-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Q12Y1eUsYlaEfQ78IHzKdrs6+96/b1VccnDRqWAMh9BXUvHzUGx63U0O8uYi2dxc n7eZ49LI0ha57V3U+WpATQ== /in/edgar/work/20000602/0000950137-00-002670/0000950137-00-002670.txt : 20000919 0000950137-00-002670.hdr.sgml : 20000919 ACCESSION NUMBER: 0000950137-00-002670 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000602 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SECURITY EQUITY FUND CENTRAL INDEX KEY: 0000088525 STANDARD INDUSTRIAL CLASSIFICATION: [ ] IRS NUMBER: 486104426 FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-01136 FILM NUMBER: 648306 BUSINESS ADDRESS: STREET 1: 700 HARRISON ST CITY: TOPEKA STATE: KS ZIP: 66636 BUSINESS PHONE: 9132953127 MAIL ADDRESS: STREET 1: 700 HARRISON ST CITY: TOPEKA STATE: KS ZIP: 66636 N-30D 1 0001.txt SEMI-ANNUAL REPORT DATED 3/31/00 1 SECURITY FUNDS SEMI-ANNUAL REPORT MARCH 31, 2000 - SECURITY ULTRA FUND - SECURITY EQUITY FUND - GLOBAL SERIES - SMALL COMPANY SERIES - VALUE SERIES - SOCIAL AWARENESS SERIES - ENHANCED INDEX SERIES - EQUITY SERIES - INTERNATIONAL SERIES - SELECT 25 SERIES - TOTAL RETURN SERIES - SECURITY GROWTH AND INCOME FUND SECURITY DISTRIBUTORS, INC. A Member of The Security Benefit Group of Companies [SECURITY DISTRIBUTORS, INC. LOGO] 2 CHAIRMAN OF THE BOARD'S COMMENTARY - -------------------------------------------------------------------------------- MAY 15, 2000 [CLELAND PHOTO] John Cleland TO OUR SHAREHOLDERS: While the average investor's perception that the six months ended March 31, 2000 produced very favorable market returns is accurate, when viewed in a historical perspective, it is important to point out that returns were dramatically different in the various market sectors. In our own portfolios the returns varied from +94.27% in our Small Cap Series to -6.42% in our value-driven Growth and Income Fund.(1,2) We believe it is important for investors to recognize that this divergence among market sectors is likely to continue. ASSET ALLOCATION CHOICES INCREASE Not too many years ago we believed that an asset allocation strategy for investors was centered around stocks, bonds, and cash. Today it may well be that the more important decision is how to allocate one's equity portfolio across a broad spectrum of equity market sectors as the divergence of returns becomes more pronounced. We believe the long term climate for investors remains positive. It is driven by strong economic growth, very low inflation rates, and the continuation of strong money flows into the markets from participants in defined contribution pension plans. However, we expect volatility resulting from momentum-driven trading strategies executed by a certain segment of the investment public to create periodic, often daily "noise" that has the potential to distract investors. MANAGEMENT RESPONSIBILITIES SHIFT We continue to transition and expand management responsibilities in our organization in order to provide the best possible products and services to our shareholders. At the last meeting of the Board of Directors I was elected to the position of Chairman of the Board and Jim Schmank was elected President of Security Funds. As you know, Jim is now President of Security Management Company, LLC, the investment advisor to Security Funds. You will be hearing from both of us in the future about events of interest related to our fund family. In the following pages the portfolio managers discuss in more detail the performance results of their funds. As always, we thank you for your continuing investment in Security products. We invite your questions and comments at any time. Sincerely, /s/ John Cleland John Cleland, Chairman of the Board The Security Funds (1) Performance figures for our funds are based on Class A shares and do not reflect deduction of the sales charge. (2) Performance figures are based on benchmark comparison and do not reflect deduction of a sales charge. - -------------------------------------------------------------------------------- 1 3 PRESIDENT'S COMMENTARY - -------------------------------------------------------------------------------- MAY 15, 2000 [SCHMANK PHOTO] James Schmank TO OUR SHAREHOLDERS: The business of managing your money has never been more complicated and competitive than it is today. With a continuous stream of new investment themes and the news media's focus on short term results, we know how confusing it is for investors to be confident in the soundness of their investment strategies. A LONG TERM FOCUS IS KEY FOR YOUR INVESTMENTS Our goal is to help you stay on course and achieve your investment objectives. We have always maintained a long term focus in our approach to managing money, both in the investment strategies we employ in each of our portfolios and in our overall approach to the business of being an investment advisor. We remain committed to our current investment practices during these turbulent periods, staying with time-tested strategies appropriate for the risk targets for each of our portfolios. We recognize that time is always an investor's best ally in overcoming the effects of short term market disturbances. EXPERIENCED MANAGERS ARE BETTER EQUIPPED TO NAVIGATE VOLATILE MARKETS We are proud of the teams we have assembled to oversee your money. Our portfolio managers are seasoned professionals with long tenures in managing portfolios. They have weathered many economic cycles, helping them navigate through much of the confusion clouding the markets today. Supporting our portfolio managers are teams of research analysts who monitor the financial soundness of the companies included in our portfolios and search for promising new investments as well. We appreciate the confidence you have placed in us and are fully aware that we must continue to earn your respect. We are committed to bringing you excellent performance results in all of the investment strategies we offer. James Schmank, President Security Funds - -------------------------------------------------------------------------------- 2 4 MANAGER'S COMMENTARY - -------------------------------------------------------------------------------- SECURITY ULTRA FUND MAY 15, 2000 [SCHIER PHOTO] Jim Schier Portfolio Manager TO OUR SHAREHOLDERS: Security Ultra Fund turned in a very strong performance in the first six months of the fiscal year. The total return on the portfolio was +64.00%, outpacing the benchmark S&P/Barra Midcap Growth Index return of +52.13% over the same period.(1) TECHNOLOGY CONTINUES TO LEAD THE MARKETS Continuing the theme that provided excellent returns in fiscal year 1999, the technology sector made the greatest contribution to total return in the six month period. As a group, the technology stocks in the portfolio rose 127.5% compared with the corresponding benchmark sector's return of 106.6%. Ten of our thirty technology stocks doubled or more than doubled their prices. It seems that the earlier in the development stages a company was, the greater its return. The mature technology companies appear to have settled into a more normal return pattern. Among the strong performers, JDS Uniphase Corporation rose over 300% and Veritas Software Corporation gained 227% during the period we held the stocks. Both of these companies have grown in size to the point that they no longer qualify as midcap stocks, and have been sold from the portfolio. Lernout & Hauspie Speech Products NV also outpaced the averages, climbing 216% over the six months. This company provides speech and language solutions for industries including the Internet. Drivers for their performance were the unveiling of a prototype of a handheld device with a continuous speech dictation engine for Web surfing and e-mail, and acquisition of the company which had been their primary competitor. CONSUMER CYCLICALS AND HEALTH CARE STOCKS WERE STRONG AS WELL Our consumer cyclicals group did well also, gaining 64.4% on average. Three companies that are classified in this group might more appropriately be included in the technology sector. Safeguard Scientifics, Inc. is a diversified information technology company that, among other things, designs business-to-business websites. Internet Capital Group, Inc. is an Internet holding company that operates a network of business-to-business e-commerce companies. Cerner Corporation designs information technology solutions for health care organizations and consumers, and saw its stock price jump after announcing a merger with Healtheon/WebMD Corporation. The "early stages of development" story also held true in the health care sector, where newer biotechnology and genomics companies led in performance. Trimeris, Inc. develops drugs that block viral infection in a unique way. Its leading product candidate is a new and promising entry in the treatment of AIDS. Ligand Pharmaceuticals Inc. develops drugs used to regulate hormone activated receptors; they hold promise for gynecological disorders, some cancers, and cardiovascular diseases. Millennium Pharmaceuticals, Inc. is also a drug discovery and development company working on therapeutic and diagnostic health care products and services. NOT ALL STOCKS WERE OUTPERFORMERS Holdings in the energy sector of the portfolio underperformed, with two laggards doing most of the damage. Oil refiner Tesoro Petroleum Corporation fell throughout the six month period as higher oil prices cut into its profit margins. Oil exploration company Burlington Resources Inc. fell after announcing it would take $265 million in charges in the fourth quarter because of disappointing production in the Gulf of Mexico. In the consumer staples group Cinar Corporation, which produces and distributes nonviolent programming and educational products for children and families, fell sharply following allegations of accounting irregularities. The outcome of the ensuing investigation remains unclear. - -------------------------------------------------------------------------------- 3 5 MANAGER'S COMMENTARY (CONTINUED) - -------------------------------------------------------------------------------- SECURITY ULTRA FUND MAY 15, 2000 FORECASTING IS DIFFICULT IN VOLATILE MARKET PERIODS The recent market selloff is a welcome relief from the speculative pricing levels that have dominated in recent months. This selloff broadens the opportunities for finding new stocks for the funds at reasonable valuations. Many of the more mature companies look more attractive than the emerging stocks that have run up so far in price; our focus may shift away from these emerging sectors toward undervalued issues among the established corporations. This shift, however, would be applied to new funds rather than a major restructuring of the portfolio. Most of the current holdings continue to have a favorable outlook at this time. If the technology sector should return to its high levels of recent times we would take advantage of the opportunity to pare back on some names in that sector. Jim Schier Senior Portfolio Manager (1) Performance figures are based on Class A shares and do not reflect deduction of the sales charge. - ---------------- PERFORMANCE ---------------- TOP 5 HOLDINGS**
% OF NET ASSETS ---------- PE Corp--PE Biosystems Group 5.4% Comverse Technology, Inc. 4.9% Rational Software Corporation 4.8% Lernout & Hauspie Speech Products N.V 4.4% Safeguard Scientifics, Inc. 4.3%
** At March 31, 2000 AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2000
1 YEAR 5 YEARS 10 YEARS ------ ------- -------- A Shares 91.51% 29.03% 16.89% A Shares with sales 80.50% 27.52% 16.19% charge B Shares 89.66% 27.70% 20.32% (10-19-93) (since inception) B Shares with CDSC 84.66% 27.55% 20.32% (10-19-93) (since inception) C Shares 89.45% 66.53% N/A (1-29-99) (since inception) C Shares with CDSC 88.45% 66.53% N/A (1-29-99) (since inception)
The performance data above represents past performance which is not predictive of future results. The investment return and principal value of an investment in the fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. Such figures would be lower if the maximum sales charge were deducted. Performance is attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future. - -------------------------------------------------------------------------------- 4 6 MANAGER'S COMMENTARY - -------------------------------------------------------------------------------- SECURITY EQUITY FUND-- EQUITY GLOBAL SERIES MAY 15, 2000 [OPPENHEIMER FUNDS LOGO] [WILBY PHOTO] William L. Wilby Portfolio Manager TO OUR SHAREHOLDERS: We are pleased that the Global Series of Security Equity Fund performed exceptionally well during the six month period that ended March 31, 2000. The Series provided a total return of +55.85% for the period, nearly doubling the +28.86% return of the benchmark Morgan Stanley Capital International World Equity Index.(1) The strong performance was primarily due to our continued focus on growth companies that we believe may benefit from one or more major worldwide trends: mass affluence, aging populations, new technologies and restructuring. A LOOK BACK AT THE SIX MONTHS The fourth quarter of 1999 (the first quarter of the Series' fiscal year) was very positive for U.S. and foreign markets. In the United States the markets bounced back from a midsummer decline triggered by rising interest rates. Overseas, Japan rebounded as institutional investors directed capital to its markets, which had become a relative bargain. Europe received a boost from currency unification-the introduction of the euro-as well as from the removal of trade barriers and a movement to reduce capital gains taxes. As 2000 began, however, many markets around the globe retrenched. There were individual pockets of strength, such as France and Sweden, but the Global Series' investments in those countries represent only a small portion of total assets and so contributed only a small part of the portfolio's excellent performance. We attribute the strong returns over the period to our very disciplined bottom-up approach, choosing our investments one company at a time based on their fundamental strengths and their growth prospects in light of our four long-term global themes. In short, we look for stocks with the potential to deliver earnings growth and share price growth in any type of market. TRENDS AROUND THE GLOBE In Europe the trend toward restructuring and enhancing shareholder value that began with the formation of the European Monetary Union is picking up speed. In January 2000, Vodaphone in the U.K. and Mannesmann in Germany merged to create the world's largest telecommunications firm. Japan is slowly moving toward a technology-based economy, and we expect this may increasingly replace the old heavy-manufacturing economy that has been in decline there for some years. In addition, we see some encouraging developments in Latin America. For example, in March the rating agency Standard & Poor's Corporation raised Mexico's credit rating to investment grade, signaling that perhaps the problems associated with the 1994 devaluation of the peso are behind us. PLANS FOR THE COMING MONTHS Looking ahead, we remain positive in our outlook for markets in the United States, Europe, Japan and Latin America. While we expect the U.S. stock market to cool down as the effects of tighter monetary policy take hold, we are not overly concerned about finding compelling investments. We believe that good, solid companies can be found in virtually any economic environment. The Global Series of Security Equity Fund remains well diversified, which mitigates the risk of any single market or industry. We believe our bottom-up "stock pickers" approach and our focus on long term trends will continue to lead us to solid, growth-oriented companies with strong competitive positions and high demand for their products. William L. Wilby Portfolio Manager (1) Performance figures are based on Class A shares and do not reflect deduction of the sales charge. Investing in foreign countries may involve risks, such as currency fluctuations and political instability, not associated with investing exclusively in the U.S. - -------------------------------------------------------------------------------- 5 7 MANAGER'S COMMENTARY (CONTINUED) - -------------------------------------------------------------------------------- SECURITY EQUITY FUND-- EQUITY GLOBAL SERIES MAY 15, 2000 - ---------------- PERFORMANCE ---------------- TOP 5 HOLDINGS**
% OF NET ASSETS ---------- National Semiconductor Corporation 3.5% Cadence Design Systems, Inc. 2.8% Porsche AG 2.3% Toshiba Corporation 2.1% QUALCOMM, Inc. 2.0%
** At March 31, 2000 AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2000
1 YEAR 5 YEARS 10 YEARS ------ ------- -------- A Shares 72.36% 23.97% 18.56% (10-1-93) (since inception) A Shares with sales 62.47% 22.50% 17.49% charge (10-1-93) (since inception) B Shares 70.72% 22.75% 17.64% (10-19-93) (since inception) B Shares with CDSC 65.72% 22.58% 17.64% (10-19-93) (since inception) C Shares 70.56% 57.41% N/A (1-29-99) (since inception) C Shares with CDSC 69.56% 57.41% N/A (1-29-99) (since inception)
The performance data above represents past performance which is not predictive of future results. The investment return and principal value of an investment in the fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. Such figures would be lower if the maximum sales charge were deducted. - -------------------------------------------------------------------------------- 6 8 MANAGER'S COMMENTARY - -------------------------------------------------------------------------------- SECURITY EQUITY FUND--SMALL CAP SERIES MAY 15, 2000 [STRONG LOGO] [OGNAR PHOTO] Ronald C. Ognar Portfolio Manager TO OUR SHAREHOLDERS: The Small Cap Series of Security Equity Fund experienced a strong first half of the fiscal year, gaining 94.27% over the six months compared with a return of +27.01% on the benchmark Russell 2000 Stock Index.(1) While the more traditional "old economy" stocks found in the Dow Jones Industrial Average and the Standard & Poor's 500 Stock Index made brief runs late in the period, in the end they were outmatched by the market's demand for high-growth "new economy" technology stocks. REVIEWING THE SIX MONTHS The Federal Reserve's policy-making Open Market Committee (FOMC) followed through on its resolve to keep a lid on economic growth and asset values by raising short term interest rates at each of four consecutive meetings during the period. Despite the FOMC's restraining moves, fourth quarter Gross Domestic Product grew at an extremely strong 7.3%, corporate profits continue to expand, nonenergy inflation is scant, and consumer confidence remains at levels not seen since the late 1960's. The FOMC's actions may have further exacerbated the valuation discrepancy between technology and the rest of the stock market, since investors responded by flocking to those companies producing the highest revenue and earnings growth. SEEKING OUT BENEFICIARIES OF THE INTERNET Technology, oil services, biotech companies, and some select financials provided the strongest relative performance for the Series over the six months. Within technology, we emphasized telecommunications, semiconductors, and software in particular. We have concentrated our investments in those companies that will benefit directly from the networked economy. The growth of the Internet and its acceptance as an important source of competitive advantage should continue to enhance the prospects of companies engaged in business-to-business commerce as well as more traditional businesses. The Internet is not only an additional channel of distribution to customers and suppliers, it also allows companies to streamline several aspects of their businesses including inventory and order processing. Furthermore, we expect strong growth to continue in wireless connectivity, Internet content, and bandwidth expansion. We are focusing on companies doing a good job of building brand recognition in these areas. The successful implementation of technology and innovation of new products and services will lead the best companies to market share gains and superior returns on capital. THE ROAD AHEAD MAY NOT BE SMOOTH It appears likely that further interest rate hikes lie ahead until the Federal Open Market Committee sees a softening of the economy. Therefore, we expect the U.S. economy to continue growing, but at a more moderate pace. Also, the second and third quarters tend to be the most difficult for the market as the seasonal cash flows from tax refunds and year-end bonuses wane. We will continue to focus on well-managed growth companies that are pure plays in dynamic industries and are providing innovative products and services. As growth investors, our team is constantly on the lookout for investments exhibiting sustainable fundamental improvement in order to consistently outperform the broader market averages. Ronald C. Ognar Portfolio Manager (1) Performance figures are based on Class A shares and do not reflect deduction of the sales charge. The recent returns of the Small Cap Series are attributable, in part, to its investments in initial public offerings and unusually favorable market conditions. Investors should recognize that the conditions which contributed to the Series' recent performance may not be replicated in future periods. - -------------------------------------------------------------------------------- 7 9 MANAGER'S COMMENTARY (CONTINUED) - -------------------------------------------------------------------------------- SECURITY EQUITY FUND--SMALL CAP SERIES MAY 15, 2000 - ---------------- PERFORMANCE ---------------- TOP 5 HOLDINGS**
% OF NET ASSETS ---------- Digital Microwave Corporation 3.3% Ditech Communications Corporation 2.5% Primus Telecommunications Group, Inc. 2.4% Titan Pharmaceuticals, Inc. 2.2% Macrovision Corporation 2.2%
** At March 31, 2000 AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2000
1 YEAR SINCE INCEPTION ------ --------------- A Shares 137.44% 45.67% (10-15-97) A Shares with sales 123.74% 42.21% (10-15-97) charge B Shares 134.78% 44.02% (10-15-97) B Shares with CDSC 129.78% 43.30% (10-15-97) C Shares 135.12% 98.89% (1-29-99) C Shares with CDSC 134.12% 98.89% (1-29-99)
The performance data above represents past performance which is not predictive of future results. The investment return and principal value of an investment in the fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. Such figures would be lower if the maximum sales charge were deducted. - -------------------------------------------------------------------------------- 8 10 MANAGER'S COMMENTARY - -------------------------------------------------------------------------------- SECURITY EQUITY FUND--VALUE SERIES MAY 15, 2000 [SCHIER PHOTO] Jim Schier Portfolio Manager TO OUR SHAREHOLDERS: The Value Series of Security Equity Fund is off to a strong start in fiscal year 2000, generating a total return of +18.76% over the first six months compared with +14.02% for the benchmark S&P Midcap Value Index in the same period.(1) While the value components of the major markets have not done as well as their growth counterparts, the returns on value stocks have been considerably above their historical averages. HEALTH CARE STOCKS LED PERFORMANCE Health care made up 13.9% of portfolio assets, more than twice the 5.5% weighting of the benchmark index. Returns for the portfolio group also led the benchmark, rising 55.1% compared with 24.3% in the S&P Midcap Value Index's health care sector. Noven Pharmaceuticals, Inc. led the group with its 126% gain during the time it was in the portfolio. Noven develops transdermal and transmucosal drug delivery systems and has reported record financial results driven by excellent physician and patient acceptance of their patch products. Also in the health care group Ligand Pharmaceuticals Inc. was a strong performer. Ligand develops drugs used to regulate hormone activated receptors; they hold promise for gynecological disorders, some cancers, and cardiovascular diseases. Additionally, two generic drug stock holdings each gained over 50% during the six month period. FINANCIAL AND CONSUMER CYCLICAL SECTOR STOCKS ALSO OUTPERFORMED The financial stocks in the benchmark index declined 5.3% while those in the Value Series gained 8.2%. Financial Services company The Pioneer Group, Inc. rose over 57% realizing most of its gain after one of its biggest stockholders said Pioneer Group should sell its money management company. Also in the financial sector global investment banking firm Goldman Sachs Group, Inc. saw strong stock performance based on its twelve-month backlog of underwriting projects. Among our consumer cyclical holdings Cerner Corporation, which designs information technology solutions for health care organizations and consumers, and saw its stock price jump after announcing a merger with Healtheon/WebMD Corporation. Acxiom Corporation, a provider of information management solutions and information technology outsourcing services, saw its price appreciate on strong quarterly earnings reports. THE PERFORMERS IN A STRONG SECTOR Although technology stocks generally led the markets upward during the six months, two of our technology holdings were negative. Mediconsult.com, Inc. provides consumers with medical information and education about medical conditions. We purchased the company because we liked its prospects as an internet health care company; however, its expenses soared after the company made a number of acquisitions during the period. A second disappointing technology stock was Silicon Graphics, Inc., a provider of systems which deliver advanced 3D graphics and computing capabilities for engineering and design professionals. Its stock fell nearly 30% after the company reported a larger than expected loss in its fiscal first quarter. OPPORTUNITIES ABOUND IN THE VALUE ARENA We continue to be impressed with the wide range of investment opportunities among value stocks. The S&P Midcap Value Index trades at less than twelve times earnings, a level that hasn't been seen in about 15 years. This compares with the S&P 500 Stock Index multiple of thirty times earnings and underscores the price divergence between the technology sector and all other sectors. The greatest challenge is finding the best investment choices in the wide range of offerings. We have recently pared back the percentage of growth names in the portfolio, and are more heavily value oriented than at any time in the last 18 months. Jim Schier Senior Portfolio Manager (1) Performance figures are based on Class A shares and do not reflect deduction of the sales charge. - -------------------------------------------------------------------------------- 9 11 MANAGER'S COMMENTARY (CONTINUED) - -------------------------------------------------------------------------------- SECURITY EQUITY FUND--VALUE SERIES MAY 15, 2000 - ---------------- PERFORMANCE ---------------- TOP 5 HOLDINGS**
% OF NET ASSETS ---------- Ocean Energy, Inc. 3.9% Benchmark Electronics, Inc. 3.7% Acxiom Corporation 3.2% Marshall & Ilsley Corporation 3.0% Kinder Morgan, Inc. 3.0%
** At March 31, 2000 AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2000
1 YEAR SINCE INCEPTION ------ --------------- A Shares 37.10% 27.50% (5-1-97) A Shares with sales 29.19% 24.94% (5-1-97) charge B Shares 35.67% 26.23% (5-1-97) B Shares with CDSC 30.67% 25.57% (5-1-97) C Shares 35.64% 28.47% (1-29-99) C Shares with CDSC 34.64% 28.47% (1-29-99)
The performance data above represents past performance which is not predictive of future results. The investment return and principal value of an investment in the fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. Such figures would be lower if the maximum sales charge were deducted. - -------------------------------------------------------------------------------- 10 12 MANAGER'S COMMENTARY - -------------------------------------------------------------------------------- SECURITY EQUITY FUND-- SOCIAL AWARENESS SERIES MAY 15, 2000 [SHIELDS PHOTO] Cindy Shields Portfolio Manager TO OUR SHAREHOLDERS: The Social Awareness Series of Security Equity Fund gained 19.37% in the six months ended March 31, 2000.(1) While this is a very favorable six-month gain, it slightly lagged that of the benchmark Domini 400 Social Index which rose 21.78% over the same period. TECHNOLOGY CONTINUES TO LEAD PERFORMANCE The technology sector of the portfolio contributed most to total return during the six months, with stocks in this sector gaining 58% on average. Technology makes up 35% of the assets in the total portfolio. Returns on some of our technology stocks were truly astounding: Analog Devices, Inc. rose 214%, Scientific-Atlanta, Inc. was up 155%, and Cisco Systems, Inc. climbed 125%, to name some of the stronger performers. Growing demand for all areas of technology-wireless communications, bandwith, and digital cable deployment has been the dominant theme behind the sharp advances in these stock prices. Energy and transportation have also played important roles in positive performance over the past six months. Oil services companies, including our holdings BJ Services Company and Noble Drilling Corporation, have been beneficiaries of renewed efforts to produce oil following the runup in energy prices. In the transportation sector Southwest Airlines Co. gained 37% after adding flight service to the northeastern part of the United States. HEALTH CARE AND CONSUMER STAPLES Although the health care sector at an 8% weighting is not a large part of the portfolio, two of our holdings in the sector were weak performers. Medical products manufacturer Johnson & Johnson saw its stock price decline steadily throughout the last six months as investors became concerned about prospects for its leading heartburn drug Propulsid. The drug was finally taken off the market because of rising patient safety concerns. Stock of Schering-Plough Corporation lost ground after the FDA accepted a filing for another company's generic version of Schering's allergy drug Claritin, the patent for which expires in 2002. Shering-Plough had hoped to be able to extend the patent until 2004. Disappointing earnings in early March was the primary drag on the consumer staples sector of the portfolio. The earnings cloud also caused steep declines in similar consumer product oriented companies. Also in the consumer staples arena, The Coca-Cola Company was negatively impacted by management's poor handling of negative incidents in their global operations. Management has since been replaced; although they have been in place less than six months, their actions hold promise of better things to come. Products are being better adapted to the markets into which they are sold, and the management of global operations is being moved into those regions instead of remaining centralized in Atlanta, Georgia. LOOKING AHEAD: GROWTH OR VALUE? The big question for the markets in the months ahead is whether investors will continue to flock to growth stocks or find value stocks more promising. Although we believe it is too early yet to move strongly into value issues we are watching closely and will shift if such a move seems advisable. We expect technology stocks to remain the best growth area for some time, but beaten-down sectors such as financial stocks will regain luster when the Federal Reserve is through raising interest rates. As a final note, the Commissioner of the Securities & Exchange Commission in a recent speech to the Investment Company Institute emphasized the importance of investment advisers for mutual funds voting proxies in accordance with their social awareness funds' screens. We assure our shareholders that we have an internal policy in place which outlines our intention to vote all Social Awareness Series proxies in such a manner. Cindy Shields Portfolio Manager (1) Performance figures are based on Class A shares and do not reflect deduction of the sales charge. - -------------------------------------------------------------------------------- 11 13 MANAGER'S COMMENTARY (CONTINUED) - -------------------------------------------------------------------------------- SECURITY EQUITY FUND-- SOCIAL AWARENESS SERIES MAY 15, 2000 - ---------------- PERFORMANCE ---------------- TOP 5 HOLDINGS**
