Gain (Loss):
Net investment securities (278)
Net written options 269
---------
(9)
---------
Net Unrealized Appreciation (Depreciation):
Net investment securities 1,300
Net written options 501
---------
1,801
---------
Net Gain (Loss) on Investments and Options
Contracts 1,792
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 2,067
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Value Balanced 5
IDEX Transamerica Value Balanced
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ 275 $ 408
Net realized gain (loss) on investment
securities and options contracts (9) (5,021)
Net unrealized appreciation (depreciation)
on investment securities and options
contracts 1,801 (1,005)
--------- ---------
2,067 (5,618)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A (156) (192)
Class B (132) (118)
Class C (41) (37)
Class L (1) --
Class M (36) (35)
--------- ---------
(366) (382)
--------- ---------
From net realized gains:
Class A -- (425)
Class B -- (495)
Class C -- (123)
Class L -- --
Class M -- (147)
--------- ---------
-- (1,190)
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 1,219 3,760
Class B 1,004 3,507
Class C 284 3,421
Class L 172 --
Class M 324 462
--------- ---------
3,003 11,150
--------- ---------
Dividends and distributions reinvested:
Class A 149 592
Class B 127 599
Class C 40 155
Class L 1 --
Class M 35 177
--------- ---------
352 1,523
--------- ---------
Cost of shares redeemed:
Class A (2,223) (4,700)
Class B (2,331) (5,294)
Class C (994) (2,194)
Class L (9) --
Class M (551) (1,733)
--------- ---------
(6,108) (13,921)
--------- ---------
(2,753) (1,248)
--------- ---------
Net increase (decrease) in net assets (1,052) (8,438)
--------- ---------
Net Assets:
Beginning of period 30,107 38,545
--------- ---------
End of period $ 29,055 $ 30,107
========= =========
Accumulated Net Investment Income (Loss) $ (20) $ 71
========= =========
Share Activity:
Shares issued during the period:
Class A 122 339
Class B 102 311
Class C 29 302
Class L 18 --
Class M 32 42
--------- ---------
303 994
--------- ---------
Shares issued-reinvested from distributions:
Class A 15 52
Class B 13 52
Class C 4 14
Class L -- --
Class M 4 15
--------- ---------
36 133
--------- ---------
Shares redeemed during the period:
Class A (224) (444)
Class B (237) (508)
Class C (101) (213)
Class L (1) --
Class M (55) (159)
--------- ---------
(618) (1,324)
--------- ---------
Net increase (decrease) in shares outstanding (279) (197)
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Value Balanced 6
IDEX Transamerica Value Balanced
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 9.69 $ 0.11 $ 0.63 $ 0.74
10/31/2002 11.67 0.18 (1.65) (1.47)
10/31/2001 12.75 0.26 (0.51) (0.25)
10/31/2000 11.79 0.30 1.01 1.31
10/31/1999 13.14 0.27 (0.73) (0.46)
10/31/1998 13.19 0.22 0.67 0.89
- --------------------------------------------------------------------------------
Class B 04/30/2003 9.69 0.08 0.60 0.68
10/31/2002 11.66 0.11 (1.65) (1.54)
10/31/2001 12.74 0.18 (0.50) (0.32)
10/31/2000 11.78 0.23 1.01 1.24
10/31/1999 13.13 0.19 (0.73) (0.54)
10/31/1998 13.18 0.14 0.67 0.81
- --------------------------------------------------------------------------------
Class C 04/30/2003 9.69 0.08 0.60 0.68
10/31/2002 11.66 0.12 (1.66) (1.54)
10/31/2001 12.74 0.17 (0.49) (0.32)
10/31/2000 11.78 0.23 1.01 1.24
- --------------------------------------------------------------------------------
Class L 04/30/2003 9.71 0.06 0.60 0.66
- --------------------------------------------------------------------------------
Class M 04/30/2003 9.69 0.10 0.60 0.70
10/31/2002 11.66 0.11 (1.63) (1.52)
10/31/2001 12.74 0.19 (0.50) (0.31)
10/31/2000 11.78 0.24 1.01 1.25
10/31/1999 13.13 0.20 (0.73) (0.53)
10/31/1998 13.18 0.15 0.67 0.82
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
----------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ------------
Class A $ (0.14) $ -- $ (0.14) $ 10.29
(0.16) (0.35) (0.51) 9.69
(0.26) (0.57) (0.83) 11.67
(0.35) -- (0.35) 12.75
(0.24) (0.65) (0.89) 11.79
(0.21) (0.73) (0.94) 13.14
- ------------------------------------------------------------
Class B (0.11) -- (0.11) 10.26
(0.08) (0.35) (0.43) 9.69
(0.19) (0.57) (0.76) 11.66
(0.28) -- (0.28) 12.74
(0.16) (0.65) (0.81) 11.78
(0.13) (0.73) (0.86) 13.13
- ------------------------------------------------------------
Class C (0.11) -- (0.11) 10.26
(0.08) (0.35) (0.43) 9.69
(0.19) (0.57) (0.76) 11.66
(0.28) -- (0.28) 12.74
- ------------------------------------------------------------
Class L (0.11) -- (0.11) 10.26
- ------------------------------------------------------------
Class M (0.12) -- (0.12) 10.27
(0.10) (0.35) (0.45) 9.69
(0.20) (0.57) (0.77) 11.66
(0.29) -- (0.29) 12.74
(0.17) (0.65) (0.82) 11.78
(0.14) (0.73) (0.87) 13.13
- ------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 7.76% $ 10,803 1.55% 2.19% 1.55% 25.55%
10/31/2002 (13.20) 11,020 1.55 1.89 1.56 81.51
10/31/2001 (2.13) 13,880 1.55 1.95 2.04 49.85
10/31/2000 11.43 9,850 1.55 2.02 2.50 28.15
10/31/1999 (3.74) 12,377 1.66 1.85 2.12 82.20
10/31/1998 7.25 15,747 1.85 1.87 1.82 55.45
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 7.10 11,504 2.20 2.84 2.20 25.55
10/31/2002 (13.72) 12,038 2.20 2.54 0.91 81.51
10/31/2001 (2.74) 16,180 2.20 2.60 1.39 49.85
10/31/2000 10.76 9,193 2.20 2.67 1.85 28.15
10/31/1999 (4.36) 12,171 2.31 2.50 1.47 82.20
10/31/1998 6.56 14,679 2.50 2.52 1.17 55.45
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 7.10 3,539 2.20 2.84 2.20 25.55
10/31/2002 (13.72) 3,999 2.20 2.54 0.91 81.51
10/31/2001 (2.74) 3,619 2.20 2.60 1.39 49.85
10/31/2000 10.76 565 2.20 2.67 1.85 28.15
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 6.88 173 2.20 2.84 2.20 25.55
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 7.26 3,036 2.10 2.74 2.10 25.55
10/31/2002 (13.64) 3,050 2.10 2.44 1.01 81.51
10/31/2001 (2.65) 4,866 2.10 2.50 1.49 49.85
10/31/2000 10.86 2,868 2.10 2.57 1.95 28.15
10/31/1999 (4.26) 4,689 2.21 2.40 1.57 82.20
10/31/1998 6.67 7,342 2.40 2.42 1.27 55.45
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Value Balanced 7
IDEX Transamerica Value Balanced
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002, and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) The inception date for the Fund's offering of share classes C and L are as
follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Value Balanced 8
IDEX Transamerica Value Balanced
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX Transamerica Value Balanced ("the Fund"),
part of IDEX Mutual Funds, began operations on October 1, 1995.
In the normal course of business the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and
a liability for the return of the collateral. Securities on loan are included
in investment securities at market value on the Statement of Assets and
Liabilities and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities
loans, the collateral and securities loaned remain subject to fluctuation in
market value. IBT marks to market securities loaned and the collateral each
business day. If additional collateral is due (at least $1), IBT collects
additional cash collateral from the borrowers. Although securities loaned will
be fully collateralized at all times, IBT may experience delays in, or may be
prevented from, recovering the collateral on behalf of the Fund. The Fund may
recall a loaned security position at any time from the borrower through IBT. In
the event the borrower fails to timely return a recalled security, IBT may
indemnify the Fund by purchasing replacement securities for the Fund at its own
expense and claiming the collateral to fund such a purchase. IBT absorbs the
loss if the collateral value is not sufficient to cover the cost of the
replacement securities. If replacement securities are not available, IBT will
credit the equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amounts of collateral and market value of securities on loan are included in
the Statement of Assets and Liabilities as well as on the Schedule of
Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Option contracts: The Fund may enter into options contracts to manage exposure
to market fluctuations. Option contracts are valued at the average of the bid
and ask ("Mean Quote") established each day at the close of the board of trade
or exchange on which they are traded. The primary risks associated with options
are imperfect correlation between the change in market value of the securities
held and the prices of the options contracts; the possibility of an illiquid
market and inability of the counterparty to meet the contract terms. When the
Fund writes a covered call or put option, an amount equal to the premium
received
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Value Balanced 9
IDEX Transamerica Value Balanced
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
by the Fund is included in the Fund's Statement of Assets and Liabilities as an
asset and as an equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current value of the option
written.
The underlying face amounts of open option contracts at April 30, 2003, are
listed in the Schedule of Investments.
Transactions in written call and put options were as follows:
Premium Contracts*
--------- -----------
Balance at 10/31/2002 $635 2,785
Sales 515 2,425
Closing Buys (110) (350)
Expirations (247) (1,295)
Exercised (121) (470)
---- -----
Balance at 04/30/2003 $672 3,095
==== =====
*Contracts not in thousands
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a
sub-adviser to the Fund.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated break points:
0.75% of the first $500 million of ANA
0.65% of the next $500 million of ANA
0.60% of ANA over $1 billion
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.20% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 19
Retained by Underwriter 1
Contingent Sales Charges 17
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $3 for
deferred compensation to Trustees is included in Other liabilities.
