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 811-09123
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AMIDEX(TM) FUNDS, INC.
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(Exact name of registrant as specified in charter)
2621 Van Buren Avenue Norristown, PA 19403
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(Address of principal executive offices) (Zip code)
Matrix Capital Group, Inc.
630 Fitzwatertown Road
Building A, Second Floor
Willow Grove, PA 19090-1904
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(Name and address of agent for service)
Registrant's telephone number, including area code: 610-666-1330
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Date of fiscal year end: 05/31/2008
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Date of reporting period: 11/30/2007
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREHOLDERS
The following is a copy of the semi-annual report to shareholders for
the period ended November 30, 2007 pursuant to rule 30e-1 under the
Investment Company Act of 1940.
SEMI-ANNUAL REPORT
NOVEMBER 30, 2007
AMIDEX
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MUTUAL FUNDS
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AMIDEX FUNDS, INC.
C/O MATRIX CAPITAL GROUP, INC.
630 FITZWATERTOWN ROAD
BUILDING A, SECOND FLOOR
WILLOW GROVE, PA 19090
TABLE OF CONTENTS
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President's Letter 1-3
Information About Your Fund's Expenses 3-4
Schedules of Investments 5-9
Statements of Assets and Liabilities 10-12
Statements of Operations 13-14
Statements of Changes in Net Assets 15
Per Share Data 16-23
Notes to Financial Statements 24-29
Advisory and Services Agreement 30-32
Additional Information 33
FOR MORE INFORMATION
Visit Our Website:
www.amidex.com
Email:
info@amidex.com
Call Us Toll Free:
1-888-876 3566
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
PRESIDENT'S LETTER & MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
November 30, 2007
Dear AMIDEX(TM) Funds, Inc. Shareholder,
Enclosed please find the Semi-Annual Report for the AMIDEX(TM) Funds, Inc. for
the six month period ending November 30, 2007.
The AMIDEX(TM) Funds enjoyed positive returns during the past six months. Our
AMIDEX35(TM) Israel Mutual Fund Class No-Load, Class A and Class C gained 2.24%,
2.13% and 1.84%, respectively, during the six month period. During this period,
the Fund gained from Israel's continuing economic growth and a strong currency
against the weakening U.S. Dollar. During the same six month period, the S&P 500
Total Return Index(1) fell -2.33%. Since inception on June 8, 1999, the
AMIDEX35(TM) Israel Mutual Fund Class No-Load had an annualized return of 5.47%.
For the same period the S&P 500 Total Return Index rose 3.05%. Since inception
on November 19, 1999, the AMIDEX35(TM) Israel Mutual Fund Class A had an
annualized return of 3.01%. Since inception on May 19, 2000, the AMIDEX35(TM)
Israel Mutual Fund Class C had an annualized return of -1.37%.
Portfolio Summary - The AMIDEX35(TM) Index tracks the largest Israeli companies
traded either in Tel Aviv or New York, providing for the first time an accurate
benchmark for Israel's equity universe. The AMIDEX35(TM) Israel Mutual Fund's
total industry holdings as of November 30, 2007 were as follows:
Israeli traded
- --------------
Banking & Insurance 17.50%
Diversified Holdings 16.56%
Chemicals 12.63%
Telecommunications 3.93%
Food 2.35%
Oil Companies 2.08%
U.S. traded
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Telecommunications 12.39%
Pharmaceuticals 11.65%
Computer Hardware/Software 5.61%
Defense Equipment 1.33%
Semiconductors 1.01%
Medical Products 0.77%
Electronic Equipment 0.46%
Utilities 0.28%
Portfolio holdings are subject to change. Percentages are based on net assets of
the Fund at November 30, 2007.
Our AMIDEX(TM) Cancer Innovations & Healthcare Fund rose 2.14% for the six month
period ending November 30, 2007. For the same period, the Russell 2000
Healthcare Index(2) rose 4.92%. Since inception on November 1, 2001, the
AMIDEX(TM) Cancer Innovations & Healthcare Fund had an annualized return of
4.12% as the Russell 2000 Healthcare Index rose 7.13% during the same period.
Portfolio Summary - The AMIDEX(TM) Cancer Innovations & Healthcare Index
includes leading pharmaceutical, biotech and medical equipment companies focused
on cancer detection and treatment. AMIDEX(TM) Cancer Innovations & Healthcare
Fund's total industry holdings as of November 30, 2007 were as follows:
Pharmaceuticals 52.01%
Biotechnology 35.02%
Healthcare Products 14.90%
Portfolio holdings are subject to change. Percentages are based on total net
assets of the Fund at November 30, 2007.
1
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
Our primary investment strategies and objectives remain unchanged. Our Funds are
based on indices, and there has been no change in the underlying indices or
portfolios, other than routine maintenance as outlined in the prospectuses.
We continue to believe in the merits of investing in our AMIDEX35(TM) Israel
Mutual Fund and our AMIDEX(TM) Cancer Innovations & Healthcare Fund, and we
remain committed to the index methodology as the best method of holding
portfolios of stocks in our specialty niches. We encourage our investors to
remain focused on the long-term prospects for the Funds, and to persevere
through the uncertainties that still lie ahead.
Let's hope that the future brings comfort to those who are suffering, calm to
regions too long plagued by violence, and security, both physical and economic,
to all Americans.
Best regards,
/s/ Cliff Goldstein
Cliff Goldstein
President, AMIDEX(TM) Funds, Inc.
This report is intended for the Funds' shareholders. It may not be distributed
to prospective investors unless it is preceded or accompanied by the current
Fund prospectus.
The performance information quoted in this Semi-Annual Report assumes the
reinvestment of all dividend and capital gain distributions, if any and
represents past performance, which is not a guarantee of future results. The
returns shown do not reflect taxes that a shareholder would pay on Fund
distributions or on the redemption of Fund shares. An investor's return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Current performance may be lower
or higher than the performance data quoted.
Please call 215.830.8712 or visit the Funds' website
http://www.amidex.com/fund.htm for current performance data. We advise you to
consider the Funds' objectives, risks, charges and expenses carefully before
investing. The prospectus contains this and other important information about
the Funds. Please read the prospectus carefully before you invest. The returns
stated above do not take into consideration transaction charges such as sales
loads or redemptions fees. If these fees were taken into consideration the
returns would be lower.
The AMIDEX35(TM) Index is a market capitalization weighted index, consisting of
the thirty five highest capitalized Israeli companies publicly traded on the
TASE, NASDAQ, or NYSE. The AMIDEX35(TM) Index is not an investment product
available for purchase.
The AMIDEX(TM) Cancer Innovations & Healthcare Index is an enhanced market
capitalization weighted index, consisting of the 45 highest capitalized
pharmaceutical, bio-tech and medical equipment companies publicly traded on U.S.
exchanges. The AMIDEX(TM) Cancer Innovations & Healthcare Index is not an
investment product available for purchase.
(1) The S&P 500 Total Return Index by Standard and Poor's Corp. is a
capitalization-weighted index comprising 500 issues listed on various exchanges,
representing the performance of the stock market generally. Please note that
indices do not take into account any fees and expenses of investing in the
individual securities that they track, and individuals cannot invest directly in
any index.
As with any fund, save an index fund, that commonly compares its performance to
the S&P 500 Total Return Index, such a comparison may be said to be
inappropriate because of the dissimilarity between the Fund's investments and
the securities comprising the index; so too with the AMIDEX35(TM) Israel Mutual
Fund, which will not invest in certain securities comprising this index.
2
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
(2) The Russell 2000 Health Care Index is a capitalization-weighted index of
companies involved in medical services or health care. Please note that indices
do not take into account any fees and expenses of investing in the individual
securities that they track, and individuals cannot invest directly in any index.
As with any fund, save an index fund, that commonly compares its performance to
the Russell 2000 Health Care Index, such a comparison may be said to be
inappropriate because of the dissimilarity between the Fund's investments and
the securities comprising the index; so too with the AMIDEX(TM) Cancer
Innovations & Healthcare Fund, which will not invest in certain securities
comprising this index.
INFORMATION ABOUT YOUR FUND'S EXPENSES (UNAUDITED)
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As a shareholder of each Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments, reinvested
dividends, or other distributions, redemption fees and exchange fees; and (2)
ongoing costs, including management fees, distribution and service (12b-1) fees;
and other Fund expenses. The example below is intended to help you understand
your ongoing costs (in dollars) of investing in each Fund and to compare these
costs with the ongoing costs of investing in other mutual funds.