% OF NET ASSETS ---------- Microsoft Corporation 7.8% Cisco Systems, Inc. 7.2% Intel Corporation 6.3% Lucent Technologies, Inc. 2.8% Wal-Mart Stores, Inc. 2.6%
** At March 31, 2000 AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2000
1 YEAR SINCE INCEPTION ------ --------------- A Shares 18.63% 21.57% (11-1-96) A Shares with sales 11.80% 19.47% (11-1-96) charge B Shares 17.26% 20.24% (11-1-96) B Shares with CDSC 12.26% 19.68% (11-1-96) C Shares 17.04% 13.16% (1-29-99) C Shares with CDSC 16.04% 13.16% (1-29-99)
The performance data above represents past performance which is not predictive of future results. The investment return and principal value of an investment in the fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. Such figures would be lower if the maximum sales charge were deducted. - -------------------------------------------------------------------------------- 12 14 MANAGER'S COMMENTARY - -------------------------------------------------------------------------------- SECURITY EQUITY FUND-- ENHANCED INDEX SERIES MAY 15, 2000 [BANKERS TRUST LOGO] TO OUR SHAREHOLDERS: The Enhanced Index Series of Security Equity Fund, new to the Security Funds family in 1999, gained 18.69% over the six month period ended March 31, 2000.(1) This closely approximates the return of its benchmark Standard & Poor's 500 Stock Index, which gained 17.51% over the same period. THE OPERATION OF THE PORTFOLIO The Enhanced Index Series is designed to contain at least 80% of the companies represented in the benchmark index. Through a selection process using proprietary screens, the managers overweight approximately one-fourth of these stocks which in our view have above-average potential for appreciation. We select another one-fourth which the screens show to have below-average potential and underweight these issues. The proprietary screens assess stocks based on the following items: the company reports a positive or negative earnings surprise, the company becomes an acquisition target, it is announced that the company will be added to or deleted from the S&P 500 Index, the stock has a high dividend yield or a zero dividend yield (if further research shows that the company uses the funds for internal investment), the stock's price shows significant value based on options pricing techniques, or if financials show downward momentum. If none of these positive or negative screens apply, we will hold a neutral position in the stock. Since the inception of the Series several of the proprietary screens have added value. These include Corporate Acquisitions, Momentum, Earnings Surprise, Seasoned Equity Offerings, and Announced Index Candidates strategies. The screens which have detracted from return include Deep Value and Dividend Yield strategies. PORTFOLIO MANAGERS' OUTLOOK The outlook for financial markets hinges most crucially on how the inevitable rebalancing of supply and demand in the U.S. economy will ultimately play out. We continue to believe that it is going to take some combination of higher interest rates and softer equity markets to cool demand. We expect another fifty basis points of interest rate increases by the Federal Reserve, coupled with flattish equity markets over the balance of the year. This combination will succeed in slowing demand growth by late this year or early next year to a rate at, or slightly below, the economy's supply potential. This "soft landing" would ease pressures on resources and keep inflation from picking up too much. Provided the cooling in U.S. growth and U.S. financial assets is modest and orderly, the rest of the world should take it in stride. The key risk to this rather benign outcome is that U.S. domestic demand fails to moderate in a smooth, timely fashion. Instead, it keeps galloping ahead, exacerbating the supply/demand imbalance, stretching domestic resources even more and further increasing the economy's reliance on foreign production. Inflation pressures would presumably mount, and foreign investors might grow wary of their burgeoning claims on U.S. assets. As a result, the ultimate adjustment in U.S. financial markets needed to restore equilibrium would be much more severe, and could possibly imperil the U.S. expansion, with potentially serious repercussions for the rest of the world. Enhanced Index Team (1) Performance figures are based on Class A shares and do not reflect deduction of the sales charge. - -------------------------------------------------------------------------------- 13 15 MANAGER'S COMMENTARY (CONTINUED) - ------------------------------------------------------------------------------- SECURITY EQUITY FUND-- ENHANCED INDEX SERIES MAY 15, 2000 - ---------------- PERFORMANCE ---------------- TOP 5 HOLDINGS**
% OF NET ASSETS ---------- Microsoft Corporation 3.9% Cisco Systems, Inc. 3.7% General Electric Company 3.6% Intel Corporation 3.1% Exxon Mobil Corporation 1.9%
** At March 31, 2000 AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2000
1 YEAR SINCE INCEPTION ------ --------------- A Shares 18.92% 16.17% (1-29-99) A Shares with sales 12.10% 10.43% (1-29-99) charge B Shares 18.16% 15.33% (1-29-99) B Shares with CDSC 13.16% 11.99% (1-29-99) C Shares 18.12% 15.50% (1-29-99) C Shares with CDSC 17.12% 15.50% (1-29-99)
The performance data above represents past performance which is not predictive of future results. The investment return and principal value of an investment in the fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. Such figures would be lower if the maximum sales charge were deducted. - -------------------------------------------------------------------------------- 14 16 MANAGER'S COMMENTARY - -------------------------------------------------------------------------------- SECURITY EQUITY FUND--EQUITY SERIES MAY 15, 2000 [MILBERGER PHOTO] Terry Milberger Senior Portfolio Manager TO OUR SHAREHOLDERS: The Equity Series of Security Equity Fund returned a respectable +12.35% in the six month period ended March 31, 2000, versus the +17.51% return of the S&P 500 Stock Index.(1) The primary reason for current performance is an overweighting in "old economy" or traditional growth stocks, with not enough emphasis on the more risky, yet rapidly growing "new economy" technology and telecommunications companies. "GROWTH AT A REASONABLE PRICE" STRATEGY In the past, companies with annual earnings growth in the 10% to 15% range would provide above-average market returns; in recent months the leaders have been technology-related companies, many of which have no earnings at all. Realizing that we must adapt to changing markets, we have increased our technology weighting to be more in line with the 34% weighting in the benchmark S&P 500 Index. While we owned some premier technology stocks early in the six-month period, we simply didn't own enough of them. Our Microsoft Corporation, Sun Microsystems, Inc., and Intel Corporation positions all performed well for us. In recent months we have been adding to established technology companies and some more recent entrants into the sector, including Exodus Communications, Inc., Amdocs Limited, Network Appliance, Inc., and Brocade Communications Systems, Inc. THE PROCTER & GAMBLE STORY AND CONSUMER STAPLES COMPANIES On March 7 (dubbed "Tide Tuesday" by analysts) Procter & Gamble Company's management announced that its earnings would not meet analysts' expectations, primarily because of the increase in raw materials costs. Procter & Gamble's stock fell 34% that day, and took down the prices of many other stocks in the consumer staples sector over the following days. Investors were concerned that if Procter & Gamble had to pay higher prices for raw materials, other companies in similar businesses would have the same problems. Financial stocks also suffered over the period from economy-related problems. The Federal Reserve began raising interest rates in June of 1999 and still continues to exert upward pressure on rates. Our holdings in the banking and insurance industries lost ground as interest rates rose and investors feared earnings would be hurt. OTHER NEW NAMES IN THE PORTFOLIO Outside of the technology sector, we have been adding new names that we believe have strong growth potential. Kohl's Corporation operates a chain of family-oriented specialty department stores. They target the median income customer, selling top-brand merchandise at discounted prices. Motorcycle manufacturer Harley-Davidson, Inc. is another recent addition. Dominant in its product niche, Harley has shown consistent earnings growth in the 20% range and is benefiting from strong consumer confidence and the "wealth effect" that is driving consumer spending. DIVERSIFICATION IS THE KEY Apart from our increase in the technology sector, our additions will not be sector-concentrated. We are searching for excellent companies with high revenue growth, regardless of the sector in which they are classified. We expect the recent volatility to continue, with divergence between the "old economy" stocks and the "new economy" companies likely to narrow. We plan to keep the portfolio very well diversified, which we believe will minimize the impact of downturns in any one stock's fortunes. Terry Milberger Senior Portfolio Manager (1) Performance figures are based on Class A shares and do not reflect deduction of the sales charge. - -------------------------------------------------------------------------------- 15 17 MANAGER'S COMMENTARY (CONTINUED) - -------------------------------------------------------------------------------- SECURITY EQUITY FUND--EQUITY SERIES MAY 15, 2000 - ---------------- PERFORMANCE ---------------- TOP 5 HOLDINGS**
% OF NET ASSETS ---------- Microsoft Corporation 4.4% General Electric Company 4.2% Cisco Systems, Inc. 4.2% Intel Corporation 3.6% NASDAQ--100 Shares 3.6%
** At March 31, 2000 AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2000
1 YEAR 5 YEARS 10 YEARS ------ ------- -------- A Shares 11.02% 23.25% 17.73% A Shares with sales 4.68% 21.79% 17.03% charge B Shares 9.95% 22.05% 17.97% (10-19-93) (since inception) B Shares with 4.95% 21.87% 17.97% CDSC (10-19-93) (since inception) C Shares 9.74% 7.63% N/A (1-29-99) (since inception) C Shares with 8.74% 7.63% N/A CDSC (1-29-99) (since inception)
The performance data above represents past performance which is not predictive of future results. The investment return and principal value of an investment in the fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. Such figures would be lower if the maximum sales charge were deducted. - -------------------------------------------------------------------------------- 16 18 MANAGER'S COMMENTARY - -------------------------------------------------------------------------------- SECURITY EQUITY FUND-- INTERNATIONAL SERIES MAY 15, 2000 [BANKERS TRUST LOGO] [LEVY PHOTO] [REINER PHOTO] Michael Levy Robert Reiner Portfolio Manager Portfolio Manager
[WANG PHOTO] Julie Wang Portfolio Manager TO OUR SHAREHOLDERS: The International Series of Security Equity Fund had very favorable performance during the first six months of the fiscal year, gaining 32.20% over the period. Its benchmark, the MSCI EAFE Index, rose 16.08% over the same period.(1) The portfolio managers at Bankers Trust Company, subadvisors for the Series, employ a bottom-up stock selection process, evaluating political and economic conditions only after selecting attractively valued, inefficiently priced issues. REVIEW OF EVENTS DURING THE SIX MONTHS During the six month period growth within the global economy continued to accelerate. Monetary policy was tightened further in all G7 countries except Japan despite inflation remaining largely benign. While higher energy prices were reflected in headline inflation figures, core inflation has remained more muted. However, North American and European bond markets have suffered against the backdrop of rising rates. In the equity markets volatility has risen considerably for stocks in the richly-valued technology, media and telecommunication sectors. Markets in general began to rally strongly late in 1999 in response to the improved growth outlook and firmer commodity prices as well as by central banks injecting excess liquidity into the markets as a defensive measure ahead of Y2K, a surprisingly anticlimactic event. Landmark events such as the proposed merger of America Online and Time Warner signaled tremendous change as so-called old economy and new economy companies found common ground. The successful bid by Vodafone/ Airtouch for Germany's Mannesmann demonstrated the potential for global synergies in telecommunications. Additionally, the continued high level of corporate restructuring within industrial Europe is expected to escalate. Continental Europe has seen a continued acceleration of economic growth throughout 1999 and the first quarter of 2000. France has led the recovery with Germany patchy but clearly improving. The euro has continued to weaken against the dollar, promoting an improving outlook for corporate Euroland where the benefits of currency weakness are leading to higher export revenues. In the United Kingdom growth stocks continued to appreciate but lagged their continental European counterparts. Unlike the continent, the U.K. economy is beginning to show some signs of slowing after a series of interest rate increases. The Japanese recovery remains fragile. Equity prices appear to include expectations of a significant economic expansion despite tepid consumer demand. Although there are early signs of restructuring, Japanese commitment to full-scale change remains in question. While foreigners have become less aggressive buyers of Japanese equities, domestic investors may redirect expiring postal savings assets into domestic stocks. MAJOR TRANSACTIONS DURING THE PERIOD We took advantage of the strength in the European telecommunications sector by reducing our exposure to Telecom Italia Mobile. Profits were also taken in some of - -------------------------------------------------------------------------------- 17 19 MANAGER'S COMMENTARY (CONTINUED) - -------------------------------------------------------------------------------- SECURITY EQUITY FUND-- INTERNATIONAL SERIES MAY 15, 2000 the competitive local exchange telecommunications carriers across continental Europe and in the U.K. We increased our exposure to the undervalued energy and financial sectors during the period as well. In Asia we continue to favor semiconductors and attractively valued technology stocks. In emerging markets, holdings were established in Embratel, the long distance telephone operator in Brazil after a period of what we believe was unjustified underperformance. OUR OUTLOOK AND STRATEGY FOR THE COMING MONTHS We expect central banks in Europe and the U.S. will further tighten monetary policy in the coming months. While some inflationary pressures are present, we do not expect a significant upturn in core inflation as restructuring efforts, technological innovation and deregulation continue. Improvement in core European economies, exports and consumer spending lead us to expect continued strong performance from this region. In the longer term, benefits of reduced tax rates should change the corporate landscape and may serve to focus overseas investors anew on Europe. Nevertheless, against this backdrop we continue to expect volatility within equity markets. Michael Levy, Robert Reiner, and Julie Wang Portfolio Managers (1) Performance figures are based on Class A shares and do not reflect deduction of the sales charge. Investing in foreign countries may involve risks, such as currency fluctuations and political instability, not associated with investing exclusively in the U.S. - ---------------- PERFORMANCE ---------------- TOP 5 HOLDINGS**
% OF NET ASSETS ---------- Vodafone Airtouch PLC 3.1% Canal Plus 2.3% Murata Manufacturing Company, Ltd. 2.1% Nortel Networks Corporation 2.0% Total Fina Elf S.A. (Cl. B) 1.9%
** At March 31, 2000 AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2000
1 YEAR SINCE INCEPTION ------ --------------- A Shares 36.86% 23.58% (1-29-99) A Shares with sales 29.00% 17.48% (1-29-99) charge B Shares 35.83% 22.67% (1-29-99) B Shares with CDSC 30.83% 19.36% (1-29-99) C Shares 36.22% 23.08% (1-29-99) C Shares with CDSC 35.22% 23.08% (1-29-99)
The performance data above represents past performance which is not predictive of future results. The investment return and principal value of an investment in the fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. Such figures would be lower if the maximum sales charge were deducted. - -------------------------------------------------------------------------------- 18 20 MANAGER'S COMMENTARY - -------------------------------------------------------------------------------- SECURITY EQUITY FUND--SELECT 25 SERIES MAY 15, 2000 [MILBERGER PHOTO] Terry Milberger Senior Portfolio Manager TO OUR SHAREHOLDERS: The Select 25 Series of Security Equity Fund returned a favorable +16.62% in the six-month period ended March 31, 2000. The benchmark S&P/Barra Growth Index return was +24.68% over the same period.(1) Our strategy for the Select 25 series is to construct a portfolio of 25 to 30 stocks of premier companies that have above average revenue and earnings prospects. RE-EXAMINING OUR STRATEGY When performance in a portfolio lags that of its benchmark over a reported period we take a serious look at the method we are using to implement its strategy. The technology sector weighting in the portfolio is now over 46%, much closer to that of the benchmark S&P/Barra Growth Index. We have recently added companies with higher growth characteristics, including Network Appliance, Inc., Sanmina Corporation, Univision Communications Inc., Nextel Communications, Inc. and Nokia Oyj. This is not to say we have abandoned all of the "old economy" companies. Many familiar names remain in the portfolio. Among these are Walgreen Co., Wal-Mart Stores, Inc., The Home Depot, Inc., Harley-Davidson, Inc., Citigroup Inc., and Colgate-Palmolive Company. HOLDING FEWER STOCKS MEANS LARGER CONCENTRATIONS Because the portfolio is generally limited to between twenty and thirty holdings, a sharp move by any one company has a more pronounced impact on total return. For example, software company BMC Software, Inc. fell 28% during the period after reporting earnings shortfalls in two consecutive quarters. Tyco International Ltd., a provider of fire protection systems and electronic security services, fell sharply in the fourth quarter because of suspected accounting regularities. We, along with many other investors, believe these suspicions are unfounded and the stock did recover subsequently, with a 1% gain during the six month period. The concentration effect works both ways, however. The portfolio benefited from a 53% gain in the shares of media company Time Warner, Inc. The appreciation in Time Warner was related to America Online, Inc.'s agreement to purchase the company. Medical device manufacturer Medtronic, Inc. also performed admirably, appreciating 148% over the six-month period on favorable product news. Once the portfolio updating process is complete, we believe the turnover will be lower than that of the average equity portfolio. Still, we expect to be more nimble in choosing premier growth companies that reflect the returns seen in the benchmark index. We plan to buy these stocks and keep them in the portfolio as long as the fundamentals and growth characteristics remain favorable. Terry Milberger Senior Portfolio Manager (1) Performance figures are based on Class A shares and do not reflect deduction of the sales charge. - -------------------------------------------------------------------------------- 19 21 MANAGER'S COMMENTARY (CONTINUED) - -------------------------------------------------------------------------------- SECURITY EQUITY FUND--SELECT 25 SERIES MAY 15, 2000 - ---------------- PERFORMANCE ---------------- TOP 5 HOLDINGS**
% OF NET ASSETS ---------- Microsoft Corporation 7.5% General Electric Corporation 7.1% Intel Corporation 5.4% Cisco Systems, Inc. 5.2% NASDAQ--100 Shares 4.3%
** At March 31, 2000 AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2000
1 YEAR SINCE INCEPTION ------ --------------- A Shares 18.08% 19.19% (1-29-99) A Shares with sales 11.33% 13.31% (1-29-99) charge B Shares 17.42% 18.53% (1-29-99) B Shares with CDSC 12.42% 15.20% (1-29-99) C Shares 17.69% 18.86% (1-29-99) C Shares with CDSC 16.69% 18.86% (1-29-99)
The performance data above represents past performance which is not predictive of future results. The investment return and principal value of an investment in the fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. Such figures would be lower if the maximum sales charge were deducted. - -------------------------------------------------------------------------------- 20 22 MANAGER'S COMMENTARY - -------------------------------------------------------------------------------- SECURITY EQUITY FUND--TOTAL RETURN SERIES MAY 15, 2000 [MILBERGER PHOTO] Terry Milberger Senior Portfolio Manager TO OUR SHAREHOLDERS: The Total Return Series of Security Equity Fund lagged its benchmark in the first half of the fiscal year. The Series returned 10.73% over the six month period, while the S&P 500 Stock Index gained 17.51%.(1) Although the primary detractor was an underweighting in technology stocks that can be more risky, underperformance in other areas contributed as well. FINANCIAL AND CONSUMER STAPLES SECTORS Many insurance companies saw their stock prices strengthen in the second half of 1999 as Congress debated and subsequently passed legislation which would allow banks and insurance companies to merge. Expectations were high that banks would quickly seek out insurance companies they could acquire, but to date this hasn't happened. As a result the stock prices which rose in anticipation of the event have fallen in recent months. Additionally, the financial sector in general has been weak under the cloud of increasing interest rates. Among our consumer staples companies, The Procter & Gamble Company saw its stock fall 31% on March 7, 2000 when the company announced its earnings would fall short of analysts' estimates. They attributed the shortfall primarily to higher costs of raw materials. This news caused investors to shy away from similar companies in the sector, believing that they too might be experiencing higher raw materials cost runups. Also in the consumer staples sector, the stock of The Kroger Company, the largest U.S. supermarket operator, fell 24% in December. The sell-off in Kroger was due largely to management's underestimation of the time and cost of integrating its recent acquisition, Fred Meyer Stores, Inc., into its operations. In addition, the company also announced the departure of two top Fred Meyer executives following the acquisition. We believe the integration issues are short term and the longer term outlook remains very favorable. SOME STRONG PERFORMERS AS WELL Among the positive performers in the portfolio over the period were Colgate-Palmolive Company and Kohl's Corporation. Colgate benefited from its heavy exposure in the international markets as global economies began to recover from their difficulties of the past two years. Kohl's Corporation operates a chain of family-oriented specialty department stores. They target the median income customer, selling top-brand merchandise at discounted prices. In the strong U.S. economy consumers have been spending at an unusually rapid pace, and Kohl's has gained from this trend. EXPANDING THE TECHNOLOGY WEIGHTING Although an underweighting in the technology sector detracted from total return, those stocks we held in the sector did very well. Among these were Cisco Systems, Inc., Intel Corporation, and Nortel Networks Corporation. We are adding holdings in this sector, moving toward a weighting close to the 34% now in the S&P 500 Stock Index. We plan to gradually add technology stocks at times when the markets weaken and they can be bought at reasonable prices. We are also diversifying broadly in the sector in order to minimize the risk of a downturn in any one position. STRUCTURE OF THE PORTFOLIO IN THE COMING MONTHS We plan to keep the number of holdings in the portfolio between 70 and 80 at this time. This diversification will help minimize the impact of a disappointment from any one name. The holdings will be a mix of growth stocks and value issues. At this time about two-thirds of the stocks pay dividends. In today's market, those stocks with higher dividend streams generally have underperformed. We are placing more emphasis on total return than on the income stream and so we are keeping a close eye on the performance of our dividend-paying issues, making sure they keep pace with the general markets. We are hopeful that the restructuring of the portfolio will lead to strong performance in the months ahead. Terry Milberger Senior Portfolio Manager (1) Performance figures are based on Class A shares and do not reflect deduction of the sales charge. - -------------------------------------------------------------------------------- 21 23 MANAGER'S COMMENTARY (CONTINUED) - -------------------------------------------------------------------------------- SECURITY EQUITY FUND--TOTAL RETURN SERIES MAY 15, 2000 - ---------------- PERFORMANCE ---------------- TOP 5 HOLDINGS**
% OF NET ASSETS ---------- Microsoft Corporation 5.3% Cisco Systems, Inc. 4.5% General Electric Company 4.1% Intel Corporation 3.8% NASDAQ--100 Shares 2.5%
** At March 31, 2000 AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2000
1 YEAR SINCE INCEPTION ------ --------------- A Shares 13.94% 11.21% (6-1-95) A Shares with sales 7.42% 9.86% (6-1-95) charge B Shares 12.77% 10.15% (6-1-95) B Shares with CDSC 7.77% 9.87% (6-1-95) C Shares 12.44% 9.47% (1-29-99) C Shares with CDSC 11.44% 9.47% (1-29-99)
The performance data above represents past performance which is not predictive of future results. The investment return and principal value of an investment in the fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. Such figures would be lower if the maximum sales charge were deducted. - -------------------------------------------------------------------------------- 22 24 MANAGER'S COMMENTARY - -------------------------------------------------------------------------------- SECURITY GROWTH AND INCOME FUND MAY 15, 2000 [MILBERGER PHOTO] Terry Milberger Senior Portfolio Manager TO OUR SHAREHOLDERS: The first half of the fiscal year has been difficult for Security Growth and Income Fund. Total return for the six months ended March 31, 2000 was -6.42% while the benchmark S&P/Barra Value Index rose 9.23% over the period.(1) In response to recent performance we have refocused our strategies and expect favorable results more reflective of the S&P Barra Value Index in the second half of the fiscal year. PRIMARY FACTORS AFFECTING PERFORMANCE The greatest contributor to negative returns over the past six months was our small weighting in the technology sector. Stocks with high price/earnings ratios, as is typical of many of today's technology companies, generally are not a part of traditional growth and income portfolios. These types of stocks were the strongest performers throughout the fourth quarter of 1999 and most of the first quarter of 2000. Our past orientation toward conservative value areas of the midcap and small cap stock segments also dragged down performance as these sectors lagged their companion growth areas of the markets. Throughout the six-month period the value components of the S&P 500 Index and the S&P Midcap 400 Index gained only about 1/3 as much as their corresponding growth components. STRUCTURAL CHANGES TO THE FUND In recent weeks we have been restructuring the portfolio to take advantage of the areas of the market that have been contributing to favorable returns. The overall objective of the Growth and Income Fund has not changed. The prospectus requirement that at least 25% of its assets must be securities that are income producing is expected to reduce volatility in overall portfolio performance, while a repositioning toward larger cap stocks should help keep returns more in line with those of the benchmark index. While we are maintaining our emphasis on value stocks, we are seeking those that we believe have good growth prospects. During the last few month the technology weighting in the portfolio has been increased from 8% to about 20%. We have included major companies that are expected to benefit from the Internet infrastructure buildout. We have added some premier growth companies in other market sectors as well. These include familiar names such as Wal-Mart Stores, Inc., General Electric Company, Colgate-Palmolive Company, The Home Depot, Inc., Harley Davidson, Inc., and Cardinal Health, Inc. We have reduced the weightings in the energy sector from 15% to about 8%, believing that oil prices are more likely to decline from their current levels than they are to run up further. We also sold some financial stock positions, bringing that sector's weighting down to about 19% from its previous 25%. Although the financials are very attractively priced, they could experience continued pressure as the Federal Reserve pursues its strategy of increasing interest rates to slow economic activity. CHARACTERISTICS OF THE RESTRUCTURED PORTFOLIO After making the changes outlined in the preceding paragraphs, the average market capitalization of the portfolio is about $125 billion. This has increased from an average of around $35 billion at the end of December. The long term forecasted earnings growth rate averages 16%, while the price/earnings to growth rate is about 1.2 times (the S&P 500 Stock index averages about 2 times). The price/earnings to growth rate shows we are buying growth at a better value than that of the S&P Index. We believe these changes will help provide favorable and consistent returns in the months ahead. Terry Milberger Senior Portfolio Manager (1) Performance figures are based on Class A shares and do not reflect deduction of the sales charge. - -------------------------------------------------------------------------------- 23 25 MANAGER'S COMMENTARY (CONTINUED) - -------------------------------------------------------------------------------- SECURITY GROWTH AND INCOME FUND MAY 15, 2000 - ---------------- PERFORMANCE ---------------- TOP 5 HOLDINGS**
% OF NET ASSETS ---------- NASDAQ--100 Shares 3.6% Microsoft Corporation 3.2% General Electric Company 3.2% Cisco Systems, Inc. 2.0% J.P. Morgan & Company, Inc. 2.0%
** At March 31, 2000 AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2000
1 YEAR 5 YEARS 10 YEARS ------ ------- -------- A Shares (3.59%) 12.75% 9.48% A Shares with sales (9.08%) 11.43% 8.84% charge B Shares (4.70%) 11.58% 7.98% (10-19-93) (since inception) B Shares with (9.47%) 11.33% 7.98% CDSC (10-19-93) (since inception) C Shares (5.06%) (3.16%) N/A (1-29-99) (since inception) C Shares with (6.01%) (3.16%) N/A CDSC (1-29-99) (since inception)