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Value Balanced 10
IDEX Transamerica Value Balanced
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities ) for the six-months ended April 30, 2003, are as
follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 4,860
U.S. Government 2,361
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 6,154
U.S. Government 3,486
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforward is available to offset future realized capital
gains through the period listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 5,015 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 32,098
==========
Unrealized Appreciation $ 1,424
Unrealized (Depreciation) (3,429)
----------
Net Unrealized Appreciation (Depreciation) $ (2,005)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
Transamerica Value Balanced 11
IDEX T. Rowe Price Health Sciences
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS (95.9%)
Drug Stores & Proprietary Stores (3.2%)
Omnicare, Inc. 16,840 $ 447
Electronic & Other Electric Equipment (0.3%)
Wilson Greatbatch Technologies, Inc. (a) 1,200 39
Health Services (3.1%)
DaVita Inc. (a) 2,450 51
HCA Inc. (b) 2,900 93
Laboratory Corporation of America
Holdings (a) 6,700 197
Triad Hospitals, Inc. (a) 4,000 88
Instruments & Related Products (0.8%)
STAAR Surgical Company (a) 6,900 59
Waters Corporation (a) 2,100 50
Insurance (12.8%)
Anthem, Inc. (a) (b) 9,900 680
UnitedHealth Group Incorporated (b) 8,050 742
WellPoint Health Networks Inc. (a) (b) 4,850 367
Medical Instruments & Supplies (6.3%)
Advanced Neuromodulation Systems, Inc. (a) 2,800 117
Aspect Medical Sytems, Inc. (a) 9,100 35
Bard, (C.R.) Inc. 2,100 133
Baxter International Inc. (b) 920 21
Biomet, Incorporated (b) 2,210 67
Boston Scientific Corporation (a) (b) 6,100 263
Fischer Imaging Corporation (a) 3,880 16
Guidant Corporation (a) 400 16
St. Jude Medical, Inc. (a) (b) 2,800 147
Stryker Corporation 1,100 74
Pharmaceuticals (66.8%)
Abbott Laboratories 7,850 319
Abgenix, Inc. (a) 10,100 96
Actelion Ltd. (a) 970 62
Alexion Pharmaceuticals, Inc. (a) 4,080 54
Alkermes, Inc. (a) 19,260 192
Allergan, Inc. (b) 4,600 323
AmerisourceBergen Corporation (b) 1,500 87
Amgen Inc. (a) (b) 10,520 645
Amylin Pharmaceuticals, Inc. (a) 4,180 80
Andrx Corporation-Andrx Group (a) 1,300 21
AstraZeneca PLC-ADR 1,800 72
Barr Laboratories, Inc. (a) (b) 2,500 139
Biogen, Inc. (a) (b) 2,170 82
BioMarin Pharmaceutical Inc. (a) 2,700 30
BioSphere Medical, Inc. (a) 300 1
Biovail Corporation (a) 2,200 80
Cardinal Health, Inc. (b) 2,300 127
Cephalon, Inc. (a) (b) 11,440 467
Cubist Pharmaceuticals, Inc. (a) 7,300 67
CV Therapeutics, Inc. (a) 4,700 94
EPIX Medical, Inc. (a) 5,200 50
Esperion Therapeutics, Inc. (a) 5,530 63
Forest Laboratories, Inc. (a) (b) 7,500 387
Fujisawa Pharmaceutical Company Limited 1,600 27
Genentech, Inc. (a) 1,870 71
Gilead Sciences, Inc. (a) (b) 15,270 705
Human Genome Sciences, Inc. (a) 8,000 94
ICOS Corporation (a) 1,200 32
IDEC Pharmaceuticals Corporation (a) (b) 4,800 157
ImClone Systems Incorporated (a) (b) 7,790 142
Indevus Pharmacuticals, Inc. (a) 5,600 21
Invitrogen Corporation (a) 2,100 69
Johnson & Johnson 3,900 220
Ligand Pharmaceuticals Incorporated (a) 4,555 41
Lilly (Eli) and Company (b) 3,700 236
Medicines Company (The) (a) (b) 12,050 248
Medimmune, Inc. (a) (b) 13,120 463
Millennium Pharmaceuticals, Inc. (a) 9,200 101
Myriad Genetics, Inc. (a) 2,700 32
NeoRx Corporation (a) 4,600 11
Neurocrine Biosciences, Inc. (a) (b) 7,960 360
Noven Pharmaceuticals, Inc. (a) 5,750 55
Novo Nordisk A/S-Class B 500 18
NPS Pharmaceuticals, Inc. (a) 12,000 229
Onyx Pharmaceuticals, Inc. (a) 100 1
OSI Pharmaceuticals, Inc. (a) 2,630 55
Pfizer Inc. 21,080 648
Progenics Pharmaceuticals, Inc. (a) 1,600 16
Regeneron Pharmaceuticals, Inc. (a) 1,700 11
Salix Pharmaceuticals, Ltd. (a) 9,300 105
Sanofi-Synthelabo 2,300 137
Schering-Plough Corporation 5,080 92
Teva Pharmaceutical Industries Ltd.-
ADR (b) 5,440 254
Transkaryotic Therapies, Inc. (a) 6,300 38
Trimeris, Inc. (a) (b) 11,620 516
Tularik Inc. (a) 2,660 15
Vertex Pharmaceuticals Incorporated (a) 5,800 70
Vicuron Pharmaceuticals Inc.-144A 25 (c)
Vicuron Pharmaceuticals Inc. (a) 6,495 76
ViroPharma Incorporated (a) 3,033 8
Wyeth (b) 10,300 448
XOMA Ltd. (a) 1,663 8
Research & Testing Services (2.1%)
Affymetrix, Inc. (a) 2,300 43
deCODE genetics, Inc. (a) 7,000 15
Exelixis, Inc. (a) 17,280 147
Symyx Technologies, Inc. (a) 6,100 95
Retail Trade (0.5%)
Schein (Henry), Inc. (a) 1,700 73
---------
Total Common Stocks (cost: $12,647) 13,443
---------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Health Sciences 1
IDEX T. Rowe Price Health Sciences
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (1.8%)
U. S. Treasury Bill
1.12%, due 08/14/2003 $ 50 $ 50
U.S. Treasury Bill (b)
1.10%, due 08/21/2003 100 100
U.S. Treasury Bill (b)
1.12%, due 08/21/2003 99 99
---------
Total Short-Term U.S. Government
Obligations (cost: $249) 249
---------
Total Investment Securities (cost: $12,896) $ 13,692
=========
Contracts (d) Value
- -------------------------------------------------------------------------------
WRITTEN OPTIONS (-1.2%)
Covered Call Options (-1.0%)
Allergan, Inc.
Call Strike $70.00
Expires 07/19/2003 6 $ (2)
Allergan, Inc.
Call Strike $75.00
Expires 07/19/2003 5 (1)
AmerisourceBergen Corporation
Call Strike $55.00
Expires 08/16/2003 3 (2)
AmerisourceBergen Corporation
Call Strike $60.00
Expires 08/16/2003 7 (2)
Amgen Inc.
Call Strike $60.00
Expires 07/19/2003 33 (17)
Amgen Inc.
Call Strike $65.00
Expires 07/19/2003 26 (5)
Amgen Inc.
Call Strike $65.00
Expires 10/18/2003 15 (6)
Anthem, Inc.
Call Strike $70.00
Expires 09/20/2003 9 (4)
Barr Laboratories, Inc.
Call Strike $60.00
Expires 06/21/2003 14 (1)
Baxter International Inc.
Call Strike $25.00
Expires 01/17/2004 4 (1)
Biogen, Inc.
Call Strike $40.00
Expires 10/18/2003 11 (3)
Boston Scientific Corporation
Call Strike $47.50
Expires 06/21/2003 17 (2)
Cardinal Health, Inc.
Call Strike $60.00
Expires 09/20/2003 13 (3)
Cephalon, Inc.
Call Strike $35.00
Expires 05/17/2003 4 (2)
Cephalon, Inc.
Call Strike $45.00
Expires 08/16/2003 7 (1)
Forest Laboratories, Inc.
Call Strike $57.50
Expires 08/16/2003 7 (1)
Gilead Sciences, Inc.
Call Strike $45.00
Expires 05/17/2003 10 (2)
Gilead Sciences, Inc.
Call Strike $45.00
Expires 06/21/2003 8 (2)
Gilead Sciences, Inc.
Call Strike $45.00
Expires 08/16/2003 8 (3)
HCA Inc.
Call Strike $35.00
Expires 11/22/2003 4 (1)
IDEC Pharmaceuticals Corporation
Call Strike $35.00
Expires 07/19/2003 8 (1)
ImClone Systems Incorporated
Call Strike $22.50
Expires 08/16/2003 3 (c)
Lilly (Eli) and Company
Call Strike $65.00
Expires 07/19/2003 10 (2)
Medicines Company (The)
Call Strike $20.00
Expires 07/19/2003 9 (2)
Medimmune, Inc.
Call Strike $32.50
Expires 06/21/2003 3 (1)
Medimune, Inc.
Call Strike $35.00
Expires 06/21/2003 50 (12)
Medimmune, Inc.
Call Strike $37.50
Expires 09/20/2003 54 (14)
Neurocrine Biosciences, Inc.
Call Strike $45.00
Expires 06/21/2003 8 (2)
Neurocrine Biosciences, Inc.
Call Strike $50.00
Expires 08/16/2003 9 (1)
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Health Sciences 2
IDEX T. Rowe Price Health Sciences
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Contracts (d) Value
- -------------------------------------------------------------------------------
Covered Call Options (continued)
St. Jude Medical, Inc.
Call Strike $45.00
Expires 07/19/2003 9 $ (7)
Teva Pharmaceutical Industries Ltd.-ADR
Call Strike $45.00
Expires 09/20/2003 12 (5)
Trimeris, Inc.
Call Strike $45.00
Expires 05/17/2003 10 (1)
Trimeris, Inc.
Call Strike $45.00
Expires 07/19/2003 8 (2)
Trimeris, Inc.
Call Strike $50.00
Expires 07/19/2003 14 (1)
Trimeris, Inc.
Call Strike $50.00
Expires 10/18/2003 19 (4)
Trimeris, Inc.
Call Strike $55.00
Expires 10/18/2003 6 (1)
UnitedHealth Group Incorporated
Call Strike $95.00
Expires 05/17/2003 8 (1)
WellPoint Health Networks Inc.
Call Strike $80.00
Expires 07/19/2003 3 (1)
Wyeth
Call Strike $40.00
Expires 07/19/2003 17 (7)
Wyeth
Call Strike $40.00
Expires 10/18/2003 24 (13)
Put Options (-0.2%)
Allergan, Inc.
Put Strike $70.00
Expires 07/19/2003 9 (3)
Amgen Inc.
Put Strike $65.00
Expires 07/19/2003 3 (2)
Anthem, Inc.
Put Strike $70.00
Expires 09/20/2003 1 (1)
Baxter International Inc.
Put Strike $20.00
Expires 01/17/2004 5 (1)
Bristol-Myers Squibb Co.
Put Strike $25.00
Expires 01/17/2004 5 (1)
Bristol-Myers Squibb Co.
Put Strike $27.50
Expires 01/17/2004 1 (c)
Bristol-Myers Squibb Co.
Put Strike $30.00
Expires 01/17/2004 13 (7)
Forest Laboratories, Inc.
Put Strike $50.00
Expires 08/16/2003 5 (1)
Guidant Corporation
Put Strike $40.00
Expires 01/17/2004 12 (6)
Merck & Co., Inc.
Put Strike $55.00
Expires 01/17/2004 4 (1)
Schering-Plough Corporation
Put Strike $17.50
Expires 08/16/2003 7 (1)
WellPoint Health Networks Inc.
Put Strike $80.00
Expires 07/19/2003 3 (2)
---------
Total Written Options (premium: $127) (165)
---------
SUMMARY:
Investments, at market value 97.7% $ 13,692
Written options (1.2)% (165)
Other assets in excess of liabilities 3.5% 483
--------- ---------
Net assets 100.0% $ 14,010
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is segregated with the
custodian to cover margin requirements for open option contracts. The
market value of all securities segregated at April 30, 2003, is $2,535.
(c) Market value is less than $1.
(d) Contract amounts not in thousands.