The table below illustrates an example investment of $1,000 at the beginning of
the period (May 31, 2007) and held for the entire period of 05/31/07 through
11/30/07. Please note however that this table is unaudited. This example is
intended to help you understand your ongoing costs (in dollars) of investing in
each Fund and to compare these costs with the ongoing costs of investing in
other mutual funds.
ACTUAL EXPENSES
- ---------------
The first section of the table provides information about actual account values
and actual expenses (relating to the example $1,000 investment made on
05/31/07). You may use the information in this row, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the first row under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
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HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
- --------------------------------------------
The second section of the table provides information about the hypothetical
account values and hypothetical expenses based on each Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the second
section of the table is useful in comparing ongoing costs only, and will not
help you determine the relative total costs of owning different funds. In
addition, if these transactional costs were included, your costs would have been
higher. For more information on transactional costs, please refer to the Funds'
prospectus.
3
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
EXPENSES AND VALUE OF A $1,000 INVESTMENT FOR THE SIX MONTHS ENDED NOVEMBER 30, 2007
BEGINNING ACCOUNT ENDING ACCOUNT
VALUE VALUE EXPENSES PAID
Actual Fund Return (in parentheses) 05/31/07 11/30/07 DURING PERIOD*
-------- -------- --------------
AMIDEX35(TM) Israel Mutual Fund
No-Load Class (2.24%) $1,000.00 $1,022.40 $15.52
AMIDEX35(TM) Israel Mutual Fund
Class A (2.13%) 1,000.00 1,021.30 15.56
AMIDEX35(TM) Israel Mutual Fund
Class C (1.84%) 1,000.00 1,018.40 19.33
AMIDEX(TM) Cancer Innovations & Healthcare
Fund Class A (2.14%) 1,000.00 1,021.40 25.67
BEGINNING ACCOUNT ENDING ACCOUNT
VALUE VALUE EXPENSES PAID
Hypothetical 5% Fund Return 05/31/07 11/30/07 DURING PERIOD*
-------- -------- --------------
AMIDEX35(TM) Israel Mutual Fund
No-Load Class $1,000.00 $1,009.65 $15.42
AMIDEX35(TM) Israel Mutual Fund
Class A 1,000.00 1,009.60 15.47
AMIDEX35(TM) Israel Mutual Fund
Class C 1,000.00 1,005.85 19.21
AMIDEX(TM) Cancer Innovations & Healthcare
Fund Class A 1,000.00 999.60 25.39
* Expenses are equal to the Funds' annualized expense ratios of 3.07%, 3.08% and
3.83% for the AMIDEX35(TM) Israel Mutual Fund No-Load Class, Class A and Class C
shares, respectively; and 5.08% for the AMIDEX(TM) Cancer Innovations &
Healthcare Fund Class A shares, multiplied by the average account value over the
period, multiplied by 183/366 to reflect the one-half year period.
- --------------------------------------------------------------------------------
Total Fund operating expense ratios as stated in the current Fund prospectus
dated September 29, 2007 were as follows:
AMIDEX35(TM) Israel Mutual Fund Class No-Load 3.42%
AMIDEX35(TM) Israel Mutual Fund Class A 3.40%
AMIDEX35(TM) Israel Mutual Fund Class C 4.17%
AMIDEX(TM) Cancer Innovations & Healthcare Fund Class A 4.67%
Please see the Information About Your Fund's Expenses, the Financial Highlights
and Notes to Financial Statements (Note 4) sections of this report for expense
related disclosure during the period ended November 30, 2007.
- --------------------------------------------------------------------------------
For more information on Fund expenses, please refer to the Funds' prospectus,
which can be obtained from your investment representative or by calling
888-876-3566. Please read it carefully before you invest or send money.
4
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX35(TM) ISRAEL MUTUAL FUND
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SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2007 (UNAUDITED)
SHARES VALUE
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ISRAEL - 55.05%
COMMON STOCK - 55.05%
BANKING & INSURANCE - 17.50%
Bank Hapoalim BM 187,228 $ 931,497
Bank Leumi Le-Israel BM 173,116 797,572
Clal Insurance Enterprise Holdings Ltd. 8,756 250,269
Israel Discount Bank Ltd. * 147,810 378,496
Harel Insurance Investments & Finances Ltd. 3,000 174,628
Migdal Insurance & Financial Holdings Ltd. 178,216 300,050
Mizrahi Tefahot Bank Ltd. 38,915 294,783
------------
3,127,295
------------
CHEMICALS - 12.63%
Israel Chemicals Ltd. 166,335 1,754,094
Makhteshim-Agan Industries Ltd. * 59,487 503,101
------------
2,257,195
------------
DIVERSIFIED HOLDINGS - 16.56%
Africa Israel Investments Ltd. 6,851 675,980
Clal Industries and Investments 13,851 81,313
Discount Investment Corp. 7,860 256,460
Gazit Globe Ltd. 15,000 186,962
IDB Development Corp. Ltd. 8,629 326,825
IDB Holding Corp. Ltd. 6,490 237,340
Israel Corp. Ltd. 1,188 1,194,202
------------
2,959,082
------------
FOOD - 2.35%
Osem Investment Ltd. 19,084 220,031
Strauss Group Ltd. * 14,000 200,882
------------
420,913
------------
OIL COMPANIES - 2.08%
Delek Group Ltd. 1,564 371,914
------------
The accompanying notes are an integral part of these financial statements.
5
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX35(TM) ISRAEL MUTUAL FUND
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SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2007 (UNAUDITED)
SHARES VALUE
---------- ------------
TELECOMMUNICATIONS - 3.93%
Bezeq Israeli Telecommunication Corp. Ltd. 387,390 701,772
------------
TOTAL COMMON STOCK (COST $4,774,824) 9,838,171
------------
TOTAL ISRAEL (COST $4,774,824) 9,838,171
------------
UNITED STATES - 44.98%
COMMON STOCK - 33.50%
COMPUTER HARDWARE/SOFTWARE - 5.61%
Check Point Software Technologies Ltd. * 31,695 $ 723,280
Electronics for Imaging, Inc. * 8,428 193,338
Verint Systems, Inc. * 5,000 86,300
------------
1,002,918
------------
DEFENSE EQUIPMENT - 1.33%
Elbit Systems Ltd. 4,198 237,817
------------
ELECTRONICS - 0.46%
Orbotech Ltd. * 5,382 82,721
------------
MEDICAL PRODUCTS - 0.77%
Given Imaging Ltd. * 4,010 93,313
Syneron Medical Ltd. * 3,000 44,010
------------
137,323
------------
PHARMACEUTICALS - 11.65%
Taro Pharmaceutical Industries Ltd. * 5,040 37,296
Teva Pharmaceutical Industries Ltd. - ADR 45,816 2,044,768
------------
2,082,064
------------
SEMICONDUCTORS - 1.01%
DSP Group, Inc. * 4,705 63,659
Zoran Corp. * 5,300 115,646
------------
179,305
------------
The accompanying notes are an integral part of these financial statements.
6
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX35(TM) ISRAEL MUTUAL FUND
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SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2007 (UNAUDITED)
SHARES VALUE
---------- ------------
TELECOMMUNICATIONS - 12.39%
Alvarion Ltd. * 7,000 68,250
Amdocs Ltd. * 28,803 953,091
Comverse Technology, Inc. * 25,377 411,108
Nice Systems Ltd. - ADR * 3,000 97,740
Partner Communications Co. Ltd. - ADR 33,100 682,853
------------
2,213,042
------------
UTILITIES - 0.28%
Ormat Technologies, Inc. 1,000 $ 50,500
------------
TOTAL COMMON STOCK (COST $7,549,896) 5,985,690
------------
EXPIRATION DATE-
WARRANTS - 0.00% EXERCISE PRICE
------------------------
Gazit Globe, Ltd. * (COST $0) 06/03/08 - 47.61 ILS *** 1,875 --
------------
SHORT-TERM INVESTMENTS - 11.48%
Fidelity Institutional Money Market Fund, 4.91% **
(COST $2,051,940) 2,051,940 2,051,940
------------
TOTAL UNITED STATES (COST $9,601,836) 8,037,630
------------
TOTAL INVESTMENTS (COST $14,376,660) - 100.03% $ 17,875,801
LIABILITIES IN EXCESS OF OTHER ASSETS , NET - (0.03%) (5,586)
------------
NET ASSETS - 100% $ 17,870,215
============
* Non-income producing security.