The performance data above represents past performance which is not predictive of future results. The investment return and principal value of an investment in the fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. Such figures would be lower if the maximum sales charge were deducted. - -------------------------------------------------------------------------------- 24 26 SCHEDULE OF INVESTMENTS - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY GROWTH AND INCOME FUND PRINCIPAL AMOUNT OR NUMBER MARKET CORPORATE BONDS OF SHARES VALUE - ------------------------------------------------------------- CONSUMER CYCLICAL - OTHER - 0.1% American Eco Corporation, 9.625% - 2008................ $125,000 $ 52,188 ENERGY - REFINING - 0.2% Crown Central Petroleum, 10.875% - 2005............... $200,000 140,500 FOOD - 0.1% Nash Finch Company, 8.50% - 2008......................... $100,000 78,750 HEALTH CARE - 0.0% Multicare Companies, Inc., 9.00% - 2007................. $200,000 10,000 INSURANCE - 0.1% General American Life Insurance Company, 8.525% - 2027....... $75,000 73,781 MEDIA - NONCABLE - 0.1% Golden Books Publishing, Inc., 7.65% - 2002................. $116,000 69,600 SERVICES - 0.0% Loewen Group, Inc., 6.70% - 1999......................... $75,000 35,812 -------------- Total corporate bonds - 0.6%... 460,631 COMMON STOCKS - ------------- AEROSPACE/DEFENSE - 1.0% Boeing Company................. 20,000 758,750 AUTOMOBILES - 1.2% Ford Motor Company............. 10,000 459,375 General Motors................. 5,000 414,063 -------------- 873,438 BANKS - MAJOR REGIONAL - 7.1% Bank of New York Company, Inc.......................... 15,000 623,437 Bank One Corporation........... 31,000 1,065,625 Fifth Third Bancorp............ 5,000 315,000 FleetBoston Financial Corporation.................. 15,000 547,500 PNC Financial Services Group... 15,900 716,494 Suntrust Banks, Inc............ 8,000 462,000 Wachovia Corporation........... 8,000 540,500 Wells Fargo & Company.......... 22,400 917,000 -------------- 5,187,556 BANKS - MONEY CENTER - 4.9% Bank of America Corporation.... 23,600 1,237,525 Chase Manhattan Corporation.... 9,500 828,281 J.P. Morgan & Company, Inc..... 11,100 1,462,425 -------------- 3,528,231
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- BEVERAGES - ALCOHOLIC - 0.3% Anheuser-Busch Companies, Inc.......................... 3,600 $ 224,100 BEVERAGES - SOFT DRINK - 0.3% PepsiCo, Inc................... 6,600 228,113 BIOTECHNOLOGY - 0.3% Amgen, Inc.*................... 3,500 214,812 BROADCAST MEDIA - 0.8% Clear Channel Communications, Inc.*........................ 5,000 345,313 Univision Communications, Inc.*........................ 1,800 203,400 -------------- 548,713 CHEMICALS - BASIC - 2.0% Air Products & Chemicals, Inc.......................... 13,000 369,687 E.I. du Pont de Nemours & Company...................... 13,200 697,950 Praxair, Inc................... 9,600 399,600 -------------- 1,467,237 COMMUNICATION EQUIPMENT - 2.6% Lucent Technologies, Inc....... 10,000 607,500 Motorola, Inc.................. 2,000 284,750 Nortel Networks Corporation.... 4,000 504,000 Tellabs, Inc.*................. 8,000 503,875 -------------- 1,900,125 COMPUTER HARDWARE - 3.5% Compaq Computer Corporation.... 19,000 505,875 Dell Computer Corporation*..... 5,900 318,231 Hewlett-Packard Company........ 2,000 265,125 International Business Machines Corporation.................. 8,500 1,003,000 Sun Microsystems, Inc.*........ 5,000 468,516 -------------- 2,560,747 COMPUTER SOFTWARE/SERVICES - 5.3% America Online, Inc.*.......... 8,000 538,000 Computer Sciences Corporation*................. 2,100 166,162 Microsoft Corporation*......... 22,000 2,337,500 Oracle Corporation*............ 6,000 468,375 Yahoo! Inc.*................... 1,900 325,613 -------------- 3,835,650 COMPUTERS - PERIPHERALS - 0.5% EMC Corporation*............... 2,700 337,500 COMPUTERS - NETWORKING - 2.0% Cisco Systems, Inc.*........... 19,000 1,468,938
See accompanying notes. - -------------------------------------------------------------------------------- 25 27 SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY GROWTH AND INCOME FUND (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- DISTRIBUTION - FOOD & HEALTH - 0.4% Cardinal Health, Inc........... 7,000 $ 321,125 ELECTRICAL EQUIPMENT - 4.8% Emerson Electric Company....... 18,000 951,750 General Electric Company....... 15,000 2,327,812 Sanmina Corporation............ 2,800 189,175 -------------- 3,468,737 ELECTRONICS - INSTRUMENTATION - 0.0% Sabre Holdings Corporation..... 1 8 ELECTRONICS - SEMICONDUCTORS - 2.4% Intel Corporation.............. 11,000 1,451,312 Texas Instrument, Inc.......... 2,000 320,000 -------------- 1,771,312 ENTERTAINMENT - 1.2% Golden Books Family Entertainment*............... 5,667 9,917 Viacom, Inc.*.................. 6,400 337,600 Walt Disney Company............ 12,700 525,462 -------------- 872,979 EQUIPMENT - SEMICONDUCTORS - 0.5% Applied Materials, Inc.*....... 3,600 339,300 FINANCIAL - DIVERSE - 3.7% Citigroup, Inc................. 9,600 569,400 Fannie Mae..................... 19,300 1,089,244 Freddie Mac.................... 15,000 662,813 Morgan Stanley Dean Witter and Company...................... 4,200 342,562 -------------- 2,664,019 FOODS - 0.9% Bestfoods, Inc................. 8,000 374,500 Ralston-Ralston Purina Group... 11,000 301,125 -------------- 675,625 HEALTH CARE - DIVERSE - 1.7% American Home Products Corporation.................. 7,300 391,462 Bristol-Myers Squibb Company... 6,300 363,825 Johnson & Johnson.............. 6,900 483,431 -------------- 1,238,718 HEALTH CARE - PHARMACEUTICALS - MAJOR - 1.3% Merck & Company, Inc........... 9,000 559,125 Schering-Plough Corporation.... 9,600 352,800 -------------- 911,925
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- HOUSEHOLD PRODUCTS - 1.0% Colgate-Palmolive Company...... 7,500 $ 422,813 Kimberly-Clark Corporation..... 5,500 308,000 -------------- 730,813 INSURANCE - LIFE/HEALTH - 1.4% American General Corporation... 18,000 1,010,250 INSURANCE - MULTILINE - 0.6% American International Group, Inc.......................... 4,000 438,000 LEISURE TIME PRODUCTS - 0.3% Harley-Davidson, Inc........... 2,400 190,500 MACHINERY - DIVERSE - 0.9% Deere & Company................ 9,100 345,800 Ingersoll-Rand Company......... 6,800 300,900 -------------- 646,700 MANUFACTURING - DIVERSIFIED - 2.8% Honeywell International, Inc.......................... 4,500 237,094 Minnesota Mining & Manufacturing Company........ 5,500 487,094 Textron, Inc................... 7,500 456,563 Tyco International, Ltd........ 7,500 374,063 United Technologies Corporation.................. 8,000 505,500 -------------- 2,060,314 MEDICAL PRODUCTS & SUPPLIES - 1.8% Baxter International, Inc...... 15,000 940,312 Medtronic, Inc................. 7,000 360,063 -------------- 1,300,375 NATURAL GAS - 1.4% El Paso Energy Corporation..... 16,000 646,000 Williams Companies, Inc........ 8,000 351,500 -------------- 997,500 OIL - DOMESTIC - 1.7% Atlantic Richfield Corporation.................. 6,000 510,000 Phillips Petroleum Company (NY Shares)...................... 15,000 693,750 -------------- 1,203,750 OIL - INTERNATIONAL - 5.3% Chevron Corporation............ 8,200 757,988 Exxon Mobil Corporation........ 12,000 933,750 Royal Dutch Petroleum Company*..................... 25,100 1,444,819 Texaco, Inc.................... 13,200 707,850 -------------- 3,844,407
See accompanying notes. - -------------------------------------------------------------------------------- 26 28 SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY GROWTH AND INCOME FUND (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- OIL & GAS - DRILLING & EQUIPMENT - 1.3% Halliburton Company............ 15,000 $ 615,000 Schlumberger, Ltd.............. 4,000 306,000 -------------- 921,000 OIL & GAS - EXPLORATION & PRODUCTION - 0.6% Unocal Corporation............. 15,000 446,250 PAPER & FOREST PRODUCTS - 1.1% International Paper Company.... 19,000 812,250 PUBLISHING - NEWSPAPER - 0.8% Gannett Company, Inc........... 8,000 563,000 RETAIL - APPAREL - 0.3% TJX Companies, Inc............. 10,300 228,531 RETAIL - BUILDING SUPPLIES - 1.3% Home Depot..................... 6,000 387,000 Lowe's Companies, Inc.......... 10,000 583,750 -------------- 970,750 RETAIL - DRUG STORES - 0.3% Walgreen Company............... 8,400 216,300 RETAIL - FOOD CHAINS - 0.4% Safeway, Inc.*................. 6,700 303,175 RETAIL - GENERAL MERCHANDISE - 2.1% Target Stores.................. 5,000 373,750 Wal-Mart Stores, Inc........... 21,000 1,165,500 -------------- 1,539,250 RESTAURANTS - 1.0% McDonald's Corporation......... 20,000 751,250 SERVICES - DATA PROCESSING - 0.2% Automatic Data Processing, Inc.......................... 3,600 173,700 TELECOMMUNICATIONS - CELLULAR - 0.4% Nextel Communications, Inc.*... 2,100 311,325 TELECOMMUNICATION - LONG DISTANCE - 3.6% AT&T Corporation............... 25,000 1,406,250 MCI WorldCom, Inc.............. 26,500 1,200,781 -------------- 2,607,031 TELEPHONE - 5.5% Bell Atlantic Corporation...... 23,700 1,448,662 BellSouth Corporation.......... 23,200 1,090,400 SBC Communications............. 34,600 1,453,200 -------------- 3,992,262
PRINCIPAL AMOUNT OR NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- UNIT INVESTMENT TRUST - 3.6% NASDAQ - 100 Shares*........... 24,000 $ 2,631,000 -------------- Total common stocks - 88.4%............... 64,287,341 ============== COMMERCIAL PAPER - ---------------- BROKERAGE - 2.1% Merrill Lynch & Company, Inc., 6.10%, 4/12/00............... $1,500,000 1,497,204 COMBINATION GAS & ELECTRIC - 0.6% Pacific Gas & Electric Company, 6.005%, 4/4/00............... $400,000 399,800 ELECTRIC UTILITIES - 3.8% Allegheny Energy, Inc., 6.08%, 4/7/00....................... $2,800,000 2,797,163 -------------- Total commercial paper - 6.5%............. 4,694,167 -------------- Total investments - 95.5%................. 69,442,139 Cash and other assets, less liabilities - 4.5%.................................... 3,230,983 -------------- Total net assets - 100.0%................. $ 72,673,122 ============== SECURITY EQUITY FUND - EQUITY SERIES COMMON STOCKS - ------------- AEROSPACE/DEFENSE - 0.2% Boeing Company................. 50,000 $ 1,896,875 AIRLINES - 0.4% Southwest Airlines Company..... 200,000 4,162,500 ALUMINUM - 0.3% Alcoa, Inc..................... 55,000 3,863,750 AUTOMOBILES - 0.6% Ford Motor Company............. 85,000 3,904,687 General Motors Corporation..... 40,000 3,312,500 -------------- 7,217,187 BANKS - MAJOR REGIONAL - 2.8% Bank of New York Company, Inc.......................... 300,000 12,468,750 Northern Trust Corporation..... 125,000 8,445,312 SunTrust Banks, Inc............ 30,000 1,732,500 Wells Fargo & Company.......... 205,000 8,392,187 -------------- 31,038,749 BANKS - MONEY CENTER - 1.7% Chase Manhattan Corporation.... 155,000 13,514,062 Bank of America Corporation.... 115,000 6,030,312 -------------- 19,544,374
See accompanying notes. - -------------------------------------------------------------------------------- 27 29 SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - EQUITY SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- BEVERAGES - ALCOHOLIC - 0.5% Anheuser-Busch Companies, Inc.......................... 100,000 $ 6,225,000 BEVERAGES - SOFT DRINK - 1.1% Coca-Cola Company.............. 175,000 8,214,063 PepsiCo, Inc................... 130,000 4,493,125 -------------- 12,707,188 BIOTECHNOLOGY - 0.4% Amgen, Inc.*................... 70,000 4,296,250 BROADCAST MEDIA - 1.2% AMFM, Inc.*.................... 140,000 8,697,500 Univision Communications, Inc.*........................ 40,000 4,520,000 -------------- 13,217,500 BUILDING MATERIALS - 0.4% Masco Corporation.............. 200,000 4,100,000 CHEMICALS - BASIC - 0.9% Dow Chemical Company........... 25,000 2,850,000 E.I. du Pont de Nemours and Company...................... 90,000 4,758,750 Rohm & Haas Company............ 60,000 2,677,500 -------------- 10,286,250 CHEMICALS - SPECIALTY - 0.5% Ecolab, Inc.................... 150,000 5,503,125 COMMUNICATION EQUIPMENT - 5.9% ADC Telecommunications, Inc.*........................ 110,000 5,926,250 CIENA Corporation*............. 26,700 3,367,538 Lucent Technologies, Inc....... 265,000 16,098,750 Motorola, Inc.................. 75,000 10,678,125 Nokia Oyj...................... 45,000 9,776,250 Nortel Networks Corporation.... 125,000 15,750,000 Tellabs, Inc.*................. 70,000 4,408,906 -------------- 66,005,819 COMPUTER HARDWARE - 5.7% Apple Computer, Inc.*.......... 30,000 4,074,375 Dell Computer Corporation*..... 200,000 10,787,500 Hewlett-Packard Company........ 75,000 9,942,188 International Business Machines Corporation.................. 160,000 18,880,000 Sun Microsystems, Inc.*........ 215,000 20,146,172 -------------- 63,830,235 COMPUTERS - NETWORKING - 4.5% Cisco Systems, Inc.*........... 600,000 46,387,500 Network Appliance, Inc.*....... 40,000 3,310,000 -------------- 49,697,500
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- COMPUTERS - PERIPHERALS - 1.5% Brocade Communications Systems, Inc.*........................ 20,000 $ 3,586,250 EMC Corporation*............... 85,000 10,625,000 Lexmark International Group, Inc.*........................ 20,000 2,115,000 -------------- 16,326,250 COMPUTER SOFTWARE/SERVICES - 8.6% Amdocs Limited*................ 60,000 4,421,250 Computer Associates International, Inc........... 60,000 3,551,250 Computer Sciences Corporation*................. 120,000 9,495,000 Digex, Inc.*................... 35,000 3,882,812 Microsoft Corporation*......... 460,000 48,875,000 Oracle Corporation*............ 200,000 15,612,500 PSINet, Inc.*.................. 100,000 3,401,563 Yahoo!, Inc.*.................. 40,000 6,855,000 -------------- 96,094,375 DISTRIBUTION - FOOD & HEALTH - 0.6% Cardinal Health, Inc........... 145,000 6,651,875 ELECTRICAL EQUIPMENT - 4.5% General Electric Company....... 300,000 46,556,250 Sanmina Corporation*........... 60,000 4,053,750 -------------- 50,610,000 ELECTRONICS - SEMICONDUCTORS - 4.7% Intel Corporation.............. 300,000 39,581,250 National Semiconductor Corporation*................. 60,000 3,637,500 Texas Instruments, Inc.*....... 60,000 9,600,000 -------------- 52,818,750 ENTERTAINMENT - 2.1% Seagram Company, Ltd........... 50,000 2,975,000 Time Warner, Inc............... 140,000 14,000,000 Viacom, Inc.*.................. 120,000 6,330,000 -------------- 23,305,000 EQUIPMENT - SEMICONDUCTORS - 1.1% Applied Materials, Inc.*....... 70,000 6,597,500 ASM Lithography Holding N.V.*........................ 15,000 1,676,250 Teradyne, Inc.*................ 45,000 3,701,250 -------------- 11,975,000 FINANCIAL - DIVERSE - 3.7% American Express Company....... 40,000 5,957,500 Citigroup, Inc................. 270,000 16,014,375 Fannie Mae..................... 150,000 8,465,625
See accompanying notes. - -------------------------------------------------------------------------------- 28 30 SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - EQUITY SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- FINANCIAL - DIVERSE (CONTINUED) Freddie Mac.................... 140,000 $ 6,186,250 Morgan Stanley, Dean Witter & Company...................... 50,000 4,078,125 -------------- 40,701,875 FOODS - 1.0% Bestfoods...................... 240,000 11,235,000 HEALTH CARE - DIVERSE - 2.3% American Home Products Corporation.................. 150,000 8,043,750 Bristol-Myers Squibb Company... 175,000 10,106,250 Johnson & Johnson.............. 100,000 7,006,250 -------------- 25,156,250 HEALTH CARE - PHARMACEUTICALS - 2.5% Elan Corporation plc - ADR*.... 180,000 8,550,000 Merck & Company, Inc........... 130,000 8,076,250 Pharmacia & Upjohn, Inc........ 60,000 3,555,000 Schering-Plough Corporation.... 200,000 7,350,000 -------------- 27,531,250 HOUSEHOLD PRODUCTS - 2.0% Colgate-Palmolive Company...... 200,000 11,275,000 Kimberly-Clark Corporation..... 40,000 2,240,000 Procter & Gamble Company....... 150,000 8,437,500 -------------- 21,952,500 INSURANCE - LIFE/HEALTH - 0.4% American General Corporation... 85,000 4,770,625 INSURANCE - MULTILINE - 2.1% American International Group, Inc.......................... 160,000 17,520,000 Hartford Financial Services Group, Inc................... 120,000 6,330,000 -------------- 23,850,000 LEISURE TIME PRODUCTS - 0.3% Harley-Davidson, Inc........... 45,000 3,571,875 LODGING - HOTELS - 0.3% Carnival Corporation........... 125,000 3,101,563 MACHINERY - DIVERSE - 0.2% Ingersoll-Rand Company......... 40,000 1,770,000 MANUFACTURING - DIVERSIFIED - 2.4% Honeywell International, Inc.......................... 100,000 5,268,750 Illinois Tool Works, Inc....... 60,000 3,315,000 Textron, Inc................... 48,600 2,958,525 Tyco International, Ltd........ 300,000 14,962,500 -------------- 26,504,775
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- MEDICAL PRODUCTS & SUPPLIES - 2.1% Baxter International, Inc...... 120,000 $ 7,522,500 Becton, Dickinson & Company.... 200,000 5,262,500 Medtronic, Inc................. 200,000 10,287,500 -------------- 23,072,500 NATURAL GAS - 2.7% Coastal Corporation............ 260,000 11,960,000 Enron Corporation.............. 100,000 7,487,500 Williams Companies, Inc........ 230,000 10,105,625 -------------- 29,553,125 OIL - INTERNATIONAL - 3.7% Chevron Corporation............ 110,000 10,168,125 Exxon Mobil Corporation........ 250,000 19,453,125 Royal Dutch Petroleum Company...................... 200,000 11,512,500 -------------- 41,133,750 PERSONAL CARE - 0.3% Gillette Company............... 100,000 3,768,750 PUBLISHING - 0.3% McGraw-Hill Companies, Inc..... 85,000 3,867,500 PUBLISHING - NEWSPAPER - 1.5% Gannett Company, Inc........... 100,000 7,037,500 News Corporation Limited ADR... 80,000 4,500,000 Tribune Company................ 155,000 5,667,188 -------------- 17,204,688 RESTAURANTS - 0.3% McDonald's Corporation......... 85,000 3,192,812 RETAIL - APPAREL - 0.6% TJX Companies, Inc............. 300,000 6,656,250 RETAIL - BUILDING SUPPLIES - 1.9% Home Depot, Inc................ 180,000 11,610,000 Lowe's Companies, Inc.......... 160,000 9,340,000 -------------- 20,950,000 RETAIL - DEPARTMENT STORES - 0.3% Kohl's Corporation*............ 30,000 3,075,000 RETAIL - DRUG STORES - 1.1% Walgreen Company............... 470,000 12,102,500 RETAIL - FOOD CHAINS - 0.8% Safeway, Inc.*................. 200,000 9,050,000 RETAIL - GENERAL MERCHANDISE - 3.3% Costco Wholesale Corporation*................. 50,000 2,628,125 Target Corporation............. 160,000 11,960,000 Wal-Mart Stores, Inc........... 390,000 21,645,000 -------------- 36,233,125 SERVICES - ADVERTISING/MARKETING - 0.8% Omnicom Group, Inc............. 90,000 8,409,375
See accompanying notes. - -------------------------------------------------------------------------------- 29 31 SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - EQUITY SERIES (CONTINUED) PRINCIPAL AMOUNT OR NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- SERVICES - COMMERCIAL & CONSUMER - 0.6% Exodus Communications, Inc.*... 45,000 $ 6,322,500 SERVICES - DATA PROCESSING - 0.5% First Data Corporation......... 120,000 5,310,000 TELECOMMUNICATION - CELLULAR - 1.2% Nextel Communications, Inc.*... 40,000 5,930,000 Sprint Corporation (PCS Group)*...................... 120,000 7,837,500 -------------- 13,767,500 TELECOMMUNICATION - LONG DISTANCE - 2.9% AT&T Corporation............... 175,000 9,843,750 MCI WorldCom, Inc.*............ 225,000 10,195,313 Qwest Communications International*............... 60,000 2,910,000 Sprint Corporation (FON Group)....................... 140,000 8,820,000 -------------- 31,769,063 TELEPHONE - 3.4% BellSouth Corporation.......... 150,000 7,050,000 CenturyTel, Inc................ 110,000 4,083,750 GTE Corporation................ 170,000 12,070,000 SBC Communications, Inc........ 250,000 10,500,000 U S West, Inc.................. 50,000 3,631,250 -------------- 37,335,000 UNIT INVESTMENT TRUST - 3.5% NASDAQ - 100 Shares*........... 360,000 39,465,000 -------------- Total common stocks - 99.2%............... 1,103,757,703 COMMERCIAL PAPER - ---------------- BROKERAGE - 0.1% Merrill Lynch & Company, Inc. 6.12%, 4-3-00................ $1,000,000 999,660 COMBINATION GAS & ELECTRIC - 0.4% Pacific Gas & Electric Company 6.055%, 4-4-00............... $3,500,000 3,498,264 5.95%, 4-4-00................ $1,600,000 1,599,193 -------------- 5,097,457
PRINCIPAL AMOUNT OR NUMBER MARKET COMMERCIAL PAPER (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- ELECTRIC UTILITIES - 0.1% Florida Power & Light Company 6.045%, 4-3-00............... $ 600,000 $ 599,799 -------------- Total commercial paper - 0.6%............. 6,696,916 -------------- Total investments - 99.8%................. 1,110,454,619 Cash and other assets, less liabilities - 0.2%.................................... 2,015,487 -------------- Total net assets - 100.0%................. $1,112,470,106 ============== SECURITY EQUITY FUND - GLOBAL SERIES COMMON STOCKS - ------------- ARGENTINA - 0.2% IRSA Inversiones y Representaciones S.A......... 47,990 $ 149,309 AUSTRALIA - 1.0% Australia & New Zealand Banking Group, Ltd................... 70,100 442,527 Telstra Corporation, Ltd....... 99,200 457,629 -------------- 900,156 BELGIUM - 1.1% Lernout & Hauspie Speech Products N.V.*............... 9,000 994,500 BRAZIL - 2.6% Tele Norte Leste Participacoes S.A.*........................ 48,000,000 1,276,332 Telesp Celular Participacoes S.A. ADR*.................... 21,100 1,196,106 -------------- 2,472,438 CANADA - 0.9% Bombardier, Inc................ 33,400 838,566 CROATIA - 0.5% Pliva d.d GDR.................. 29,100 431,117 FINLAND - 0.9% Nokia Oyj ADR.................. 4,000 869,000 FRANCE - 6.3% Alcatel........................ 4,200 921,552 AXA............................ 3,040 430,819 Canal Plus..................... 3,100 682,270 Cap Gemini S.A................. 4,100 1,110,291 Genset ADR*.................... 14,400 467,775 Sidel S.A...................... 7,600 494,526 Societe BIC S.A................ 21,530 875,587 Societe Television Francaise 1............................ 1,200 884,176 -------------- 5,866,996
See accompanying notes. - -------------------------------------------------------------------------------- 30 32 SCHEDULE OF INVESTMENTS (CONTINUED) - -------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - GLOBAL SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- GERMANY - 7.3% DePfa Deutsche Pfandbriefbank AG........................... 3,700 $ 354,053 Fresenius AG................... 8,050 1,841,028 Porsche AG*.................... 755 2,095,132 ProSieben Media AG............. 10,925 1,245,087 Volkswagen AG.................. 6,080 266,753 Wella AG....................... 41,602 1,021,100 -------------- 6,823,153 HONG KONG - 0.4% Television Broadcasts, Ltd..... 48,000 426,893 INDIA - 1.6% ICICI, Ltd. ADR*............... 64,200 1,460,550 IRELAND - 1.4% Elan Corporation plc ADR*...... 27,200 1,292,000 ITALY - 1.5% Telecom Italia Mobile SpA...... 100,000 1,226,746 Unicredito Italiano SpA........ 46,300 184,307 -------------- 1,411,053 JAPAN - 7.5% Credit Saison Company, Ltd..... 26,600 440,891 DDI Corporation................ 20 163,604 Eisai Company, Ltd............. 31,000 817,579 Hoya Corporation............... 3,000 283,723 Kyocera Corporation............ 1,300 217,501 Nintendo Company, Ltd.......... 1,200 211,183 NTT Docomo, Inc.*.............. 32 1,313,509 Sharp Corporation.............. 48,000 1,027,251 Sony Corporation............... 2,000 282,748 Taisho Pharmaceutical Company, Ltd.*........................ 7,240 249,886 Toshiba Corporation*........... 191,000 1,947,896 -------------- 6,955,771 KOREA, DEMOCRATIC PEOPLES REPUBLIC OF - 1.3% Samsung Electronics............ 3,932 1,191,785 MEXICO - 1.4% Grupo Televisa S.A. GDR*....... 19,820 1,347,760 NETHERLANDS - 4.7% Getronics N.V.*................ 24,400 1,865,534 Koninklijke Philips Electronics N.V.......................... 5,200 873,764 STMicroelectronics N.V......... 7,450 1,394,547 World Online International N.V.*........................ 13,000 290,467 -------------- 4,424,312
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- PORTUGAL - 0.7% Portugal Telecom S.A........... 25,500 $ 326,973 Telecel-Comnicacoes Pessoais S.A.......................... 16,900 329,901 -------------- 656,874 SINGAPORE - 0.5% Dairy Farm International Holdings, Ltd................ 419,900 268,736 Singapore Press Holdings, Ltd.......................... 12,900 205,887 -------------- 474,623 SWEDEN - 2.4% Autoliv, Inc................... 11,500 318,113 Telefonaktiebolaget LM Ericsson AB ADR....................... 20,040 1,880,002 -------------- 2,198,115 SWITZERLAND - 0.4% Ares-Serono Group.............. 100 376,496 UNITED KINGDOM - 12.0% 3i Group plc................... 22,000 462,222 Allied Zurich plc.............. 52,900 578,503 Bass plc....................... 25,300 319,054 BP Amoco plc ADR............... 3,900 206,944 Cadbury Schweppes plc.......... 146,460 973,142 Glaxo Wellcome plc ADR......... 5,600 320,950 Hanson plc..................... 55,500 397,098 Hilton Group, plc.............. 126,600 589,233 New Dixons Group plc........... 36,314 167,133 Peninsular and Oriental Steam Navigation Company........... 55,700 582,021 Reckitt Benckiser plc.......... 129,000 1,221,386 Reed International plc......... 101,700 744,285 Rentokil Initial plc........... 411,300 1,072,800 Royal Bank of Scotland Group plc.......................... 61,500 907,036 Telewest Communications plc*... 44,381 341,615 Vodafone AirTouch plc.......... 83,900 467,791 WPP Group plc.................. 108,850 1,884,085 -------------- 11,235,298 UNITED STATES - 33.2% Affymetrix, Inc.*.............. 3,000 445,313 Alza Corporation*.............. 21,400 803,838 American Express Company....... 4,100 610,644 American Home Products Corporation.................. 18,000 965,250 American International Group, Inc.......................... 2,000 219,000 Amgen, Inc.*................... 12,700 779,463 Associates First Capital Corporation.................. 25,400 544,513 C.R. Bard, Inc................. 17,500 677,031
See accompanying notes. - -------------------------------------------------------------------------------- 31 33 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - GLOBAL SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- UNITED STATES (CONTINUED) Cadence Design Systems, Inc.*........................ 126,540 $ 2,625,705 Circuit City Stores-Circuit City Group................... 11,500 700,062 Cisco Systems, Inc.*........... 14,000 1,082,375 Citigroup, Inc................. 12,700 753,269 Fannie Mae..................... 10,700 603,881 General Motors Corporation..... 9,300 770,156 Genzyme Corporation*........... 6,100 305,762 Gilead Sciences, Inc.*......... 6,700 424,612 Hasbro, Inc.................... 17,200 283,800 Healtheon/WebMD Corporation*... 4,500 103,500 Human Genome Sciences, Inc.*... 3,100 257,494 International Business Machines Corporation.................. 3,900 460,200 International Flavors & Fragrances, Inc.............. 40,100 1,406,006 International Game Technology*.................. 20,500 444,594 Lehman Brothers Holdings, Inc.......................... 9,500 921,500 Manpower, Inc.................. 25,770 914,835 MBNA Corporation............... 44,100 1,124,550 MCI WorldCom, Inc.*............ 7,200 326,250 Millennium Pharmaceuticals, Inc.*........................ 3,470 450,666 National Semiconductor Corporation*................. 53,600 3,249,500 Oracle Corporation*............ 18,180 1,419,176 Pfizer, Inc.................... 13,100 478,969 QUALCOMM, Inc.*................ 12,620 1,884,324 Quintiles Transnational Corporation*................. 21,200 361,725 Scientific-Atlanta, Inc........ 27,300 1,731,844 Sun Microsystems, Inc.*........ 18,700 1,752,248 Sybase, Inc.*.................. 30,700 623,594 Walt Disney Company............ 10,800 446,850 -------------- 30,952,499 -------------- Total common stocks - 89.8%............... 83,749,264 Cash and other assets, less liabilities - 10.2%................................... 9,506,070 -------------- Total net assets - 100%................... $ 93,255,334 ============== INVESTMENT CONCENTRATION - ------------------------ At March 31, 2000, Global Series' investment concentration, by industry, was as follows: Advertising................................. 2.0% Auto Parts & Supplies....................... 0.4% Automobiles................................. 3.4% Banks & Credit.............................. 2.0% Beverages................................... 0.4%
INVESTMENT CONCENTRATION NUMBER MARKET (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- Broadcast Media............................. 4.9% Building & Construction..................... 0.4% Communications.............................. 2.0% Computer Software........................... 2.8% Computer Systems............................ 6.6% Cosmetics................................... 1.1% Drugs....................................... 6.7% Electrical Equipment........................ 2.3% Electronics................................. 6.9% Entertainment............................... 1.3% Financial Services.......................... 7.4% Food Wholesalers............................ 1.1% Health Care................................. 5.1% Hotel/Motel................................. 0.6% Household Products.......................... 2.8% Insurance................................... 1.3% Machinery................................... 0.5% Manufacturing............................... 0.9% Medical..................................... 0.9% Office Equipment............................ 0.9% Oil......................................... 0.2% Publishing.................................. 0.8% Real Estate Development..................... 0.2% Retail...................................... 1.0% Semiconductors.............................. 5.3% Services.................................... 2.8% Telecommunications.......................... 14.0% Toys & Sporting Goods....................... 0.2% Transportation.............................. 0.6% Cash, other assets, less liabilities........ 10.2% -------------- Total net assets............................ 100.0% ============== SECURITY EQUITY FUND - TOTAL RETURN SERIES COMMON STOCKS - -------------------------------------------- AEROSPACE/DEFENSE - 0.9% General Dynamics Corporation... 1,450 $ 72,138 BANKS - MAJOR REGIONAL - 1.9% Bank of New York Company, Inc.......................... 3,700 153,781 BANKS - MONEY CENTER - 3.0% Bank of America Corporation.... 1,400 73,413 Chase Manhattan Corporation.... 1,900 165,656 -------------- 239,069 BEVERAGES - ALCOHOLIC - 0.5% Anheuser-Busch Companies, Inc.......................... 600 37,350
See accompanying notes. - -------------------------------------------------------------------------------- 32 34 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - TOTAL RETURN SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- BEVERAGES - SOFT DRINK - 0.6% PepsiCo, Inc................... 1,300 $ 44,931 BROADCAST MEDIA - 2.5% Clear Channel Communications, Inc.*........................ 1,825 126,039 Univision Communications, Inc.*........................ 600 67,800 -------------- 193,839 CHEMICALS - BASIC - 0.8% Rohm & Haas Company............ 1,500 66,938 CHEMICALS - SPECIALTY - 0.5% Ecolab, Inc.................... 1,050 38,522 COMMUNICATIONS EQUIPMENT - 4.2% Lucent Technologies, Inc....... 1,750 106,313 Nortel Networks Corporation.... 1,000 126,000 Tellabs, Inc.*................. 1,600 100,775 -------------- 333,088 COMPUTER HARDWARE - 3.3% Dell Computer Corporation*..... 2,250 121,359 International Business Machines Corporation.................. 1,200 141,600 -------------- 262,959 COMPUTER SOFTWARE/SERVICES - 9.9% Amdocs, Ltd.*.................. 800 58,950 America Online, Inc.*.......... 1,350 90,788 Computer Sciences Corporation*................. 750 59,344 Digex, Inc.*................... 250 27,734 Microsoft Corporation*......... 3,900 414,375 PSINet, Inc.*.................. 900 30,614 Yahoo!, Inc.*.................. 600 102,825 -------------- 784,630 COMPUTERS - NETWORKING - 4.9% Cisco Systems, Inc.*........... 4,600 355,638 Network Appliance, Inc.*....... 400 33,100 -------------- 388,738 COMPUTERS - PERIPHERALS - 2.6% EMC Corporation*............... 950 118,750 Lexmark International Group, Inc.*........................ 850 89,888 -------------- 208,638 CONSUMER FINANCE - 1.5% Household International, Inc.......................... 3,200 119,400 DISTRIBUTION - FOOD & HEALTH - 1.5% Cardinal Health, Inc........... 2,650 121,569