DEFINITIONS:
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Health Sciences 3
IDEX T. Rowe Price Health Sciences
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $12,896) $ 13,692
Cash 1,042
Receivables:
Investment securities sold 115
Shares of beneficial interest sold 251
Dividends 3
Due from investment adviser 14
---------
15,117
---------
Liabilities:
Investment securities purchased 917
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 4
Distribution fees 4
Transfer agent fees and expenses 6
Written options (premium: $127) 165
Other 11
---------
1,107
---------
Net Assets $ 14,010
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 13,680
Accumulated net investment income (loss) (63)
Accumulated net realized gain (loss) from investments,
option contracts and foreign currency transactions (365)
Net unrealized appreciation (depreciation) of
investments and options contracts 758
---------
Net Assets $ 14,010
=========
Shares Outstanding:
Class A 1,360
Class B 151
Class C 63
Class L 4
Class M 22
Net Asset Value Per Share:
Class A $ 8.77
Class B 8.70
Class C 8.70
Class L 8.70
Class M 8.71
Maximum Offering Price Per Share (1):
Class A $ 9.28
Class M 8.80
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 1
Dividends 14
---------
15
---------
Expenses:
Management and advisory fees 38
Transfer agent fees and expenses 11
Custody fees 23
Administration fees 13
Registration fees 42
Professional fees 8
Other 2
Distribution and service fees:
Class A 11
Class B 4
Class C 2
Class L --
Class M 1
---------
Total Expenses 155
Less reimbursements by the investment adviser (77)
---------
Net Expenses 78
---------
Net Investment Income (Loss) (63)
---------
Net Realized Gain (Loss) on:
Net investment securities (244)
Net written options 50
Net foreign currency transactions (1)
---------
(195)
---------
Net Unrealized Appreciation (Depreciation) on:
Net investment securities 995
Net written options (25)
---------
970
---------
Net Gain (Loss) on Investments, Option Contracts
and Foreign Currency Transactions 775
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 712
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Health Sciences 4
IDEX T. Rowe Price Health Sciences
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002 (a)
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (63) $ (31)
Net realized gain (loss) on investment
securities, option contracts and foreign
currency transactions (195) (170)
Net unrealized appreciation (depreciation)
on investment securities and option
contracts 970 (212)
--------- ---------
712 (413)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 7,592 4,157
Class B 566 985
Class C 272 418
Class L 38 --
Class M 6 208
--------- ---------
8,474 5,768
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (85) (129)
Class B (77) (118)
Class C (53) (60)
Class L (7) --
Class M (1) (1)
--------- ---------
(223) (308)
--------- ---------
8,251 5,460
--------- ---------
Net increase (decrease) in net assets 8,963 5,047
--------- ---------
Net Assets:
Beginning of period 5,047 --
--------- ---------
End of period $ 14,010 $ 5,047
========= =========
Accumulated Net Investment Income (Loss) $ (63) $ --
========= =========
Share Activity:
Shares issued during the period:
Class A 911 474
Class B 69 106
Class C 33 44
Class L 5 --
Class M 1 21
--------- ---------
1,019 645
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (10) (15)
Class B (10) (14)
Class C (7) (7)
Class L (1) --
Class M -- --
--------- ---------
(28) (36)
--------- ---------
Net increase (decrease) in shares outstanding 991 609
========= =========
(a) Commenced operations on March 1, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Health Sciences 5
IDEX T. Rowe Price Health Sciences
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 8.28 $ (0.06) $ 0.55 $ 0.49
10/31/2002 10.00 (0.08) (1.64) (1.72)
- --------------------------------------------------------------------------------
Class B 04/30/2003 8.24 (0.09) 0.55 0.46
10/31/2002 10.00 (0.11) (1.65) (1.76)
- --------------------------------------------------------------------------------
Class C 04/30/2003 8.24 (0.09) 0.55 0.46
10/31/2002 10.00 (0.12) (1.64) (1.76)
- --------------------------------------------------------------------------------
Class L 04/30/2003 8.10 (0.08) 0.68 0.60
- --------------------------------------------------------------------------------
Class M 04/30/2003 8.24 (0.10) 0.57 0.47
10/31/2002 10.00 (0.12) (1.64) (1.76)
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 8.77
-- -- -- 8.28
- -----------------------------------------------------------
Class B -- -- -- 8.70
-- -- -- 8.24
- -----------------------------------------------------------
Class C -- -- -- 8.70
-- -- -- 8.24
- -----------------------------------------------------------
Class L -- -- -- 8.70
- -----------------------------------------------------------
Class M -- -- -- 8.71
-- -- -- 8.24
- -----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 5.92% $ 11,929 1.95% 3.97% (1.53)% 17.88%
10/31/2002 (17.20) 3,804 1.95 8.76 (1.51) 42.79
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 5.58 1,311 2.60 4.62 (2.18) 17.88
10/31/2002 (17.60) 758 2.60 9.41 (2.16) 42.79
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 5.58 546 2.60 4.62 (2.18) 17.88
10/31/2002 (17.60) 308 2.60 9.41 (2.16) 42.79
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 7.41 32 2.60 4.62 (2.18) 17.88
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 5.70 192 2.50 4.52 (2.08) 17.88
10/31/2002 (17.60) 177 2.50 9.31 (2.06) 42.79
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Health Sciences 6
IDEX T. Rowe Price Health Sciences
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX T. Rowe Price Health Sciences ("the Fund") commenced operations on
March 1, 2002. The inception date for the Fund's offering of share Class L
was November 11, 2002.
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Health Sciences 7
IDEX T. Rowe Price Health Sciences
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX T. Rowe Price Health Sciences ("the Fund"),
part of IDEX Mutual Funds, began operations on March 1, 2002. The Fund is
"non-diversified" under the 1940 Act.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Foreign currency denominated investments: The accounting records of the Fund
are maintained in U.S. dollars. Securities and other assets and liabilities
denominated in foreign currencies are translated into U.S. dollars at the
closing exchange rate each day. The cost of foreign securities is translated at
the exchange rate in effect when the investment was acquired. The Fund combines
fluctuations from currency exchange rates and fluctuations in market value when
computing net realized and unrealized gains or losses from investments. Net
foreign currency gains and losses resulting from changes in exchange rates
include: 1) foreign currency fluctuations between trade date and settlement
date of investment security transactions; 2) gains and losses on forward
foreign currency contracts; and 3) the difference between the receivable
amounts of interest and dividends recorded in the accounting records in U.S.
dollars and the amounts actually received. Foreign currency denominated assets
may involve risks not typically associated with domestic transactions,
including unanticipated movements in exchange currency rates, the degree of
government supervision and regulation of security markets, and the possibility
of political or economic instability.
Forward foreign currency contracts: The Fund may enter into forward foreign
currency contracts to hedge against exchange rate risk arising from investments
in securities denominated in foreign currencies. Contracts are valued at the
contractual forward rate and are marked to market daily, with the change in
market value recorded as an unrealized gain or loss. When the contracts are
closed a realized gain or loss is incurred. Risks may arise from changes in
market value of the underlying currencies and from the possible inability of
counterparties to meet the terms of their contracts.
Option contracts: The Fund may enter into option contracts to manage exposure
to market, interest rate or currency fluctuations. Option contracts are valued
at the average of the bid and ask ("Mean Quote") established each day at the
close of the board of trade or exchange on which they are traded. The primary
risks associated with options are imperfect correlation between the change in
market value of the securities held and the prices of futures options; the
possibility of an illiquid market and inability of the counterparty to meet the
contract terms. When the Fund writes a covered call or put option, an amount
equal to the premium received by the Fund is included in the Fund's Statement
of Assets and Liabilities as an asset and as an equivalent liability. The
amount of the liability is subsequently marked-to-market to reflect the current
value of the option written.
The underlying face amounts of any open option contracts at April 30, 2003, are
listed in the Schedule of Investments.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Health Sciences 8
IDEX T. Rowe Price Health Sciences
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
Transactions in written options were as follows:
Premium Contracts*
--------- -----------
Balance at 10/31/2002 $ 27 168
Sales 275 1,387
Closing Buys (147) (748)
Expirations (28) (244)
---- ---
Balance at 04/30/2003 $127 563
==== ===
*Contracts not in thousands.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated break points:
1.00% of the first $500 million of ANA
0.95% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.60% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 5
Retained by Underwriter 1
Contingent Sales Charges 1
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 9,209
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 1,388
U.S. Government --
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Health Sciences 9
IDEX T. Rowe Price Health Sciences
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforward is available to offset future realized capital
gains through the period listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 68 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 13,122
==========
Unrealized Appreciation $ 1,037
Unrealized (Depreciation) (467)
----------
Net Unrealized Appreciation (Depreciation) $ 570
==========
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Health Sciences 10
IDEX T. Rowe Price Small Cap
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS (98.2%)
Air Transportation (1.6%)
Atlantic Coast Airlines Holdings, Inc. (a) 8,300 $ 69
ExpressJet Holdings, Inc. (a) 3,200 37
Frontier Airlines, Inc. (a) (b) 20,300 123
SkyWest, Inc. 4,900 63
Amusement & Recreation Services (0.7%)
Alliance Gaming Corporation (a) 1,000 16
Argosy Gaming Company (a) 1,100 22
International Speedway
Corporation-Class A 500 20
Mandalay Resort Group (a) 900 24
Westwood One, Inc. (a) 1,400 49
Apparel & Accessory Stores (1.4%)
American Eagle Outfitters, Inc. (a) 1,500 26
AnnTaylor, Inc. (a) 1,650 39
Christopher & Banks Corporation (a) 3,500 88
Pacific Sunwear of California, Inc. (a) (b) 2,700 62
Ross Stores, Inc. 900 34
Talbots, Inc. (The) 400 11
Apparel Products (0.9%)
Too, Inc. (a) 9,400 174
Auto Repair, Services & Parking (0.3%)
Dollar Thrifty Automotive Group, Inc. (a) 3,600 59
Automotive (0.6%)
Gentex Corporation (a) 3,100 94
Oshkosh Truck Corporation 200 11
Automotive Dealers & Service Stations (1.4%)
Casey's General Stores, Inc. 3,100 40
Copart, Inc. (a) 1,800 15
Group 1 Automotive, Inc. (a) 2,600 72
O'Reilly Automotive, Inc. (a) 3,900 116
Sonic Automotive, Inc. (a) 1,100 19
Beverages (0.3%)
Boston Beer Company, Inc. (The)-
Class A (a) 4,200 55
Business Services (4.3%)
BISYS Group, Inc. (The) (a) 4,700 79