** Rate shown represents the rate at November 30, 2007, is subject to change
and resets daily.
ADR American Depository Receipt.
*** Exercise Price is in Israeli shekels.
The accompanying notes are an integral part of these financial statements.
7
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX(TM) CANCER INNOVATIONS & HEALTHCARE FUND
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SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2007 (UNAUDITED)
SHARES VALUE
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COMMON STOCK - 101.93%
BIOTECHNOLOGY - 35.02%
Amgen, Inc. * 325 $ 17,956
Biogen Idec, Inc. * 675 50,031
Celgene Corp. * 800 49,240
Enzon Pharmaceuticals, Inc. * 100 946
Genentech, Inc. * 600 45,750
Genzyme Corp. * 446 33,419
Human Genome Sciences, Inc. * 600 6,246
Immunomedics, Inc. * 100 226
Millennium Pharmaceuticals, Inc. * 900 13,266
Myriad Genetics, Inc. * 100 4,820
PDL BioPharma, Inc. * 500 8,855
Vertex Pharmaceuticals, Inc. * 200 5,078
------------
235,833
------------
HEALTHCARE PRODUCTS - 14.90%
Beckman Coulter, Inc. 200 14,146
Hologic, Inc.* 208 13,809
Johnson & Johnson 700 47,418
Varian Medical Systems, Inc. * 500 24,980
------------
100,353
------------
PHARMACEUTICALS - 52.01%
Abbott Laboratories 600 34,506
AstraZeneca Plc. - ADR 700 33,166
Bristol-Myers Squibb Co. 800 23,704
Cell Therapeutics, Inc. * 25 65
Elan Corp. Plc. - ADR * 100 2,303
Eli Lilly & Co. 400 21,180
Gilead Sciences, Inc. * 1,300 60,502
GlaxoSmithKline Plc. - ADR 600 31,608
ImClone Systems, Inc. * 300 13,527
Medarex, Inc. * 200 2,540
Merck & Co., Inc. 500 29,680
Novartis AG - ADR 450 25,434
The accompanying notes are an integral part of these financial statements.
8
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX(TM) CANCER INNOVATIONS & HEALTHCARE FUND
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SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2007 (UNAUDITED)
SHARES VALUE
---------- ------------
PHARMACEUTICALS - 52.01% (continued)
Pfizer, Inc. 1,050 24,948
QLT, Inc. * 300 1,482
Schering-Plough Corp. 600 18,780
Valeant Pharmaceuticals International 200 2,310
Wyeth 500 24,550
------------
350,285
------------
TOTAL COMMON STOCK (COST $584,676) 686,471
------------
TOTAL INVESTMENTS (COST $584,676) - 101.93% $ 686,471
LIABILITIES IN EXCESS OF OTHER ASSETS, NET - (1.93%) (12,981)
------------
NET ASSETS - 100% $ 673,490
============
* Non-income producing security.
ADR - American Depository Receipt
The accompanying notes are an integral part of these financial statements.
9
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX35(TM) ISRAEL MUTUAL FUND
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STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 2007 (UNAUDITED)
ASSETS:
Investments, at market (cost: $14,376,660) $ 17,875,801
Receivables:
Dividends 21,214
Interest 6,847
Fund shares sold 3,850
Prepaid expenses 24,532
------------
Total assets 17,932,244
------------
LIABILITIES:
Payables:
Investment advisory and administrative fees 12,450
Fund accounting/transfer agency fees 10,703
Distribution fees 12,472
Other liabilities and accrued expenses 26,404
------------
Total liabilities 62,029
------------
NET ASSETS $ 17,870,215
============
NET ASSETS CONSIST OF:
Common stock $ 126
Additional paid-in capital 21,338,799
Accumulated net investment loss (180)
Accumulated realized loss on investments (6,967,802)
Net unrealized appreciation on investments 3,499,272
------------
Total Net Assets (1,261,395 shares outstanding;
500,000,000 shares of $0.0001 par value
authorized in the aggregate for both the
AMIDEX35(TM) Israel Mutual Fund and the
AMIDEX(TM) Cancer Innovations & Healthcare
Fund) $ 17,870,215
============
The accompanying notes are an integral part of these financial statements.
10
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX35(TM) ISRAEL MUTUAL FUND
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STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 2007 (UNAUDITED)
NO-LOAD CLASS SHARES:
Net Assets applicable to 879,152 shares outstanding $ 13,655,196
============
Net Asset Value, and offering price per share $ 15.53
============
Redemption price per share No-load class * $ 15.22
============
CLASS A SHARES:
Net Assets applicable to 264,805 shares outstanding $ 3,177,387
============
Net Asset Value and redemption price per share $ 12.00
============
Offering price per share Class A ** $ 12.70
============
CLASS C SHARES:
Net Assets applicable to 117,438 shares outstanding $ 1,037,632
============
Net Asset Value and offering price per share $ 8.84
============
Redemption price per share Class C *** $ 8.75
============
* A redemption fee of 2.00% is imposed on redemptions occurring within 365
days of purchase.
** A maximum sales charge of 5.50% is imposed on Class A shares.
*** A contingent deferred sales charge ("CDSC") of 1.00% is imposed in the
event of certain redemption transactions within thirteen months following
such investments.
The accompanying notes are an integral part of these financial statements.
11
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX(TM) CANCER INNOVATIONS & HEALTHCARE FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 2007 (UNAUDITED)
ASSETS:
Investments, at market (cost: $584,676) $ 686,471
Receivables:
Dividends 1,225
Interest 7
Prepaid expenses 4,153
------------
Total assets 691,856
------------
LIABILITIES:
Payables:
Investment advisory and administrative fees 492
Fund accounting/transfer agency fees 477
Distribution fees 849
Due to custodian 14,604
Other liabilities and accrued expenses 1,944
------------
Total liabilities 18,366
------------
NET ASSETS $ 673,490
============
NET ASSETS CONSIST OF:
Common stock $ 6
Additional paid-in capital 363,415
Accumulated net investment loss (14,623)
Undistributed realized gain on investments 222,897
Net unrealized appreciation on investments 101,795
------------
Total Net Assets (56,511 shares outstanding;
500,000,000 shares of $0.0001 par value
authorized in the aggregate for both the
AMIDEX35(TM) Israel Mutual Fund and the
AMIDEX(TM) Cancer Innovations & Healthcare
Fund) $ 673,490
============
CLASS A SHARES:
Net Assets applicable to 56,511 shares outstanding $ 673,490
============
Net Asset Value and redemption price per share $ 11.92
============
Offering price per share Class A * $ 12.61
============
* A maximum sales charge of 5.50% is imposed on Class A shares.
The accompanying notes are an integral part of these financial statements.
12
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX35(TM) ISRAEL MUTUAL FUND
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STATEMENT OF OPERATIONS
NOVEMBER 30, 2007 (UNAUDITED)
FOR THE SIX
MONTHS ENDED
NOVEMBER 30,
2007
------------
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of: $48,660) $ 220,657
Interest 38,939
------------
Total investment income 259,596
------------
EXPENSES:
Investment advisory fees 66,665
Distribution fees - No-load Class 16,278
Distribution fees - Class A 3,400
Distribution fees - Class C 4,623
Accounting and transfer agent fees 63,215
Legal fees 21,512
Audit fees 20,227
Registration fees 13,598
Custody fees 10,071
Insurance fees 8,533
Administrative fees 8,333
Out of pocket expenses 6,571
Miscellaneous 7,859
Trustee fees 6,234
Pricing fees 2,657
------------
Total expenses 259,776
------------
Net investment loss (180)
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 68,477
Net change in unrealized appreciation on investments 329,935
------------
398,412
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 398,232
============
The accompanying notes are an integral part of these financial statements.