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- ELECTRICAL EQUIPMENT - 4.8% General Electric Company....... 2,100 $ 325,894 Sanmina Corporation*........... 800 54,050 -------------- 379,944 ELECTRONICS - SEMICONDUCTORS - 3.8% Intel Corporation.............. 2,250 296,859 ENTERTAINMENT - 0.8% Viacom, Inc.*.................. 1,200 63,300 EQUIPMENT - SEMICONDUCTORS - 1.6% Applied Materials, Inc.*....... 1,300 122,525 FINANCIAL - DIVERSE - 2.9% Citigroup, Inc................. 1,400 83,038 Fannie Mae..................... 1,800 101,588 Morgan Stanley Dean Witter & Company...................... 500 40,781 -------------- 225,407 FOODS - 0.5% Bestfoods, Inc................. 850 39,791 HEALTH CARE - DIVERSE - 1.8% Abbott Laboratories............ 2,150 75,653 Bristol-Myers Squibb Company... 1,200 69,300 -------------- 144,953 HEALTH CARE - PHARMACEUTICALS - MAJOR - 1.7% Merck & Company, Inc........... 1,700 105,613 Schering-Plough Corporation.... 800 29,400 -------------- 135,013 HOSPITAL MANAGEMENT - 0.5% Tenet Healthcare Corporation*................. 1,800 41,400 HOUSEHOLD PRODUCTS - 2.1% Colgate-Palmolive Company...... 2,350 132,481 Procter & Gamble Company....... 600 33,750 -------------- 166,231 INSURANCE - LIFE/HEALTH - 1.4% American General Corporation... 1,900 106,638 INSURANCE - MULTILINE - 2.0% American International Group, Inc.......................... 1,425 156,037 LEISURE TIME PRODUCTS - 0.6% Harley-Davidson, Inc........... 600 47,625 MANUFACTURING - DIVERSIFIED - 2.9% Illinois Tool Works, Inc....... 1,450 80,112 Tyco International, Ltd........ 2,900 144,637 -------------- 224,749
See accompanying notes. - -------------------------------------------------------------------------------- 33 35 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - TOTAL RETURN SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- MEDICAL PRODUCTS & SUPPLIES - 3.7% Baxter International, Inc...... 1,500 $ 94,031 Guidant Corporation*........... 1,650 97,041 Medtronic, Inc................. 2,000 102,875 -------------- 293,947 NATURAL GAS - 1.4% El Paso Energy Corporation..... 1,100 44,412 Williams Companies, Inc........ 1,500 65,906 -------------- 110,318 OIL - INTERNATIONAL - 3.6% Chevron Corporation............ 900 83,194 Exxon Mobil Corporation........ 1,550 120,609 Royal Dutch Petrolum Company NY Shares....................... 1,350 77,709 -------------- 281,512 OIL & GAS - DRILLING & EQUIPMENT - 0.8% Schlumberger, Ltd.............. 850 65,025 PUBLISHING - 0.4% McGraw-Hill Companies, Inc..... 700 31,850 PUBLISHING - NEWSPAPER - 2.0% Gannett Company, Inc........... 1,400 98,525 Tribune Company................ 1,600 58,500 -------------- 157,025 RETAIL - BUILDING SUPPLIES - 1.8% Lowe's Companies, Inc.......... 2,400 140,100 RETAIL - DEPARTMENT STORES - 1.4% Kohl's Corporation*............ 1,100 112,750 RETAIL - DRUG STORES - 0.9% Walgreen Company............... 2,700 69,525 RETAIL - FOOD CHAINS - 1.4% Kroger Company*................ 2,800 49,175 Safeway, Inc.*................. 1,300 58,825 -------------- 108,000 RETAIL - GENERAL MERCHANDISE - 3.0% Target Corporation............. 1,450 108,387 Wal-Mart Stores, Inc........... 2,250 124,875 -------------- 233,262 SERVICES - ADVERTISING/MARKETING - 1.4% Omnicom Group, Inc............. 1,150 107,453 SERVICES - DATA PROCESSING - 0.8% Automatic Data Processing, Inc.......................... 1,350 65,137
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- TELECOMMUNICATION - LONG DISTANCE - 3.0% AT&T Corporation............... 950 $ 53,437 MCI WorldCom, Inc.*............ 1,750 79,297 Qwest Communications International, Inc........... 700 33,950 Sprint Corporation (FON Group)....................... 1,100 69,300 -------------- 235,984 TELEPHONE - 4.0% Bell Atlantic Corporation...... 1,200 73,350 BellSouth Corporation.......... 1,600 75,200 Centurytel, Inc................ 1,850 68,681 SBC Communications, Inc........ 2,250 94,500 -------------- 311,731 UNIT INVESTMENT TRUST - 2.5% NASDAQ - 100 Shares*........... 1,800 197,325 -------------- Total common stocks - 98.1%............... 7,737,006 Cash and other assets, less liabilities - 1.9%.................................... 146,431 -------------- Total net assets - 100%................... $ 7,883,437 ============== SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES COMMON STOCKS - ------------- AIR FREIGHT - 0.2% Fedex Corporation.............. 1,500 $ 58,500 AIRLINES - 0.7% Southwest Airlines Company..... 9,600 199,800 ALUMINUM - 0.4% Alcoa, Inc..................... 1,900 133,475 BANKS - MAJOR REGIONAL - 3.4% Bank of New York Company, Inc.......................... 6,400 266,000 Northern Trust Corporation..... 5,600 378,350 PNC Bank Corporation........... 2,600 117,162 Wells Fargo Company............ 6,500 266,094 -------------- 1,027,606 BANKS - MONEY CENTER - 1.7% Bank of America Corporation.... 4,800 251,700 Chase Manhattan Corporation.... 3,000 261,563 -------------- 513,263
See accompanying notes. - -------------------------------------------------------------------------------- 34 36 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- BEVERAGES - SOFT DRINK - 2.0% Coca-Cola Company.............. 10,600 $ 497,538 PepsiCo, Inc................... 3,300 114,056 -------------- 611,594 BROADCAST MEDIA - 1.1% AMFM, Inc.*.................... 1,800 111,825 Comcast Corporation (CI.A)..... 5,000 216,875 -------------- 328,700 CHEMICALS - BASIC - 0.6% Praxair, Inc................... 4,000 166,500 COMMUNICATIONS - EQUIPMENT - 6.5% ADC Telecommunications, Inc.*........................ 5,500 296,313 Comverse Technology, Inc.*..... 2,250 425,250 Lucent Technologies, Inc....... 13,710 832,883 Scientific-Atlanta, Inc........ 6,200 393,312 -------------- 1,947,758 COMPUTER SOFTWARE/SERVICES - 10.7% Adobe Systems, Inc............. 3,400 378,463 Compuware Corporation*......... 6,900 145,331 Microsoft Corporation*......... 22,000 2,337,500 Yahoo!, Inc.................... 2,200 377,025 -------------- 3,238,319 COMPUTER HARDWARE - 5.7% Compaq Computer Corporation.... 5,300 141,113 Dell Computer Corporation*..... 10,400 560,950 Hewlett-Packard Company........ 2,800 371,175 International Business Machines Corporation.................. 5,400 637,200 -------------- 1,710,438 COMPUTERS - NETWORKING - 7.2% Cisco Systems, Inc.*........... 27,900 2,157,019 COMPUTERS - PERIPHERALS - 1.6% EMC Corporation*............... 3,900 487,500 CONSUMER FINANCE - 0.4% Household International, Inc.......................... 3,600 134,325 DISTRIBUTION - FOOD & HEALTH - 0.4% Cardinal Health, Inc........... 2,675 122,716 ELECTRICAL EQUIPMENT - 1.8% Molex, Inc..................... 6,500 381,875 Sanmina Corporation*........... 2,200 148,638 -------------- 530,513 ELECTRONICS - SEMICONDUCTORS - 10.8% Analog Devices, Inc.*.......... 6,400 515,600 Intel Corporation.............. 14,300 1,886,706
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- ELECTRONICS - SEMICONDUCTORS (CONTINUED) Texas Instruments, Inc......... 3,400 $ 544,000 Xilinx, Inc.*.................. 3,600 298,125 -------------- 3,244,431 ENTERTAINMENT - 2.1% Viacom, Inc., (Cl.B)*.......... 5,200 274,300 Walt Disney Company............ 8,700 359,962 -------------- 634,262 EQUIPMENT - SEMICONDUCTORS - 1.0% Applied Materials, Inc......... 3,200 301,600 FINANCIAL - DIVERSE - 1.9% American Express Company....... 1,600 238,300 Fannie Mae..................... 3,500 197,531 Freddie Mac.................... 3,100 136,981 -------------- 572,812 FOODS - 0.8% Bestfoods...................... 2,500 117,031 General Mills, Inc............. 3,000 108,563 -------------- 225,594 HEALTH CARE - DIVERSE - 1.7% Allergan, Inc.................. 2,600 130,000 Johnson & Johnson.............. 5,600 392,350 -------------- 522,350 HEALTH CARE PHARMACEUTICALS - GENERIC - 0.5% Watson Pharmaceuticals, Inc.*........................ 3,500 138,906 HEALTH CARE PHARMACEUTICALS - MAJOR - 2.8% Merck & Company, Inc........... 9,800 608,825 Schering-Plough Corporation.... 6,500 238,875 -------------- 847,700 HOUSEHOLD PRODUCTS - 2.0% Clorox Company................. 2,800 91,000 Colgate-Palmolive Company...... 1,600 90,200 Kimberly-Clark Corporation..... 2,000 112,000 Procter & Gamble Company....... 5,300 298,125 -------------- 591,325 INSURANCE - LIFE/HEALTH - 0.5% American General Corporation... 2,500 140,313 INSURANCE - MULTILINE - 2.5% American International Group, Inc.......................... 6,887 754,126 INSURANCE - PROPERTY & CASUALTY - 0.7% Chubb Corporation.............. 2,900 195,931 MACHINERY - DIVERSE - 0.4% Deere & Company................ 3,100 117,800
See accompanying notes. - -------------------------------------------------------------------------------- 35 37 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - SOCIAL AWARENESS SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- MANUFACTURING - DIVERSIFIED - 0.4% Illinois Tool Works, Inc....... 2,300 $ 127,075 MANUFACTURING - SPECIALIZED - 0.5% Avery Dennison Corporation..... 2,500 152,656 MEDICAL PRODUCTS & SUPPLIES - 1.7% Boston Scientific Corporation*................. 2,600 55,412 Guidant Corporation*........... 3,600 211,725 Medtronic, Inc................. 5,000 257,188 -------------- 524,325 OFFICE EQUIPMENT & SUPPLIES - 0.3% Pitney Bowes, Inc.............. 1,800 80,438 OIL & GAS - DRILLING & EQUIPMENT - 3.0% BJ Services Company*........... 6,500 480,187 Noble Drilling Corporation*.... 10,200 422,663 -------------- 902,850 PAPER & FOREST PRODUCTS - 0.5% Westvaco Corporation........... 4,900 163,537 PERSONAL CARE - 0.4% Gillette Company............... 3,500 131,906 PUBLISHING - 0.3% McGraw-Hill Companies, Inc..... 1,800 81,900 PUBLISHING - NEWSPAPER - 0.4% New York Times Company (Cl.A).. 3,100 133,106 RESTAURANTS - 0.5% McDonald's Corporation......... 4,200 157,762 RETAIL - APPAREL - 1.0% Talbots, Inc................... 3,000 176,625 TJX Companies, Inc............. 5,200 115,375 -------------- 292,000 RETAIL - BUILDING SUPPLIES - 1.7% Home Depot, Inc................ 2,400 154,800 Lowe's Companies, Inc.......... 6,300 367,763 -------------- 522,563 RETAIL - DEPARTMENT STORES - 0.5% Kohl's Corporation*............ 1,600 164,000 RETAIL - DISCOUNTERS - 0.7% Family Dollar Stores, Inc...... 10,000 208,125 RETAIL - DRUG STORES - 0.5% CVS Corporation................ 3,800 142,738 RETAIL - FOOD CHAINS - 0.3% Kroger Company*................ 6,000 105,375
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- RETAIL - GENERAL MERCHANDISE - 3.7% Costco Wholesale Corporation... 1,800 $ 94,612 Target Corporation*............ 3,500 261,625 Wal-Mart Stores, Inc........... 13,900 771,450 -------------- 1,127,687 SERVICES - ADVERTISING/MARKETING - 0.8% Omnicom Group, Inc............. 2,600 242,938 SERVICES - DATA PROCESSING - 1.1% Paychex, Inc................... 6,200 324,725 TELECOMMUNICATIONS - CELLULAR - 1.1% Sprint Corporation (PCS Group)*...................... 4,900 320,031 TELECOMMUNICATIONS - LONG DISTANCE - 3.8% AT&T Corporation............... 12,244 688,725 MCI WorldCom, Inc.*............ 7,200 326,250 Sprint Corporation............. 2,200 138,600 -------------- 1,153,575 TELEPHONE - 3.7% Bell Atlantic Corporation...... 5,900 360,637 BellSouth Corporation.......... 5,000 235,000 SBC Communications, Inc........ 12,248 514,416 -------------- 1,110,053 -------------- Total common stocks - 99.0%............... 29,824,541 Cash and other assets, less liabilities - 1.0%.................................... 313,867 -------------- Total net assets - 100.0%................. $ 30,138,408 ============== SECURITY EQUITY FUND - VALUE SERIES COMMON STOCKS - ------------- AEROSPACE/DEFENSE - 1.3% Alliant Techsystems, Inc.*..... 8,600 $ 506,325 AIR FREIGHT - 0.6% Hub Group, Inc.*............... 15,400 234,850 AUTO PARTS & EQUIPMENT - 0.3% Motorcar Parts & Accessories, Inc.*........................ 50,000 97,500 BANKS - MAJOR REGIONAL - 4.4% Marshall & Ilsley Corporation.................. 21,000 1,212,750 North Fork Bancorporation, Inc.......................... 32,000 572,000 -------------- 1,784,750 BANKS - MONEY CENTER - 1.6% J.P. Morgan & Company, Inc..... 5,000 658,750
See accompanying notes. - -------------------------------------------------------------------------------- 36 38 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - VALUE SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- BIOTECHNOLOGY - 1.1% Ligand Pharmaceuticals, Inc. (CI.B)*...................... 26,000 $ 461,500 BROADCAST MEDIA - 1.1% Cinar Corporation (CI.B)*...... 86,000 451,500 CHEMICALS - DIVERSIFIED - 1.5% Engelhard Corporation.......... 40,000 605,000 CHEMICALS - SPECIALTY - 0.7% Material Sciences Corporation*................. 21,000 283,500 COMMUNICATION EQUIPMENT - 0.2% Transcrypt International, Inc.*........................ 25,000 92,187 COMPUTER SOFTWARE/SERVICES - 6.2% AVT Corporation*............... 63,000 744,188 Computer Sciences Corporation*................. 8,800 696,300 JDA Software Group, Inc.*...... 35,000 511,875 Mediconsult.com, Inc.*......... 66,000 189,750 UNOVA, Inc.*................... 26,000 351,000 -------------- 2,493,113 ELECTRICAL EQUIPMENT - 6.4% Benchmark Electronics, Inc.*... 40,000 1,480,000 Maxwell Technologies, Inc.*.... 80,000 1,100,000 -------------- 2,580,000 ELECTRONICS - DEFENSE - 0.8% Raytheon Company............... 18,000 338,625 FOODS - 2.4% Agribrands International, Inc.*........................ 16,400 644,725 Hormel Foods Corporation....... 20,000 328,750 -------------- 973,475 FOOTWEAR - 0.1% Brown Shoe Company, Inc........ 2,200 26,400 FINANCIAL - DIVERSE - 1.4% Pioneer Group, Inc.*........... 25,000 581,250 HEALTH CARE - LONG TERM CARE - 0.5% Morrison Management Specialists, Inc............. 7,000 194,250 HEALTH CARE - PHARMACEUTICALS - GENERIC - 2.9% Mylan Laboratories, Inc........ 42,000 1,155,000 HEALTH CARE - SPECIALIZED SERVICES - 3.0% CryoLife, Inc.*................ 66,000 1,188,000 HOSPITAL MANAGEMENT - 1.1% Quorum Health Group, Inc.*..... 47,000 472,937
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- INSURANCE - LIFE/HEALTH - 4.3% AFLAC, Inc..................... 12,000 $ 546,750 American General Corporation... 10,000 561,250 UnumProvident Corporation...... 37,000 629,000 -------------- 1,737,000 INSURANCE - PROPERTY & CASUALTY - 2.5% Horace Mann Educators Corporation.................. 13,000 239,688 Progressive Corporation........ 10,000 760,625 -------------- 1,000,313 LEISURE TIME PRODUCTS - 2.9% Mattel, Inc.................... 67,000 699,313 Midway Games, Inc.*............ 34,000 463,250 -------------- 1,162,563 MANUFACTURING - SPECIALIZED - 2.7% Brady Corporation (Cl.A)....... 16,000 499,000 Federal Signal Corporation..... 33,000 596,062 -------------- 1,095,062 MEDICAL PRODUCTS & SUPPLIES - 1.1% Sunrise Medical, Inc.*......... 70,000 437,500 NATURAL GAS - 6.3% El Paso Energy Corporation..... 16,000 646,000 Kinder Morgan, Inc............. 35,000 1,207,500 Questar Corporation............ 37,000 686,812 -------------- 2,540,312 OIL - DOMESTIC - 4.0% Forest Oil Corporation*........ 62,000 658,750 TransMontaigne, Inc.*.......... 142,000 967,375 -------------- 1,626,125 OIL - INTERNATIONAL - 1.6% Tesoro Petroleum Corporation*................. 57,100 656,650 OIL & GAS - DRILLING & EQUIPMENT - 2.4% ENSCO International, Inc....... 27,000 975,375 OIL & GAS - EXPLORATION & PRODUCTION - 14.0% Anadarko Petroleum Corporation.................. 17,000 657,687 Apache Corporation............. 12,000 597,000 Callon Petroleum Company*...... 42,000 509,250 Chieftain International, Inc.*........................ 39,000 784,875 Evergreen Resources, Inc.*..... 15,000 362,813 Murphy Oil Corporation......... 20,000 1,152,500 Ocean Energy, Inc.*............ 110,000 1,581,250 -------------- 5,645,375
See accompanying notes. - -------------------------------------------------------------------------------- 37 39 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - VALUE SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- PUBLISHING - NEWSPAPER - 1.6% E.W. Scripps Company (Cl.A).... 13,000 $ 630,500 RAILROADS - 1.3% RailAmerica, Inc.*............. 80,000 540,000 RESTAURANTS - 1.6% Sonic Corporation*............. 24,000 654,000 RETAIL - DRUG STORES - 0.8% CVS Corporation................ 9,000 338,062 SERVICES - ADVERTISING/MARKETING - 3.2% Acxiom Corporation*............ 39,000 1,296,750 SERVICES - COMMERCIAL & CONSUMER - 4.6% Angelica Corporation........... 76,000 755,250 ITT Educational Services, Inc.*........................ 24,000 384,000 Tier Technologies, Inc.*....... 110,000 694,375 -------------- 1,833,625 SERVICES - COMPUTER SYSTEMS - 2.6% Comdisco, Inc.................. 12,000 529,500 SunGard Data Systems, Inc.*.... 14,000 528,500 -------------- 1,058,000 TEXTILES - APPAREL - 4.0% Jones Apparel Group, Inc.*..... 20,000 637,500 Kellwood Company............... 55,000 965,938 -------------- 1,603,438 TRUCKING - 0.3% Motor Cargo Industries, Inc.*........................ 29,200 135,050 -------------- Total common stocks - 99.4%............... 40,144,612 Cash and other assets, less liabilities - 0.6%.................................... 240,602 -------------- Total net assets - 100.0%................. $ 40,385,214 ============== SECURITY EQUITY FUND - SMALL COMPANY SERIES COMMON STOCKS - ------------- BANKS - MAJOR REGIONAL - 0.9% Silicon Valley Bancshares*..... 6,500 $ 467,188 BIOTECHNOLOGY - 2.3% Sequenom, Inc.*................ 1,700 66,937 Titan Pharmaceuticals, Inc.*... 36,000 1,120,500 -------------- 1,187,437
SECURITY EQUITY FUND - SMALL COMPANY SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- BROADCAST MEDIA - 2.6% Pegasus Communications Corporation*................. 7,500 $ 1,055,625 XM Satellite Radio Holdings, Inc. (Cl.A)*................. 7,500 261,563 -------------- 1,317,188 COMMUNICATION EQUIPMENT - 13.9% Digital Lightwave, Inc.*....... 5,000 311,562 Digital Microwave Corporation*................. 50,000 1,693,750 Ditech Communications Corporation*................. 12,000 1,272,750 Ion Networks, Inc.*............ 10,900 366,513 P-Com, Inc.*................... 52,000 962,000 Polycom, Inc.*................. 10,000 791,875 Spectralink Corporation*....... 28,000 504,000 Spectrian Corporation*......... 16,500 371,250 Tekelec*....................... 14,000 519,750 Z-Tel Technologies, Inc.*...... 7,500 315,000 -------------- 7,108,450 COMPUTER HARDWARE - 2.9% Advanced Digital Information Corporation*................. 20,000 685,000 Optimal Robotics Corporation*................. 3,200 150,400 Performance Technologies, Inc.*........................ 14,600 634,187 -------------- 1,469,587 COMPUTER SOFTWARE/SERVICES - 12.9% Advent Software, Inc.*......... 8,000 367,000 BindView Development Corporation*................. 11,000 341,688 BroadVision, Inc.*............. 8,400 376,950 Cysive, Inc.*.................. 3,000 205,500 Documentum, Inc.*.............. 3,200 249,600 Exchange Applications, Inc.*... 12,600 666,816 Informatica Corporation*....... 8,000 614,500 Internet Pictures Corporation*................. 8,000 271,500 Intranet Solutions, Inc.*...... 15,000 690,000 ITXC Corporation*.............. 13,400 630,637 Manugistics Group, Inc.*....... 12,000 603,000 Micromuse, Inc.*............... 4,000 555,250 Natural Microsystems Corporation*................. 3,800 325,850 Net. Genesis Corporation*...... 4,000 179,000 Pivotal Corporation*........... 3,300 106,012 RSA Security, Inc.*............ 3,500 181,344 Sonic Foundry, Inc.*........... 2,700 263,250 -------------- 6,627,897
See accompanying notes. - -------------------------------------------------------------------------------- 38 40 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - SMALL COMPANY SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- ELECTRICAL EQUIPMENT - 3.2% Electro Scientific Industries, Inc.*........................ 10,000 $ 580,000 KEMET Corporation*............. 6,400 404,800 Plexus Corporation*............ 9,700 646,262 -------------- 1,631,062 ELECTRONICS - DEFENSE - 1.5% Aeroflex, Inc.*................ 16,000 792,000 ELECTRONICS - INSTRUMENTATION - 9.3% Alpha Industries, Inc.*........ 7,000 665,000 Interlink Electronics, Inc.*... 4,200 400,575 Kopin Corporation*............. 5,800 398,750 Macrovision Corporation*....... 13,000 1,119,625 SanDisk Corporation*........... 9,000 1,102,500 Sawtek, Inc.*.................. 16,000 841,000 Veeco Instruments, Inc.*....... 3,500 259,000 -------------- 4,786,450 ELECTRONICS - SEMICONDUCTORS - 7.7% Credence Systems Corporation*................. 4,600 575,575 Integrated Device Technology, Inc.*........................ 18,500 733,063 Integrated Silicon Solution, Inc.*........................ 14,000 410,375 Micrel, Inc.*.................. 3,000 288,000 Oak Technology, Inc.*.......... 25,000 481,250 Photronics, Inc.*.............. 8,000 282,500 Silicon Storage Technology, Inc.*........................ 6,000 443,250 Siliconix, Inc.*............... 4,500 427,781 Xicor, Inc.*................... 20,000 282,500 -------------- 3,924,294 EQUIPMENT - SEMICONDUCTORS - 1.5% Asyst Technologies, Inc.*...... 13,000 760,500 HEALTH CARE - PHARMACEUTICALS - MAJOR - 0.8% Alkermes, Inc.*................ 4,500 416,250 INVESTMENT BANK/BROKERAGE - 0.6% Dain Rauscher Corporation...... 4,500 296,719 IRON & STEEL - 0.4% Lone Star Technologies, Inc.*........................ 4,500 209,812 MEDICAL PRODUCTS & SUPPLIES - 2.6% Cytyc Corporation*............. 7,600 366,700 Varian, Inc.*.................. 25,500 978,563 -------------- 1,345,263
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- OIL & GAS - DRILLING & EQUIPMENT - 7.0% BJ Services Company*........... 9,600 $ 709,200 Grey Wolf, Inc.*............... 95,100 374,456 Key Energy Group, Inc.*........ 77,500 900,937 Marine Drilling Companies, Inc.*........................ 34,000 932,875 UTI Energy Corporation*........ 17,500 660,625 -------------- 3,578,093 RETAIL - COMPUTERS & ELECTRONICS - 0.9% Tweeter Home Entertainment Group, Inc.*................. 10,900 482,325 SERVICES - COMMERCIAL & CONSUMER - 5.9% Corporate Executive Board Company*..................... 5,500 279,125 InterVU, Inc.*................. 5,500 495,000 Invitrogen Corporation*........ 4,300 249,669 Teletech Holdings, Inc.*....... 11,000 379,500 Tetra Tech, Inc.*.............. 24,000 570,000 WebTrends Corporation*......... 14,400 1,036,800 -------------- 3,010,094 SERVICES - COMPUTER SYSTEMS - 0.6% Intervoice, Inc.*.............. 10,000 288,750 TELECOMMUNICATION - CELLULAR - 5.3% Advanced Radio Telecom Corporation*................. 15,500 513,437 AirGate PCS, Inc.*............. 9,000 949,500 Metromedia International Group, Inc.*........................ 11,100 62,438 Microcell Telecommunications, Inc.*........................ 7,500 332,812 Pinnacle Holdings, Inc.*....... 7,500 414,375 Powerwave Technologies, Inc.*........................ 3,500 437,500 -------------- 2,710,062 TELECOMMUNICATION - LONG DISTANCE - 3.4% Cypress Communications, Inc.*........................ 12,500 306,250 ITC Deltacom, Inc.*............ 5,500 195,938 Primus Telecommunications Group, Inc.*................. 24,000 1,240,500 -------------- 1,742,688 -------------- Total common stocks - 86.2%............... 44,152,109 Cash and other assets, less liabilities - 13.8%................................... 7,039,161 -------------- Total net assets - 100.0%................. $ 51,191,270 ==============
See accompanying notes. - -------------------------------------------------------------------------------- 39 41 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - ENHANCED INDEX SERIES NUMBER MARKET COMMON STOCKS OF SHARES VALUE - ------------------------------------------------------------- AEROSPACE/DEFENSE - 0.6% B.F. Goodrich Company.......... 138 $ 3,959 Boeing Company................. 1,569 59,524 Cordant Technologies, Inc...... 1,100 62,219 General Dynamics Corporation... 525 26,119 Lockheed Martin Corporation.... 751 15,348 Northrop Grumman Corporation... 78 4,129 -------------- 171,298 AGRICULTURAL PRODUCTS - 0.0% Archer-Daniels-Midland Company...................... 1,145 11,879 AIR FREIGHT - 0.1% Fedex Corporation*............. 687 26,793 AIRLINES - 0.2% AMR Corporation*............... 366 11,666 Delta Air Lines, Inc........... 391 20,821 Southwest Airlines Company..... 956 19,897 US Airways Group, Inc.*........ 111 3,087 -------------- 55,471 ALUMINUM - 0.3% Alcan Aluminum, Ltd............ 657 22,256 Alcoa, Inc..................... 62 4,356 Reynolds Metals Company........ 790 52,831 -------------- 79,443 AUTO PARTS & EQUIPMENT - 0.2% Cooper Tire & Rubber Company... 143 1,796 Dana Corporation............... 456 12,854 Delphi Automotive Systems Corporation.................. 1,456 23,296 Genuine Parts Company.......... 260 6,207 Snap-On Tools.................. 48 1,257 TRW, Inc....................... 173 10,121 -------------- 55,531 AUTOMOBILES - 0.8% Ford Motor Company............. 2,424 111,353 General Motors Corporation(1)............... 1,294 107,159 -------------- 218,512 BANKS - MAJOR REGIONAL - 2.4% Amsouth Bancorporation......... 744 11,113 Bank of New York Company, Inc.......................... 1,318 54,779 Bank One Corporation........... 1,887 64,866 BB&T Corporation............... 395 11,085 Fifth Third Bancorp............ 535 33,705 Firstar Corporation............ 1,817 41,677 Fleetboston Financial Corporation*................. 1,129 41,208
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- BANKS - MAJOR REGIONAL (CONTINUED) Huntington Bancshares, Inc..... 404 $ 9,039 Keycorp........................ 848 16,112 Mellon Bank Corporation........ 873 25,754 National City Corporation...... 1,134 23,389 Northern Trust Corporation..... 373 25,201 PNC Bank Corporation........... 491 22,126 Regions Financial Corporation.................. 373 8,509 SouthTrust Corporation......... 219 5,571 State Street Boston............ 269 26,059 Summit Bancorp................. 269 7,061 SunTrust Banks, Inc............ 555 32,051 Synovus Financial Corporation.................. 534 10,079 U.S. Bancorp................... 1,340 29,313 Union Planters Corporation..... 417 12,849 Wachovia Corporation........... 339 22,904 Wells Fargo Company(1)......... 3,031 124,082 -------------- 658,532 BANKS - MONEY CENTER - 1.5% Bank of America Corporation(1)............... 3,087 161,874 Chase Manhattan Corporation(1)............... 1,513 131,915 First Union Corporation........ 1,532 57,067 J.P. Morgan & Company, Inc..... 383 50,460 -------------- 401,316 BEVERAGES - ALCOHOLIC - 0.2% Anheuser-Busch Companies, Inc.......................... 827 51,481 Brown-Forman Corporation (Cl.B)....................... 80 4,355 -------------- 55,836 BEVERAGES - SOFT DRINK - 1.2% Coca-Cola Company(1)........... 4,621 216,898 Coca-Cola Enterprises, Inc..... 1,051 22,662 PepsiCo, Inc................... 2,681 92,662 -------------- 332,222 BIOTECHNOLOGY - 0.5% Amgen, Inc.*................... 1,993 122,320 Biogren, Inc.*................. 320 22,360 -------------- 144,680 BROADCAST MEDIA - 1.5% CBS Corporation*............... 1,815 102,774 Clear Channel Communications, Inc.*........................ 627 43,302 Comcast Corporation (Cl.A)*.... 1,850 80,244 MediaOne Group, Inc.*(1)....... 2,158 174,798 -------------- 401,118
See accompanying notes. - -------------------------------------------------------------------------------- 40 42 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- BUILDING MATERIALS - 0.1% Armstrong World Industries, Inc. ........................ 62 $ 1,108 Masco Corporation.............. 848 17,384 Owens Corning Corporation...... 102 1,976 -------------- 20,468 CHEMICALS - BASIC - 0.8% Air Products & Chemicals, Inc. ........................ 340 9,669 E.I. du Pont de Nemours & Company(1)................... 2,087 110,350 Eastman Chemical Company....... 106 4,823 Praxair, Inc. ................. 219 9,116 Rohm & Haas Company............ 355 15,842 Union Carbide Corporation...... 1,108 64,610 -------------- 214,410 CHEMICALS - DIVERSIFIED - 0.3% Engelhard Corporation.......... 242 3,660 FMC Corporation*............... 148 8,362 Monsanto Company*.............. 907 46,711 PPG Industries, Inc. .......... 285 14,909 -------------- 73,642 CHEMICALS - SPECIALTY - 0.1% Ecolab, Inc. .................. 136 4,990 Great Lakes Chemical Company... 34 1,156 Hercules, Inc. ................ 201 3,241 International Flavors & Fragrances, Inc. ............ 120 4,207 W.R. Grace & Company*.......... 138 1,751 -------------- 15,345 COMMUNICATION EQUIPMENT - 4.7% ADC Telecommunications, Inc.*........................ 666 35,881 Andrew Corporation*............ 516 11,803 Comverse Technology, Inc.*..... 157 29,673 IPI Communications, Inc.*...... 98 20,188 Lucent Technologies, Inc.(1)... 5,342 324,526 Motorola, Inc. ................ 1,327 188,932 Nortel Networks Corporation.... 2,673 336,798 Ortel Corporation*............. 198 37,162 QUALCOMM, Inc.*(1)............. 1,420 212,024 Scientific-Atlanta, Inc. ...... 456 28,928 Tellabs, Inc.*................. 841 52,970 -------------- 1,278,885 COMPUTER HARDWARE - 5.1% Apple Computer, Inc.*.......... 360 48,892 Compaq Computer Corporation.... 3,153 83,949 Dell Computer Corporation*(1).............. 4,913 264,995 Gateway, Inc.*................. 663 35,139
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- COMPUTER HARDWARE (CONTINUED) Hewlett-Packard Company(1)..... 1,873 $ 248,290 International Business Machines Corporation(1)............... 3,465 408,870 Silicon Graphics, Inc.*........ 839 8,862 Sun Microsystems, Inc.*(1)..... 3,001 281,203 -------------- 1,380,200 COMPUTER SOFTWARE/SERVICES - 8.2% Adobe Systems, Inc. ........... 196 21,817 America Online, Inc.*(1)....... 4,343 292,067 Auto Desk Online, Inc. ........ 69 3,140 BMC Software, Inc.*............ 565 27,897 Citrix Systems, Inc.*.......... 387 25,639 Computer Associates International, Inc. ......... 981 58,063 Computer Sciences Corporation*................. 368 29,118 Compuware Corporation*......... 885 18,640 Microsoft Corporation*(1)...... 9,917 1,053,681 Novell, Inc.*.................. 760 21,755 Oracle Corporation*(1)......... 5,522 431,061 Parametric Technology Company*..................... 668 14,070 Peoplesoft, Inc.*.............. 693 13,860 Unisys Corporation*............ 723 18,436 Veritas Corporation*........... 120 15,720 Yahoo!, Inc.*.................. 1,043 178,744 -------------- 2,223,708 COMPUTERS - NETWORKING - 4.1% 3COM Corporation*.............. 709 39,438 Cabletron Systems, Inc.*....... 465 13,630 Cisco Systems, Inc.*(1)........ 13,002 1,005,217 Network Appliance, Inc.*....... 612 50,643 -------------- 1,108,928 COMPUTERS - PERIPHERALS - 1.1% EMC Corporation*(1)............ 1,962 245,250 Lexmark International Group, Inc.*........................ 281 29,716 Seagate Technology, Inc.*...... 486 29,281 -------------- 304,247 CONSTRUCTION - CEMENT - 0.0% Vulcan Materials............... 125 5,727 CONSUMER - JEWEL/GIFT - 0.3% American Greetings Corporation.................. 95 1,734 Jostens, Inc................... 2,980 72,637 -------------- 74,371