Catalina Marketing Corporation (a) 1,400 25
ChoicePoint Inc. (a) 3,900 138
Digital Insight Corporation (a) 8,800 142
Fair, Isaac and Company, Incorporated (b) 3,270 170
Getty Images, Inc. (a) 1,800 61
Rent-A-Center, Inc. (a) 1,700 109
Valassis Communications, Inc. (a) (b) 1,100 29
Websense, Inc. (a) (b) 2,500 36
Chemicals & Allied Products (0.4%)
ATMI, Inc. (a) 3,100 65
Commercial Banks (3.8%)
Boston Private Financial Holdings, Inc. 4,800 90
Commerce Bancorp, Inc. (b) 2,250 92
Community First Bankshares, Inc. 2,400 65
East West Bancorp, Inc. 2,300 78
Silicon Valley Bancshares (a) 2,300 54
Southwest Bancorporation of Texas, Inc. (a) 3,800 129
Sterling Bancshares, Inc. 7,300 87
UCBH Holdings, Inc. 4,400 112
Communication (0.5%)
Global Payments Inc. 1,980 61
Insight Communications
Company, Inc. (a) (b) 2,600 36
Communications Equipment (1.8%)
Advanced Fibre Communications, Inc. (a) 4,600 70
Anaren Microwave, Inc. (a) 2,500 19
Inter-Tel, Incorporated 3,300 54
L-3 Communications Holdings, Inc. (a) 700 31
Plantronics, Inc. (a) (b) 6,400 118
Powerwave Technologies, Inc. (a) 6,100 25
Proxim Corporation-Class A (a) 27,360 19
SeaChange International, Inc. (a) 600 5
Computer & Data Processing Services (8.4%)
Activision, Inc. (a) (b) 2,400 37
Actuate Corporation (a) 7,700 14
Affiliated Computer Services, Inc.-
Class A (a) 2,400 114
BARRA, Inc. (a) 2,650 87
Borland Software Corporation (a) 7,500 68
Computer Programs and Systems, Inc. (a) 5,700 110
Concord Communications, Inc. (a) 2,400 30
EarthLink, Inc. (a) 11,600 80
FactSet Research Systems Inc. (b) 4,900 171
Henry (Jack) & Associates, Inc. 3,900 51
Hyperion Solutions Corporation (a) 4,000 113
Informatica Corporation (a) (b) 4,600 30
InterCept, Inc. (a) (b) 2,700 19
Macromedia, Inc. (a) 1,100 14
MatrixOne, Inc. (a) 5,800 20
Mercury Interactive Corporation (a) (b) 400 14
MTC Technologies, Inc. (a) 4,400 75
National Instruments Corporation (a) 2,100 67
Netegrity, Inc. (a) 2,450 12
Network Associates, Inc. (a) (b) 2,100 24
Packeteer, Inc. (a) 5,800 76
Radiant Systems, Inc. (a) 3,550 22
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Small Cap 1
IDEX T. Rowe Price Small Cap
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Computer & Data Processing Services (continued)
SERENA Software, Inc. (a) 7,200 $ 113
SkillSoft PLC-ADR (a) 3,100 12
SRA International, Inc.-Class A (a) 3,400 80
Symantec Corporation (a) 1,500 66
Titan Corporation (The) (a) (b) 3,400 27
Computer & Office Equipment (1.1%)
Avocent Corporation (a) 2,800 83
Concurrent Computer Corporation (a) 3,100 6
Polycom, Inc. (a) 6,406 63
SanDisk Corporation (a) (b) 2,200 53
Construction (1.8%)
D.R. Horton, Inc. 1,727 41
Insituform Technologies, Inc.-
Class A (a) (b) 5,400 86
KB Home 200 10
M.D.C. Holdings, Inc. 1,400 65
Standard Pacific Corp. 900 27
Toll Brothers, Inc. (a) 4,100 95
Drug Stores & Proprietary Stores (0.6%)
Omnicare, Inc. 4,500 119
Educational Services (3.5%)
Career Education Corporation (a) 1,600 96
Corinthian Colleges, Inc. (a) 2,700 124
DeVRY Inc. (a) 5,000 116
Education Management Corporation (a) 3,100 151
ITT Educational Services, Inc. (a) 1,100 32
University of Phoenix Online (a) (b) 2,766 122
Electronic & Other Electric Equipment (0.3%)
Harman International Industries,
Incorporated 900 60
Zomax Incorporated (a) 1,300 4
Electronic Components & Accessories (5.1%)
Aeroflex Incorporated (a) 14,300 77
Exar Corporation (a) (b) 3,500 52
Integrated Silicon Solution, Inc. (a) 6,200 20
Intersil Corporation-Class A (a) 5,996 111
KEMET Corporation (a) 2,900 27
Kopin Corporation (a) 4,500 22
Lattice Semiconductor Corporation (a) 5,000 43
Mercury Computer Systems, Inc. (a) 3,100 65
Micrel, Incorporated (a) 2,900 34
Microchip Technology Incorporated 475 10
Oak Technology, Inc. (a) 38,700 188
Pericom Semiconductor Corporation (a) 3,800 32
Plexus Corp. (a) 7,800 79
Semtech Corporation (a) 4,300 68
Silicon Storage Technology, Inc. (a) 6,800 21
Skyworks Solutions, Inc. (a) (b) 4,300 23
Technitrol, Inc. (a) 3,600 57
TriQuint Semiconductor, Inc. (a) 6,126 22
Fabricated Metal Products (0.3%)
Shaw Group Inc. (The) (a) 700 8
Simpson Manufacturing Co., Inc. (a) 1,200 42
Food & Kindred Products (0.5%)
American Italian Pasta Company-
Class A (a) (b) 400 18
Horizon Organic Holding Corporation (a) 3,800 52
Tootsie Roll Industries Incorporated 957 28
Food Stores (0.4%)
Whole Foods Market, Inc. (a) (b) 1,300 77
Furniture & Fixtures (0.4%)
Ethan Allen Interiors Inc. 500 17
La-Z-Boy Incorporated 2,700 53
Furniture & Home Furnishings Stores (1.4%)
Cost Plus, Inc. (a) 4,300 132
Pier 1 Imports, Inc. 3,400 63
Williams-Sonoma, Inc. (a) 2,200 57
Health Services (3.6%)
Accredo Health, Incorporated (a) 5,850 86
AMN Healthcare Services, Inc. (a) (b) 1,600 15
AmSurg Corp. (a) 2,100 55
Caremark Rx, Inc. (a) 2,700 54
Community Health Systems, Inc. (a) 2,300 44
DaVita Inc. (a) (b) 3,100 64
Hooper Holmes, Inc. 2,900 18
LifePoint Hospitals, Inc. (a) 5,300 103
Manor Care, Inc. (a) (b) 2,400 47
Renal Care Group, Inc. (a) 1,800 58
Triad Hospitals, Inc. (a) 1,400 31
United Surgical Partners
International, Inc. (a) (b) 4,800 89
Holding & Other Investment Offices (0 0%)
4Kids Entertainment, Inc. (a) 600 9
Industrial Machinery & Equipment (2.9%)
Cooper Cameron Corporation (a) 500 24
Cymer, Inc. (a) (b) 3,400 97
Engineered Support Systems, Inc. 1,900 66
FMC Technologies, Inc. (a) 1,800 34
National-Oilwell, Inc. (a) 2,600 55
Oil States International, Inc. (a) 3,500 40
Varian Semiconductor Equipment
Associates, Inc. (a) (b) 2,800 65
Zebra Technologies Corporation-
Class A (a) 2,300 153
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Small Cap 2
IDEX T. Rowe Price Small Cap
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Instruments & Related Products (4.5%)
August Technology Corporation (a) 600 $ 2
Avid Technology, Inc. (a) 1,800 49
Cognex Corporation (a) 2,600 57
Coherent, Inc. (a) 2,300 53
Cohu, Inc. 2,200 40
Cytyc Corporation (a) (b) 4,300 57
Dionex Corporation (a) 2,850 98
DRS Technologies, Inc. (a) 300 8
FLIR Systems, Inc. (a) 1,900 99
Fossil, Inc. (a) 1,687 31
Herley Industries, Inc. (a) 2,900 47
Mettler-Toledo International Inc. (a) 1,100 39
MKS Instruments, Inc. (a) 1,143 16
Newport Corporation (a) 1,200 16
Pinnacle Systems, Inc. (a) 5,300 50
Rudolph Technologies, Inc. (a) (b) 1,200 18
SBS Technologies, Inc. (a) 3,100 25
Varian, Inc. (a) 3,800 120
Insurance (3.9%)
Coventry Health Care, Inc. (a) 2,900 118
First Health Group Corp. (a) 6,400 160
Max Re Capital Ltd. 5,100 68
PMI Group, Inc. (The) 1,100 34
Radian Group, Inc. 518 21
RenaissanceRe Holdings Ltd. 1,400 62
StanCorp Financial Group, Inc. 1,400 75
Triad Guaranty Inc. (a) 3,100 124
WellChoice, Inc. (a) 3,100 66
Insurance Agents, Brokers & Service (0.7%)
AdvancePCS (a) (b) 1,500 45
Brown & Brown, Inc. 1,900 68
Gallagher (Arthur J.) & Co. 1,000 25
Leather & Leather Products (0.3%)
Skechers U.S.A., Inc.-Class A (a) 1,500 10
Timberland Company (The)-
Class A (a) (b) 1,000 50
Management Services (1.7%)
Corporate Executive Board
Company (The) (a) 5,300 217
Exult, Inc. (a) 12,600 91
Manufacturing Industries (0.6%)
JAKKS Pacific, Inc. (a) (b) 7,400 96
Marvel Enterprises, Inc. (a) 700 12
Medical Instruments & Supplies (3.1%)
Apogent Technologies, Inc. (a) 3,000 52
Conceptus, Inc. (a) (b) 1,700 18
Cyberonics, Inc. (a) 800 18
DENTSPLY International Inc. 2,150 $ 81
ICU Medical, Inc. (a) (b) 3,400 108
INAMED Corporation (a) 1,400 52
Mentor Corporation 1,200 22
Respironics, Inc. (a) 3,400 131
STERIS Corporation (a) 3,900 89
Mortgage Bankers & Brokers (0.6%)
Doral Financial Corporation 2,550 102
Motion Pictures (1.1%)
CNET Networks, Inc. (a) 9,800 36
Macrovision Corporation (a) 9,600 170
Oil & Gas Extraction (5.6%)
Atwood Oceanics, Inc. (a) 900 23
Brown (Tom), Inc. (a) 4,400 108
Cabot Oil & Gas Corporation-Class A 2,800 69
Cal Dive International, Inc. (a) 4,600 74
Core Laboratories N.V. (a) 1,400 14
Evergreen Resources, Inc. (a) 1,300 62
Global Industries, Ltd. (a) 10,400 46
Grey Wolf, Inc. (a) 28,500 115
Key Energy Services, Inc. (a) 1,500 15
Patterson-UTI Energy, Inc. (a) 4,000 132
Pride International, Inc. (a) 1,800 28
Spinnaker Exploration Company (a) 4,500 96
Stone Energy Corporation (a) 2,700 95
Unit Corporation (a) 4,800 94
XTO Energy, Inc. 3,500 68
Pharmaceuticals (9.4%)
Abgenix, Inc. (a) 4,200 40
Albany Molecular Research, Inc. (a) 4,600 53
Alkermes, Inc. (a) (b) 2,200 22
Andrx Corporation-Andrx Group (a) (b) 1,400 23
Biovail Corporation (a) 2,000 72
Celgene Corporation (a) (b) 4,400 117
Cephalon, Inc. (a) (b) 1,624 66
Charles River Laboratories, Inc. (a) (b) 4,500 122
D & K Health Resources, Inc. 3,200 42
Enzon, Inc. (a) 2,700 37
Eon Labs, Inc. (a) 2,500 77
Gilead Sciences, Inc. (a) 1,100 51
Human Genome Sciences, Inc. (a) 3,700 43
ICOS Corporation (a) (b) 2,800 75
IDEXX Laboratories, Inc. (a) 700 27
Invitrogen Corporation (a) 2,000 65
K-V Pharmaceutical Company-
Class A (a) 2,900 65
Medarex, Inc. (a) 700 3
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Small Cap 3
IDEX T. Rowe Price Small Cap
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Pharmaceuticals (continued)
Medicis Pharmaceutical
Corporation-Class A (a) (b) 2,700 $ 156
Neurocrine Biosciences, Inc. (a) 2,600 118
Noven Pharmaceuticals, Inc. (a) 7,800 75
NPS Pharmaceuticals, Inc. (a) (b) 2,500 48
Protein Design Labs, Inc. (a) 4,500 45
Serologicals Corporation (a) 1,200 11
SICOR Inc. (a) 3,300 59
Taro Pharmaceutical Industries Ltd. (a) (b) 2,000 92
Techne Corporation (a) 2,700 60
Trimeris, Inc. (a) (b) 1,000 44
Vertex Pharmaceuticals Incorporated (a) 1,294 16
Primary Metal Industries (0.8%)
Lone Star Technologies, Inc. (a) (b) 2,300 49
Maverick Tube Corporation (a) 3,800 68
Steel Dynamics, Inc. (a) 2,400 29
Printing & Publishing (0.6%)
Scholastic Corporation (a) 3,900 111
Radio & Television Broadcasting (1.9%)
Cox Radio, Inc.-Class A (a) (b) 3,400 78
Emmis Communications
Corporation-Class A (a) 3,800 72
Entercom Communications Corp. (a) 500 24
Radio One, Inc.-Class D (a) (b) 6,900 106
Regent Communications, Inc. (a) 5,400 32
Spanish Broadcasting System, Inc. (a) 4,000 31
Radio, Television & Computer Stores (0.2%)
Tweeter Home Entertainment Group, Inc. (a) 5,600 32
Ultimate Electronics, Inc. (a) 1,200 10
Research & Testing Services (1.3%)
Forrester Research, Inc. (a) 6,200 96
Pharmaceutical Product
Development, Inc. (a) 2,600 68
Symyx Technologies, Inc. (a) 4,600 72
Restaurants (2.5%)
CEC Entertainment Inc. (a) 3,700 111
P.F. Chang's China Bistro, Inc. (a) (b) 3,500 147
RARE Hospitality International, Inc. (a) 3,000 87
Ruby Tuesday, Inc. 3,400 67
Sonic Corp. (a) 2,050 55
Retail Trade (0.9%)
A.C. Moore Arts & Crafts, Inc. (a) 2,100 36
Insight Enterprises, Inc. (a) 6,400 48
Michaels Stores, Inc. (a) 2,000 $ 62
Schein (Henry), Inc. (a) 500 22
Rubber & Misc. Plastic Products (0.6%)
Entegris, Inc. (a) 7,400 85
VANS, INC. (a) 4,300 20
Savings Institutions (0.3%)
IndyMac Bancorp, Inc. 2,300 51
Security & Commodity Brokers (2.4%)
Affiliated Managers Group, Inc. (a) (b) 2,200 102
Eaton Vance Corp. 2,400 72
Investment Technology Group, Inc. (a) 3,700 53
Investors Financial Services Corp. 3,800 83
Legg Mason, Inc. 1,000 54
Waddell & Reed Financial, Inc.-
Class A 4,250 85
Social Services (0.5%)
Bright Horizons Family Solutions, Inc. (a) 3,200 96
Stone, Clay & Glass Products (0.2%)
Cabot Microelectronics Corporation (a) (b) 1,073 46
Telecommunications (0.1%)
Nextel Partners, Inc.-Class A (a) 4,500 26
Transportation & Public Utilities (1.7%)
C.H. Robinson Worldwide, Inc. 800 29
Expeditors International of Washington, Inc. 500 18
Forward Air Corporation (a) 5,200 131
UTI Worldwide, Inc. 4,500 135
Trucking & Warehousing (1.5%)
Covenant Transport, Inc.-Class A (a) 3,900 71
Iron Mountain Incorporated (a) (b) 5,150 205
Variety Stores (0.5%)
Dollar Tree Stores, Inc. (a) 1,200 31
Family Dollar Stores, Inc. 900 31
Fred's, Inc. 1,100 36