13
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX(TM) CANCER INNOVATIONS & HEALTHCARE FUND
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
NOVEMBER 30, 2007 (UNAUDITED)
FOR THE SIX
MONTHS ENDED
NOVEMBER 30,
2007
------------
INVESTMENT INCOME:
Dividends $ 4,730
Interest 415
------------
Total investment income 5,145
------------
EXPENSES:
Investment advisory fees 3,115
Distribution fees - Class A 973
Accounting and transfer agent fees 2,965
Custody fees 2,964
Registration fees 2,705
Audit fees 2,231
Pricing fees 1,654
Legal fees 1,009
Miscellaneous 687
Out of pocket expenses 620
Insurance fees 456
Administrative fees 389
------------
Total expenses 19,768
------------
Net investment loss (14,623)
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments 78,873
Net change in unrealized appreciation on investments (53,645)
------------
25,228
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 10,605
============
The accompanying notes are an integral part of these financial statements.
14
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS
NOVEMBER 30, 2007 (UNAUDITED)
AMIDEX35(TM) ISRAEL MUTUAL FUND
- --------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, 2007 MAY 31, 2007
-------------- --------------
INCREASE IN NET ASSETS (UNAUDITED)
Operations:
Net investment loss $ (180) $ (12,340)
Net realized gain (loss) on investments 68,477 (526,275)
Net change in unrealized appreciation on investments 329,935 4,137,841
-------------- --------------
Net increase in net assets resulting from operations 398,232 3,599,226
-------------- --------------
Increase in net assets from Fund share transactions (Note 2) 650,970 171,068
-------------- --------------
Total increase in net assets 1,049,202 3,770,294
NET ASSETS:
Beginning of period 16,821,013 13,050,719
-------------- --------------
End of period (including accumulated net investment
loss of ($180) and undistributed net investment
income of $0, respectively) $ 17,870,215 $ 16,821,013
============== ==============
AMIDEX(TM) CANCER INNOVATIONS & HEALTHCARE FUND
- --------------------------------------------------------------------------------
DECREASE IN NET ASSETS
Operations:
Net investment loss $ (14,623) $ (34,770)
Net realized gain on investments 78,873 147,340
Net change in unrealized appreciation on investments (53,645) 7,561
-------------- --------------
Net increase in net assets resulting from operations 10,605 120,131
-------------- --------------
Distributions to shareholders from:
Net realized gain -- (54,390)
-------------- --------------
Decrease in net assets from Fund share transactions (Note 2) (214,760) (276,849)
-------------- --------------
Total decrease in net assets (204,155) (211,108)
NET ASSETS:
Beginning of period 877,645 1,088,753
-------------- --------------
End of period (including accumulated net investment
loss of ($14,623) and undistributed net investment
income of $0, respectively) $ 673,490 $ 877,645
============== ==============
The accompanying notes are an integral part of these financial statements.
15
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX35(TM) ISRAEL MUTUAL FUND -- NO-LOAD CLASS
FINANCIAL HIGHLIGHTS - PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH FISCAL YEAR OR PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE FOR THE FOR THE FOR THE
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
2007 2007 2006 2005 2004 2003
---------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.19 $ 11.66 $ 10.56 $ 9.29 $ 7.76 $ 6.39
---------- ---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS:
Net investment income (loss) (a) --(b) (0.01) (0.17) (0.15) (0.19) (0.18)
Net realized and unrealized gain on
investments 0.33 3.54 1.27 1.42 1.72 1.55
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.33 3.53 1.10 1.27 1.53 1.37
---------- ---------- ---------- ---------- ---------- ----------
PAID IN CAPITAL FROM REDEMPTION FEES 0.01 --(c) --(c) --(c) -- --
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 15.53 $ 15.19 $ 11.66 $ 10.56 $ 9.29 $ 7.76
========== ========== ========== ========== ========== ==========
TOTAL RETURN (d) 2.24%(e) 30.27% 10.42% 13.67% 19.72% 21.44%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $ 13,655 $ 13,388 $ 9,409 $ 9,489 $ 8,454 $ 6,799
Ratio of expenses to average net assets 3.07%(f) 3.40% 3.39% 3.53% 3.47% 3.53%
Ratio of net investment income (loss) to
average net assets: 0.05%(f) (0.07)% (1.53)% (1.61)% (2.21)% (3.02)%
Portfolio turnover rate 0.00% 6.31% 0.00% 10.39% 14.62% 8.72%
(a) Net investment loss per share is based on average shares outstanding.
(b) Net investment income resulted in less than $0.01 per share.
(c) Redemption fees resulted in less than $0.01 per share.
(d) Total return in the above table represents the rate that the investor
would have earned or lost on an investment in the Fund assuming
reinvestment of dividends.
(e) Aggregate total return, not annualized.
(f) Annualized.
The accompanying notes are an integral part of these financial statements.
16 and 17
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX35(TM) ISRAEL MUTUAL FUND -- CLASS A
FINANCIAL HIGHLIGHTS - PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH FISCAL YEAR OR PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE FOR THE FOR THE FOR THE
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
2007 2007 2006 2005 2004 2003
---------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.75 $ 9.02 $ 8.17 $ 7.20 $ 6.02 $ 4.95
---------- ---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS:
Net investment income (loss) (a) --(b) 0.01 (0.13) (0.12) (0.15) (0.14)
Net realized and unrealized gain on
investments 0.25 2.72 0.98 1.09 1.33 1.21
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.25 2.73 0.85 0.97 1.18 1.07
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 12.00 $ 11.75 $ 9.02 $ 8.17 $ 7.20 $ 6.02
========== ========== ========== ========== ========== ==========
TOTAL RETURN (c) 2.13%(d) 30.27% 10.40% 13.47% 19.60% 21.62%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $ 3,177 $ 2,555 $ 2,899 $ 2,236 $ 3,085 $ 2,142
Ratio of expenses to average net assets: 3.08%(e) 3.38% 3.40% 3.50% 3.48% 3.47%
Ratio of net investment income (loss) to
average net assets: 0.01%(e) 0.11% (1.50)% (1.61)% (2.22)% (2.98)%
Portfolio turnover rate 0.00% 6.31% 0.00% 10.39% 14.62% 8.72%
(a) Net investment income (loss) per share is based on average shares
outstanding.
(b) Net investment income resulted in less than $0.01 per share.
(c) Total return in the above table represents the rate that the investor
would have earned or lost on an investment in the Fund assuming
reinvestment of dividends.
(d) Aggregate total return, not annualized.
(e) Annualized.
The accompanying notes are an integral part of these financial statements.
18 and 19
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX35(TM) ISRAEL MUTUAL FUND -- CLASS C
FINANCIAL HIGHLIGHTS - PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH FISCAL YEAR OR PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE FOR THE FOR THE FOR THE
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
2007 2007 2006 2005 2004 2003
---------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.68 $ 6.71 $ 6.13 $ 5.44 $ 4.58 $ 3.80
---------- ---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS:
Net investment loss (a) (0.03) (0.06) (0.15) (0.14) (0.15) (0.13)
Net realized and unrealized gain on
investments 0.19 2.03 0.73 0.83 1.01 0.91
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.16 1.97 0.58 0.69 0.86 0.78
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 8.84 $ 8.68 $ 6.71 $ 6.13 $ 5.44 $ 4.58
========== ========== ========== ========== ========== ==========
TOTAL RETURN (b) 1.84%(c) 29.36% 9.46% 12.68% 18.78% 20.53%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $ 1,038 $ 878 $ 743 $ 645 $ 560 $ 489
Ratio of expenses to average net assets: 3.83%(d) 4.15% 4.15% 4.29% 4.20% 4.22%
Ratio of net investment loss to
average net assets: (0.73)(d) (0.88)% (2.28)% (2.51)% (2.92)% (3.73)%
Portfolio turnover rate 0.00% 6.31% 0.00% 10.39% 14.62% 8.72%
(a) Net investment loss per share is based on average shares outstanding.
(b) Total return in the above table represents the rate that the investor
would have earned or lost on an investment in the Fund assuming
reinvestment of dividends.
(c) Aggregate total return, not annualized.
(d) Annualized.
The accompanying notes are an integral part of these financial statements.