See accompanying notes. - -------------------------------------------------------------------------------- 41 43 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- CONSUMER FINANCE - 0.3% Capital One Financial Corporation.................. 300 $ 14,381 Countrywide Credit Industries, Inc. ........................ 147 4,006 Household International, Inc. ........................ 811 30,261 MBNA Corporation............... 1,484 37,842 Providian Financial Corporation.................. 95 8,229 -------------- 94,719 CONTAINER - METAL/GLASS - 0.0% Crown Cork & Seal Company, Inc. ........................ 452 7,232 Owens-Illinois, Inc. .......... 290 4,894 -------------- 12,126 CONTAINERS & PACKAGING - 0.0% Pactiv Corporation (Tenneco Packaging, Inc.)*............ 320 2,800 Temple-Inland, Inc. ........... 228 11,357 -------------- 14,157 DISTRIBUTION - FOOD & HEALTH - 0.8% Cardinal Health, Inc. ......... 444 20,369 McKesson HBOC, Inc. ........... 433 9,093 SUPERVALU, Inc. ............... 673 12,745 SYSCO Corporation.............. 546 19,485 U.S. Foodservice, Inc.*........ 5,700 146,775 -------------- 208,467 ELECTRIC COMPANIES - 1.5% Ameren Corporation............. 170 5,259 American Electric Power Company, Inc. ............... 285 8,497 Carolina Power & Light Company...................... 240 7,785 Central & South West Corporation.................. 359 6,125 Cinergy Corporation............ 228 4,902 CMS Energy Corporation......... 438 7,939 Consolidated Edison, Inc. ..... 569 16,501 Constellation Energy Group..... 391 12,463 Dominion Resources, Inc. ...... 384 14,760 DTE Energy Company............. 380 11,020 Duke Energy Corporation........ 640 33,600 Edison International........... 884 14,641 Entergy Corporation............ 730 14,737 FirstEnergy Corporation........ 733 15,118 Florida Progress Corporation... 392 17,983 FPL Group, Inc. ............... 422 19,438 GPU, Inc. ..................... 145 3,969 New Century Energies, Inc. .... 129 3,878 Niagra Mohawk Power Holdings, Inc.*........................ 355 4,793
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- ELECTRIC COMPANIES (CONTINUED) Northern States Power Company...................... 290 $ 5,764 PECO Energy Company............ 551 20,318 PG&E Corporation............... 875 18,375 Pinnacle West Capital Corporation.................. 72 2,029 PP&L Resources, Inc. .......... 433 9,066 Public Service Enterprise Group, Inc. ................. 523 15,559 Reliant Energy, Inc. .......... 475 11,133 Southern Company............... 1,414 30,755 Texas Utilities Company........ 445 13,211 Unicom Corporation............. 497 18,141 United Water Resources, Inc. ........................ 1,300 45,175 -------------- 412,934 ELECTRICAL EQUIPMENT - 4.0% Cooper Industries, Inc. ....... 74 2,590 Emerson Electric Company....... 774 40,925 General Electric Company(1).... 6,211 963,870 Johnson Controls, Inc. ........ 117 6,559 Molex, Inc. ................... 298 17,507 Rockwell International Company...................... 304 12,711 Solectron Corporation*......... 1,258 50,399 -------------- 1,094,561 ELECTRONICS - DEFENSE - 0.1% Netoptix Corporation*.......... 194 33,319 Raytheon Company (Cl.B)........ 516 9,159 -------------- 42,478 ELECTRONICS - DISTRIBUTION - 0.0% W.W. Grainger, Inc. ........... 117 6,347 ELECTRONICS - INSTRUMENTATION - 0.2% PE Corp-PE Biosystems Group.... 357 34,450 PerkinElmer, Inc. ............. 184 12,236 Sabre Group Holdings*.......... 264 9,770 -------------- 56,456 ELECTRONICS - SEMICONDUCTORS - 5.2% Adaptec, Inc.*................. 306 11,819 Advanced Micro Devices, Inc.*........................ 387 22,083 Analog Devices, Inc.*.......... 778 62,677 Conexant Systems, Inc.*........ 348 24,708 Intel Corporation(1)........... 6,293 830,283 Linear Technology Corporation.................. 115 6,325 LSI Logic Corporation*......... 638 46,335 Micron Technology, Inc.*....... 640 80,640
See accompanying notes. - -------------------------------------------------------------------------------- 42 44 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- ELECTRONICS - SEMICONDUCTORS (CONTINUED) National Semiconductor Corporation*................. 454 $ 27,524 Texas Instruments, Inc.(1)..... 1,522 243,520 Xilinx, Inc.*.................. 668 55,319 -------------- 1,411,233 ENGINEERING & CONSTRUCTION - 0.0% Fluor Corporation.............. 57 1,767 ENTERTAINMENT - 1.8% Seagram Company, Inc........... 880 52,360 Time Warner, Inc.(1)........... 2,402 240,200 Viacom, Inc. (Cl.B)*........... 974 51,379 Walt Disney Company............ 3,828 158,384 -------------- 502,323 EQUIPMENT - SEMICONDUCTORS - 0.8% Applied Materials, Inc.*....... 1,470 138,544 KLA-Tencor Corporation*........ 399 33,616 Teradyne, Inc.*................ 440 36,190 -------------- 208,350 FINANCIAL - DIVERSE - 3.4% American Express Company(1).... 889 132,406 Associates First Capital Corporation (Cl.A)........... 1,020 21,866 Citigroup, Inc.(1)............. 6,538 387,785 Fannie Mae(1).................. 1,854 104,635 Freddie Mac.................... 928 41,006 Morgan Stanley Dean Witter & Company(1)................... 2,239 182,619 SLM Holding Corporation........ 193 6,429 U.S. Trust Corporation......... 207 39,123 -------------- 915,869 FOODS - 0.9% Bestfoods...................... 472 22,096 Campbell Soup Company.......... 638 19,619 ConAgra, Inc................... 1,140 20,663 General Mills, Inc............. 493 17,840 H.J. Heinz Company............. 603 21,030 Kellogg Company................ 491 12,582 Nabisco Group Holdings Corporation.................. 548 6,576 Quaker Oats Company*........... 209 12,671 Ralston-Ralston Purina Group... 910 24,911 Sara Lee Corporation........... 1,723 31,014
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- FOODS (CONTINUED) Unilever NV.................... 831 $ 39,992 Wm. Wrigley Jr. Company........ 184 14,134 -------------- 243,128 FOOTWEAR - 0.1% Nike, Inc. (Cl.B).............. 440 17,435 Reebok International, Ltd.*.... 647 5,985 -------------- 23,420 GAMING & LOTTERY - 0.6% Harrah's Entertainment, Inc.*........................ 445 8,260 Mirage Resorts, Inc.*.......... 7,308 141,593 -------------- 149,853 GOLD & PRECIOUS METALS MINING - 0.1% Barrick Gold Corporation....... 740 11,609 Homestake Mining Company....... 497 2,982 Newmont Mining Corporation..... 240 5,385 Placer Dome, Inc............... 624 5,070 -------------- 25,046 HARDWARE & TOOLS - 0.1% Black & Decker Corporation..... 94 3,531 Stanley Works.................. 537 14,163 -------------- 17,694 HEALTH CARE - DIVERSE - 3.0% Abbott Laboratories............ 2,543 89,482 Allergan, Inc.................. 201 10,050 American Home Products Corporation(1)............... 2,218 118,940 Bristol-Myers Squibb Company(1)................... 3,707 214,079 Johnson & Johnson(1)........... 2,667 186,857 Mallinckrodt, Inc.............. 72 2,070 Warner-Lambert Company(1)...... 1,958 190,905 -------------- 812,383 HEALTH CARE - LONG TERM CARE - 0.0% Manor Care, Inc.*.............. 703 9,490 HEALTH CARE - MANAGED CARE - 0.1% Aetna, Inc..................... 196 10,915 Humana, Inc.................... 915 6,691 United HealthCare Corporation.................. 276 16,456 Wellpoint Health Networks, Inc.*........................ 60 4,193 -------------- 38,255
See accompanying notes. - -------------------------------------------------------------------------------- 43 45 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- HEALTH CARE - PHARMACEUTICALS - GENERIC - 0.1% Alza Corporation*.............. 164 $ 6,160 Watson Pharmaceuticals, Inc.*........................ 161 6,390 -------------- 12,550 HEALTH CARE - PHARMACEUTICALS - MAJOR - 2.8% Eli Lilly & Company(1)......... 1,878 118,314 Merck & Company, Inc.(1)....... 4,466 277,450 Pfizer, Inc.(1)................ 6,299 230,307 Pharmacia & Upjohn, Inc........ 901 53,384 Schering-Plough Corporation(1)............... 2,462 90,479 -------------- 769,934 HEALTH CARE - SPECIALIZED SERVICES - 0.1% HEALTHSOUTH Corporation*....... 1,550 8,622 Quintiles Transnational Corporation*................. 147 2,508 -------------- 11,130 HOMEBUILDING - 0.1% Centex Corporation*............ 95 2,262 Kaufman & Broad Home Corporation.................. 71 1,522 Pulte Corporation.............. 587 12,254 -------------- 16,038 HOSPITAL MANAGEMENT - 0.2% Columbia/HCA Healthcare Corporation.................. 1,041 26,350 Tenet Healthcare Corporation*................. 836 19,228 -------------- 45,578 HOUSEHOLD FURNISHINGS & APPLIANCES - 0.1% Leggett & Platt, Inc........... 373 8,020 Maytag Corporation............. 447 14,807 Whirlpool Corporation.......... 95 5,569 -------------- 28,396 HOUSEHOLD PRODUCTS - 1.0% Clorox Company................. 362 11,765 Colgate-Palmolive Company...... 1,053 59,363 Fort James Corporation......... 336 7,392 Kimberly-Clark Corporation..... 990 55,440 Procter & Gamble Company(1).... 2,458 138,262 -------------- 272,222 HOUSEWARES - 0.0% Fortune Brands, Inc............ 235 5,875 Tupperware Corporation......... 108 1,708 -------------- 7,583
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- INSURANCE - BROKERS - 0.2% Marsh & McLennan Companies, Inc.(1)...................... 474 $ 52,288 INSURANCE - LIFE & HEALTH - 0.3% AFLAC, Inc..................... 436 19,865 American General Corporation... 403 22,618 Conseco, Inc................... 622 7,114 Jefferson-Pilot Corporation.... 330 21,966 Lincoln National Corporation... 285 9,548 Torchmark Corporation.......... 216 4,995 UnumProvident Corporation...... 452 7,684 -------------- 93,790 INSURANCE - MULTILINE - 1.4% American International Group, Inc.(1)...................... 2,994 327,843 CIGNA Corporation.............. 316 23,937 Hartford Financial Services Group, Inc................... 322 16,985 Loews Corporation.............. 150 7,500 -------------- 376,265 INSURANCE - PROPERTY & CASUALTY - 0.3% Allstate Corporation........... 809 19,264 Chubb Corporation.............. 292 19,728 Cincinnati Financial Corporation.................. 224 8,428 MBIA, Inc...................... 127 6,612 Magic Investment Corporation... 387 16,883 Safeco Corporation............. 401 10,652 St. Paul Companies, Inc........ 369 12,592 -------------- 94,159 INVESTMENT BANK/BROKERAGE - 0.8% Bear Stearns Companies, Inc.... 159 7,254 Charles Schwab Corporation..... 779 44,257 Lehman Brothers Holdings, Inc.......................... 364 35,308 Merrill Lynch & Company, Inc.......................... 797 83,685 Paine Webber Group, Inc........ 514 22,616 T. Rowe Price Associates....... 498 19,671 -------------- 212,791 INVESTMENT MANAGEMENT - 0.1% Franklin Resources, Inc........ 391 13,074
See accompanying notes. - -------------------------------------------------------------------------------- 44 46 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- IRON & STEEL - 0.1% Allegheny Teledyne, Inc........ 180 $ 3,611 Bethlehem Steel Corporation*... 1,288 7,728 NUCOR Corporation.............. 177 8,850 USX-US Steel Group, Inc........ 104 2,600 Worthington Industries, Inc.... 823 10,185 -------------- 32,974 LEISURE TIME PRODUCTS - 0.2% Brunswick Corporation.......... 551 10,434 Harley-Davidson, Inc........... 247 19,606 Hasbro, Inc.................... 832 13,728 Mattel, Inc.................... 804 8,392 -------------- 52,160 LODGING - HOTELS - 0.1% Carnival Corporation (Cl.A).... 820 20,346 Hilton Hotels Corporation...... 694 5,379 Marriott International, Inc. (Cl.A)....................... 370 11,655 -------------- 37,380 MACHINERY - DIVERSE - 0.3% Caterpillar, Inc............... 831 32,772 Deere & Company................ 352 13,376 Dover Corporation.............. 601 28,773 Parker-Hannifin Corporation.... 148 6,114 Timken Company................. 355 5,769 -------------- 86,804 MANUFACTURING - DIVERSIFIED - 1.9% Corning, Inc................... 298 57,812 Crane Company.................. 127 2,993 Danaher Corporation............ 207 10,557 Honeywell International, Inc.......................... 1,430 75,343 Illinois Tool Works, Inc....... 527 29,117 ITT Industries, Inc............ 37 1,149 Minnesota Mining & Manufacturing Company........ 848 75,101 National Services Industries, Inc.......................... 228 4,802 Textron, Inc................... 391 23,802 Thermo Electron Corporation*... 302 6,153 Tyco International, Ltd.(1).... 3,137 156,458 United Technologies Corporation.................. 1,032 65,210 -------------- 508,497
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- MANUFACTURING - SPECIALIZED - 0.2% Avery Dennison Corporation..... 175 $ 10,686 Briggs & Stratton Corporation.................. 274 11,268 Millipore Corporation.......... 35 1,975 Pall Corporation............... 693 15,549 Sealed Air Corporation*........ 244 13,253 -------------- 52,731 MEDICAL PRODUCTS & SUPPLIES - 0.8% Bausch & Lomb, Inc............. 64 3,340 Baxter International, Inc...... 505 31,657 Becton, Dickinson & Company.... 357 9,394 Biomet, Inc.................... 481 17,496 Boston Scientific Corporation*................. 785 16,730 C.R. Bard, Inc................. 246 9,517 Guidant Corporation*........... 518 30,465 Medtronic, Inc................. 1,997 102,721 St. Jude Medical, Inc.*........ 327 8,441 -------------- 229,761 METALS & MINING - 0.1% Freeport-McMoran Copper & Gold, Inc.*........................ 573 6,912 INCO, Ltd.*.................... 587 10,749 Phelps Dodge Corporation....... 88 4,181 -------------- 21,842 NATURAL GAS - 0.7% Coastal Corporation............ 578 26,588 Columbia Energy Group.......... 112 6,636 El Paso Energy Corporation..... 357 14,414 Enron Corporation.............. 1,308 97,936 NICOR, Inc..................... 193 6,357 ONEOK, Inc..................... 196 4,900 Peoples Energy Corporation..... 180 4,939 Sempra Energy.................. 384 6,432 Williams Companies, Inc........ 755 33,173 -------------- 201,375 OFFICE EQUIPMENT & SUPPLIES - 0.1% Pitney-Bowes, Inc.............. 456 20,377 OIL - DOMESTIC - 0.5% Amerada Hess Corporation....... 339 21,908 Atlantic Richfield Company..... 574 48,790 Conoco, Inc. (Cl.B)............ 1,151 29,494 Occidental Petroleum Corporation.................. 892 18,509 Phillips Petroleum Company..... 422 19,518 USX-Marathon Group............. 274 7,141 -------------- 145,360
See accompanying notes. - -------------------------------------------------------------------------------- 45 47 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- OIL - INTERNATIONAL - 3.4% Chevron Corporation............ 1,324 $ 122,387 Exxon Corporation.............. 6,609 514,263 Royal Dutch Petroleum Company NY(1)........................ 4,008 230,711 Texaco, Inc.................... 972 52,123 -------------- 919,484 OIL & GAS - DRILLING & EQUIPMENT - 0.6% Baker Hughes, Inc.............. 551 16,668 Halliburton Company............ 763 31,283 Rowan Companies, Inc.*......... 373 10,980 Schlumberger, Ltd.............. 1,000 76,500 Transocean Sedo Forex, Inc..... 316 16,215 -------------- 151,646 OIL & GAS - EXPLORATION & PRODUCTION - 0.2% Apache Corporation............. 142 7,064 Burlington Resources, Inc...... 323 11,951 Kerr-McGee Corporation......... 122 7,046 Union Pacific Resouces Group, Inc.......................... 468 6,786 Unocal Corporation............. 360 10,710 -------------- 43,557 OIL & GAS - REFINING & MARKETING - 0.0% Ashland, Inc................... 51 1,705 Sunoco, Inc.................... 101 2,765 Tosco Corporation.............. 173 5,266 -------------- 9,736 PAPER & FOREST PRODUCTS - 0.4% Boise Cascade Corporation...... 307 10,668 Champion International Corporation.................. 130 6,923 Georgia-Pacific Group.......... 235 9,297 International Paper Company.... 931 39,800 Louisiana-Pacific Company...... 201 2,789 Mead Corporation............... 94 3,284 Potlatch Corporation........... 285 12,255 Westvaco Corporation........... 491 16,387 Weyerhaeuser Company........... 117 6,669 Willamette Industries, Inc..... 136 5,457 -------------- 113,529 PERSONAL CARE - 0.3% Alberto-Culver Company......... 88 2,096 Gillette Company............... 1,926 72,586 -------------- 74,682
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- PHOTOGRAPHY/IMAGING - 0.2% Eastman Kodak Company.......... 732 $ 39,757 IKON Office Solutions, Inc..... 276 1,707 Xerox Corporation.............. 855 22,230 -------------- 63,694 POWER PRODUCERS - 0.1% AES Corporation*............... 442 34,807 PUBLISHING - 0.1% Harcourt General, Inc.......... 60 2,235 McGraw-Hill Companies, Inc..... 545 24,797 -------------- 27,032 PUBLISHING - NEWSPAPER - 0.3% Dow Jones & Company, Inc....... 127 9,120 Gannett Company, Inc........... 482 33,921 Knight-Ridder, Inc............. 286 14,568 New York Times Company (Cl.A).. 265 11,378 Times Mirror Company........... 67 6,227 Tribune Company................ 369 13,492 -------------- 88,706 RAILROADS - 0.3% Burlington Northern Santa Fe Corporation.................. 774 17,125 CSX Corporation................ 710 16,685 Kansas City Southern Industries, Inc.............. 171 14,695 Norfolk Southern Corporation... 719 10,336 Union Pacific Corporation...... 426 16,667 -------------- 75,508 RESTAURANTS - 0.4% Darden Restaurants, Inc........ 862 15,354 McDonald's Corporation......... 2,481 93,193 Tricon Global Restaurants, Inc.*........................ 237 7,362 Wendy's International, Inc..... 224 4,522 -------------- 120,431 RETAIL - APPAREL - 0.4% Gap, Inc....................... 1,562 77,807 Limited, Inc................... 599 25,233 TJX Companies, Inc............. 587 13,024 -------------- 116,064 RETAIL - BUILDING SUPPLIES - 1.1% Home Depot, Inc.(1)............ 4,310 277,995 Lowe's Companies, Inc.......... 375 21,891 Sherwin-Williams Company....... 311 6,822 -------------- 306,708
See accompanying notes. - -------------------------------------------------------------------------------- 46 48 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- RETAIL - COMPUTERS & ELECTRONICS - 0.3% Best Buy Company, Inc.*........ 468 $ 40,248 Circuit City Stores - Circuit City Group................... 297 18,080 Tandy Corporation.............. 304 15,428 -------------- 73,756 RETAIL - DEPARTMENT STORES - 0.4% Dillard's, Inc................. 207 3,403 Federated Department Stores, Inc.*........................ 528 22,044 J.C. Penney Company, Inc....... 488 7,259 Kohl's Corporation*............ 429 43,972 May Department Stores Company...................... 504 14,364 Nordstrom, Inc................. 421 12,420 -------------- 103,462 RETAIL - DISCOUNTERS - 0.1% Consolidated Stores Corporation*................. 859 9,771 Dollar General Corporation..... 467 12,551 -------------- 22,322 RETAIL - DRUG STORES - 0.3% CVS Corporation................ 325 12,208 Longs Drug Stores Corporation.................. 380 8,645 Rite Aid Corporation........... 491 2,700 Walgreen Company............... 1,808 46,556 -------------- 70,109 RETAIL - FOOD CHAINS - 1.1% Albertson's, Inc............... 254 7,874 Great Atlantic & Pacific Tea Company, Inc................. 325 6,338 Hannaford Bros. Company........ 2,700 199,125 Kroger Company*................ 1,576 27,678 Safeway, Inc.*................. 917 41,494 Winn-Dixie Stores, Inc......... 277 5,384 -------------- 287,893 RETAIL - GENERAL MERCHANDISE - 2.3% Costco Companies, Inc.*........ 937 49,251 Kmart Corporation*............. 933 9,038 Sears, Roebuck and Company..... 993 30,659 Target Corporation............. 792 59,202 Wal-Mart Stores, Inc.(1)....... 8,362 464,091 -------------- 612,241
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- RETAIL - SPECIALTY - 0.2% Autozone, Inc.*................ 224 $ 6,216 Bed Bath & Beyond, Inc.*....... 369 14,529 Office Depot, Inc.*............ 627 7,250 Staples, Inc.*................. 1,069 21,380 Toys "R" Us, Inc.*............. 832 12,324 -------------- 61,699 SAVINGS & LOANS - 0.1% Golden West Financial.......... 216 6,737 Washington Mutual, Inc......... 442 11,713 -------------- 18,450 SERVICES - ADVERTISING & MARKETING - 0.2% Interpublic Group of Companies, Inc.......................... 474 22,397 Omnicom Group, Inc............. 309 28,872 Young & Rubicam, Inc........... 286 13,442 -------------- 64,711 SERVICES - COMMERCIAL & CONSUMER - 0.2% Cendant Corporation*........... 1,838 34,003 H&R Block, Inc................. 343 15,349 Service Corporation International................ 514 1,542 -------------- 50,894 SERVICES - COMPUTER SYSTEMS - 0.2% Electronic Data Systems Corporation.................. 852 54,688 NCR Corporation*............... 244 9,790 -------------- 64,478 SERVICES - DATA PROCESSING - 0.5% Automatic Data Processing, Inc.......................... 1,124 54,233 Ceridian Corporation*.......... 269 5,161 First Data Corporation......... 735 32,524 Paychex, Inc................... 643 33,677 -------------- 125,595 SPECIALTY PRINTING - 0.0% Deluxe Corporation............. 74 1,961 R.R. Donnelley & Sons Company.. 198 4,146 -------------- 6,107
See accompanying notes. - -------------------------------------------------------------------------------- 47 49 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - ENHANCED INDEX SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- TELECOMMUNICATION - CELLULAR - 0.8% Nextel Communications, Inc. (Cl.A)*...................... 746 $ 110,595 Sprint Corporation (PCS Group)*...................... 1,576 102,932 -------------- 213,527 TELECOMMUNICATION - LONG DISTANCE - 2.6% AT&T Corporation(1)............ 5,148 289,575 Global Crossing, Ltd.*......... 1,010 41,347 MCI WorldCom, Inc.*(1)......... 4,299 194,798 Sprint Corporation (FON Group)(1).................... 2,839 178,857 -------------- 704,577 TELEPHONE - 3.2% ALLTEL Corporation............. 541 34,117 Bell Atlantic Corporation(1)... 2,875 175,734 BellSouth Corporation(1)....... 3,482 163,654 Centurytel, Inc................ 193 7,165 GTE Corporation(1)............. 1,785 126,735 SBC Communications, Inc.(1).... 6,609 277,578 U.S. West, Inc................. 1,078 78,290 -------------- 863,273 TEXTILES - APPAREL - 0.1% Liz Claiborne, Inc............. 360 16,493 V.F. Corporation............... 161 3,874 -------------- 20,367 TEXTILES - HOMEFURNISHINGS - 0.0% Spring Industries, Inc. (Cl.A)....................... 260 9,880 TOBACCO - 0.4% Philip Morris Companies, Inc.......................... 4,377 92,464 UST, Inc....................... 629 9,828 -------------- 102,292 TRUCKING - 0.0% Ryder System, Inc.............. 122 2,768 TRUCKS & PARTS - 0.1% Navistar International Corporation*................. 265 10,633 Paccar, Inc.................... 341 17,050 -------------- 27,683 WASTE MANAGEMENT - 0.1% Allied Waste Industries, Inc.*........................ 348 2,284 Waste Management, Inc.......... 1,177 16,110 -------------- 18,394 -------------- Total common stocks - 90.8%................. 24,678,739
PRINCIPAL AMOUNT OR NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- U.S. GOVERNMENT & AGENCIES - 0.7% U.S. Treasury Bill, 5.31% - 4/6/00....................... $180,000 $ 179,923 U.S. Treasury Bill, 5.20% - 4/6/00....................... $10,000 9,993 -------------- 189,916 -------------- Total investments - 91.5%................. 24,868,655 Cash and other assets, less liabilities - 8.5%.................................... 2,297,726 -------------- Total net assets - 100.0%................. $ 27,166,381 ============== SECURITY EQUITY FUND - INTERNATIONAL SERIES NUMBER MARKET COMMON STOCKS OF SHARES VALUE - ------------------------------------------------------------- AUSTRALIA - 1.8% Brambles Industries, Ltd....... 1,660 $ 42,219 Cable & Wireless Optus, Ltd.*........................ 9,320 37,338 News Corporation, Ltd. ADR PRF.......................... 1,830 87,382 Telstra Corporation, Ltd....... 10,150 34,151 -------------- 201,090 BOTSWANA - 0.1% Sechaba Breweries, Ltd......... 13,800 13,936 BRAZIL - 1.2% Embratel Participacoes S.A..... 1,100 28,188 Tele Norte Leste Participacoes, S.A.......................... 1,000 26,625 Telecommunicacoes Brasilerias S.A. ADR(1).................. 520 77,838 -------------- 132,651 CANADA - 3.6% Celestica, Inc.*............... 1,360 71,522 Nortel Networks Corporation.... 1,860 233,301 Rogers Communications, Inc. (Cl.B)*...................... 3,750 111,069 -------------- 415,892 FINLAND - 4.5% Jot Automation Group Oyj....... 5,980 53,789 Nokia Oyj...................... 1,000 217,250 Sonera Oyj..................... 2,810 191,718 Tietonenator Oyj............... 890 53,398 -------------- 516,155
See accompanying notes. - -------------------------------------------------------------------------------- 48 50 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - INTERNATIONAL SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- FRANCE - 12.5% AXA(1)......................... 760 $ 107,705 Aventis S.A.*.................. 45 2,433 Banque Nationale de Paris...... 1,210 95,522 Business Objects - S.A.*....... 466 46,367 Canal Plus(1).................. 1,173 258,162 Christian Dior S.A............. 260 60,134 Equant N.V.*................... 290 24,059 Lagardere S.C.A................ 1,360 110,422 Sanofi-Synthelabo S.A.*........ 2,267 86,446 Societe Generale (Cl.A)(1)..... 390 77,773 Societe Generale d'Enterprises S.A.......................... 10 382 Suez Lyonnaise des Eaux S.A.(1)...................... 860 147,799 Total Fina Elf S.A. (Cl.B)(1).................... 1,467 219,690 Union du Credit-Bail Immobilier................... 160 20,975 Vivendi........................ 1,480 170,654 -------------- 1,428,523 GERMANY - 9.1% Bayer AG(1).................... 3,150 141,006 Deutsche Lufthansa AG(1)....... 2,870 65,911 EM.TV & Merchandising AG(1).... 1,030 83,777 Epcos AG*(1)................... 1,310 172,362 Infineon Technologies AG*...... 399 21,705 Intershop Communications AG*(1)....................... 300 152,147 Muenchener Rueckversicherungs- Gesellschaft AG.............. 319 99,207 Siemens AG..................... 770 110,514 Systeme, Anwendungen, Produkte in Der(1).................... 150 106,790 Thyssen Krupp AG*.............. 3,560 87,719 -------------- 1,041,138 GREECE - 0.4% Hellenic Telecommunications Organization S.A............. 1,400 39,862 HONG KONG - 2.6% China.com Corporation*......... 300 24,300 China Telecom (Hong Kong) Ltd.*........................ 15,900 139,366 Hutchison Whampoa, Ltd......... 7,200 129,917 -------------- 293,583 INDIA - 0.2% Videsh Sanchar Nigam Ltd....... 1,000 26,775 IRELAND - 2.4% Bank of Ireland................ 17,707 125,384 CRH plc........................ 8,000 143,535 -------------- 268,919
NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- - ------------------------------------------------------------- ISRAEL - 0.3% Partner Communications Company, Ltd.*(1)..................... 2,020 $ 33,582 ITALY - 5.2% Eni SpA........................ 24,730 123,763 San Paolo - IMI SpA............ 7,297 99,920 Seat Pagine Gialle SpA......... 30,386 150,616 Telecom Italia SpA............. 8,590 128,228 Unicredito Italiano SpA........ 24,170 96,214 -------------- 598,741 JAPAN - 12.8% Fujitsu, Ltd.(1)............... 4,000 122,849 Furukawa Electric Company, Ltd.(1)...................... 5,000 84,093 Kyocera Corporation............ 600 100,385 Murata Manufacturing Company, Ltd.(1)...................... 1,000 243,260 Nippon Telegraph & Telephone Corporation(1)............... 9 143,031 NTT Docomo, Inc.(1)............ 4 164,189 Rohm Company, Ltd.(1).......... 300 104,422 Softbank Corporation(1)........ 100 89,212 Sony Corporation............... 800 113,099 Takeda Chemical Industries, Ltd.(1)...................... 2,100 149,466 Toshiba Corporation............ 14,000 142,778 -------------- 1,456,784 MEXICO - 1.1% Grupo Televisa S.A.*(1)........ 1,000 68,000 Telefonos de Mexico S.A.(1).... 800 53,600 -------------- 121,600 NETHERLANDS - 8.8% ASM Lithography Holding N.V.*........................ 1,400 156,338 Buhrmann N.V................... 6,040 153,162 Fortis (NL) N.V................ 640 16,382 Ing Groep N.V.................. 2,520 136,485 Koninklijke (Royal) Philips Electronics N.V.............. 1,052 176,769 KON N.V........................ 1,150 131,667 KPNQwest N.V.*................. 1,190 63,312 Stmicroelectronics N.V.(1)..... 930 174,084 -------------- 1,008,199 POLAND - 0.3% Telekomunikacja Polska S.A.(1)...................... 3,453 31,607 PORTUGAL - 0.4% PT Multimedia - Servicos de Telecomunicacoes*............ 510 45,386
See accompanying notes. - -------------------------------------------------------------------------------- 49 51 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - INTERNATIONAL SERIES (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- SINGAPORE - 1.0% DBS Group Holdings, Ltd........ 2,000 $ 26,425 Natsteel Electronics, Ltd...... 9,500 62,204 Singapore Press Holdings, Ltd.......................... 1,900 30,325 -------------- 118,954 SOUTH KOREA - 1.4% Korea Telecom Corporation(1)... 910 39,812 Pohang Iron & Steel Company, Ltd.(1)...................... 1,200 33,000 SK Telecom Company, Ltd.(1).... 2,157 84,123 -------------- 156,935 SPAIN - 4.4% Banco Bilbao Vizcaya Argentaria, S.A.............. 8,030 118,020 Banco Santander Central Hispano, S.A................. 8,010 86,075 Telefonica S.A.*............... 5,593 141,291 Terra Networks, S.A.*.......... 570 45,898 Union Electrica Fenosa, S.A.... 5,630 115,613 -------------- 506,897 SWEDEN - 2.7% Sandvik AB - (Cl.B)............ 4,600 119,259 Telefonaktiebolaget LM Ericsson AB - (Cl.B)*................. 2,130 187,115 -------------- 306,374 SWITZERLAND - 1.9% ABB, Ltd....................... 1,034 118,779 Ares-Serano Group - (Cl.B)..... 26 97,889 -------------- 216,668 TAIWAN - 1.1% GigaMedia, Ltd.*............... 740 40,145 Ritek Corporation GDR 144A*(1)..................... 1,860 33,573 Taiwan Semiconductor Manufacturing Company*....... 7,518 50,647 -------------- 124,365 TURKEY - 0.5% Dogan Sirketler Grubu Holding A.S.*........................ 933,900 34,093 Yapi ve Kredi Bankasi A.S. .... 1,053,900 28,184 -------------- 62,277
PRINCIPAL AMOUNT OR NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- UNITED KINGDOM - 12.4% Barclays plc................... 4,270 $ 114,100 BP Amoco plc(1)................ 2,520 133,718 Cable & Wireless plc(1)........ 6,900 129,559 Celltech Group plc*............ 4,410 78,936 Colt Telecom Group plc*(1)..... 2,710 131,427 Logica plc..................... 2,390 80,831 Old Mutual plc*(1)............. 17,030 40,480 Reckitt Benckiser plc(1)....... 17,730 167,870 Shell Transport & Trading Company plc(1)............... 21,560 180,400 Vodafone Airtouch plc(1)....... 64,003 356,852 -------------- 1,414,173 UNITED STATES - 2.5% IMPSAT Fiber Networks, Inc.*... 911 25,508 Infonet Services Corporation*(1).............. 2,781 62,920 NTL, Inc.*(1).................. 1,120 103,950 UnitedGlobalcom, Inc.*......... 1,043 78,290 UTStarcom, Inc.*............... 247 19,281 -------------- 289,949 -------------- Total common stocks - 95.2%............... 10,871,016 U.S. GOVERNMENT & AGENCIES - 0.5% U.S. Treasury Bill, 5.50% - 5/11/00...................... $60,000 59,639 NUMBER MARKET OPTIONS PURCHASED - 0.4% OF CONTRACTS VALUE - -------------------------------------------------------------- NIKKEI 225 Call Option 5%, expires 6/9/00 strike price 19,727.46.................... 11,360 $ 11,380 NIKKEI 225 Call Option 5%, expires 6/30/00 strike price 20,239.3125.................. 26,129 19,092 NIKKEI 225 Call Option 5%, expires 6/30/00 strike price 20,922.6755.................. 27,480 14,382 CHF Put Option, expires 4/14/00 strike price 1.63............ 100,000,000 2,090 GBP Put Option, expires 4/14/00 strike price 1.59............ 250,000,000 1,233 -------------- 48,177 -------------- Total investments - 96.1%.................. 10,978,832 Cash and other assets, less liabilities - 3.9%..................................... 450,135 -------------- Total net assets - 100.0%.................. $ 11,428,967 ==============