Wholesale Trade Durable Goods (1.5%)
Patterson Dental Company (a) 2,500 100
SCP Pool Corporation (a) (b) 5,525 181
Wholesale Trade Nondurable Goods (0.9%)
Performance Food Group Company (a) 1,800 63
United Natural Foods, Inc. (a) 3,800 111
---------
Total Common Stocks (cost: $20,232) 18,178
---------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Small Cap 4
IDEX T. Rowe Price Small Cap
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (0.3%)
U.S. Treasury Bill (c)
1.14%, due 06/26/2003 $ 50 $ 50
---------
Total Short-Term U.S. Government Obligations
(cost: $50) 50
---------
SECURITY LENDING COLLATERAL (18.1%)
Bank Notes (1.0%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 192 192
Euro Dollar Overnight (1.9%)
Bank of Montreal
1.34%, due 05/01/2003 131 131
BNP Paribas SA
1.24%, due 05/06/2003 61 61
Royal Bank of Canada
1.35%, due 05/01/2003 153 153
Euro Dollar Term (5.5%)
American Express Centurion Bank
1.28%, due 05/30/2003 306 306
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 77 77
Credit Agricole Indosuez
1.27%, due 05/12/2003 23 23
1.26%, due 06/24/2003 153 153
Danske Bank A/S
1.25%, due 05/07/2003 192 192
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 77 77
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 192 192
Medium Term Notes (0.6%)
Parkland (USA) LLC
1.31%, due 11/26/2003 115 115
Money Market Funds (7.3%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% 612 612
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 727 727
Promissory Notes (1.4%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 268 268
Repurchase Agreements (0.4%)
Merrill Lynch & Co., Inc. (d)
1.42%, due 05/01/2003 77 77
---------
Total Security Lending Collateral (cost: $3,356) 3,356
---------
Total Investment Securities (cost: $23,638) $ 21,584
=========
SUMMARY:
Investments, at market value 116.6% $ 21,584
Liabilities in excess of other assets (16.6)% (3,077)
--------- ---------
Net assets 100.0% $ 18,507
========= =========
FUTURES CONTRACTS:
- ----------------------------------------------------------------------
Net Unrealized
Settlement Appreciation
Currency Contracts Date Amount (Depreciation)
- ----------------------------------------------------------------------
Russell 2000 Index 1 06/19/2003 $ 185 $ 15
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$3,220.
(c) At April 30, 2003, all or a portion of this security is segregated with
the custodian to cover margin requirements for open future contracts. The
market value of all securities segregated at April 30, 2003, is $50.
(d) Cash collateral for Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $78.
DEFINITIONS:
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Small Cap 5
IDEX T. Rowe Price Small Cap
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $23,638)
(including $3,220 of securities loaned) $ 21,584
Cash 326
Receivables:
Investment securities sold 61
Shares of beneficial interest sold 18
Dividends 2
Due from investment adviser 19
Variation margin 2
Other 5
---------
22,017
---------
Liabilities:
Investment securities purchased 85
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 5
Distribution fees 11
Transfer agent fees and expenses 31
Payable for securities on loan 3,356
Other 22
---------
3,510
---------
Net Assets $ 18,507
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 28,829
Accumulated net investment income (loss) (176)
Accumulated net realized gain (loss) from investments (8,107)
Net unrealized appreciation (depreciation) of
investments and futures contracts (2,039)
---------
Net Assets $ 18,507
=========
Shares Outstanding:
Class A 740
Class B 1,103
Class C 246
Class L 11
Class M 189
Net Asset Value Per Share:
Class A $ 8.24
Class B 8.00
Class C 8.00
Class L 8.00
Class M 8.04
Maximum Offering Price Per Share (1):
Class A $ 8.72
Class M 8.12
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Dividends $ 15
Income from loaned securities-net 3
---------
18
---------
Expenses:
Management and advisory fees 72
Transfer agent fees and expenses 77
Custody fees 18
Administration fees 13
Registration fees 40
Trustees fees and expenses 1
Professional fees 13
Other 11
Distribution and service fees:
Class A 11
Class B 42
Class C 10
Class L --
Class M 6
---------
Total Expenses 314
Less reimbursements by the investment adviser (120)
---------
Net Expenses 194
---------
Net Investment Income (Loss) (176)
---------
Net Realized Gain (Loss) on:
Investment securities (1,529)
---------
Net Unrealized Appreciation (Depreciation) on:
Investment securities 2,555
Futures contracts 15
---------
2,570
---------
Net Gain (Loss) on Investments and Futures
Contracts 1,041
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 865
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Small Cap 6
IDEX T. Rowe Price Small Cap
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (176) $ (465)
Net realized gain (loss) on investment
securities (1,529) (4,374)
Net unrealized appreciation (depreciation)
on investment securities and futures
contracts 2,570 (148)
--------- ---------
865 (4,987)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 1,558 6,591
Class B 1,131 5,590
Class C 242 1,472
Class L 91 --
Class M 285 630
--------- ---------
3,307 14,283
--------- ---------
Dividends and distributions reinvested:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Cost of shares redeemed:
Class A (2,236) (5,379)
Class B (1,557) (3,855)
Class C (336) (932)
Class L (10) --
Class M (395) (928)
--------- ---------
(4,534) (11,094)
--------- ---------
(1,227) 3,189
--------- ---------
Net increase (decrease) in net assets (362) (1,798)
--------- ---------
Net Assets:
Beginning of period 18,869 20,667
--------- ---------
End of period $ 18,507 $ 18,869
========= =========
Accumulated Net Investment Income (Loss) $ (176) $ --
========= =========
Share Activity:
Shares issued during the period:
Class A 196 663
Class B 147 572
Class C 30 151
Class L 12 --
Class M 38 65
--------- ---------
423 1,451
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
Shares redeemed during the period:
Class A (284) (582)
Class B (205) (433)
Class C (43) (101)
Class L (1) --
Class M (51) (95)
--------- ---------
(584) (1,211)
--------- ---------
Net increase (decrease) in shares outstanding (161) 240
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Small Cap 7
IDEX T. Rowe Price Small Cap
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 7.83 $ (0.06) $ 0.47 $ 0.41
10/31/2002 9.46 (0.16) (1.47) (1.63)
10/31/2001 13.17 (0.14) (3.56) (3.70)
10/31/2000 11.01 (0.07) 2.51 2.44
10/31/1999 10.00 0.02 0.99 1.01
- --------------------------------------------------------------------------------
Class B 04/30/2003 7.63 (0.08) 0.45 0.37
10/31/2002 9.29 (0.22) (1.44) (1.66)
10/31/2001 13.05 (0.21) (3.54) (3.75)
10/31/2000 10.97 (0.15) 2.51 2.36
10/31/1999 10.00 (0.02) 0.99 0.97
- --------------------------------------------------------------------------------
Class C 04/30/2003 7.63 (0.08) 0.45 0.37
10/31/2002 9.29 (0.21) (1.45) (1.66)
10/31/2001 13.05 (0.24) (3.51) (3.75)
10/31/2000 10.97 (0.15) 2.51 2.36
- --------------------------------------------------------------------------------
Class L 04/30/2003 7.52 (0.06) 0.54 0.48
- --------------------------------------------------------------------------------
Class M 04/30/2003 7.66 (0.09) 0.47 0.38
10/31/2002 9.31 (0.19) (1.46) (1.65)
10/31/2001 13.07 (0.20) (3.55) (3.75)
10/31/2000 10.98 (0.14) 2.51 2.37
10/31/1999 10.00 (0.01) 0.99 0.98
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 8.24
-- -- -- 7.83
-- (0.01) (0.01) 9.46
-- (0.28) (0.28) 13.17
-- -- -- 11.01
- ----------------------------------------------------------
Class B -- -- -- 8.00
-- -- -- 7.63
-- (0.01) (0.01) 9.29
-- (0.28) (0.28) 13.05
-- -- -- 10.97
- ----------------------------------------------------------
Class C -- -- -- 8.00
-- -- -- 7.63
-- (0.01) (0.01) 9.29
-- (0.28) (0.28) 13.05
- ----------------------------------------------------------
Class L -- -- -- 8.00
- ----------------------------------------------------------
Class M -- -- -- 8.04
-- -- -- 7.66
-- (0.01) (0.01) 9.31
-- (0.28) (0.28) 13.07
-- -- -- 10.98
- ----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
-------------- ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 5.24% $ 6,098 1.75% 3.10% (1.55)% 16.93%
10/31/2002 (17.22) 6,487 1.74 2.67 (1.52) 55.06
10/31/2001 (28.11) 7,067 1.55 2.56 (1.30) 48.58
10/31/2000 22.31 8,262 1.55 2.83 (1.14) 52.97
10/31/1999 10.13 1,272 1.55 7.93 (1.15) 42.52
- ---------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 4.85 8,831 2.40 3.75 (2.20) 16.93
10/31/2002 (17.85) 8,860 2.39 3.32 (2.17) 55.06
10/31/2001 (28.73) 9,496 2.20 3.21 (1.95) 48.58
10/31/2000 21.63 8,119 2.20 3.48 (1.79) 52.97
10/31/1999 9.70 1,135 2.20 8.58 (1.80) 42.52
- ---------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 4.85 1,973 2.40 3.75 (2.20) 16.93
10/31/2002 (17.85) 1,975 2.39 3.32 (2.17) 55.06
10/31/2001 (28.73) 1,943 2.20 3.21 (1.95) 48.58
10/31/2000 21.63 1,626 2.20 3.48 (1.79) 52.97
- ---------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 6.38 87 2.40 3.75 (2.20) 16.93
- ---------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 4.96 1,518 2.30 3.65 (2.10) 16.93
10/31/2002 (17.76) 1,547 2.29 3.22 (2.07) 55.06
10/31/2001 (28.64) 2,161 2.10 3.11 (1.85) 48.58
10/31/2000 21.73 2,489 2.10 3.38 (1.69) 52.97
10/31/1999 9.77 685 2.10 8.48 (1.70) 42.52
- ---------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Small Cap 8
IDEX T. Rowe Price Small Cap
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX T. Rowe Price Small Cap ("the Fund") commenced operations on March 1,
1999. The inception date for the Fund's offering of share classes C and L
are as follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Small Cap 9
IDEX T. Rowe Price Small Cap
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX T. Rowe Price Small Cap ("the Fund"), part
of IDEX Mutual Funds, began operations on March 1, 1999.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties and which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and
a liability for the return of the collateral. Securities on loan are included
in investment securities at market value on the Statement of Assets and
Liabilities and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities
loans, the collateral and securities loaned remain subject to fluctuation in
market value. IBT marks to market securities loaned and the collateral each
business day. If additional collateral is due (at least $1), IBT collects
additional cash collateral from the borrowers. Although securities loaned will
be fully collateralized at all times, IBT may experience delays in, or may be
prevented from, recovering the collateral on behalf of the Fund. The Fund may
recall a loaned security position at any time from the borrower through IBT. In
the event the borrower fails to timely return a recalled security, IBT may
indemnify the Fund by purchasing replacement securities for the Fund at its own
expense and claiming the collateral to fund such a purchase. IBT absorbs the
loss if the collateral value is not sufficient to cover the cost of the
replacement securities. If replacement securities are not available, IBT will
credit the equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Futures contracts: The Fund may enter into futures contracts to manage exposure
to market, interest rate or currency fluctuations. Futures contracts are valued
at the settlement price established each day by the board of trade or exchange
on which they are traded. The primary risks associated with futures contracts
are imperfect correlation between the change in market value of the securities
held and the prices of futures contracts; the possibility of an illiquid market
and inability of the counterparty to meet the contract terms.