20 and 21
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
AMIDEX(TM) CANCER INNOVATIONS & HEALTHCARE FUND -- CLASS A
FINANCIAL HIGHLIGHTS - PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH FISCAL YEAR OR PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE FOR THE FOR THE FOR THE
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
2007 2007 2006 2005 2004 2003
---------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.67 $ 10.95 $ 10.55 $ 10.32 $ 8.50 $ 8.12
---------- ---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS:
Net investment loss (a) (0.21) (0.38) (0.36) (0.32) (0.34) (0.16)
Net realized and unrealized gain on
investments 0.46 1.71 0.76 0.69 2.16 0.54
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.25 1.33 0.40 0.37 1.82 0.38
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS:
From net realized capital gain -- (0.61) -- (0.14) -- --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions -- (0.61) -- (0.14) -- --
---------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 11.92 $ 11.67 $ 10.95 $ 10.55 $ 10.32 $ 8.50
========== ========== ========== ========== ========== ==========
TOTAL RETURN (b) 2.14%(c) 12.62% 3.79% 3.75% 21.41% 4.68%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $ 673 $ 878 $ 1,089 $ 1,064 $ 1,057 $ 946
Ratio of expenses to average net assets: 5.08%(d) 4.66% 4.46% 4.45% 4.56% 3.43%
Ratio of net investment loss to
average net assets: (3.76)(d) (3.40)% (3.26)% (3.33)% (3.57)% (2.22)%
Portfolio turnover rate 1.25% 0.00% 12.42% 2.14% 0.00% 0.00%
(a) Net investment loss per share is based on average shares outstanding.
(b) Total return in the above table represents the rate that the investor
would have earned or lost on an investment in the Fund assuming
reinvestment of dividends.
(c) Aggregate total return, not annualized.
(d) Annualized.
The accompanying notes are an integral part of these financial statements.
22 and 23
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2007 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
AMIDEX(TM) Funds, Inc. (the "Company") was incorporated under the laws of
the state of Maryland on April 27, 1999, and currently consists of two active
portfolios, the AMIDEX35(TM) Israel Mutual Fund, and the AMIDEX(TM) Cancer
Innovations & Healthcare Fund (each a "Fund" and collectively the "Funds"). The
Funds are non-diversified Funds. The Company is registered as an open-end
management investment company under the Investment Company Act of 1940 (the
"1940 Act"). The Funds were registered to offer four classes of shares, Class A,
Class B, Class C and No-load class, with only the Class A, Class C and No-load
shares currently being offered in the AMIDEX35 TM Israel Mutual Fund and only
Class A shares being offered in the AMIDEX(TM) Cancer Innovations & Healthcare
Fund. Each class differs as to sales and redemption charges, minimum investment
amounts and ongoing fees. Income and realized/unrealized gains or losses are
allocated to each class based on relative share balances. The Funds' investment
objectives are long term growth of capital. The AMIDEX35(TM) Israel Mutual Fund
became effective with the SEC on April 27, 1999 and commenced operations on June
8, 1999. The AMIDEX(TM) Cancer Innovations & Healthcare Fund became effective
with the SEC on August 1, 2001 and commenced operations on November 1, 2001.
The following is a summary of significant accounting policies consistently
followed by the Funds. The policies are in conformity with accounting principles
generally accepted in the United States of America.
a) Investment Valuation--A portfolio security listed or traded on an exchange in
domestic or international markets is valued at the last reported sale price of
the primary exchange on which it trades before the time when the fund values
assets. Lacking any sales on the principal exchange that day, the security is
valued at the mean between the last reported bid and ask prices, if available.
Securities traded on more than one market are valued using the market identified
as primary based on trading volume and activity. Equity securities traded on the
NASDAQ National Market System are valued at the NASDAQ Official Closing Price.
If there are no sales that day, such securities will be valued at the mean
between the bid and ask quotation, if available. Other over-the-counter
securities are valued at the last sale price, if published, or the mean between
the last bid and ask quotation, if available. Debt securities with maturities of
sixty days or less at the time of purchase are valued based on amortized cost.
If market quotations are not readily available, or when the portfolio management
team believes that a readily available market quotation or other valuation
produced by the fund's valuation policies is not reliable, the fund values the
assets at fair value using procedures established by the Board of Directors. The
Board members have delegated pricing authority to the fair valuation committee
of the adviser, for certain pricing issues, as defined in the valuation
procedures. Events affecting the value of securities that occur between the time
prices are established and the New York Stock Exchange closes are not reflected
in the calculation of net asset value unless the fair valuation committee
decides that the event would materially affect the net asset value. If the event
would materially affect the fund's net asset value, the security will be fair
valued by the fair valuation committee or, at its discretion, by an independent
fair valuation vendor. At November 30, 2007, no securities were valued as
determined by the Board of Directors.
b) Foreign Currency Translation--Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollars
based on the exchange rate of such currencies against U.S. dollars on the date
of valuation. Purchases and sales of securities and income items denominated in
foreign currencies are translated into U.S. dollars at the exchange rate in
effect on the transaction date. The Fund does not separately report the effect
of changes in foreign exchange rates from changes in market prices on securities
held. Such changes are included in net realized and unrealized gain or loss from
investments. Realized foreign exchange gains or losses arise from sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions and the difference between the
recorded amounts of dividends, interest and foreign withholding taxes, and the
U.S. dollar equivalent of the amounts actually received or paid. Net unrealized
foreign exchange gains or losses arise from changes in foreign exchange rates on
foreign currency denominated assets and liabilities other than investments in
securities held at the end of the reporting period.
c) Federal Income Taxes--No provision for federal income taxes has been made
since the AMIDEX35(TM) Israel Mutual Fund and the AMIDEX(TM) Cancer Innovations
and Healthcare Fund have complied to date with sub-chapter M of the Internal
Revenue Code applicable to regulated investment companies and intends to so
comply in the future and to distribute all of its net investment income and
realized capital gains to its shareholders.
24
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2007 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
d) Distributions to Shareholders--Dividends from net investment income and
distributions of net realized capital gains, if any, will be declared and paid
at least annually. Income and capital gain distributions, which are determined
in accordance with income tax regulations, are recorded on the ex-dividend date.
Accounting principles generally accepted in the United States of America require
that permanent financial reporting differences relating to shareholder
distributions be reclassified to paid-in capital or net realized gain.
e) Use of Estimates--The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.
f) Other--Investment and shareholder transactions are recorded on trade date.
The Funds determine the gain or loss realized from the investment transactions
by comparing the original cost of the security lot sold with the net sales
proceeds. Dividend income is recognized on the ex-dividend date or as soon as
information is available to the Fund and interest income is recognized on an
accrual basis. Withholding taxes on foreign dividends have been provided for in
accordance with the Funds' understanding of the applicable country's tax rules
and rates.
The Fund adopted Financial Accounting Standards Board (FASB)
Interpretation No. 48 - Accounting for Uncertainty in Income Taxes, on June 1,
2007. FASB Interpretation No. 48 requires that the tax effects of certain tax
positions be recognized. These tax provisions must meet a "more likely than not"
standard that based on their technical merits, have a more than 50 percent
likelihood of being sustained upon examination. At adoption, the financial
statements must be adjusted to reflect only those tax positions that are more
likely than not of being sustained. Management of the Fund does not believe that
any adjustments were necessary to the financial statements at adoption.
In September 2006, FASB issued Statement on Financial Accounting Standards
(SFAS) No. 157 "Fair Value Measurements". This standard establishes a single
authoritative definition of fair value, sets out a framework for measuring fair
value and requires additional disclosure about fair value measurements. SFAS No.
157 applies to fair value measurements already required or permitted by existing
standards. SFAS No. 157 is effective for financial statements issued for fiscal
years beginning after November 15, 2007 and interim periods within those fiscal
years. The changes to current generally accepted accounting principles from the
application of this Statement relate to the definition of fair value, the
methods used to measure fair value, and the expanded disclosures about fair
value measurements. As of November 30, 2007, the Funds do not believe the
adoption of SFAS No. 157 will impact the amounts reported in the financial
statements, however, additional disclosures may be required about the inputs
used to develop the measurements and the effect of certain of the measurements
reported on the statement of changes in net assets for a fiscal period.
2. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the AMIDEX35(TM) Israel Mutual
Fund for the six months ended November 30, 2007 were as follows:
NO-LOAD
-------
SHARES AMOUNT
------------ ------------
Sold 88,242 $ 1,321,720
Redeemed (90,396) (1,339,485)
------------ ------------
Net Decrease (2,154) $ (17,765)
============ ============
25
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2007 (UNAUDITED)
2. CAPITAL SHARE TRANSACTIONS (CONTINUED)
CLASS A
-------
SHARES AMOUNT
------------ ------------
Sold 91,544 $ 1,047,608
Redeemed (44,251) (519,987)
------------ ------------
Net Increase 47,293 $ 527,621
============ ============
CLASS C
-------
SHARES AMOUNT
------------ ------------
Sold 18,808 $ 161,993
Redeemed (2,459) (20,879)
------------ ------------
Net Increase 16,349 $ 141,114
============ ============
Transactions in shares of the AMIDEX(TM) Cancer Innovations & Healthcare
Fund for the six months ended November 30, 2007 were as follows:
CLASS A
-------
SHARES AMOUNT
------------ ------------
Sold 1,646 $ 18,279
Redeemed (20,323) (233,039)
------------ ------------
Net Decrease (18,677) $ (214,760)
============ ============
Transactions in shares of capital stock for the AMIDEX35(TM) Israel Mutual
Fund for the year ended May 31, 2007 were as follows:
NO-LOAD
-------
SHARES AMOUNT
------------ ------------
Sold 191,318 $ 2,485,848
Redeemed (117,140) (1,447,633)
------------ ------------
Net Increase 74,178 $ 1,038,215
============ ============
CLASS A
-------
SHARES AMOUNT
------------ ------------
Sold 104,211 $ 1,115,942
Redeemed (208,123) (1,922,931)
------------ ------------
Net Decrease (103,912) $ (806,989)
============ ============
CLASS C
-------
SHARES AMOUNT
------------ ------------
Sold 22,851 $ 171,647
Redeemed (32,397) (231,805)
------------ ------------
Net Decrease (9,546) $ (60,158)
============ ============
26
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2007 (UNAUDITED)
2. CAPITAL SHARE TRANSACTIONS (CONTINUED)
Transactions in shares of the AMIDEX(TM) Cancer Innovations & Healthcare
Fund for the year ended May 31, 2007 were as follows:
CLASS A
-------
SHARES AMOUNT
------------ ------------
Sold 6,646 $ 74,018
Reinvested 4,185 45,328
Redeemed (35,095) (396,195)
------------ ------------
Net Decrease (24,264) $ (276,849)
============ ============
3. INVESTMENT TRANSACTIONS
For the six months ended November 30, 2007, aggregate purchases and sales
of investment securities (excluding short-term investments) for each Fund were
as follows:
PURCHASES SALES
--------- -----
AMIDEX35(TM) Israel Mutual Fund $ -- $160,000
AMIDEX(TM) Cancer Innovations & Healthcare Fund 9,601 223,693
There were no government securities purchased or sold during the period.
4. ADVISORY FEES AND OTHER RELATED PARTY TRANSACTIONS
Effective October 1, 2003, the Funds have entered into an Advisory
Agreement with Index Investments, LLC ("II") to provide investment management
services to the Funds. II furnishes, at its own expense, office space to the
Funds and all necessary office facilities, equipment and personnel for managing
the assets of the Funds. II also pays all expenses of marketing shares of the
Funds and related bookkeeping. Pursuant to the Advisory Agreement, II is
entitled to receive a fee, calculated daily and payable monthly at the annual
rate of 0.80% as applied to the Funds' daily net assets. For the six months
ended November 30, 2007, the AMIDEX35(TM) Israel Mutual Fund incurred $66,665 of
advisory fees, with $11,007 remaining payable at November 30, 2007. For the six
months ended November 30, 2007, the AMIDEX(TM) Cancer Innovations & Healthcare
Fund incurred $3,115 of advisory fees, with $437 remaining payable at November
30, 2007.
Effective October 1, 2003, the Funds have entered into an Administrative
Services Agreement ("ASA") with II to provide administrative services to the
Funds. Pursuant to the ASA, II is entitled to receive a fee, calculated daily
and payable monthly at the annual rate of 0.10% as applied to the Funds' daily
net assets. For the six months ended November 30, 2007, the AMIDEX35(TM) Israel
Mutual Fund incurred $8,333 of administrative fees, with $1,443 remaining
payable at November 30, 2007. For the six months ended November 30, 2007, the
AMIDEX(TM) Cancer Innovations & Healthcare Fund incurred $389 of administrative
fees, with $55 remaining payable at November 30, 2007.
One director of the Funds is also an Officer of II.
The Funds have entered into an Investment Company Services Agreement
("ICSA") with Matrix Capital Group, Inc. ("Matrix"). Pursuant to the ICSA,
Matrix will provide day-to-day operational services to the Funds including, but
not limited to, accounting, administrative, transfer agent, dividend
disbursement, registrar and record keeping services. For its services, Matrix
receives $11,000 per month which is allocated to the Funds based on their
respective average daily net assets. For the six months ended November 30, 2007,
Matrix earned $66,180 with $11,180 remaining payable at November 30, 2007.
27
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2007 (UNAUDITED)
4. ADVISORY FEES AND OTHER RELATED PARTY TRANSACTIONS (CONTINUED)
Certain Officers of the Funds are also employees of Matrix.
The Funds and II have entered into a Distribution Agreement with Matrix
Capital Group, Inc. Pursuant to the Distribution Agreement, Matrix will provide
distribution services to the Funds. Matrix serves as underwriter/distributor of
the Funds. Pursuant to the Distribution Agreement, Matrix receives $20,000 per
year from the Funds allocated based on their respective average daily net
assets. Matrix also receives commissions from the sale of Class A Fund shares
for which they are the broker of record. The allocated distribution fees are
reduced by the amount of commissions received and the remainder is paid from the
accruals pursuant to Rule 12b-1 under the Investment Company Act of 1940. For
the six months ended November 30, 2007, Matrix received net distribution fees of
$7,342 and $298 from the AMIDEX35(TM) Israel Mutual Fund and the AMIDEX(TM)
Cancer Innovations & Healthcare Fund, respectively. For the six months ended
November 30, 2007, Matrix received commissions from the sale of Fund shares of
$2,234 and $126 from the AMIDEX35(TM) Israel Mutual Fund Class A and the
AMIDEX(TM) Cancer Innovations & Healthcare Fund Class A, respectively.
A separate plan of distribution has been adopted pursuant to Rule 12b-1
under the Investment Company Act of 1940 for each class of shares. With respect
to Class A and the No-load class of shares, the plan provides that the Funds may
pay a servicing or Rule 12b-1 fee of up to 0.25% annually of the Funds' average
net assets attributable to each class of shares, respectively, and up to 1.00%
annually of the Funds' average net assets attributable to Class C shares to
persons or institutions for performing certain servicing functions for the
Funds' shareholders. The distribution plans are compensation plans, which also
allow the Funds to pay or reimburse expenditures in connection with sales, and
promotional services related to distribution of the Funds' shares, including
personal services provided to prospective and existing shareholders.
The distribution plans for the shares in the AMIDEX35(TM) Israel Mutual
Fund Class A, the No-load class and Class C took effect November 19, 1999, June
8, 1999 and May 19, 2000, respectively. The distribution plan for the Class A
shares in the AMIDEX(TM) Cancer Innovations & Healthcare Fund took effect
November 1, 2001. For the six months ended November 30, 2007, the AMIDEX35(TM)
Israel Mutual Fund incurred $24,301 in 12b-1 fees with $12,472 remaining payable
at November 30, 2007. For the six months ended November 30, 2007, the AMIDEX(TM)
Cancer Innovations & Healthcare Fund incurred $973 in 12b-1 fees with $849
remaining payable at November 30, 2007.
5. TAX MATTERS
There were no distributions paid during the six month period ended
November 30, 2007. The tax character of distributions paid for the year ended
May 31, 2007 were as follows:
2007
ORDINARY LONG-TERM
INCOME CAPITAL GAINS
------ -------------
AMIDEX(TM) Cancer Innovations & Healthcare Fund $ -- $54,390
There were no distributions during the fiscal year ended May 31, 2007 for
the AMIDEX35(TM) Israel Mutual Fund.
The Funds' distributable earnings on a tax basis are determined only at
the end of each fiscal year. As of May 31, 2007, the Funds' most recent fiscal
year end, the components of distributable earnings on a tax basis were as
follows:
AMIDEX(TM)
AMIDEX35(TM) CANCER
ISRAEL INNOVATIONS &
MUTUAL FUND HEALTHCARE FUND
----------- ---------------
Cost of investments for tax purposes $ 14,817,842 $ 720,725
Unrealized Appreciation / (Depreciation):
Gross Appreciation 6,414,871 230,764
Gross Depreciation (4,396,152) (75,324)
------------ ------------
Net Unrealized Appreciation / (Depreciation) $ 2,018,719 $ 155,440
28
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
NOVEMBER 30, 2007 (UNAUDITED)
5. TAX MATTERS (CONTINUED)
AMIDEX(TM)
AMIDEX35(TM) CANCER
ISRAEL INNOVATIONS &
MUTUAL FUND HEALTHCARE FUND
----------- ---------------
Undistributed Long-term Capital Gain -- 144,024
Capital Loss Carryforwards (5,885,661) --
------------ ------------
Distributable Earnings, Net $ (3,866,942) $ 299,464
============ ============
The difference between book basis and tax-basis unrealized appreciation is
attributable primarily to the tax deferral of losses on wash sales for the
AMIDEX35(TM) Israel Mutual Fund.