See accompanying notes. - -------------------------------------------------------------------------------- 50 52 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - INTERNATIONAL SERIES (CONTINUED) INVESTMENT CONCENTRATION - -------------------------------------------------------------- At March 31, 2000, International Series' investment concentration, by industry, was as follows: Airlines..................................... 0.6% Banks & Credit............................... 9.1% Beverages.................................... 0.1% Broadcast Media.............................. 5.0% Building & Construction...................... 2.6% Building Materials........................... 0.8% Chemicals.................................... 1.2% Communications............................... 0.4% Computer Software............................ 5.0% Computer Systems............................. 3.4% Cosmetics.................................... 0.5% Electric Utilities........................... 1.0% Electrical Equipment......................... 2.1% Electronics.................................. 7.3% Engineering.................................. 1.0% Financial Services........................... 2.2% Health Care.................................. 1.5% Household Products........................... 1.5% Industrial Services.......................... 1.5% Insurance.................................... 0.9% Manufacturing................................ 2.8% Medical...................................... 1.3% Metals & Minerals............................ 0.3% Miscellaneous................................ 1.3% Oil.......................................... 5.7% Pharmaceuticals.............................. 0.9% Publishing................................... 1.3% Real Estate Development...................... 0.2% Semiconductors............................... 3.1% Services..................................... 2.0% Telecommunications........................... 28.2% Transportation............................... 0.4% U.S. Government.............................. 0.5% Options...................................... 0.4% Cash and other assets, less liabilities...... 3.9% -------------- Total net assets............................. 100.0% ============== SECURITY EQUITY FUND - SELECT 25 SERIES NUMBER MARKET COMMON STOCKS OF SHARES VALUE - -------------------------------------------------------------- BROADCAST MEDIA - 5.1% Clear Channel Communications, Inc.*........................ 17,300 $ 1,194,781 Univision Communications, Inc.*........................ 10,600 1,197,800 -------------- 2,392,581 COMMUNICATION EQUIPMENT - 6.1% Lucent Technologies, Inc....... 23,200 1,409,400 Nokia OYJ - ADR................ 6,700 1,455,575 -------------- 2,864,975 COMPUTERS - HARDWARE - 5.3% Dell Computer Corporation*..... 21,200 1,143,475 Sun Microsystems, Inc.*........ 14,200 1,330,584 -------------- 2,474,059 COMPUTERS - NETWORKING - 6.8% Cisco Systems, Inc.*........... 31,400 2,427,612 Network Appliance, Inc.*....... 9,400 777,850 -------------- 3,205,462 COMPUTERS - PERIPHERALS - 3.4% EMC Corporation*............... 12,800 1,600,000 COMPUTERS - SOFTWARE & SERVICES - 13.9% Digex, Inc.*................... 8,600 954,063 Microsoft Corporation*......... 33,000 3,506,250 PSINet, Inc.*.................. 22,600 768,753 Yahoo!, Inc.*.................. 7,500 1,285,312 -------------- 6,514,378 ELECTRICAL EQUIPMENT - 9.1% General Electric Company....... 21,500 3,336,531 Sanmina Corporation*........... 13,800 932,363 -------------- 4,268,894 ELECTRONICS - SEMICONDUCTORS - 7.6% Intel Corporation.............. 19,100 2,520,006 Texas Instruments, Inc......... 6,500 1,040,000 -------------- 3,560,006 FINANCIAL - DIVERSE - 2.9% Citigroup, Inc................. 22,900 1,358,256 HOUSEHOLD PRODUCTS - 3.1% Colgate-Palmolive Company...... 25,700 1,448,838 LEISURE TIME PRODUCTS - 3.1% Harley-Davidson, Inc........... 18,100 1,436,688 MANUFACTURING - DIVERSIFIED - 3.1% Tyco International, Ltd........ 29,300 1,461,338 MEDICAL PRODUCTS & SUPPLIES - 2.8% Medtronic, Inc................. 25,500 1,311,656
See accompanying notes. - -------------------------------------------------------------------------------- 51 53 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND - SELECT 25 SERIES (CONTINUED) PRINCIPAL AMOUNT OR NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - -------------------------------------------------------------- RETAIL - BUILDING SUPPLIES - 3.6% Home Depot, Inc................ 25,800 $ 1,664,100 RETAIL - DRUG STORES - 2.4% Walgreen Company............... 44,000 1,133,000 RETAIL - GENERAL MERCHANDISE - 4.0% Wal-Mart Stores, Inc........... 33,800 1,875,900 SERVICES - ADVERTISING/MARKETING - 2.7% Omnicom Group, Inc............. 13,400 1,252,063 SERVICES - DATA PROCESSING - 2.9% Automatic Data Processing, Inc.......................... 28,100 1,355,825 TELECOMMUNICATIONS - LONG DISTANCE - 2.9% Nextel Communications, Inc.*... 9,300 1,378,725 UNIT INVESTMENT TRUST - 4.3% Nasdaq - 100 Shares............ 18,500 2,028,063 -------------- Total common stocks - 95.1%.................. 44,584,807 COMMERCIAL PAPER - ---------------- COMBINATION GAS & ELECTRIC - 0.8% Pacific Gas & Electric Company 6.02%, 4-4-00................ $400,000 399,799 -------------- Total investments - 95.9%.................. 44,984,606 Cash, other assets, less liabilities - 4.1%..................................... 1,908,944 -------------- Total net assets - 100.0%.................. $ 46,893,550 ============== SECURITY ULTRA FUND COMMON STOCKS - ------------- AIR FREIGHT - 1.3% Expeditors International of Washington, Inc.............. 68,000 $ 2,703,000 BANKS - MAJOR REGIONAL - 3.2% Fleetboston Financial Corporation.................. 25,701 938,087 Marshall & Ilsley Corporation.................. 34,000 1,963,500 Northern Trust Corporation..... 52,000 3,513,250 -------------- 6,414,837
SECURITY ULTRA FUND - (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- BIOTECHNOLOGY - 4.3% Ligand Pharmaceuticals, Inc. (Cl.B)*...................... 200,000 $ 3,550,000 Millennium Pharmaceuticals, Inc.*........................ 35,000 4,545,625 Trimeris, Inc.*................ 10,800 539,325 -------------- 8,634,950 BROADCAST MEDIA - 1.3% Cinar Corporation (Cl.B)*...... 349,600 1,835,400 Salem Communications Corporation*................. 56,200 670,887 -------------- 2,506,287 CHEMICALS - SPECIALTY - 0.7% Material Sciences Corporation*................. 105,200 1,420,200 Rentech, Inc.*................. 15,400 51,494 -------------- 1,471,694 COMMUNICATION EQUIPMENT - 5.9% Comverse Technology, Inc.*..... 52,000 9,828,000 RCN Corporation*............... 26,000 1,400,750 Transcrypt International, Inc.*........................ 166,500 613,969 -------------- 11,842,719 COMPUTER HARDWARE - 4.3% Safeguard Scientifics, Inc.*... 123,000 8,648,438 COMPUTER SOFTWARE/SERVICES - 18.4% Axent Technologies, Inc.*...... 112,000 2,100,000 Computer Horizons Corporation*................. 8,750 149,844 Computer Sciences Corporation*................. 27,000 2,136,375 Digex, Inc.*................... 8,000 887,500 Diversinet Corporation*........ 55,000 983,125 Harbinger Corporation*......... 164,100 4,779,412 HNC Software, Inc.*............ 23,000 1,657,437 Hyperion Solutions Corporation*................. 24,000 780,000 Jack Henry & Associates, Inc.......................... 7,800 2,868,875 Lernout & Hauspie Speech Products N.V.*............... 80,000 8,840,000 New Era of Networks, Inc.*..... 25,000 981,250 PSINet, Inc.*.................. 20,000 680,313 Rational Software Corporation*................. 125,000 9,562,500 Take-Two Interactive Software, Inc.*........................ 50,000 662,500 -------------- 37,069,131 DISTRIBUTION - FOOD & HEALTH - 0.6% Cardinal Health, Inc........... 260,000 1,192,750 ELECTRICAL EQUIPMENT - 1.3% Maxwell Technologies, Inc.*.... 190,000 2,612,500
See accompanying notes. - -------------------------------------------------------------------------------- 52 54 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY ULTRA FUND - (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- ELECTRONICS - INSTRUMENTATION - 6.8% PE Corp - PE Biosystems Group........................ 112,000 $ 10,808,000 Perkinelmer, Inc............... 44,000 2,926,000 -------------- 13,734,000 ELECTRONICS - SEMICONDUCTORS - 1.1% S3 Inc.*....................... 101,000 2,121,000 HEALTH CARE - PHARMACEUTICALS - GENERIC - 2.5% Mylan Laboratories, Inc........ 181,300 4,985,750 HEALTH CARE - PHARMACEUTICALS - MAJOR - 4.3% Guilford Pharmaceuticals, Inc.*........................ 50,000 1,162,500 Penwest Pharmaceuticals Company*..................... 10,000 123,125 Shire Pharmaceuticals Group PLC*......................... 65,000 3,331,250 Teva Pharmaceuticals Industries, Ltd. ADR......... 110,000 4,104,375 -------------- 8,721,250 HEALTH CARE - SPECIALIZED SERVICES - 1.0% CryoLife, Inc.*................ 52,300 941,400 Hooper Holmes, Inc............. 31,800 1,091,138 -------------- 2,032,538 INSURANCE - LIFE & HEALTH - 2.1% AFLAC, Inc..................... 82,000 3,736,125 UNUMProvident Corporation...... 30,000 510,000 -------------- 4,246,125 INVESTMENT MANAGEMENT - 0.3% Internet Capital Group, Inc.*........................ 7,380 666,506 LEISURE TIME PRODUCTS - 1.9% Hasbro, Inc.................... 57,000 940,500 Mattel, Inc.................... 275,000 2,870,312 -------------- 3,810,812 MANUFACTURING - SPECIALIZED - 1.0% Catalytica, Inc.*.............. 72,000 1,048,500 Federal Signal Corporation..... 53,600 968,150 -------------- 2,016,650 MEDICAL PRODUCTS & SUPPLIES - 3.7% Becton, Dickinson & Company.... 60,000 1,578,750 Chromavision Medical Systems, Inc.*........................ 29,000 442,250 Closure Medical Corporation*... 168,000 4,410,000 Interpore International, Inc.*........................ 19,400 162,475 Kensey Nash Corporation*....... 8,500 140,781 Sunrise Medical, Inc.*......... 100,000 625,000 -------------- 7,359,256
SECURITY ULTRA FUND - (CONTINUED) NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- NATURAL GAS - 1.3% Dynegy, Inc.................... 40,000 $ 2,510,000 OIL - DOMESTIC - 0.7% Forest Oil Corporation*........ 130,000 1,381,250 OIL - INTERNATIONAL - 0.5% Tesoro Petroleum Corporation*................. 85,700 985,550 OIL & GAS - DRILLING & EQUIPMENT - 2.6% Ensco International, Inc....... 94,600 3,417,425 R & B Falcon Corporation....... 25,300 498,094 Transocean Sedco Forex, Inc.... 250,000 1,282,812 -------------- 5,198,331 OIL & GAS - EXPLORATION & PRODUCTION - 6.2% Anadarko Petroleum Corporation.................. 62,000 2,398,625 Apache Corporation............. 89,000 4,427,750 Callon Petroleum Company*...... 95,000 1,151,875 Evergreen Resources, Inc.*..... 61,500 1,487,531 Ocean Energy, Inc.*............ 208,000 2,990,000 -------------- 12,455,781 PUBLISHING - 0.1% John Wiley & Sons, Inc......... 13,600 244,800 PUBLISHING - NEWSPAPER - 1.6% E.W. Scripps Company........... 65,000 3,152,500 RAILROADS - 0.5% RailAmerica, Inc.*............. 150,000 1,012,500 RESTAURANTS - 1.7% Cheesecake Factory, Inc.*...... 79,900 3,325,837 RETAIL - DISCOUNTERS - 2.4% Consolidated Stores Corporation*................. 85,000 966,875 Land's End, Inc.*.............. 70,000 4,305,000 -------------- 5,271,875 RETAIL - DRUG STORES - 0.8% CVS Corporation................ 42,000 1,577,625 SERVICES - ADVERTISING/MARKETING - 4.0% Acxiom Corporation*............ 200,000 6,650,000 True North Communications, Inc.......................... 35,000 1,375,937 -------------- 8,025,937 SERVICES - COMMERCIAL & CONSUMER - 3.8% Cerner Corporation*............ 77,900 2,103,300 DeVry, Inc.*................... 115,000 3,507,500 High Speed Access Corporation*................. 63,200 825,550 Liquid Audio, Inc.*............ 80,000 1,060,000 U.S. Interactive, Inc.*........ 1,845 65,959 -------------- 7,562,309
See accompanying notes. - -------------------------------------------------------------------------------- 53 55 SCHEDULE OF INVESTMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY ULTRA FUND (CONTINUED) PRINCIPAL AMOUNT OR NUMBER MARKET COMMON STOCKS (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- SERVICES - COMPUTER SYSTEMS - 3.1% Comdisco, Inc.................. 90,000 $ 3,971,250 Sungard Data Systems, Inc.*.... 60,000 2,265,000 -------------- 6,236,250 SERVICES - DATA PROCESSING - 0.4% DST Systems, Inc.*............. 13,640 885,748 SPECIALTY PRINTING - 0.4% Valassis Communications, Inc.*........................ 23,000 766,188 TELECOMMUNICATIONS - CELLULAR - 0.6% Metromedia International Group, Inc.*........................ 200,000 1,125,000 -------------- Total common stocks - 96.7%............... 194,507,674 COMMERCIAL PAPER - ---------------- BROKERAGE - 2.1% Merrill Lynch & Company, Inc., 6.12%, 4-3-00................ $ 3,200,000 3,198,912 6.07%, 4-11-00............... $ 1,100,000 1,098,145 -------------- 4,297,057 COMBINATION GAS & ELECTRIC - 1.0% Pacific Gas & Electric Company, 6.075%, 4-4-00............... $ 1,400,000 1,399,292 South Carolina Electric & Gas Company, 6.06%, 4-3-00....... $ 600,000 599,798 -------------- 1,999,090
PRINCIPAL AMOUNT OR NUMBER MARKET COMMERCIAL PAPER (CONTINUED) OF SHARES VALUE - ------------------------------------------------------------- ELECTRIC COMPANIES - 0.4% Florida Power & Light Company, 6.03%, 4-3-00................ $ 800,000 $ 799,732 -------------- Total commercial paper - 3.5%............. 7,095,879 -------------- Total investments - 100.2%................ 201,603,553 Liabilities, less cash & other assets - (0.2%).................................. (352,269) -------------- Total net assets - 100.0%................. $ 201,251,284 ==============
The identified cost of investments owned at March 31, 2000 was the same for book and tax purposes. * Non-income producing security. ADR (American Depositary Receipt) (1) Security is segregated as collateral for futures, forward contracts or options. See accompanying notes. - -------------------------------------------------------------------------------- 54 56 STATEMENTS OF ASSETS AND LIABILITIES - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND ------------------------------------------------------- SECURITY TOTAL SOCIAL GROWTH AND EQUITY GLOBAL RETURN AWARENESS INCOME FUND SERIES SERIES SERIES SERIES ASSETS Investments, at value (identified cost: $67,403,581, $679,355,718, $64,047,747, $6,669,228, and $20,171,202 respectively)...... $69,442,139 $1,110,454,619 $83,749,264 $7,737,006 $29,824,541 Cash............................................. 514,048 298,058 10,300,785 149,966 323,741 Receivables: Fund shares sold............................... -- 118,705 4,713 -- -- Securities sold................................ 7,235,420 1,990,066 120,852 41,176 -- Interest....................................... 21,095 78,344 32,195 354 863 Dividends...................................... 108,299 655,421 127,731 4,364 15,773 Foreign taxes recoverable........................ -- -- 25,044 237 -- Prepaid expenses................................. -- -- -- 13,255 21,785 ----------- -------------- ----------- ---------- ----------- Total assets................................. $77,321,001 $1,113,595,213 $94,360,584 $7,946,358 $30,186,703 ----------- -------------- ----------- ---------- ----------- LIABILITIES Payable for: Securities purchased........................... $4,563,907 $ -- $ 945,161 $ 42,328 $ -- Fund shares redeemed........................... -- 28,395 -- -- -- Other liabilities: Management fees................................ 76,483 941,870 145,619 4,857 24,423 Custodian fees................................. -- -- -- 7,987 668 Transfer and administration fees............... -- -- -- 1,436 5,505 Professional fees.............................. -- -- -- 2,412 6,026 12b-1 distribution plan fees................... 7,489 154,842 14,470 3,437 11,299 Security Management Company.................... -- -- -- -- -- Other payables................................. -- -- -- 464 374 ----------- -------------- ----------- ---------- ----------- Total liabilities............................ 4,647,879 1,125,107 1,105,250 62,921 48,295 ----------- -------------- ----------- ---------- ----------- NET ASSETS....................................... $72,673,122 $1,112,470,106 $93,255,334 $7,883,437 $30,138,408 =========== ============== =========== ========== =========== NET ASSETS CONSIST OF: Paid in capital.................................. $77,773,385 $ 567,042,135 $61,825,508 $6,681,789 $20,626,795 Accumulated undistributed net investment income (loss)......................................... 311,497 (409,814) (725,195) (48,775) (120,345) Accumulated undistributed net realized gain (loss) on sale of investments, futures and foreign currency transactions.................. (7,450,318) 114,738,884 12,459,180 182,700 (21,381) Net unrealized appreciation in value of investments, futures and translation of assets and liabilities in foreign currency............ 2,038,558 431,098,901 19,695,841 1,067,723 9,653,339 ----------- -------------- ----------- ---------- ----------- Total net assets............................. $72,673,122 $1,112,470,106 $93,255,334 $7,883,437 $30,138,408 =========== ============== =========== ========== =========== CLASS "A" SHARES Capital shares outstanding....................... 9,928,455 87,108,796 2,637,675 304,607 607,474 Net assets....................................... $64,319,750 $ 941,944,686 $52,734,944 $3,739,277 $17,185,573 Net asset value per share........................ $ 6.48 $ 10.81 $ 19.99 $ 12.28 $ 28.29 =========== ============== =========== ========== =========== Offering price per share (net asset value divided by 94.25%)..................................... $ 6.88 $ 11.47 $ 21.21 $ 13.03 $ 30.02 =========== ============== =========== ========== =========== CLASS "B" SHARES Capital shares outstanding....................... 1,275,784 16,195,466 2,053,692 340,368 453,344 Net assets....................................... $8,039,678 $ 165,477,255 $39,173,038 $4,108,811 $12,365,974 Net asset value per share........................ $ 6.30 $ 10.22 $ 19.07 $ 12.07 $ 27.28 =========== ============== =========== ========== =========== CLASS "C" SHARES Capital shares outstanding....................... 48,977 473,681 68,212 2,920 21,068 Net assets....................................... $ 313,694 $ 5,048,165 $ 1,347,352 $ 35,349 $ 586,861 Net asset value per share........................ $ 6.40 $ 10.66 $ 19.75 $ 12.10 $ 27.86 =========== ============== =========== ========== ===========
See accompanying notes. - -------------------------------------------------------------------------------- 55 57 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND --------------------------------------------------------------------- SMALL ENHANCED VALUE COMPANY INDEX INTERNATIONAL SELECT 25 SECURITY SERIES SERIES SERIES SERIES SERIES ULTRA FUND ASSETS Investments, at value (identified cost: $34,695,323, $30,867,281, $21,714,306, $8,321,514, $37,055,914, and $117,335,260 respectively)............................ $40,144,612 $44,152,109 $24,868,655 $10,978,832 $44,984,606 $201,603,553 Cash denominated in a foreign currency, at value (identified cost: $0, $0, $0, $131,732, $0, and $0 respectively)....... -- -- -- 132,219 -- -- Cash....................................... 124,217 6,032,917 2,343,699 757,569 1,234,617 681,343 Receivables: Fund shares sold......................... 70,500 438,070 4,000 -- 191,667 85,428 Securities sold.......................... 415,530 2,086,931 -- 329,935 555,737 826,085 Variation margin......................... -- -- 25,393 -- -- -- Net unrealized appreciation on forward foreign exchange contracts............. -- -- 9,188 3,319 -- -- Interest................................. 1,371 23,221 19,984 1,747 5,533 10,182 Dividends................................ 40,569 -- -- 10,762 21,475 64,107 Security Management Company................ -- -- -- 4,495 -- -- Foreign taxes recoverable.................. -- -- -- -- -- -- Prepaid expenses........................... 17,279 18,768 27,610 28,997 27,737 -- ----------- ----------- ----------- ----------- ----------- ------------ Total assets........................... $40,814,078 $52,752,016 $27,298,529 $12,247,875 $47,021,372 $203,270,698 ----------- ----------- ----------- ----------- ----------- ------------ LIABILITIES Net unrealized depreciation on forward foreign exchange contracts............... $ -- $ -- $ -- $ 13,709 $ -- $ -- Payable for: Securities purchased..................... 360,871 1,462,574 37,487 690,641 -- 1,745,791 Fund shares redeemed..................... 11,738 572 10,515 -- 23,683 60,728 Variation margin......................... -- -- -- 25,970 -- -- Management fees.......................... 32,087 45,329 16,570 10,855 28,568 190,571 Custodian fees........................... 1,533 3,675 6,342 34,759 951 -- Transfer and administration fees......... 5,926 6,333 3,346 875 8,198 -- Professional fees........................ 3,385 3,787 1,735 4,502 325 -- 12b-1 distribution plan fees............. 12,494 38,214 55,168 24,129 64,374 22,324 Short positions at value................. -- -- -- 11,370 -- -- Other payables........................... 830 262 985 2,098 1,723 -- ----------- ----------- ----------- ----------- ----------- ------------ Total liabilities...................... 428,864 1,560,746 132,148 818,908 127,822 2,019,414 ----------- ----------- ----------- ----------- ----------- ------------ NET ASSETS................................. $40,385,214 $51,191,270 $27,166,381 $11,428,967 $46,893,550 $201,251,284 =========== =========== =========== =========== =========== ============ NET ASSETS CONSIST OF: Paid in capital............................ $29,385,842 $29,770,404 $23,647,370 $ 9,151,902 $40,312,763 $ 99,119,112 Accumulated undistributed net investment income (loss)............................ (122,375) (165,675) (53,014) (177,816) (229,967) (549,143) Accumulated undistributed net realized gain loss) on sale of investments, futures and foreign currency transactions............ 5,672,458 8,301,713 216,447 (165,379) (1,117,938) 18,413,022 Net unrealized appreciation (depreciation) in value of investments, futures and translation of assets and liabilities in foreign currency......................... 5,449,289 13,284,828 3,355,578 2,620,260 7,928,692 84,268,293 ----------- ----------- ----------- ----------- ----------- ------------ Total net assets....................... $40,385,214 $51,191,270 $27,166,381 $11,428,967 $46,893,550 $201,251,284 =========== =========== =========== =========== =========== ============ CLASS "A" SHARES Capital shares outstanding................. 1,449,783 1,668,524 735,020 374,529 1,736,682 11,969,861 Net assets................................. $27,386,121 $40,994,135 $ 8,663,968 $ 4,796,170 $21,330,931 $173,621,381 Net asset value per share.................. $ 18.89 $ 24.57 $ 11.79 $ 12.81 $ 12.28 $ 14.50 =========== =========== =========== =========== =========== ============ Offering price per share (net asset value divided by 94.25%)....................... $ 20.04 $ 26.07 $ 12.51 $ 13.59 $ 13.03 $ 15.38 =========== =========== =========== =========== =========== ============ CLASS "B" SHARES Capital shares outstanding................. 608,996 302,743 1,015,257 232,781 1,563,701 1,967,526 Net assets................................. $11,199,274 $ 7,232,194 $11,872,980 $ 2,955,860 $19,082,443 $ 26,304,717 Net asset value per share.................. $ 18.39 $ 23.89 $ 11.69 $ 12.70 $ 12.20 $ 13.37 =========== =========== =========== =========== =========== ============ CLASS "C" SHARES Capital shares outstanding................. 96,397 122,030 566,139 288,290 529,279 92,566 Net assets................................. $ 1,799,819 $ 2,964,941 $ 6,629,433 $ 3,676,937 $ 6,480,176 $ 1,325,186 Net asset value per share.................. $ 18.67 $ 24.30 $ 11.71 $ 12.75 $ 12.24 $ 14.32 =========== =========== =========== =========== =========== ============
See accompanying notes. - -------------------------------------------------------------------------------- 56 58 STATEMENTS OF OPERATIONS - ------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND ----------------------------------------------------- SECURITY TOTAL SOCIAL GROWTH AND EQUITY GLOBAL RETURN AWARENESS INCOME FUND SERIES SERIES SERIES SERIES INVESTMENT INCOME: Dividends...................................... $ 912,335 $ 4,697,064 $ 239,465 $ 31,597 $ 104,916 Interest....................................... 140,146 1,486,318 120,744 2,795 17,750 ----------- ------------ ----------- -------- ---------- 1,052,481 6,183,382 360,209 34,392 122,666 Less foreign tax expense..................... -- -- (21,808) -- -- ----------- ------------ ----------- -------- ---------- Total investment income...................... 1,052,481 6,183,382 338,401 34,392 122,666 EXPENSES: Management fees................................ 495,763 5,712,580 638,271 28,888 134,146 Custodian fees................................. -- -- -- 9,132 1,537 Transfer/maintenance fees...................... -- -- -- 6,535 24,488 Administration fees............................ -- -- -- 3,467 12,073 Directors' fees................................ -- -- -- 97 -- Professional fees.............................. -- -- -- 3,751 3,200 Reports to shareholders........................ -- -- -- 401 1,005 Registration fees.............................. -- -- -- 11,075 10,563 Other expenses................................. -- -- -- 116 150 12b-1 distribution plan fees................... 47,399 880,613 117,067 19,705 55,849 ----------- ------------ ----------- -------- ---------- Total expenses................................. 543,162 6,593,193 755,338 83,167 243,011 ----------- ------------ ----------- -------- ---------- Net investment income (loss)................... 509,319 (409,811) (416,937) (48,775) (120,345) NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) during the period on: Investments.................................... (7,439,103) 131,293,021 13,872,240 98,657 (14,662) Futures........................................ -- (3,789,921) -- -- -- Foreign currency transactions.................. -- -- (253,417) (48) -- ----------- ------------ ----------- -------- ---------- Net realized gain (loss)..................... (7,439,103) 127,503,100 13,618,823 98,609 (14,662) Unrealized appreciation (depreciation) during the period on: Investments.................................... 1,313,175 (985,340) 12,817,410 693,554 4,754,001 Translation of assets and liabilities in foreign currencies........................... -- -- 48,371 (10) -- ----------- ------------ ----------- -------- ---------- Net unrealized appreciation (depreciation)..... 1,313,175 (985,340) 12,865,781 693,544 4,754,001 ----------- ------------ ----------- -------- ---------- Net gain (loss).............................. (6,125,928) 126,517,760 26,484,604 792,153 4,739,339 ----------- ------------ ----------- -------- ---------- Net increase (decrease) in net assets resulting from operations............... $(5,616,609) $126,107,949 $26,067,667 $743,378 $4,618,994 =========== ============ =========== ======== ==========
See accompanying notes. - -------------------------------------------------------------------------------- 57 59 STATEMENTS OF OPERATIONS (CONTINUED) - ------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND ---------------------------------------------------------------------- SMALL ENHANCED SECURITY VALUE COMPANY INDEX INTERNATIONAL SELECT 25 ULTRA SERIES SERIES SERIES SERIES SERIES FUND INVESTMENT INCOME: Dividends......................... $ 155,393 $ 2,762 $ 134,368 $ 31,312 $ 68,255 $ 216,144 Interest.......................... 5,114 56,317 51,213 7,596 40,910 184,547 ---------- ----------- ---------- ---------- ---------- ----------- 160,507 59,079 185,581 38,908 109,165 400,691 Less foreign tax expense........ -- -- -- (7,866) -- -- ---------- ----------- ---------- ---------- ---------- ----------- Total investment income......... 160,507 59,079 185,581 31,042 109,165 400,691 EXPENSES: Management fees................... 172,079 160,513 95,272 53,036 144,854 866,281 Custodian fees.................... 3,143 5,622 10,868 63,574 353 -- Transfer/maintenance fees......... 21,525 11,291 9,913 2,285 27,254 -- Administration fees............... 15,487 14,446 11,433 17,170 17,382 -- Directors' fees................... 82 154 124 124 77 -- Professional fees................. 3,761 3,761 2,846 4,007 2,789 -- Reports to shareholders........... 842 285 325 51 797 -- Registration fees................. 11,495 11,432 12,741 12,339 18,597 -- Other expenses.................... 374 167 178 66 219 -- 12b-1 distribution plan fees...... 54,094 52,277 94,895 33,960 126,810 83,553 ---------- ----------- ---------- ---------- ---------- ----------- Total expenses.................... 282,882 259,948 238,595 186,612 339,132 949,834 Less reimbursement of expenses.... -- (35,191) -- (53,219) -- -- ---------- ----------- ---------- ---------- ---------- ----------- Net expenses...................... 282,882 224,757 238,595 133,393 339,132 949,834 ---------- ----------- ---------- ---------- ---------- ----------- Net investment income (loss)...... (122,375) (165,678) (53,014) (102,351) (229,967) (549,143) NET REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) during the period on: Investments....................... 5,925,091 8,828,872 276,406 210,833 (749,471) 20,604,750 Foreign currency transactions..... -- -- -- (45,008) -- -- ---------- ----------- ---------- ---------- ---------- ----------- Net realized gain (loss)........ 5,925,091 8,828,872 276,406 165,825 (749,471) 20,604,750 Unrealized appreciation (depreciation) during the period on: Investments....................... 272,984 8,914,818 3,994,838 2,305,517 6,531,005 51,703,320 Translation of assets and liabilities in foreign currencies...................... -- -- -- (1,356) -- -- ---------- ----------- ---------- ---------- ---------- ----------- Net unrealized appreciation....... 272,984 8,914,818 3,994,838 2,304,161 6,531,005 51,703,320 ---------- ----------- ---------- ---------- ---------- ----------- Net gain........................ 6,198,075 17,743,690 4,271,244 2,469,986 5,781,534 72,308,070 ---------- ----------- ---------- ---------- ---------- ----------- Net increase in net assets resulting from operations................. $6,075,700 $17,578,012 $4,218,230 $2,367,635 $5,551,567 $71,758,927 ========== =========== ========== ========== ========== ===========
See accompanying notes. - -------------------------------------------------------------------------------- 58 60 STATEMENTS OF CHANGES IN NET ASSETS - ------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND ------------------------------------------------------- SECURITY TOTAL SOCIAL GROWTH AND EQUITY GLOBAL RETURN AWARENESS INCOME FUND SERIES SERIES SERIES SERIES INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)................. $ 509,319 $ (409,811) $ (416,937) $ (48,775) $ (120,345) Net realized gain (loss)..................... (7,439,103) 127,503,100 13,618,823 98,609 (14,662) Unrealized appreciation (depreciation) during the period................................. 1,313,175 (985,340) 12,865,781 693,544 4,754,001 ------------ -------------- ----------- ---------- ----------- Net increase (decrease) in net assets resulting from operations.................. (5,616,609) 126,107,949 26,067,667 743,378 4,618,994 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A.................................. (1,285,098) (3) -- -- -- Class B.................................. (75,788) -- -- -- -- Class C.................................. (5,850) -- -- -- -- Net realized gain (loss) Class A.................................. (1,172,179) (32,981,442) (2,782,654) (196,255) (229,880) Class B.................................. (159,997) (6,354,549) (1,989,962) (202,329) (157,943) Class C.................................. (5,955) (208,842) (27,301) (692) (7,240) ------------ -------------- ----------- ---------- ----------- Total distributions to shareholders...... (2,704,867) (39,544,836) (4,799,917) (399,276) (395,063) NET INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS:.............................. (3,927,115) (55,650,311) 22,902,405 292,036 2,971,617 ------------ -------------- ----------- ---------- ----------- Total increase (decrease) in net assets................................. (12,248,591) 30,912,802 44,170,155 636,138 7,195,548 ------------ -------------- ----------- ---------- ----------- NET ASSETS: Beginning of period.......................... 84,921,713 1,081,557,304 49,085,179 7,247,299 22,942,860 ------------ -------------- ----------- ---------- ----------- End of period................................ $72,673,122 $1,112,470,106 $93,255,334 $7,883,437 $30,138,408 ============ ============== =========== ========== =========== Undistributed net investment income (loss) at end of period.............................. $ 311,497 $ (409,814) $ (725,195) $ (48,775) $ (120,345) ============ ============== =========== ========== ===========