The underlying face amounts of open futures contracts at April 30, 2003, are
listed in the Schedule of Investments. The variation margin receivable is
included in the accompanying Statement of Assets and
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Small Cap 10
IDEX T. Rowe Price Small Cap
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
Liabilities. Variation margin represents the excess deposits made in order to
maintain the equity account at the required margin level.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Adviser, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated break points:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.40% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 21
Retained by Underwriter --
Contingent Sales Charges 12
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $1 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 3,061
U.S. Government --
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 4,715
U.S. Government --
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Small Cap 11
IDEX T. Rowe Price Small Cap
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 4-(continued)
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 1,832 October 31, 2009
4,119 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 24,336
==========
Unrealized Appreciation $ 1,870
Unrealized (Depreciation) (4,622)
----------
Net Unrealized Appreciation (Depreciation) $ (2,752)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Small Cap 12
IDEX T. Rowe Price Tax-Efficient Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
COMMON STOCKS (99.6%)
Aerospace (0.4%)
Boeing Company (The) 8,700 $ 237
Amusement & Recreation Services (1.4%)
Disney (Walt) Company (The) 39,400 735
Apparel Products (0.4%)
Cintas Corporation 5,400 194
Automotive (0.2%)
Harley-Davidson, Inc. 2,200 98
Beverages (3.1%)
Anheuser-Busch Companies, Inc. 5,100 254
Coca-Cola Company (The) 21,500 869
PepsiCo, Inc. 12,370 535
Business Services (9.6%)
ChoicePoint Inc. (a) 4,700 166
Clear Channel Communications, Inc. (a) 26,800 1,048
eBay Inc. (a) 2,500 232
Equifax Inc. 7,400 172
First Data Corporation 26,300 1,032
Hudson Highland Group, Inc. (a) (b) 1,140 17
Moody's Corporation 5,900 285
Omnicom Group, Inc. 17,100 1,058
Robert Half International Inc. (a) 13,400 218
TMP Worldwide Inc. 15,200 255
WPP Group PLC-ADR (b) 16,000 571
Chemicals & Allied Products (2.9%)
Avon Products, Inc. 3,800 221
Colgate-Palmolive Company 5,100 292
Ecolab Inc. 3,000 153
Procter & Gamble Company (The) 7,700 692
Valspar Corporation (The) (b) 3,500 151
Commercial Banks (9.4%)
Bank of New York Company, Inc. (The) 29,300 775
Citigroup Inc. 32,059 1,258
Concord EFS, Inc. (a) 12,300 170
Mellon Financial Corporation 18,500 489
Northern Trust Corporation 26,000 913
State Street Corporation 22,300 781
Wells Fargo & Company 11,800 569
Communication (2.9%)
Certegy Inc. (a) (b) 5,100 127
Viacom, Inc.-Class B (a) 32,600 1,415
Communications Equipment (0.3%)
Nokia Oyj-ADR 10,600 176
Computer & Data Processing Services (6.0%)
Automatic Data Processing, Inc. 14,100 474
BMC Software, Inc. (a) 7,900 118
Computer Associates International, Inc. 9,400 153
Intuit Inc. (a) 4,300 167
Microsoft Corporation 69,300 1,772
Oracle Corporation (a) 39,500 469
Computer & Office Equipment (3.0%)
Cisco Systems, Inc. (a) 61,100 919
Dell Computer Corporation (a) 17,400 503
EMC Corporation (a) 16,200 147
Drug Stores & Proprietary Stores (1.3%)
CVS Corporation 9,300 225
Walgreen Co. 14,200 438
Educational Services (0.9%)
Apollo Group, Inc.-Class A (a) 4,950 268
DeVRY Inc. (a) 8,200 190
Electronic & Other Electric Equipment (3.3%)
General Electric Company 59,250 1,745
Electronic Components & Accessories (9.3%)
Altera Corporation (a) 34,700 549
Analog Devices, Inc. (a) 16,200 537
Broadcom Corporation-Class A (a) 9,500 170
Intel Corporation 38,600 710
Linear Technology Corporation 23,600 813
Maxim Integrated Products 21,600 849
Molex Incorporated-Class A 7,700 156
Texas Instruments Incorporated 31,100 575
Xilinx, Inc. (a) 19,700 533
Fabricated Metal Products (0.4%)
Gillette Company (The) 7,000 213
Food & Kindred Products (0.7%)
General Mills, Inc. (b) 3,700 167
Wrigley (Wm.) Jr. Company 3,500 198
Furniture & Home Furnishings Stores (0.9%)
Bed Bath & Beyond Inc. (a) 5,900 233
Williams-Sonoma, Inc. (a) 9,900 256
Industrial Machinery & Equipment (0.8%)
Applied Materials, Inc. (a) 18,300 267
Illinois Tool Works Inc. 2,300 147
Insurance (5.2%)
Ambac Financial Group, Inc. 3,000 175
American International Group, Inc. 24,463 1,418
UnitedHealth Group Incorporated 8,500 783
WellPoint Health Networks Inc. (a) 4,600 349
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Tax-Efficient Growth 1
IDEX T. Rowe Price Tax-Efficient Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Shares Value
- ------------------------------------------------------------------------------
Insurance Agents, Brokers & Service (1.7%)
Marsh & McLennan Companies, Inc. 18,900 $ 901
Lumber & Other Building Materials (1.8%)
Home Depot, Inc. (The) 32,900 926
Management Services (1.0%)
Paychex, Inc. 17,000 529
Medical Instruments & Supplies (1.5%)
Baxter International Inc. 4,000 92
Guidant Corporation (a) 3,700 144
Medtronic, Inc. 8,500 406
Stryker Corporation 2,100 141
Motion Pictures (1.1%)
AOL Time Warner Inc. (a) 44,000 602
Paper & Allied Products (0.5%)
Kimberly-Clark Corporation 5,300 264
Personal Credit Institutions (0.3%)
SLM Corporation 1,300 146
Pharmaceuticals (14.5%)
Abbott Laboratories 12,800 520
Amgen Inc. (a) 11,900 730
AstraZeneca PLC-ADR 3,600 144
Cardinal Health, Inc. 7,600 420
Glaxo Wellcome PLC-ADR (b) 12,200 494
Johnson & Johnson 18,100 1,021
Lilly (Eli) and Company 10,400 664
Merck & Co., Inc. 13,000 756
Pfizer Inc. 67,485 2,075
Wyeth 17,200 749
Printing & Publishing (0.9%)
McGraw-Hill Companies, Inc. (The) 8,400 490
Radio & Television Broadcasting (1.0%)
Univision Communications Inc.-
Class A (a)(b) 7,900 239
USA Interactive (a) (b) 9,700 291
Restaurants (0.3%)
Starbucks Corporation (a) 7,600 179
Retail Trade (0.8%)
Tiffany & Co. 16,100 447
Rubber & Misc. Plastic Products (0.3%)
NIKE, Inc.-Class B 2,800 150
Security & Commodity Brokers (2.2%)
American Express Company 6,800 257
Franklin Resources, Inc. 11,000 384
Schwab (Charles) Corporation (The) 62,900 543
Telecommunications (0.6%)
Vodafone Group PLC-ADR (b) 14,900 294
Transportation & Public Utilities (0.4%)
Expeditors International of
Washington, Inc. 6,400 233
U.S. Government Agencies (3.2%)
Fannie Mae 13,900 1,007
Freddie Mac 12,200 706
Variety Stores (4.4%)
Dollar General Corporation (b) 32,400 471
Family Dollar Stores, Inc. 11,500 393
Wal-Mart Stores, Inc. 26,000 1,464
Wholesale Trade Nondurable Goods (0.7%)
SYSCO Corporation 12,900 371
---------
Total Common Stocks (cost: $52,772) 52,487
---------
Principal Value
- -------------------------------------------------------------------------------
SECURITY LENDING COLLATERAL (5.3%)
Bank Notes (0.3%)
Canadian Imperial Bank of Commerce
1.40%, due 11/04/2003 $ 160 $ 160
Euro Dollar Overnight (0.5%)
Bank of Montreal
1.34%, due 05/01/2003 109 109
BNP Paribas SA
1.24%, due 05/06/2003 51 51
Royal Bank of Canada
1.35%, due 05/01/2003 128 128
Euro Dollar Term (1.6%)
American Express Centurion Bank
1.28%, due 05/30/2003 256 256
Bank of Nova Scotia (The)
1.25%, due 05/07/2003 64 64
Credit Agricole Indosuez
1.27%, due 05/12/2003 19 19
1.26%, due 06/24/2003 128 128
Danske Bank A/S
1.25%, due 05/07/2003 160 160
Royal Bank of Scotland Group PLC (The)
1.25%, due 05/06/2003 64 64
Toronto-Dominion Bank (The)
1.25%, due 05/07/2003 160 160
Medium Term Notes (0.2%)
Parkland (USA) LLC
1.31%, due 11/26/2003 96 96
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Tax-Efficient Growth 2
IDEX T. Rowe Price Tax-Efficient Growth
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2003
(all amounts except share amounts in thousands)
(unaudited)
Principal Value
- -------------------------------------------------------------------------------
Money Market Funds (2.2%)
Dreyfus Cash Management Plus Fund
1-day yield of 1.24% $ 513 $ 513
Merrimac Cash Series Fund-
Premium Class
1-day yield of 1.23% 609 609
Promissory Notes (0.4%)
Goldman Sachs Group, Inc. (The)
1.39%, due 05/05/2003 224 224
Repurchase Agreements (0.1%)
Merrill Lynch & Co., Inc. (c)
1.42%, due 05/01/2003 64 64
---------
Total Security Lending Collateral (cost: $2,805) 2,805
---------
Total Investment Securities (cost: $55,577) $ 55,292
=========
SUMMARY:
Investments, at market value 104.9% $ 55,292
Liabilities in excess of other assets (4.9)% (2,570)
--------- ---------
Net assets 100.0% $ 52,722
========= =========
NOTES TO SCHEDULE OF INVESTMENTS:
(a) No dividends were paid during the preceding twelve months.
(b) At April 30, 2003, all or a portion of this security is on loan (see Note
1). The market value at April 30, 2003, of all securities on loan is
$2,714.
(c) Cash collateral for the Repurchase Agreements that serve as collateral for
securities lending are invested in corporate bonds, the total market value
of which is $65.