As of May 31, 2007 the Funds had capital loss carryforwards available for
federal income tax purposes as follows:
AMIDEX35(TM) AMIDEX(TM) CANCER
ISRAEL MUTUAL FUND INNOVATIONS & HEALTHCARE FUND
------------------ -----------------------------
Expiring in: 2010 $ (1,795,267) $ --
Expiring in: 2011 $ (100,824) $ --
Expiring in: 2012 $ (1,246,393) $ --
Expiring in: 2013 $ (323,400) $ --
Expiring in: 2014 $ (1,409,903) $ --
Expiring in: 2015 $ (1,009,874) $ --
6. CONCENTRATION OF RISK
The AMIDEX35(TM) Israel Mutual Fund invests exclusively in common stock of
Israeli companies. Investing in the companies from one geographic region may
pose additional risks inherent to a region's economical and political situation.
A large portion of investments held by AMIDEX35(TM) Israel Mutual Fund are
considered investments in the technology sector of the market. All investments
in common stock held by AMIDEX(TM) Cancer Innovations & Healthcare Fund are
identified as belonging to the healthcare sector of the market. Investing in a
single market sector may be riskier than investing in a variety of market
sectors.
7. BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25%
of the voting securities of a fund creates a presumption of control of the fund,
under Section 2(a)(9) of the Investment Company Act of 1940. As of November 30,
2007, FTC & Co. Datalynx and Merrill Lynch Pierce, Fenner & Smith, Inc. held
34.02% and 25.37% respectively, of AMIDEX35(TM) Israel Mutual Fund Class A
shares in omnibus accounts for the sole benefit of their customers. As of
November 30, 2007, Merrill Lynch Pierce, Fenner & Smith, Inc. held 50.62% of
AMIDEX35(TM) Israel Mutual Fund Class C shares in an omnibus account for the
sole benefit of their customers.
8. LITIGATION
On May 31, 2006, a lawsuit was filed against II, the Adviser, and certain
officers/shareholders of II. The complaint was filed by previous shareholders of
TransNations Investments, LLC, the Funds' previous Investment Adviser. The
complaint does not involve the AMIDEX(TM) Funds, Inc. or any of the current
independent directors of the Funds. II believes that the pending lawsuit or
settlement will not likely materially affect their ability to perform under
their Advisory or Administrative Services Agreements with the Funds.
29
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
APPROVAL OF AMENDMENT AND RENEWAL OF INVESTMENT ADVISORY AND SERVICE AGREEMENT
A Special Meeting was held by the AMIDEX(TM) Funds, Inc. Board of
Directors (the "Board" or "Directors") on September 11, 2007, called for the
purpose of considering the renewal of the contracts between Index Investments,
LLC ("II" or "Adviser") and the Funds. The meeting was attended in person by all
Independent Directors and by the Chairman, Cliff Goldstein. The Board, and by
separate vote, the Independent Directors, unanimously took the following action;
The Funds' Board of Directors has approved the renewal of the Funds'
Investment Advisory and Service Agreement and Administrative Agreement (the
"Agreement") with II for an additional one-year term through September 20, 2008.
Due to the small size of the Board, the full Board acted as the Funds' Contracts
Committee and was composed of all of the Board's Independent Directors. In
considering approval of the Agreement, the Directors reviewed a variety of
materials relating to the Funds and the Adviser, including comparative
performance, fee and expense information for an appropriate peer group of
similar mutual funds for each Fund (each, a "Peer Group"), performance
information for a benchmark index for the Funds (each, a "Fund Benchmark") and
other information regarding the nature, extent and quality of the services
provided by the Adviser and its affiliated companies, including performance, fee
and expense information regarding each Fund provided to the Directors on a
quarterly basis throughout the year.
The Independent Directors began the process of reviewing information and
considering approval of the Agreement in May. Prior to acting on the matter, the
Independent Directors met with management to discuss responses to questions
raised during the process.
In considering the nature, extent and quality of the services provided by
the Adviser, the Directors reviewed information relating to the Adviser's
operations and personnel. Among other things, the Adviser provided biographical
information on its professional staff and descriptions of its organizational and
management structure. In the course of their deliberations the Directors
evaluated, among other things, information relating to the investment
philosophy, strategies and techniques used in managing the Funds, the
qualifications and experience of the Adviser's investment personnel, the
Adviser's compliance programs and the financial and non-financial resources
available to provide services required under the Agreement.
In considering the reasonableness of the fee payable to the Adviser for
managing the Funds, the Directors reviewed, among other things, financial
statements of the Adviser and an analysis of the profitability to the Adviser
and its affiliates of their relationship with the Funds over various time
periods, which analysis identified all revenues and other benefits received by
the Adviser and its affiliates from managing the Funds, the costs associated
with providing such services and the resulting profitability to the Adviser and
its affiliates from these relationships on a Fund-by-Fund basis and as a group
of Funds (the "Fund Family"). The Directors considered the current and
anticipated asset levels of the Funds and the willingness of the Adviser to
waive fees and pay expenses of the Funds from time to time to limit the total
expenses of the Funds. The Directors concluded that the profitability to the
Adviser and its affiliates from their relationship with the Funds is not
excessive and that the Adviser is not realizing material benefits from economies
of scale that would warrant adjustments to the fees for the Funds at this time.
The Directors concluded that, in light of the nature, extent and quality of the
services provided by the Adviser and the levels of profitability associated with
providing these services, the fees charged by the Adviser under the Advisory
Agreement to each Fund are reasonable.
The Directors concluded that the overall performance of the Funds has been
satisfactory. In determining that the fees charged by the Adviser are
reasonable, the Directors noted that, although the Funds' management fees and
total expenses are above the median for its peer group, such fees and expenses
are within the range of fees and expenses of the peer group and consistent with
reasonable expectations in light of the size of the Funds and the nature,
quality and extent of the services provided by the Adviser. In this regard, the
Directors noted that the Adviser has committed substantial resources to
monitoring the valuation of portfolio securities and administering the Funds'
short-term trading fees in an effort to prevent the Funds from experiencing
dilution from purchases and redemptions of Fund shares.
Based on all of the above-mentioned factors and related conclusions, with
no single factor or conclusion being determinative and with each Director not
necessarily attributing the same weight to each factor, the Directors concluded
that approval of the advisory agreement would be in the interests of the Funds
and their shareholders. Accordingly, on September 11, 2007, the Directors,
including all of the Independent Directors, voted to approve continuation of the
Agreement with respect to the Funds.
30
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
1. INFORMATION RECEIVED
The current adviser, II, was approved directly by a vote of the
shareholders in 2003. Since then, the Board, during its regular and special
meetings, has received a wide variety of materials relating to the services
provided by II, including reports on the funds' investment results; portfolio
composition; portfolio trading practices; shareholder services; policies and
procedures, and other information relating to the nature, extent and quality of
services provided by II to the Funds. In addition, the Board has requested and
reviewed supplementary information that includes extensive materials regarding
the Funds' investment results, advisory fee and expense comparisons, financial
and profitability information regarding II, resources and facilities,
descriptions of various functions such as compliance monitoring and portfolio
trading practices, and information about the personnel providing investment
management and administrative services to the Funds.
Review process - Throughout the year, the Board received assistance and
advice regarding legal and industry standards from independent counsel to the
independent Directors. The committee discussed the renewal and amendment of the
agreement with II representatives and in a private session at which no
representatives of II were present. In deciding to recommend the renewal and
amendment of the agreement, the Board did not identify any single issue or
particular information that, in isolation, was the controlling factor. This
summary describes the most important, but not all, of the factors considered by
the Board.