See accompanying notes. - -------------------------------------------------------------------------------- 59 61 STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
SECURITY EQUITY FUND --------------------------------------------------------------------- SMALL ENHANCED SECURITY VALUE COMPANY INDEX INTERNATIONAL SELECT 25 ULTRA SERIES SERIES SERIES SERIES SERIES FUND INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)...................... $ (122,375) $ (165,678) $ (53,014) $ (102,351) $ (229,967) $ (549,143) Net realized gain (loss)...... 5,925,091 8,828,872 276,406 165,825 (749,471) 20,604,750 Unrealized appreciation (depreciation) during the period...................... 272,984 8,914,818 3,994,838 2,304,161 6,531,005 51,703,320 ----------- ----------- ----------- ----------- ----------- ------------ Net increase (decrease) in net assets resulting from operations................ 6,075,700 17,578,012 4,218,230 2,367,635 5,551,567 71,758,927 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A..................... -- 3 -- -- -- -- Class B..................... -- -- -- -- -- -- Class C..................... -- -- -- -- -- -- Net realized gain Class A..................... (939,566) (562,443) (95,114) -- -- (4,644,954) Class B..................... (379,199) (43,258) (118,324) -- -- (603,540) Class C..................... (48,048) (38,867) (63,100) -- -- (7,207) ----------- ----------- ----------- ----------- ----------- ------------ Total distributions to shareholders.............. (1,366,813) (644,565) (276,538) -- -- (5,255,701) NET INCREASE FROM CAPITAL SHARE TRANSACTIONS:................. 2,052,458 14,060,765 839,414 1,612,905 9,987,086 30,597,431 ----------- ----------- ----------- ----------- ----------- ------------ Total increase in net assets.................... 6,761,345 30,994,212 4,781,106 3,980,540 15,538,653 97,100,657 ----------- ----------- ----------- ----------- ----------- ------------ NET ASSETS: Beginning of period........... 33,623,869 20,197,058 $22,385,275 7,448,427 31,354,897 104,150,627 ----------- ----------- ----------- ----------- ----------- ------------ End of period................. $40,385,214 $51,191,270 $27,166,381 $11,428,967 $46,893,550 $201,251,284 =========== =========== =========== =========== =========== ============ Accumulated undistributed net investment income (loss) at end of period................. $ (122,375) $ (165,675) $ (53,014) $ (177,816) $ (229,967) $ (549,143) =========== =========== =========== =========== =========== ============
See accompanying notes. - -------------------------------------------------------------------------------- 60 62 STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- FOR THE PERIOD ENDED SEPTEMBER 30, 1999
SECURITY EQUITY FUND ------------------------------------------------------- SECURITY TOTAL SOCIAL GROWTH AND EQUITY GLOBAL RETURN AWARENESS INCOME FUND SERIES SERIES SERIES SERIES INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)................. $ 1,366,815 $ 505,077 $ (122,839) $ (55,554) $ (124,655) Net realized gain............................ 1,499,433 32,211,395 3,673,233 454,525 389,442 Unrealized appreciation during the period.... 7,103,219 152,612,834 7,593,805 717,116 3,012,833 ------------ -------------- ----------- ---------- ----------- Net increase in net assets resulting from operations............................... 9,969,467 185,329,306 11,144,199 1,116,087 3,277,620 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A.................................... (367,013) (3,097,449) (79,955) (47,225) -- Class B.................................... (38,484) -- -- (14,003) -- Net realized gain Class A.................................... (12,948,745) (60,267,479) (1,515,813) (224,998) (154,865) Class B.................................... (1,659,373) (10,058,359) (1,024,593) (227,702) (112,426) ------------ -------------- ----------- ---------- ----------- Total distributions to shareholders...... (15,013,615) (73,423,287) (2,620,361) (513,928) (267,291) NET INCREASE FROM CAPITAL SHARE TRANSACTIONS: 4,337,737 83,066,728 9,001,395 46,655 7,068,711 ------------ -------------- ----------- ---------- ----------- Total increase (decrease) in net assets................................. (706,411) 194,972,747 17,525,233 648,814 10,079,040 NET ASSETS: Beginning of period.......................... 85,628,124 886,584,557 31,559,946 6,598,485 12,863,820 ------------ -------------- ----------- ---------- ----------- End of period................................ $84,921,713 $1,081,557,304 $49,085,179 $7,247,299 $22,942,860 ============ ============== =========== ========== =========== Undistributed net investment income (loss) at end of period.............................. $ 1,168,914 $ -- $ (308,258) $ -- $ -- ============ ============== =========== ========== ===========
See accompanying notes. - -------------------------------------------------------------------------------- 61 63 STATEMENTS OF CHANGES IN NET ASSETS - ------------------------------------------------------------------------------- FOR THE PERIOD ENDED SEPTEMBER 30, 1999, EXCEPT AS NOTED
SECURITY EQUITY FUND --------------------------------------------------------------------- SMALL ENHANCED SECURITY VALUE COMPANY INDEX INTERNATIONAL SELECT 25 ULTRA SERIES SERIES SERIES* SERIES* SERIES* FUND INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss).... $ (208,118) $ (25,884) $ (4,731) $ (28,874) $ (142,990) $ (792,211) Net realized gain (loss)........ 1,382,994 785,644 221,310 (417,768) (368,467) 4,048,648 Unrealized appreciation (depreciation) during the period........................ 5,996,566 4,231,812 (639,260) 316,099 1,397,687 33,757,943 ----------- ----------- ----------- ---------- ----------- ------------ Net increase (decrease) in net assets resulting from operations.................. 7,171,442 4,991,572 (422,681) (130,543) 886,230 37,014,380 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A....................... -- -- -- -- -- -- Class B....................... -- -- -- -- -- -- Class C....................... -- -- -- -- -- -- Net realized gain Class A....................... (55,560) -- -- -- -- (17,136,006) Class B....................... (30,703) -- -- -- -- (1,984,512) Class C....................... -- -- -- -- -- -- ----------- ----------- ----------- ---------- ----------- ------------ Total distributions to shareholders.............. (86,263) -- -- -- -- (19,120,518) NET INCREASE FROM CAPITAL SHARE TRANSACTIONS: 9,023,108 11,024,529 22,807,956 7,578,970 30,468,667 13,092,244 ----------- ----------- ----------- ---------- ----------- ------------ Total increase in net assets.................... 16,108,287 16,016,101 22,385,275 7,448,427 31,354,897 30,986,106 ----------- ----------- ----------- ---------- ----------- ------------ NET ASSETS: Beginning of period............. 17,515,582 4,180,957 -- -- -- 73,164,521 ----------- ----------- ----------- ---------- ----------- ------------ End of period................... $33,623,869 $20,197,058 $22,385,275 $7,448,427 $31,354,897 $104,150,627 =========== =========== =========== ========== =========== ============ Undistributed net investment income (loss) at end of period........................ $ -- $ -- $ -- $ 14,551 $ -- $ -- =========== =========== =========== ========== =========== ============
*Period January 29, 1999 (inception) through September 30, 1999. See accompanying notes. - -------------------------------------------------------------------------------- 62 64 FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SECURITY GROWTH AND INCOME FUND (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30 ------------------------------------------------------------ 2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D) ---------- ------- ------- ------- ------- ------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD....................... $7.17 $7.68 $11.14 $9.05 $7.93 $6.96 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss).............................. 0.05 0.12 0.13 0.15 0.18 0.16 Net Gain (Loss) on Securities (realized and unrealized)... (0.50) 0.75 (0.87) 2.81 1.37 1.18 ------- ------- ------- ------- ------- ------- Total from Investment Operations.......................... (0.45) 0.87 (0.74) 2.96 1.55 1.34 LESS DISTRIBUTIONS: Dividends (from Net Investment Income).................... (0.13) (0.04) (0.13) (0.16) (0.16) (0.16) Distributions (from Capital Gains)........................ (0.11) (1.34) (2.59) (0.71) (0.27) (0.21) ------- ------- ------- ------- ------- ------- Total Distributions..................................... (0.24) (1.38) (2.72) (0.87) (0.43) (0.37) ------- ------- ------- ------- ------- ------- NET ASSET VALUE END OF PERIOD............................. $6.48 $7.17 $7.68 $11.14 $9.05 $7.93 ======= ======= ======= ======= ======= ======= TOTAL RETURN (A).......................................... (6.42%) 12.00% (7.95%) 35.31% 20.31% 20.25% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)...................... $64,320 $74,796 $76,371 $91,252 $73,273 $67,430 Ratio of Expenses to Average Net Assets................... 1.25% 1.22% 1.21% 1.24% 1.29% 1.31% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................. 1.41% 1.63% 1.49% 1.53% 2.09% 2.21% Portfolio Turnover Rate................................... 189% 98% 144% 124% 69% 130%
- -------------------------------------------------------------------------------- SECURITY GROWTH AND INCOME FUND (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30 ------------------------------------------------------------ 2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D) ---------- ------- ------- ------- ------- ------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD........................ $6.95 $7.54 $10.99 $8.94 $7.85 $6.90 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income...................................... 0.01 0.05 0.05 0.05 0.09 0.08 Net Gain (Loss) on Securities (realized and unrealized).... (0.50) 0.73 (0.88) 2.77 1.35 1.18 ------ ------ ------ ------- ------ ------ Total from Investment Operations........................... (0.49) 0.78 (0.83) 2.82 1.44 1.26 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)..................... (0.05) (0.03) (0.03) (0.06) (0.08) (0.09) Distributions (from Capital Gains)......................... (0.11) (1.34) (2.59) (0.71) (0.27) (0.22) ------ ------ ------ ------- ------ ------ Total Distributions...................................... (0.16) (1.37) (2.62) (0.77) (0.35) (0.31) ------ ------ ------ ------- ------ ------ NET ASSET VALUE END OF PERIOD.............................. $6.30 $6.95 $7.54 $10.99 $8.94 $7.85 ====== ====== ====== ======= ====== ====== TOTAL RETURN (A)........................................... (7.03%) 10.93% (8.95%) 34.01% 19.01% 19.07% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)....................... $8,040 $9,829 $9,257 $6,737 $2,247 $1,130 Ratio of Expenses to Average Net Assets.................... 2.25% 2.22% 2.21% 2.24% 2.29% 2.31% Ratio of Net Income (Loss) to Average Net Assets............................................... 0.41% 0.63% 0.59% 0.53% 1.09% 1.21% Portfolio Turnover Rate.................................... 189% 98% 144% 124% 69% 130%
- -------------------------------------------------------------------------------- 63 65 FINANCIAL HIGHLIGHTS (CONTINUED) - ------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SECURITY GROWTH AND INCOME FUND (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30 ----------------------- 2000(D)(L) 1999(D)(J) ---------- ---------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $7.11 $6.87 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ 0.01 0.03 Net Gain (Loss) on Securities (realized and unrealized)..... (0.50) 0.21 ------ ------ Total from Investment Operations............................ (0.49) 0.24 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... (0.11) -- Distributions (from Capital Gains).......................... (0.11) -- ------ ------ Total Distributions....................................... (0.22) -- ------ ------ NET ASSET VALUE END OF PERIOD............................... $6.40 $7.11 ====== ====== TOTAL RETURN (A)............................................ (6.93%) 3.49% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $314 $297 Ratio of Expenses to Average Net Assets..................... 2.25% 2.22% Ratio of Net Investment Income (Loss) to Average Net Assets................................................ 0.41% 0.62% Portfolio Turnover Rate..................................... 189% 90%
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 64 66 FINANCIAL HIGHLIGHTS (CONTINUED) - ------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SECURITY EQUITY FUND--EQUITY SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30 --------------------------------------------------------------------- 2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D) ---------- ---------- ---------- -------- -------- -------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD.................. $ 9.96 $ 8.86 $ 9.09 $ 7.54 $ 6.55 $ 5.54 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)......................... -- 0.02 0.04 0.04 0.05 0.04 Net Gain (Loss) on Securities (realized and unrealized)........................................ 1.21 1.80 0.56 2.20 1.48 1.38 ---------- ---------- ---------- -------- -------- -------- Total from Investment Operations..................... 1.21 1.82 0.60 2.24 1.53 1.42 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)............... -- (0.04) (0.03) (0.04) (0.06 -- Distributions (from Capital Gains)................... (0.36) (0.68) (0.80) (0.65) (0.48) (0.41) ---------- ---------- ---------- -------- -------- -------- Total Distributions................................ (0.36) (0.72) (0.83) (0.69) (0.54) (0.41) ---------- ---------- ---------- -------- -------- -------- NET ASSET VALUE END OF PERIOD........................ $ 10.81 $ 9.96 $ 8.86 $ 9.09 $ 7.54 $ 6.55 ========== ========== ========== ======== ======== ======== TOTAL RETURN (A)..................................... 12.35% 20.66% 7.38% 32.08% 24.90% 27.77% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)................. $941,945 $917,179 $773,606 $757,520 $575,680 $440,339 Ratio of Expenses to Average Net Assets.............. 1.02% 1.02% 1.02% 1.03% 1.04% 1.05% Ratio of Net Investment Income (Loss) to Average Net Assets............................................. 0.08% 0.19% 0.39% 0.46% 0.75% 0.87% Portfolio Turnover Rate.............................. 70% 36% 47% 66% 64% 95%
- -------------------------------------------------------------------------------- SECURITY EQUITY FUND--EQUITY SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30 --------------------------------------------------------------------- 2000(D)(L) 1999(D) 1998(D) 1997(FD) 1996(D) 1995(D) ---------- ---------- ---------- -------- -------- -------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD.................. $ 9.47 $ 8.52 $ 8.82 $ 7.36 $ 6.43 $ 5.49 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)......................... (0.05) (0.08) (0.05) (0.04) (0.02) (0.01) Net Gain (Loss) on Securities (realized and unrealized)........................................ 1.16 1.71 0.55 2.15 1.45 1.36 ---------- ---------- ---------- -------- -------- -------- Total from Investment Operations..................... 1.11 1.63 0.50 2.11 1.43 1.35 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)............... -- -- -- -- (0.02) -- Distributions (from Capital Gains)................... (0.36) (0.68) (0.80) (0.65) (0.48) (0.41) ---------- ---------- ---------- -------- -------- -------- Total Distributions................................ (0.36) (0.68) (0.80) (0.65) (0.50) (0.41) ---------- ---------- ---------- -------- -------- -------- NET ASSET VALUE END OF PERIOD........................ $ 10.22 $ 9.47 $ 8.52 $ 8.82 $ 7.36 $ 6.43 ========== ========== ========== ======== ======== ======== TOTAL RETURN (A)..................................... 11.93% 19.23% 6.38% 30.85% 23.57% 26.69% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)................. $165,477 $159,872 $112,978 $89,336 $38,822 $19,288 Ratio of Expenses to Average Net Assets.............. 2.02% 2.02% 2.02% 2.03% 2.04% 2.05% Ratio of Net Investment Income (Loss) to Average Net Assets............................................. (0.92%) (0.82%) (0.61%) (0.54%) (0.25%) (0.13%) Portfolio Turnover Rate.............................. 70% 36% 47% 66% 64% 95%
- -------------------------------------------------------------------------------- 65 67 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SECURITY EQUITY FUND--EQUITY SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30 ----------------------- 2000(D)(L) 1999(D)(J) ---------- ---------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $ 9.89 $ 10.13 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.05) (0.05) Net Gain (Loss) on Securities (realized and unrealized)..... 1.18 (0.19) ---------- ---------- Total from Investment Operations............................ 1.13 (0.24) LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... (0.36) -- ---------- ---------- Total Distributions....................................... (0.36) -- ---------- ---------- NET ASSET VALUE END OF PERIOD............................... $ 10.66 $ 9.89 ========== ========== TOTAL RETURN (A)............................................ 11.74% (2.37%) RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $ 5,048 $ 4,507 Ratio of Expenses to Average Net Assets..................... 2.02% 2.02% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (0.91%) (0.89%) Portfolio Turnover Rate..................................... 70% 45%
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 66 68 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SECURITY EQUITY FUND--GLOBAL SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30 --------------------------------------------------------------------- 2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D) ---------- ---------- ---------- -------- -------- -------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD....................... $ 13.99 $ 11.23 $ 13.56 $ 12.42 $ 10.94 $ 10.84 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss).............................. (0.08) 0.01 0.02 0.01 0.0 (0.02) Net Gain (Loss) on Securities (realized and unrealized)... 7.57 3.71 (1.19) 2.29 1.87 0.31 ---------- ---------- ---------- -------- -------- -------- Total from Investment Operations.......................... 7.49 3.72 (1.17) 2.30 1.88 0.29 LESS DISTRIBUTIONS: Dividends (from Net Investment Income).................... -- (0.01) (0.09) (0.38) (0.25) -- Distributions (from Capital Gains)........................ (1.49) (0.91) (1.07) (0.78) (0.15) (0.19) In Excess of Net Investment Income........................ -- (0.04) -- -- -- -- ---------- ---------- ---------- -------- -------- -------- Total Distributions..................................... (1.49) (0.96) (1.16) (1.16) (0.40) (0.19) ---------- ---------- ---------- -------- -------- -------- NET ASSET VALUE END OF PERIOD............................. $ 19.99 $ 13.99 $ 11.23 $ 13.56 $ 12.42 $ 10.94 ========== ========== ========== ======== ======== ======== TOTAL RETURN (A).......................................... 55.85% 34.39% (8.47%) 20.22% 17.73% 2.80% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)...................... $52,735 $28,292 $18,941 $24,193 $19,644 $16,261 Ratio of Expenses to Average Net Assets................... 1.96% 2.00% 2.00% 2.00% 2.00% 2.00% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................. (0.93%) 0.11% 0.15% 0.07% 0.07% (0.17%) Portfolio Turnover Rate................................... 95% 141% 122% 132% 142% 141%
- -------------------------------------------------------------------------------- SECURITY EQUITY FUND--GLOBAL SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30 --------------------------------------------------------------------- 2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D) ---------- ---------- ---------- -------- -------- -------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD....................... $ 13.45 $ 10.89 $ 13.22 $ 12.18 $ 10.74 $ 10.75 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss).............................. (0.14) (0.11) (0.10) (0.11) (0.10) (0.12) Net Gain (Loss) on Securities (realized and unrealized)... 7.25 3.58 (1.16) 2.24 1.84 0.30 ---------- ---------- ---------- -------- -------- -------- Total from Investment Operations.......................... 7.11 3.47 (1.26) 2.13 1.74 0.18 LESS DISTRIBUTIONS: Dividends (from Net Investment Income).................... -- -- -- (0.31) (0.14) -- Distributions (from Capital Gains)........................ (1.49) (0.91) (1.07) (0.78) (0.16) (0.19) ---------- ---------- ---------- -------- -------- -------- Total Distributions..................................... (1.49) (0.91) (1.07) (1.09) (0.30) (0.19) ---------- ---------- ---------- -------- -------- -------- NET ASSET VALUE END OF PERIOD............................. $ 19.07 $ 13.45 $ 10.89 $ 13.22 $ 12.18 $ 10.74 ========== ========== ========== ======== ======== ======== TOTAL RETURN (A).......................................... 55.24% 33.04% (9.43%) 19.01% 16.57% 1.79% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)...................... $39,173 $20,591 $12,619 $13,061 $7,285 $5,433 Ratio of Expenses to Average Net Assets................... 2.81% 3.00% 3.00% 3.00% 3.00% 3.00% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................. (1.76%) (0.87%) (0.85%) (0.93%) (0.93%) (1.17%) Portfolio Turnover Rate................................... 95% 141% 122% 132% 142% 141%
- -------------------------------------------------------------------------------- 67 69 FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD c------------------------------------------------------------------------------- SECURITY EQUITY FUND -- GLOBAL SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30 ----------------------- 2000(D)(L) 1999(D)(J) ---------- ---------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $ 13.90 $ 12.68 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.14) (0.03) Net Gain (Loss) on Securities (realized and unrealized)..... 7.48 1.25 ---------- ---------- Total from Investment Operations............................ 7.34 1.22 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... (1.49) -- ---------- ---------- Total Distributions....................................... (1.49) -- ---------- ---------- NET ASSET VALUE END OF PERIOD............................... $ 19.75 $ 13.90 ========== ========== TOTAL RETURN (A)............................................ 55.10% 9.62% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $ 1,347 $ 202 Ratio of Expenses to Average Net Assets..................... 2.95% 3.00% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (1.74%) (0.49%) Portfolio Turnover Rate..................................... 95% 90%
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 68 70 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SECURITY EQUITY FUND--TOTAL RETURN SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30 ------------------------------------------------------------------------------------ 2000(D)(L) 1999(C)(D)(K) 1998(C)(D) 1997(C)(D)(G) 1996(C)(D) 1995(B)(C)(D) ---------- ------------- ---------- ------------- ---------- ------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD........ $ 11.69 $ 10.73 $ 12.58 $ 11.06 $ 10.54 $ 10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)............... (0.05) (0.03) 0.08 0.17 0.25 0.04 Net Gain (Loss) on Securities (realized and unrealized).............................. 1.28 1.90 (0.98) 1.86 0.77 0.50 ---------- ---------- ---------- ---------- ---------- ---------- Total from Investment Operations........... 1.23 1.87 (0.90) 2.03 1.02 0.54 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)..... -- (0.16) (0.20) (0.26) (0.33) -- Distributions (from Capital Gains)......... (0.64) (0.75) (0.75) (0.25) (0.17) -- ---------- ---------- ---------- ---------- ---------- ---------- Total Distributions...................... (0.64) (0.91) (0.95) (0.51) (0.50) -- ---------- ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE END OF PERIOD.............. $ 12.28 $ 11.69 $ 10.73 $ 12.58 $ 11.06 $ 10.54 ========== ========== ========== ========== ========== ========== TOTAL RETURN (A)........................... 10.73% 17.84% (7.19%) 19.00% 10.01% 5.40% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)....... $3,739 $3,587 $3,294 $3,906 $2,449 $1,906 Ratio of Expenses to Average Net Assets.... 1.65% 2.00% 2.00% 1.68% 2.00% 2.00% Ratio of Net Investment Income (Loss) to Average Net Assets....................... (0.76%) (0.29%) 0.65% 1.52% 2.32% 1.33% Portfolio Turnover Rate.................... 69% 121% 45% 79% 75% 129%
- -------------------------------------------------------------------------------- SECURITY EQUITY FUND--TOTAL RETURN SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30 ------------------------------------------------------------------------------------ 2000(D)(L) 1999(C)(D)(K) 1998(C)(D) 1997(C)(D)(G) 1996(C)(D) 1995(B)(C)(D) ---------- ------------- ---------- ------------- ---------- ------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD........ $ 11.56 $ 10.62 $ 12.45 $ 10.97 $ 10.50 $ 10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)............... (0.10) (0.14) (0.03) 0.07 0.14 0.01 Net Gain (Loss) on Securities (realized and unrealized).............................. 1.25 1.88 (0.96) 1.84 0.77 0.49 ---------- ---------- ---------- ---------- ---------- ---------- Total from Investment Operations........... 1.15 1.74 (0.99) 1.91 0.91 0.50 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)..... -- (0.05) (0.09) (0.18) (0.27) -- Distributions (from Capital Gains)......... (0.64) (0.75) (0.75) (0.25) (0.17) -- ---------- ---------- ---------- ---------- ---------- ---------- Total Distributions...................... (0.64) (0.80) (0.84) (0.43) (0.44) -- ---------- ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE END OF PERIOD.............. $ 12.07 $ 11.56 $ 10.62 $ 12.45 $ 10.97 $ 10.50 ========== ========== ========== ========== ========== ========== TOTAL RETURN (A)........................... 10.13% 16.68% (7.99%) 17.95% 8.97% 5.00% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)....... $4,109 $3,652 $3,304 $3,851 $2,781 $1,529 Ratio of Expenses to Average Net Assets.... 2.65% 2.94% 2.94% 2.58% 3.00% 3.00% Ratio of Net Investment Income (Loss) to Average Net Assets....................... (1.75%) (1.23%) (0.29%) 0.61% 1.32% 0.31% Portfolio Turnover Rate.................... 69% 21% 45% 79% 75% 129%
- -------------------------------------------------------------------------------- 69 71 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SECURITY EQUITY FUND--TOTAL RETURN SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30 ----------------------------- 2000(D)(L) 1999(C)(D)(J)(K) ---------- ---------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $ 11.58 $ 11.48 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.09) (0.11) Net Gain (Loss) on Securities (realized and unrealized)..... 1.25 0.21 ---------- ---------- Total from Investment Operations............................ 1.16 0.10 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... (0.64) -- ---------- ---------- Total Distributions....................................... (0.64) -- ---------- ---------- NET ASSET VALUE END OF PERIOD............................... $ 12.10 $ 11.58 ========== ========== TOTAL RETURN (A)............................................ 10.21% 0.87% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $35 $8 Ratio of Expenses to Average Net Assets..................... 2.50% 2.93% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (1.62%) (1.84%) Portfolio Turnover Rate..................................... 69% 149%
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 70 72 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SECURITY EQUITY FUND--SOCIAL AWARENESS SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30 ------------------------------------------------- 2000(D)(L) 1999(D) 1998(C)(D) 1997(C)(D)(E) ---------- ------- ---------- ------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $24.05 $19.37 $17.99 $15.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.06) (0.05) -- 0.08 Net Gain (Loss) on Securities (realized and unrealized)..... 4.68 5.09 1.42 2.91 ------- ------- ------ ------ Total from Investment Operations............................ 4.62 5.04 1.42 2.99 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- (0.04) -- Distributions (from Capital Gains).......................... (0.38) (0.36) -- -- ------- ------- ------ ------ Total Distributions....................................... (0.38) (0.36) (0.04) -- ------- ------- ------ ------ NET ASSET VALUE END OF PERIOD............................... $28.29 $24.05 $19.37 $17.99 ======= ======= ====== ====== TOTAL RETURN (A)............................................ 19.37% 26.12% 7.89% 19.93% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $17,186 $13,403 $7,619 $6,209 Ratio of Expenses to Average Net Assets..................... 1.39% 1.42% 1.22% 0.67% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (0.47%) (0.22%) -- 0.57% Portfolio Turnover Rate..................................... 32% 26% 41% 38%
- -------------------------------------------------------------------------------- SECURITY EQUITY FUND--SOCIAL AWARENESS SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30 ------------------------------------------------- 2000(D)(L) 1999(D) 1998(C)(D) 1997(C)(D)(E) ---------- ------- ---------- ------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $23.35 $19.01 $17.81 $15.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.13) (0.30) (0.19) (0.08) Net Gain (Loss) on Securities (realized and unrealized)..... 4.44 5.00 1.39 2.89 ------- ------- ------ ------ Total from Investment Operations............................ 4.31 4.70 1.20 2.81 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- -- -- Distributions (from Capital Gains).......................... (0.38) (0.36) -- -- ------- ------- ------ ------ Total Distributions....................................... (0.38) (0.36) -- -- ------- ------- ------ ------ NET ASSET VALUE END OF PERIOD............................... $27.28 $23.35 $19.01 $17.81 ======= ======= ====== ====== TOTAL RETURN (A)............................................ 18.62% 24.81% 6.74% 18.73% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $12,366 $9,136 $5,245 $3,641 Ratio of Expenses to Average Net Assets..................... 2.39% 2.51% 2.20% 1.84% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (1.48%) (1.30%) (0.98%) (0.60%) Portfolio Turnover Rate..................................... 32% 26% 41% 38%
- -------------------------------------------------------------------------------- 71 73 FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD c------------------------------------------------------------------------------- SECURITY EQUITY FUND--SOCIAL AWARENESS SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30 ----------------------- 2000(D)(L) 1999(D)(J) ---------- ---------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $23.87 $24.47 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.16) (0.22) Net Gain (Loss) on Securities (realized and unrealized)..... 4.53 (0.38) ------ ------ Total from Investment Operations............................ 4.37 (0.60) LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... (0.38) -- ------ ------ Total Distributions....................................... (0.38) -- ------ ------ NET ASSET VALUE END OF PERIOD............................... $27.86 $23.87 ====== ====== TOTAL RETURN (A)............................................ 18.47% (2.45%) RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $ 587 $ 405 Ratio of Expenses to Average Net Assets..................... 2.56% 2.66% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (1.65%) (1.46%) Portfolio Turnover Rate..................................... 32% 33%
