0000088525-11-000364.txt : 20110502 0000088525-11-000364.hdr.sgml : 20110502 20110502161051 ACCESSION NUMBER: 0000088525-11-000364 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20110502 DATE AS OF CHANGE: 20110502 EFFECTIVENESS DATE: 20110502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SECURITY EQUITY FUND CENTRAL INDEX KEY: 0000088525 IRS NUMBER: 486104426 STATE OF INCORPORATION: KS FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-19458 FILM NUMBER: 11800774 BUSINESS ADDRESS: STREET 1: SECURITY INVESTORS, LLC STREET 2: ONE SECURITY BENEFIT PLACE CITY: TOPEKA STATE: KS ZIP: 66636-0001 BUSINESS PHONE: 7854383127 MAIL ADDRESS: STREET 1: SECURITY INVESTORS, LLC STREET 2: ONE SECURITY BENEFIT PLACE CITY: TOPEKA STATE: KS ZIP: 66636-0001 0000088525 S000008806 Alpha Opportunity C000023961 A SAOAX C000023962 B SAOBX C000023963 C SAOCX C000071557 Institutional 497 1 ef_ao-497e.htm ALPHA OPP. 4/29/2011 SUPPLEMENT ef_ao-497e.htm
Security Equity Fund
One Security Benefit Place
Topeka, Kansas 66636-0001
 
 
Supplement Dated April 29, 2011
to the Prospectuses Dated February 1, 2011
 
 
The following information supplements and amends the information in the Prospectus regarding Security Alpha Opportunity Fund (the “Fund”):

Until further notice, the Fund is not accepting subscriptions for shares from either new or existing shareholders (except subscriptions through automatic dividend reinvestments in the Fund). Of course, a shareholder may sell (or “redeem”) shares at any time (please see “Selling Shares” for more information). As noted in the Fund's shareholder report dated September 30, 2010, the Fund is working to resolve certain outstanding short sale transactions with Lehman Brothers International Europe (“LBIE”) and its administrator. Due to the valuations assigned to these positions, which are based on certain assumptions, resolution of these matters could ultimately result in the Fund realizing values that are materially different from those reflected in the Fund’s financial statements, which would materially affect the Fund’s net asset value (either positively or negatively). The Fund’s exposure to LBIE due to these transactions consists of short sale proceeds and long positions held at the Fund’s custodian, as collateral. Release of the collateral requires the consent of LBIE and Lehman Brothers, Inc., an entity that is subject to a liquidation proceeding. As a result, the Fund is currently unable to pursue its investment strategy of short sales of securities of non-U.S. issuers, and it is currently unable to rebalance its portfolio by reallocating the Fund’s assets to its sub-portfolios in accordance with the target allocations set forth in the “Principal Investment Strategies” section of the Fund’s Prospectus. The Fund may rebalance its portfolio from time to time, however, in a manner that differs from the target allocations. Overall, this may significantly affect the Fund’s ability to meet its investment objective. The Fund is uncertain when it will resume its full investment program. Information about this matter is available in the Fund’s annual report.
 
 
Please Retain This Supplement For Future Reference