2. NATURE, EXTENT AND QUALITY OF SERVICES
II, its personnel and its resources -- The Board considered the depth and
quality of II's investment management process, including its research
capabilities; the experience, capability and integrity of its senior management
personnel, all of whom have been performing similar functions for the Funds for
over six consecutive years; the low turnover rates of its key personnel; the
overall financial strength and stability of its organization; and the ability of
its organizational structure to address the recent growth in assets under
management. The Board also considered that II made available a variety of
resources and systems relating to investment management, compliance, trading,
performance and portfolio accounting. They considered II's commitment to
investing in information technology supporting investment management and
compliance. They further considered II's continuity and the commitment of its
personnel to continue to attract and retain qualified personnel and to maintain
and enhance its resources and systems. The Board considered II's creativity in
responding to difficult situations, and considered the commitment of II
personnel to finding alternatives and options that allow the Funds to maintain
their goals despite relatively low assets under management.
Other services -- The Board considered II's policies, procedures and
systems to ensure compliance with applicable laws and regulations and its
commitment to these programs; its efforts to keep the Directors informed; and
its attention to matters that may involve conflicts of interest with the Funds.
The Board specifically noted II's commitment to continuing a complete
prohibition on trading of portfolio stocks by II access personnel. The Board
also considered the nature, extent, quality and cost of administrative,
distribution and shareholder services provided by II to the Funds under the
agreement and other agreements facilitated and coordinated by II, including the
administrative, legal, and fund accounting and treasury functions.
The Board concluded that the nature, extent and quality of the services
provided by II has benefited and will continue to benefit the Funds and their
shareholders.
3. INVESTMENT PERFORMANCE
The Board considered the Funds' unique designs and compositions, index
methodologies and the investment results of the Funds in light of these
compositions and objectives. They compared the AMIDEX35(TM) Israel Mutual Fund's
total returns with the other foreign funds and indices, and other Israel
specific investment funds. They compared the AMIDEX(TM) Cancer Innovations &
Healthcare Fund's performance to other healthcare funds and the Healthcare
indices. The Board noted that both of the Funds achieved investment results
approximating their respective indices, and that II had maintained an acceptable
correlation between the Fund portfolios and the respective indices. The Board
considered both Funds in comparison to the one-, three and five-year periods
ended May 31, 2007. The Board concluded that II's performance record in managing
the Funds indicates that its continued management will benefit the Funds and
their shareholders.
4. ADVISORY FEES AND TOTAL EXPENSES
The Board reviewed the advisory fees and total expenses of the Funds (each
as a percentage of average net assets) and compared such amounts with the
average fee and expense levels of other funds. The Board observed that the
Funds' advisory fees have not increased in the last two years, and no increase
was proposed for the current year. The advisory fee itself is within the range
of fees generally charged by foreign fund advisers and specialty fund advisers.
Total expenses of the Funds (each as a percentage of average net assets) were
above the median expense levels of the other funds in both categories. The Board
31
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
noted that the small asset levels, coupled with increasing regulatory and
related expenses, prevented realistic comparisons with other funds. The Board
and the committee concluded that given the very small asset levels of the Funds,
it would be impossible for any adviser to operate the Funds at average cost
levels, and that II had done an admirable job in keeping fees at the lowest
possible levels consistent with the small asset levels and compliance with
shareholder service and regulatory standards. The Board was periodically updated
by II on its repeated efforts to find other advisers or other platforms that
might allow for more cost effective operation of such small funds. The Board
concluded that although fund expenses were higher than category averages, such
expenses were justified and unavoidable given the complex regulatory
requirements, the unique composition of the Funds, and most importantly, the
very small levels of assets under management. The Board concluded that the fees
charged by II for management of the portfolios were consistent with fees charged
by comparable funds, but that total expense ratios were unavoidably higher than
average due to small levels of assets under management. Further, the Board
considered that II's total revenue, due to the limited assets under management,
was quite limited, and it would be unlikely to find another competent and
capable adviser willing to advise the funds for so limited an amount of revenue.
Hence, the Board concluded that continued contracting with II is in the best
interests of the shareholders.
5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE
The Board reviewed information regarding II's costs of providing services
to the Funds, as well as the resulting level of profits to II, noting that those
costs were high due primarily to the low asset levels of the Funds. The Board
received information during the past year regarding the structure and manner in
which II's investment professionals were compensated and II's view of the
relationship of such compensation to the attraction and retention of quality
personnel. The Board considered II's need to invest in technology,
infrastructure and staff to reinforce and offer new services and to accommodate
changing regulatory requirements. They further considered that breakpoints in
the Funds' advisory fee structure provide for reductions in the level of fees
charged by II to the Funds as Fund assets increase, reflecting economies of
scale in the cost of operations that are shared with Fund shareholders. The
Board noted that II personnel have often gone for long periods of time with no
pay or with pay substantially lower than industry averages, in order to allow
for the continued operation of the Funds. The Board concluded that the Funds'
cost structures were reasonable and that II was sharing economies of scale with
the Funds and their shareholders, to their benefit.
6. ANCILLARY BENEFITS
The Board and the committee considered a variety of other benefits
received by II and its affiliates as a result of II's relationship with the
Funds and with other entities and organizations, including fees for
administrative services provided to certain share classes; fees paid to II's
transfer agent; sales charges and distribution fees received and retained by the
Funds' principal underwriter, and possible ancillary benefits due to II's
affiliates. The Board reviewed II's portfolio trading practices, noting that II
does not obtain third-party research or other services in return for allocating
brokerage to any broker-dealers. The Board noted that II does not participate in
any 'soft-dollar' relationships in exchange for research or brokerage services.
The Board considered that with regard to the AMIDEX35(TM) Israel Mutual Fund,
the principals of II have developed exceptional exposure and reputations as
leading spokespersons on Israel stock investments, and hence, add great value to
the Funds in terms of marketing opportunities and credibility.
7. CONCLUSIONS
Based on their review, including their consideration of each of the
factors referred to above, the Board concluded that the Agreement is fair and
reasonable to the Funds and their shareholders, that the Funds' shareholders
received reasonable value in return for the advisory fees and other amounts paid
to II by the Funds, and that the amendment and renewal of the Agreement was in
the best interests of the Funds and their shareholders.
Moreover, the Board was apprised of the history of the efforts by II
personnel this past year and for several previous years to find alternative
advisers able and willing to continue to meet the investment goals of the Funds
at similar management fee levels. Although some advisers expressed interest in
doing so, none proved to be financially capable of continuing uninterrupted
operations of the Funds with such small amounts of assets under management. On
two prior occasions, advisers attempted to do so but failed. The Board was
satisfied with the accomplishments of II during the four years since II was
elected by the shareholders as adviser to the Funds, and concluded that it was
in the best interests of the shareholders to continue the relationship.
32
AMIDEX(TM) FUNDS, INC. SEMI-ANNUAL REPORT
ADDITIONAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
The Funds file their complete schedules of portfolio holdings with the
Securities and Exchange Commission (the "Commission") for the first and third
quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on
the Commission's website at http://www.sec.gov. The Funds' Forms N-Q may be
reviewed and copied at the Commission's Public Reference Room in Washington, DC.
Information on the operation of the Commission's Public Reference Room may be
obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request, by calling 888-876-3566; and on the Commission's website at
http://www.sec.gov.
Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30, 2007 is
available without charge, upon request, by calling 888-876-3566; and on the
Commission's website at http://www.sec.gov.
33
ITEM 2. CODE OF ETHICS.
Not applicable for semi annual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi annual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENT
Not applicable
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable Fund is an open-end management investment company
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal
financial officer have concluded that the registrant's disclosure
controls and procedures (as defined in rule 30a-2(c) under the
Investment Company Act of 1940, as amended (the "1940 Act")) are
effective based on their evaluation of these controls and procedures
as of a date within 90 days of the filing date of this document.
(b) There were no significant changes in the registrant's internal
controls or in other factors that could affect these controls
subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material
weaknesses.
ITEM 11. EXHIBITS
(1) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 are filed herewith.
(2) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 are filed herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) AMIDEX Funds, Inc.
By Clifford A. Goldstein, President /s/ Clifford A. Goldstein
--------------------------
Date: January 29, 2008
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 Clifford A. Goldstein, President /s/ Clifford Goldstein
--------------------------
Date: January 29, 2008
By Larry E. Beaver, Jr. /s/ Larry E. Beaver, Jr.
Chief Accounting Officer ----------------------------
Date: January 29, 2008