DEFINITIONS:
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Tax-Efficient Growth 3
IDEX T. Rowe Price Tax-Efficient Growth
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2003
(all amounts except per share amounts in thousands)
(unaudited)
Assets:
Investment securities, at market value (cost: $55,577)
(including $2,714 of securities loaned) $ 55,292
Cash 276
Receivables:
Shares of beneficial interest sold 23
Dividends 34
Other 3
---------
55,628
---------
Liabilities:
Accounts payable and accrued liabilities:
Shares of beneficial interest redeemed 19
Management and advisory fees 18
Distribution fees 23
Transfer agent fees and expenses 22
Payable for securities on loan 2,805
Other 19
---------
2,906
---------
Net Assets $ 52,722
=========
Net Assets Consist of:
Shares of beneficial interest, unlimited shares authorized $ 57,745
Accumulated net investment income (loss) (172)
Accumulated net realized gain (loss) from investments (4,566)
Net unrealized appreciation (depreciation) of
investments (285)
---------
Net Assets $ 52,722
=========
Shares Outstanding:
Class A 4,266
Class B 1,395
Class C 330
Class L 7
Class M 210
Net Asset Value Per Share:
Class A $ 8.54
Class B 8.39
Class C 8.39
Class L 8.39
Class M 8.42
Maximum Offering Price Per Share (1):
Class A $ 9.04
Class M 8.50
(1) Includes the maximum selling commission (represented as a percentage of
offering price) which is reduced on certain levels of sales as set forth in the
Prospectus. Net asset value per share for Classes B, C, and L shares represents
offering price. The redemption price for Classes B, L, and M shares equals net
asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2003
(all amounts in thousands)
(unaudited)
Investment Income:
Interest $ 1
Dividends 260
Income from loaned securities-net 2
Less withholding taxes on foreign dividends (2)
---------
261
---------
Expenses:
Management and advisory fees 168
Transfer agent fees and expenses 59
Custody fees 11
Administration fees 15
Registration fees 40
Trustees fees and expenses 2
Professional fees 14
Other 9
Distribution and service fees:
Class A 50
Class B 57
Class C 14
Class M 8
---------
Total Expenses 447
Less reimbursements by the investment adviser (15)
---------
Net Expenses 432
---------
Net Investment Income (Loss) (171)
---------
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investment securities (1,831)
Net unrealized appreciation (depreciation)
on investment securities 4,784
---------
Net Gain (Loss) on Investments 2,953
---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 2,782
=========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Tax-Efficient Growth 4
IDEX T. Rowe Price Tax-Efficient Growth
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30,
2003 October 31,
(unaudited) 2002
------------- ------------
Increase (Decrease) In Net Assets From:
Operations:
Net investment income (loss) $ (171) $ (250)
Net realized gain (loss) on investment
securities (1,831) (1,926)
Net unrealized appreciation (depreciation)
on investment securities 4,784 (3,554)
--------- ---------
2,782 (5,730)
--------- ---------
Distributions to Shareholders:
From net investment income:
Class A -- --
Class B -- --
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- --
--------- ---------
From net realized gains:
Class A -- (4)
Class B -- (8)
Class C -- (2)
Class L -- --
Class M -- (1)
--------- ---------
-- (15)
--------- ---------
Capital Share Transactions:
Proceeds from shares sold:
Class A 13,989 18,342
Class B 1,304 4,876
Class C 297 1,368
Class L 59 --
Class M 140 602
--------- ---------
15,789 25,188
--------- ---------
Dividends and distributions reinvested:
Class A -- 4
Class B -- 7
Class C -- 2
Class L -- --
Class M -- 1
--------- ---------
-- 14
--------- ---------
Cost of shares redeemed:
Class A (1,009) (3,710)
Class B (2,012) (5,604)
Class C (570) (1,260)
Class L (9) --
Class M (537) (954)
--------- ---------
(4,137) (11,528)
--------- ---------
11,652 13,674
--------- ---------
Net increase (decrease) in net assets 14,434 7,929
--------- ---------
Net Assets:
Beginning of period 38,288 30,359
--------- ---------
End of period $ 52,722 $ 38,288
========= =========
Accumulated Net Investment Income (Loss) $ (172) $ (1)
========= =========
Share Activity:
Shares issued during the period:
Class A 1,751 2,160
Class B 162 498
Class C 37 147
Class L 8 --
Class M 18 61
--------- ---------
1,976 2,866
--------- ---------
Shares issued-reinvested from distributions:
Class A -- --
Class B -- 1
Class C -- --
Class L -- --
Class M -- --
--------- ---------
-- 1
--------- ---------
Shares redeemed during the period:
Class A (127) (414)
Class B (257) (643)
Class C (73) (141)
Class L (1) --
Class M (68) (105)
--------- ---------
(526) (1,303)
--------- ---------
Net increase (decrease) in shares outstanding 1,450 1,564
========= =========
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Tax-Efficient Growth 5
IDEX T. Rowe Price Tax-Efficient Growth
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout
each period
---------------------------------------------------------
Investment Operations
---------------------------------------------
Net Asset
For the Value, Net Net Realized
Period Beginning Investment and Unrealized Total
Ended (d)(g) of Period Income (Loss) Gain (Loss) Operations
-------------- ----------- --------------- ---------------- ------------
Class A 04/30/2003 $ 8.09 $ (0.02) $ 0.47 $ 0.45
10/31/2002 9.54 (0.02) (1.43) (1.45)
10/31/2001 10.64 0.05 (1.13) (1.08)
10/31/2000 10.20 0.08 0.44 0.52
10/31/1999 10.00 0.06 0.18 0.24
- --------------------------------------------------------------------------------
Class B 04/30/2003 7.99 (0.05) 0.45 0.40
10/31/2002 9.49 (0.09) (1.41) (1.50)
10/31/2001 10.63 (0.02) (1.12) (1.14)
10/31/2000 10.19 0.02 0.44 0.46
10/31/1999 10.00 0.01 0.18 0.19
- --------------------------------------------------------------------------------
Class C 04/30/2003 7.99 (0.05) 0.45 0.40
10/31/2002 9.49 (0.09) (1.41) (1.50)
10/31/2001 10.63 (0.02) (1.12) (1.14)
10/31/2000 10.19 0.02 0.44 0.46
- --------------------------------------------------------------------------------
Class L 04/30/2003 7.91 (0.04) 0.52 0.48
- --------------------------------------------------------------------------------
Class M 04/30/2003 8.00 (0.05) 0.47 0.42
10/31/2002 9.49 (0.08) (1.41) (1.49)
10/31/2001 10.63 (0.01) (1.13) (1.14)
10/31/2000 10.19 0.03 0.44 0.47
10/31/1999 10.00 0.02 0.18 0.20
- --------------------------------------------------------------------------------
For a share of beneficial interest outstanding
throughout each period
--------------------------------------------------
Distributions
---------------------------------------
Net Asset
From Net From Net Value,
Investment Realized Total End
Income Gains Distributions of Period
------------ ---------- --------------- ----------
Class A $ -- $ -- $ -- $ 8.54
-- -- -- 8.09
(0.02) -- (0.02) 9.54
(0.08) -- (0.08) 10.64
(0.04) -- (0.04) 10.20
- ----------------------------------------------------------
Class B -- -- -- 8.39
-- -- -- 7.99
-- -- -- 9.49
(0.02) -- (0.02) 10.63
-- -- -- 10.19
- ----------------------------------------------------------
Class C -- -- -- 8.39
-- -- -- 7.99
-- -- -- 9.49
(0.02) -- (0.02) 10.63
- ----------------------------------------------------------
Class L -- -- -- 8.39
- ----------------------------------------------------------
Class M -- -- -- 8.42
-- -- -- 8.00
-- -- -- 9.49
(0.03) -- (0.03) 10.63
(0.01) -- (0.01) 10.19
- ----------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------
Ratio of Expenses
Net Assets, to Average Net Investment
For the End of Net Assets (a) Income (Loss) Portfolio
Period Total Period ----------------------- to Average Turnover
Ended Return (c) (000's) Net (e) Total (f) Net Assets (a) Rate (b)
------------ ------------ ------------- --------- ----------- ---------------- ----------
Class A 04/30/2003 5.56% $ 36,422 1.70% 1.77% (0.54)% 9.85%
10/31/2002 (15.20) 21,389 1.68 1.95 (0.27) 75.50
10/31/2001 (10.14) 8,552 1.55 2.07 0.47 30.02
10/31/2000 5.14 5,452 1.55 2.68 0.66 58.32
10/31/1999 2.40 1,840 1.55 7.57 1.09 20.48
- -------------------------------------------------------------------------------------------------------------
Class B 04/30/2003 5.14 11,712 2.35 2.42 (1.19) 9.85
10/31/2002 (15.84) 11,897 2.33 2.60 (0.92) 75.50
10/31/2001 (10.75) 15,500 2.20 2.72 (0.18) 30.02
10/31/2000 4.49 7,597 2.20 3.33 0.01 58.32
10/31/1999 1.96 2,134 2.20 8.22 0.44 20.48
- -------------------------------------------------------------------------------------------------------------
Class C 04/30/2003 5.14 2,767 2.35 2.42 (1.19) 9.85
10/31/2002 (15.84) 2,920 2.33 2.60 (0.92) 75.50
10/31/2001 (10.75) 3,419 2.20 2.72 (0.18) 30.02
10/31/2000 4.49 1,935 2.20 3.33 0.01 58.32
- -------------------------------------------------------------------------------------------------------------
Class L 04/30/2003 6.07 55 2.35 2.42 (1.19) 9.85
- -------------------------------------------------------------------------------------------------------------
Class M 04/30/2003 5.25 1,766 2.25 2.32 (1.09) 9.85
10/31/2002 (15.71) 2,082 2.23 2.50 (0.82) 75.50
10/31/2001 (10.66) 2,888 2.10 2.62 (0.08) 30.02
10/31/2000 4.59 1,916 2.10 3.23 0.11 58.32
10/31/1999 2.03 1,058 2.10 8.12 0.54 20.48
- -------------------------------------------------------------------------------------------------------------
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Tax-Efficient Growth 6
IDEX T. Rowe Price Tax-Efficient Growth
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
NOTES TO FINANCIAL HIGHLIGHTS
(unaudited)
(a) Annualized.
(b) Not annualized for periods of less than one year.
(c) Total Return has been calculated for the applicable period without
deduction of a sales load, if any, on an initial purchase. Periods of less
than one year are not annualized.
(d) Per share information is calculated based on average number of shares
outstanding for the periods ending 10/31/2001, 10/31/2002 and 04/30/2003.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio,
which is total expenses less reimbursements by the investment adviser.
(f) Ratio of Total Expenses to Average Net Assets does not take into account
reimbursements by the investment adviser or affiliated brokerage and
custody earnings credits, if any.
(g) IDEX T. Rowe Price Tax-Efficient Growth ("the Fund") commenced operations
on March 1, 1999. The inception date for the Fund's offering of share
classes C and L are as follows:
Class C - November 1, 1999
Class L - November 11, 2002
The notes to the financial statements are an integral part of this report.
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Tax-Efficient Growth 7
IDEX T. Rowe Price Tax-Efficient Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
IDEX Mutual Funds is a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company. IDEX T. Rowe Price Tax-Efficient Growth ("the
Fund"), part of IDEX Mutual Funds, began operations on March 1, 1999.
In the normal course of business, the Fund enters into contracts that contain a
variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund
and/or its affiliates that have not yet occurred. However, based on experience,
the Fund expects the risk of loss to be remote.
Multiple class operations and expenses: The Fund currently offers five classes
of shares, each with a public offering price that reflects different sales
charges, if any, and expense levels. Effective November 11, 2002, Class C and M
shares were closed to new investors. Income, non-class specific expenses and
realized and unrealized gains and losses, are allocated daily to each class,
based upon the value of shares outstanding method as permitted under Rule 18f-3
of the 1940 Act. Each class bears its own specific expenses as well as a
portion of general, common expenses.
The following policies were consistently followed by the Fund, in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). In preparing the Fund's financial statements in accordance with GAAP,
estimates or assumptions (which could differ from actual results) may be used
that affect reported amounts and disclosures.
Security valuations: Fund investments traded on an exchange are stated at the
last reported sales price on the day of valuation on the exchange where the
security is principally traded. Securities traded in the over-the-counter
market and listed securities for which no sale was reported on that date are
valued at the last quoted bid price. Debt securities are valued by independent
pricing services; however, those that mature in sixty days or less are valued
at amortized cost, which approximates market. Other securities for which
quotations are not readily available are valued at fair value determined in
such a manner as the adviser and sub-adviser, under the supervision of the
Board of Trustees and the Fund's Valuation Committee, determine in good faith.
Cash: The Fund may leave cash overnight in its cash account with the custodian,
Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of
the Fund to invest the excess cash into a savings account, which at April 30,
2003, was paying an interest rate of 1.00%.
Securities lending: The Fund may lend securities to enhance fund earnings from
investing cash collateral received in making such loans to qualified borrowers
(typically broker/dealers). The Fund has engaged its custodian bank, IBT, as a
lending agent to administer its securities lending program. IBT earns a portion
of program net income for its services. When the Fund makes a security loan, it
receives cash collateral as protection against the risk that the borrower will
default on the loan, and records an asset for the cash invested collateral and
a liability for the return of the collateral. Securities on loan are included
in investment securities at market value on the Statement of Assets and
Liabilities and remain on the Schedule of Investments.
Loans of securities are required to be secured by collateral at least equal to
102% of the market value of the securities at inception of the loan, and not
less then 100% thereafter. The Fund may invest cash collateral in short-term
money market instruments including: U.S. Treasury Bills, U.S. agency
obligations, commercial paper, money market mutual funds, repurchase agreements
and other highly rated, liquid investments. During the life of securities
loans, the collateral and securities loaned remain subject to fluctuation in
market value. IBT marks to market securities loaned and the collateral each
business day. If additional collateral is due (at least $1), IBT collects
additional cash collateral from the borrowers. Although securities loaned will
be fully collateralized at all times, IBT may experience delays in, or may be
prevented from, recovering the collateral on behalf of the Fund. The Fund may
recall a loaned security position at any time from the borrower through IBT. In
the event the borrower fails to timely return a recalled security, IBT may
indemnify the Fund by purchasing replacement securities for the Fund at its own
expense and claiming the collateral to fund such a purchase. IBT absorbs the
loss if the collateral value is not sufficient to cover the cost of the
replacement securities. If replacement securities are not available, IBT will
credit the equivalent cash value to the Fund.
Income from securities lending is included in the Statement of Operations. The
amount of collateral and market value of securities on loan are included in the
Statement of Assets and Liabilities as well as on the Schedule of Investments.
Security transactions and investment income: Security transactions are recorded
for on the trade date. Security gains and losses are calculated on the specific
identification basis. Dividend income is recorded on the ex-dividend date or,
in the case of foreign securities, as soon as the Fund is informed of the
ex-dividend date. Interest income, including accretion of discounts and
amortization of premiums, is recorded on the accrual basis commencing on the
settlement date.
Foreign currency denominated investments: The accounting records of the Fund
are maintained in U.S. dollars. Securities and other assets and liabilities
denominated in foreign currencies are translated into U.S. dollars at the
closing exchange rate each day. The cost of foreign securities is translated at
the exchange rate in effect when the investment was acquired. The Fund combines
fluctuations from currency exchange rates and fluctuations in market value when
computing net realized and unrealized gains or losses from investments. Net
foreign currency gains and losses resulting from changes in exchange rates
include: 1) foreign currency fluctuations between trade date and settlement
date of investment security transactions; 2) gains and losses on
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Tax-Efficient Growth 8
IDEX T. Rowe Price Tax-Efficient Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 1-(continued)
forward foreign currency contracts; and 3) the difference between the
receivable amounts of interest and dividends recorded in the accounting records
in U.S. dollars and the amounts actually received. Foreign currency denominated
assets may involve risks not typically associated with domestic transactions,
including unanticipated movements in exchange currency rates, the degree of
government supervision and regulation of security markets, and the possibility
of political or economic instability.
Dividend distributions: Distributions to shareholders are recorded on the
ex-dividend date and are determined in accordance with Federal income tax
regulations which may differ from GAAP. The Fund at April 30, 2003 had no
dividend distributions.
NOTE 2. FEES, EARNINGS CREDITS AND RELATED PARTY TRANSACTIONS
AEGON/Transamerica Fund Advisers, Inc. ("ATFA") is the Fund's investment
adviser. AEGON/Transamerica Fund Services, Inc. ("ATFS") is the Fund's
administrator. AFSG Securities Corp. ("AFSG") is the Fund's
distributor/principal underwriter. AEGON/Transamerica Investor Services, Inc.
("ATIS") is the Fund's transfer agent. ATIS and AFSG are 100% owned by AUSA
Holding Company ("AUSA"). ATFA and ATFS are wholly owned subsidiaries of
Western Reserve Life Assurance Co. of Ohio ("WRL"). AUSA and WRL are wholly
owned indirect subsidiaries of AEGON NV, a Netherlands corporation.
Investment advisory fees: The Fund pays management fees to ATFA based on
average daily net assets ("ANA") at the following stated break points:
0.75% of the first $500 million of ANA
0.65% of ANA over $500 million
ATFA currently voluntarily waives its advisory fee and will reimburse the Fund
to the extent that operating expenses, excluding 12b-1 fees, exceed the
following stated annual limit:
1.35% Expense Limit
If total fund expenses fall below the annual expense limitations agreed to by
the adviser within the succeeding three years, the Fund may be required to pay
the advisor a portion or all of the waived advisory fees.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the
1940 Act pursuant to which an annual fee, based on average daily net assets, is
paid to the distributor for various disbursements such as broker-dealer account
servicing fees and other promotional expenses of the Fund. The 12b-1 fee for
the Fund is comprised of a 0.25% service fee and the remaining amount is an
asset-based sales charge/distribution fee. The Fund is authorized under the
12b-1 plan to pay fees on each class up to the following limits:
Class A 0.35%
Class B 1.00%
Class C 1.00%
Class L 1.00%
Class M 0.90%
Underwriter commissions relate to front-end sales charges imposed for Class A
and M shares and contingent deferred sales charges from Classes B, L, M and
certain A share redemptions. For the six-months ended April 30, 2003, the
underwriter commissions were as follows:
Received by Underwriter $ 14
Retained by Underwriter 1
Contingent Sales Charges 24
Administrative services: The Fund has entered into an agreement with ATFS for
financial and legal fund administration services, which include such items as
compliance, expenses, financial statements and other reporting, distributions,
tax returns, prospectus preparation, board of trustees meeting support and
other legal matters. ATFS provides its services to the Fund at a cost and is
reimbursed monthly.
Transfer agency fees and expenses: The Fund pays ATIS annual per-account
charges (not in thousands) of $15.39 for each open shareholder account, $2.73
for each new account opened, $1.63 for each closed account maintained, and
certain out-of-pocket expenses.
Deferred compensation plan: Each eligible Fund Trustee may elect participation
in the Deferred Compensation Plan ("the Plan"). Under the Plan, such Trustees
may defer payment of a percentage of their total fees earned as a Fund Trustee.
These deferred amounts may be invested in any IDEX Fund. Contributions made
under the Plan and appreciation (depreciation) and income of Plan assets are
included in Trustees fees and expenses. At April 30, 2003, invested plan
amounts are included in Other assets, and the total liability of $1 for
deferred compensation to Trustees is included in Other liabilities.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the six-months ended April 30, 2003, are as follows:
Purchases of securities:
Long-Term excluding U.S. Government $ 15,553
U.S. Government 277
Proceeds from maturities and sales of securities:
Long-Term excluding U.S. Government 4,192
U.S. Government 210
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Tax-Efficient Growth 9
IDEX T. Rowe Price Tax-Efficient Growth
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2003
(all amounts in thousands)
(unaudited)
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to
its policy to distribute all of its taxable income and capital gains to its
shareholders and otherwise qualify as a regulated investment company under the
Internal Revenue Code. Income and capital gain distributions are determined in
accordance with income tax regulations, which may differ from GAAP. These
differences are primarily due to differing treatments for items including, but
not limited to, wash sales, foreign currency transactions, net operating losses
and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital
gains through the periods listed:
Capital Loss
Carryforward Available through
- -------------- ------------------
$ 32 October 31, 2007
378 October 31, 2008
219 October 31, 2009
1,976 October 31, 2010
The aggregate cost of investments and composition of unrealized appreciation
(depreciation) for federal income tax purposes as of April 30, 2003, are as
follows:
Federal Tax Cost Basis $ 55,705
==========
Unrealized Appreciation $ 2,834
Unrealized (Depreciation) (3,247)
----------
Net Unrealized Appreciation (Depreciation) $ (413)
==========
IDEX Mutual Funds
Semi-Annual Report 2003
T. Rowe Price Tax-Efficient Growth 10
[LOGO] IDEX MUTUAL FUNDS
Customer Service 1-888-233-IDEX (4339)
www.idexfunds.com
Distributor: AFSG Securities Corporation
FORM N-CSR(2 OF 3)
ITEM 2 (CODE OF ETHICS): Not applicable to this filing.
ITEM 3 (AUDIT COMMITTEE FINANCIAL EXPERT): Not applicable to this filing.
ITEM 4 (PRINCIPAL ACCOUNTANT FEES AND SERVICES): Not applicable to this filing.
ITEM 5 (RESERVED)
ITEM 6 (RESERVED)
ITEM 7 (DISCLOSURE OF PROXY VOTING POLICIES & PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES): Not applicable to this filing.
ITEM 8 (RESERVED)
ITEM 9 (CONTROLS AND PROCEDURES):
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company Act of
1940 (17 CFR 270.30a-2(c)) as of April 30, 2003, registrant's principal
executive officer and principal financial officer found registrant's
disclosure controls and procedures to be appropriately designed to ensure
that information required to be disclosed by registrant in the reports that
it files under the Securities Exchange Act of 1934 (a) is accumulated and
communicated to registrant's management, including its principal executive
officer and principal financial officer, to allow timely decisions
regarding required disclosure, and (b) is recorded, processed, summarized
and reported, within the time periods specified in the rules and forms
adopted by the U.S. Securities and Exchange Commission.
(b) There have been no significant changes in registrant's internal controls or
in other factors that could significantly affect registrant's internal
controls subsequent to the date of the most recent evaluation as indicated,
including no significant deficiencies or material weaknesses that required
corrective action.
ITEM 10 (EXHIBITS):
SUB-ITEM 10a - Not applicable to this filing.
SUB-ITEM 10b - Included with this filing.
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.
IDEX Mutual Funds
By: /s/ Brian C. Scott
---------------------------------------------------------
President and Chief Executive Officer
Date July 1, 2003
---------------------------------------------------------
FORM N-CSR(3 OF 3)
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: /s/ Brian C. Scott
---------------------------------------------------------
President and Chief Executive Officer
Date July 1, 2003
------------------------
By: /s/ Kim D. Day
---------------------------------------------------------
Vice President, Treasurer and Principal
Financial Officer
Date July 1, 2003
------------------------
EXHIBIT INDEX
Exhibit No. Description of Exhibit
- ----------- ----------------------
10(b)(1) Section 302 N-CSR Certification of Principal Executive Officer
10(b)(2) Section 302 N-CSR Certification of Principal Financial Officer
10(b)(3) Section 906 N-CSR Certification of Principal Executive Officer
10(b)(4) Section 906 N-CSR Certification of Principal Financial Officer