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 72 74 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SECURITY EQUITY FUND--VALUE SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30 ------------------------------------------------- 2000(D)(L) 1999(D) 1998(C)(D) 1997(C)(D)(F) ---------- ------- ---------- ------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $16.60 $12.07 $12.95 $10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.03) (0.07) (0.02) 0.05 Net Gain (Loss) on Securities (realized and unrealized)..... 3.02 4.65 (0.53) 2.90 ------- ------- ------- ------ Total from Investment Operations............................ 2.99 4.58 (0.55) 2.95 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- (0.05) -- Distributions (from Capital Gains).......................... (0.70) (0.05) (0.28) -- ------- ------- ------- ------ Total Distributions....................................... (0.70) (0.05) (0.33) -- ------- ------- ------- ------ NET ASSET VALUE END OF PERIOD............................... $18.89 $16.60 $12.07 $12.95 ======= ======= ======= ====== TOTAL RETURN (A)............................................ 18.76% 38.06% (4.31%) 29.50% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $27,386 $22,804 $10,901 $4,631 Ratio of Expenses to Average Net Assets..................... 1.14% 1.33% 1.27% 1.10% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (0.33%) (0.44%) (0.13%) 1.43% Portfolio Turnover Rate..................................... 89% 79% 98% 35%
- -------------------------------------------------------------------------------- SECURITY EQUITY FUND--VALUE SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30 ------------------------------------------------- 2000(D)(L) 1999(D) 1998(C)(D) 1997(C)(D)(F) ---------- ------- ---------- ------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $16.26 $11.94 $12.91 $10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.12) (0.22) (0.15) 0.01 Net Gain (Loss) on Securities (realized and unrealized)..... 2.95 4.59 (0.54) 2.90 ------- ------- ------- ------ Total from Investment Operations............................ 2.83 4.37 (0.69) 2.91 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- -- -- Distributions (from Capital Gains).......................... (0.70) (0.05) (0.28) -- ------- ------- ------- ------ Total Distributions....................................... (0.70) (0.05) (0.28) -- ------- ------- ------- ------ NET ASSET VALUE END OF PERIOD............................... $18.39 $16.26 $11.94 $12.91 ======= ======= ======= ====== TOTAL RETURN (A)............................................ 18.15% 36.71% (5.38%) 29.10% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $11,199 $9,682 $6,615 $3,572 Ratio of Expenses to Average Net Assets..................... 2.02% 2.37% 2.33% 2.26% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (1.22%) (1.50%) (1.19%) 0.27% Portfolio Turnover Rate..................................... 89% 79% 98% 35%
- -------------------------------------------------------------------------------- 73 75 FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD c------------------------------------------------------------------------------- SECURITY EQUITY FUND--VALUE SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30 ----------------------- 2000(D)(L) 1999(D)(J) ---------- ---------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $16.51 $14.54 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.12) (0.13) Net Gain (Loss) on Securities (realized and unrealized)..... 2.98 2.10 ------ ------ Total from Investment Operations............................ 2.86 1.97 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... (0.70) -- ------ ------ Total Distributions....................................... (0.70) -- ------ ------ NET ASSET VALUE END OF PERIOD............................... $18.67 $16.51 ====== ====== TOTAL RETURN (A)............................................ 18.06% 13.55% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $1,800 $1,138 Ratio of Expenses to Average Net Assets..................... 2.13% 2.38% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (1.29%) (1.36%) Portfolio Turnover Rate..................................... 89% 92%
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 74 76 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SECURITY EQUITY FUND--SMALL COMPANY SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30 ------------------------------------------ 2000(C)(D)(L) 1999(C)(D) 1998(C)(D)(H) ------------- ---------- ------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $12.98 $8.70 $10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.09) -- (0.03) Net Gain (Loss) on Securities (realized and unrealized)..... 12.14 4.28 (1.26) ------- ------- ------- Total from Investment Operations............................ 12.05 4.28 (1.29) LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- (0.01) Distributions (from Capital Gains).......................... (0.46) -- -- ------- ------- ------- Total Distributions....................................... (0.46) -- (0.01) ------- ------- ------- NET ASSET VALUE END OF PERIOD............................... $24.57 $12.98 $8.70 ======= ======= ======= TOTAL RETURN (A)............................................ 94.27% 49.20% (12.95%) RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $40,994 $16,877 $2,677 Ratio of Expenses to Average Net Assets..................... 1.25% 0.49% 1.39% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (0.89%) 0.03% (0.35%) Portfolio Turnover Rate..................................... 300% 361% 366%
- -------------------------------------------------------------------------------- SECURITY EQUITY FUND--SMALL COMPANY SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30 ------------------------------------------ 2000(C)(D)(L) 1999(C)(D) 1998(C)(D)(H) ------------- ---------- ------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $12.69 $8.63 $10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.16) (0.14) (0.13) Net Gain (Loss) on Securities (realized and unrealized)..... 11.82 4.20 (1.24) Total from Investment Operations............................ 11.66 4.06 (1.37) LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- -- Distributions (from Capital Gains).......................... (0.46) -- -- ------- ------- ------- Total Distributions....................................... (0.46) -- -- ------- ------- ------- NET ASSET VALUE END OF PERIOD............................... $23.89 $12.69 $8.63 ======= ======= ======= TOTAL RETURN (A)............................................ 93.34% 47.05% (13.70%) RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $7,232 $2,430 $1,504 Ratio of Expenses to Average Net Assets..................... 2.18% 1.94% 2.38% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (1.78%) (1.41%) (1.34%) Portfolio Turnover Rate..................................... 300% 361% 366%
- -------------------------------------------------------------------------------- 75 77 FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD c------------------------------------------------------------------------------- SECURITY EQUITY FUND--SMALL COMPANY SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30 ----------------------------- 2000(C)(D)(L) 1999(C)(D)(J) ------------- ------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $12.86 $11.16 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.18) (0.07) Net Gain (Loss) on Securities (realized and unrealized)..... 12.08 1.77 ------ ------ Total from Investment Operations............................ 11.90 1.70 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... (0.46) -- ------ ------ Total Distributions....................................... (0.46) -- ------ ------ NET ASSET VALUE END OF PERIOD............................... $24.30 $12.86 ====== ====== TOTAL RETURN (A)............................................ 93.98% 15.23% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $2,965 $890 Ratio of Expenses to Average Net Assets..................... 2.15% 1.47% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (1.79%) (0.95%) Portfolio Turnover Rate..................................... 300% 374%
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 76 78 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SECURITY EQUITY FUND--ENHANCED INDEX SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30 ----------------------- 2000(D)(L) 1999(D)(I) ---------- ---------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $ 10.04 $ 10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ -- 0.03 Net Gain (Loss) on Securities (realized and unrealized)..... 1.87 0.01 ---------- ---------- Total from Investment Operations............................ 1.87 0.04 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... (0.12) -- ---------- ---------- Total Distributions....................................... (0.12) -- ---------- ---------- NET ASSET VALUE END OF PERIOD............................... $ 11.79 $ 10.04 ========== ========== TOTAL RETURN (A)............................................ 18.69% 0.40% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $ 8,664 $ 7,589 Ratio of Expenses to Average Net Assets..................... 1.42% 1.48% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... 0.04% 0.39% Portfolio Turnover Rate..................................... 81% 68%
- -------------------------------------------------------------------------------- SECURITY EQUITY FUND -- ENHANCED INDEX SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30 ----------------------- 2000(D)(L) 1999(D)(I) ---------- ---------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $9.99 $ 10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.04) (0.02) Net Gain (Loss) on Securities (realized and unrealized)..... 1.86 0.01 ---------- ---------- Total from Investment Operations............................ 1.82 (0.01) LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... (0.12) -- ---------- ---------- Total Distributions....................................... (0.12) -- ---------- ---------- NET ASSET VALUE END OF PERIOD............................... $11.69 $ 9.99 ========== ========== TOTAL RETURN (A)............................................ 18.28% (0.10%) RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $ 11,873 $ 9,591 Ratio of Expenses to Average Net Assets..................... 2.15% 2.20% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (0.68%) (0.33%) Portfolio Turnover Rate..................................... 81% 68%
- -------------------------------------------------------------------------------- 77 79 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SECURITY EQUITY FUND--ENHANCED INDEX SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30 -------------------------- 2000(D)(L) 1999(D)(I)(J) ---------- ------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $ 10.00 $ 10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.03) (0.01) Net Gain (Loss) on Securities (realized and unrealized)..... 1.86 0.01 ---------- ---------- Total from Investment Operations............................ 1.83 0.00 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... (0.12) -- ---------- ---------- Total Distributions....................................... (0.12) -- ---------- ---------- NET ASSET VALUE END OF PERIOD............................... $ 11.71 $ 10.00 ========== ========== TOTAL RETURN (A)............................................ 18.24% 0.00% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $ 6,629 $ 5,205 Ratio of Expenses to Average Net Assets..................... 2.06% 2.05% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (0.59%) (0.18) Portfolio Turnover Rate..................................... 81% 68%
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 78 80 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SELECT EQUITY FUND--INTERNATIONAL SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30 -------------------------- 2000(D)(L) 1999(C)(D)(I) ---------- ------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $ 9.69 $ 10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.10) (0.03) Net Gain (Loss) on Securities (realized and unrealized)..... 3.22 (0.28) ---------- ---------- Total from Investment Operations............................ 3.12 (0.31) LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... -- -- ---------- ---------- Total Distributions....................................... -- -- ---------- ---------- NET ASSET VALUE END OF PERIOD............................... $ 12.81 $ 9.69 ========== ========== TOTAL RETURN (A)............................................ 32.20% (3.10%) RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $ 4,796 $ 2,928 Ratio of Expenses to Average Net Assets..................... 2.36% 2.50% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (1.71%) (0.41%) Portfolio Turnover Rate..................................... 107% 115%
- -------------------------------------------------------------------------------- SELECT EQUITY FUND--INTERNATIONAL SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30 -------------------------- 2000(D)(L) 1999(C)(D)(I) ---------- ------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $ 9.65 $ 10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.15) (0.07) Net Gain (Loss) on Securities (realized and unrealized)..... 3.20 (0.28) ---------- ---------- Total from Investment Operations............................ 3.05 (0.35) LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... -- -- ---------- ---------- Total Distributions....................................... -- -- ---------- ---------- NET ASSET VALUE END OF PERIOD............................... $ 12.70 $ 9.65 ========== ========== TOTAL RETURN (A)............................................ 31.61% (3.50%) RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $ 2,956 $ 2,028 Ratio of Expenses to Average Net Assets..................... 3.25% 3.19% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (2.61%) (1.09%) Portfolio Turnover Rate..................................... 107% 115%
- -------------------------------------------------------------------------------- 79 81 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SELECT EQUITY FUND--INTERNATIONAL SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30 ----------------------------- 2000(D)(L) 1999(C)(D)(I)(J) ---------- ---------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $ 9.68 $ 10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.13) (0.04) Net Gain (Loss) on Securities (realized and unrealized)..... 3.20 (0.28) ---------- ---------- Total from Investment Operations............................ 3.07 (0.32) LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... -- -- ---------- ---------- Total Distributions....................................... -- -- ---------- ---------- NET ASSET VALUE END OF PERIOD............................... $ 12.75 $ 9.68 ========== ========== TOTAL RETURN (A)............................................ 31.72% (3.20%) RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $ 3,677 $ 2,493 Ratio of Expenses to Average Net Assets..................... 2.86% 2.78% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (2.22%) (0.71%) Portfolio Turnover Rate..................................... 107% 115%
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 80 82 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SELECT EQUITY FUND--SELECT 25 SERIES (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30 ----------------------- 2000(D)(L) 1999(D)(I) ---------- ---------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $ 10.53 $ 10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.04) (0.05) Net Gain (Loss) on Securities (realized and unrealized)..... 1.79 0.58 ---------- ---------- Total from Investment Operations............................ 1.75 0.53 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... -- -- ---------- ---------- Total Distributions....................................... -- -- ---------- ---------- NET ASSET VALUE END OF PERIOD............................... $ 12.28 $ 10.53 ========== ========== TOTAL RETURN (A)............................................ 16.62% 5.30% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $ 21,331 $ 13,975 Ratio of Expenses to Average Net Assets..................... 1.35% 1.48% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (0.78%) (0.75%) Portfolio Turnover Rate..................................... 103% 14%
- -------------------------------------------------------------------------------- SELECT EQUITY FUND--SELECT 25 SERIES (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30 ----------------------- 2000(D)(L) 1999(D)(I) ---------- ---------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $ 10.52 $ 10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.09) (0.09) Net Gain (Loss) on Securities (realized and unrealized)..... 1.77 0.61 ---------- ---------- Total from Investment Operations............................ 1.68 0.52 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... -- -- Total Distributions................................... -- -- ---------- ---------- NET ASSET VALUE END OF PERIOD............................... $ 12.20 $ 10.52 ========== ========== TOTAL RETURN (A)............................................ 15.97% 5.20% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $ 19,082 $ 12,938 Ratio of Expenses to Average Net Assets..................... 2.11% 2.19% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (1.54%) (1.47%) Portfolio Turnover Rate..................................... 103% 14%
- -------------------------------------------------------------------------------- 81 83 FINANCIAL HIGHLIGHTS (CONTINUED) SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD c------------------------------------------------------------------------------- SELECT EQUITY FUND--SELECT 25 SERIES (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30 -------------------------- 2000(D)(L) 1999(D)(I)(J) ---------- ------------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $ 10.55 $ 10.00 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.09) (0.09) Net Gain (Loss) on Securities (realized and unrealized)..... 1.78 0.64 ---------- ---------- Total from Investment Operations............................ 1.69 0.55 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... -- -- ---------- ---------- Total Distributions....................................... -- -- ---------- ---------- NET ASSET VALUE END OF PERIOD............................... $ 12.24 $ 10.55 ========== ========== TOTAL RETURN (A)............................................ 16.02% 5.50% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $ 6,480 $ 4,442 Ratio of Expenses to Average Net Assets..................... 2.08% 2.07% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (1.52%) (1.34%) Portfolio Turnover Rate..................................... 103% 14%
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 82 84 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SECURITY ULTRA FUND (CLASS A)
FISCAL PERIOD ENDED SEPTEMBER 30 ------------------------------------------------------------ 2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D) ---------- ------- ------- ------- ------- ------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD....................... $9.19 $7.65 $9.24 $8.25 $8.20 $6.82 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (loss).............................. (0.04) (0.06) (0.06) (0.08) (0.05) (0.02) Net Gain (Loss) on Securities (realized and unrealized)... 5.78 3.51 (1.06) 1.65 1.10 1.54 -------- ------- ------- ------- ------- ------- Total from Investment Operations.......................... 5.74 3.45 (1.12) 1.57 1.05 1.52 LESS DISTRIBUTIONS: Dividends (from Net Investment Income).................... -- -- -- -- -- -- Distributions (from Capital Gains)........................ (0.43) (1.91) (0.47) (0.58) (1.00) (0.14) -------- ------- ------- ------- ------- ------- Total Distributions..................................... (0.43) (1.91) (0.47) (0.58) (1.00) (0.14) -------- ------- ------- ------- ------- ------- NET ASSET VALUE END OF PERIOD............................. $14.50 $9.19 $7.65 $9.24 $8.25 $8.20 ======== ======= ======= ======= ======= ======= TOTAL RETURN (A).................................... 64.00% 50.91% (12.45%) 20.57% 15.36% 22.69% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)...................... $173,621 $96,238 $67,554 $84,504 $74,230 $66,052 Ratio of Expenses to Average Net Assets................... 1.13% 1.21% 1.23% 1.71% 1.31% 1.32% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................. (0.61%) (0.77%) (0.64%) (1.01%) (0.61%) (0.31%) Portfolio Turnover Rate................................... 45% 54% 116% 68% 161% 180%
- -------------------------------------------------------------------------------- SECURITY ULTRA FUND (CLASS B)
FISCAL PERIOD ENDED SEPTEMBER 30 ------------------------------------------------------------ 2000(D)(L) 1999(D) 1998(D) 1997(D) 1996(D) 1995(D) ---------- ------- ------- ------- ------- ------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD....................... $8.54 $7.28 $8.90 $8.03 $8.11 $6.81 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (loss).............................. (0.09) (0.14) (0.14) (0.15) (0.13) (0.09) Net Gain (Loss) on Securities (realized and unrealized)... 5.35 3.31 (1.01) 1.60 1.05 1.53 -------- ------- ------- ------- ------- ------- Total from Investment Operations.......................... 5.26 3.17 (1.15) 1.45 0.92 1.44 LESS DISTRIBUTIONS: Dividends (from Net Investment Income).................... -- -- -- -- -- -- Distributions (from Capital Gains)........................ (0.43) (1.91) (0.47) (0.58) (1.00) (0.14) -------- ------- ------- ------- ------- ------- Total Distributions..................................... (0.43) (1.91) (0.47) (0.58) (1.00) (0.14) -------- ------- ------- ------- ------- ------- NET ASSET VALUE END OF PERIOD............................. $13.37 $8.54 $7.28 $8.90 $8.03 $8.11 ======== ======= ======= ======= ======= ======= TOTAL RETURN (A).......................................... 63.23% 49.39% (13.30%) 19.58% 13.81% 21.53% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)...................... $26,305 $7,818 $5,610 $5,964 $2,698 $5,428 Ratio of Expenses to Average Net Assets................... 2.13% 2.21% 2.23% 2.71% 2.31% 2.32% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................. (1.61%) (1.77%) (1.64%) (2.01%) (1.61%) (1.31%) Portfolio Turnover Rate................................... 45% 54% 116% 68% 161% 180%
- -------------------------------------------------------------------------------- 83 85 FINANCIAL HIGHLIGHTS (CONTINUED) - -------------------------------------------------------------------------------- SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD SELECT ULTRA FUND (CLASS C)
FISCAL PERIOD ENDED SEPTEMBER 30 ----------------------- 2000(D)(L) 1999(D)(J) ---------- ---------- PER SHARE DATA NET ASSET VALUE BEGINNING OF PERIOD......................... $ 9.11 $ 8.20 INCOME FROM INVESTMENT OPERATIONS: Net Investment Income (Loss)................................ (0.08) (0.07) Net Gain (Loss) on Securities (realized and unrealized)..... 5.72 0.98 ---------- ---------- Total from Investment Operations............................ 5.64 0.91 LESS DISTRIBUTIONS: Dividends (from Net Investment Income)...................... -- -- Distributions (from Capital Gains).......................... (0.43) -- ---------- ---------- Total Distributions....................................... (0.43) -- ---------- ---------- NET ASSET VALUE END OF PERIOD............................... $ 14.32 $ 9.11 ========== ========== TOTAL RETURN (A)............................................ 63.46% 11.10% RATIOS/SUPPLEMENTAL DATA Net Assets End of Period (thousands)........................ $ 1,325 $ 95 Ratio of Expenses to Average Net Assets..................... 2.13% 2.21% Ratio of Net Investment Income (Loss) to Average Net Assets.................................................... (1.61%) (1.75%) Portfolio Turnover Rate..................................... 45% 54%
(a) Total return information does not reflect deduction of any sales charges imposed at the time of purchase for Class A shares or upon redemption for Class B and C shares. (b) Security Total Return Series was initially capitalized on June 1, 1995, with a net asset value of $10 per share. Percentage amounts for the period have been annualized, except for total return. (c) Fund expenses were reduced by the Investment Manager during the period and expense ratios absent such reimbursement would have been as follows:
1995 1996 1997 1998 1999 2000 ---- ---- ---- ---- ---- ---- Total Return Series Class A 3.6% 3.1% 2.4% 2.5% 2.3% N/A Class B 4.7% 3.9% 3.3% 3.4% 3.2% N/A Class C N/A N/A N/A N/A 3.2% N/A Social Awareness Series Class A N/A N/A 1.7% 1.5% N/A N/A Class B N/A N/A 2.8% 2.5% N/A N/A Value Series Class A N/A N/A 1.9% 1.5% N/A N/A Class B N/A N/A 2.8% 2.6% N/A N/A Small Company Series Class A N/A N/A N/A 2.4% 1.5% 1.5% Class B N/A N/A N/A 3.4% 2.9% 2.4% Class C N/A N/A N/A N/A 2.5% 2.4% International Series Class A N/A N/A N/A N/A 4.7% 3.5% Class B N/A N/A N/A N/A 5.4% 4.4% Class C N/A N/A N/A N/A 5.0% 4.0%
(d) Net investment income (loss) was computed using average shares outstanding throughout the period. (e) Security Social Awareness Series was initially capitalized on November 1, 1996, with a net asset value of $15 per share. Percentage amounts for the period, except for total return, have been annualized. (f) Security Value Series was initially capitalized on May 1, 1997, with a net asset value of $10 per share. Percentage amounts for the period, except for total return, have been annualized. (g) Meridian Investment Management Corporation (Meridian) became the sub-advisor of Total Return Series effective August 1, 1997. Prior to August 1, 1997 Security Management Company, LLC (SMC) paid Templeton/Franklin Investment Services, Inc. and Meridian for research services provided to Total Return Series. (h) Security Small Company Series was initially capitalized on October 15, 1997, with a net asset value of $10 per share. Percentage amounts for the period, except for total return, have been annualized. (i) Security Enhanced Index Series, Security International Series and Security Select 25 Series were initially capitalized on January 29, 1999, with a net asset value of $10 per share. Percentage amounts for the period, except for total return, have been annualized. (j) Class "C" Shares were initially offered for sale on January 29, 1999. Percentage amounts for the period, except total return, have been annualized. (k) Prior to May 15, 1999 SMC paid Meridian for sub-advisory services provided to Total Return Series. Effective May 15, 1999 the sub-advisory contract with Meridian was terminated and SMC continued to provide advisory services to the Total Return Series. (l) Unaudited figures for the six months ended March 31, 2000. Percentage amounts for the period, except total return, have been annualized. - -------------------------------------------------------------------------------- 84 86 NOTES TO FINANCIAL STATEMENTS - ------------------------------------------------------------------------------- MARCH 31, 2000 1. SIGNIFICANT ACCOUNTING POLICIES Security Growth and Income, Equity and Ultra Funds (the Funds) are registered under the Investment Company Act of 1940, as amended, as diversified open-end management investment companies. The shares of Security Equity Fund are currently issued in multiple Series, with each Series, in effect, representing a separate fund. Class A shares are sold with a sales charge at the time of purchase. Class A shares are not subject to a sales charge when they are redeemed, except that purchases of Class A shares of $1 million or more sold without a front-end sales charge are subject to a contingent deferred sales charge if redeemed within one year of purchase. The Funds began offering an additional class of shares ("B" shares) to the public on October 19, 1993. The shares are offered without a front-end sales charge but incur additional class-specific expenses. Redemptions of the shares within five years of acquisition incur a contingent deferred sales charge. The Funds began offering an additional class of shares ("C" shares) to the public on January 29, 1999. The shares are offered without a front-end sales charge but incur additional class-specific expenses. Redemptions of the shares within one year of acquisition incur a contingent deferred sales charge. The following is a summary of the significant accounting policies followed by the Funds in the preparation of their financial statements. A. SECURITY VALUATION -- Securities listed or traded on a national securities exchange are valued on the basis of the last sales price. If there are no sales on a particular day, then the securities are valued at the last bid price. If a security is traded on multiple exchanges, its value will be based on prices from the principal exchange where it is traded. All other securities for which market quotations are available are valued on the basis of the current bid price. If there is no bid price or if the bid price is deemed to be unsatisfactory by the Board of Directors or the Funds' investment manager, then the securities are valued in good faith by such method as the Board of Directors determines will reflect the fair market value. The Funds generally will value short-term debt securities at prices based on market quotations for securities of similar type, yield, quality and duration, except those securities purchased with 60 days or less to maturity are valued on the basis of amortized cost which approximates market value. Generally, trading in foreign securities markets is substantially completed each day at various times prior to the close of the New York Stock Exchange. The values of foreign securities are determined as of the close of such foreign markets or the close of the New York Stock Exchange, if earlier. All investments quoted in foreign currency are valued in U.S. dollars on the basis of the foreign currency exchange rates prevailing at the close of business. The Global Series', and International Series' investments in foreign securities may involve risks not present in domestic investments. Since foreign securities may be denominated in a foreign currency and involve settlement and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Global Series, and International Series to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. B. FOREIGN CURRENCY TRANSACTIONS -- The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of the results of operations resulting from changes in the foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments. Net realized foreign exchange gains or losses arise from sales of portfolio securities, sales of foreign currencies, and the difference between asset and liability amounts initially stated in foreign currencies and the U.S. dollar value of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of portfolio securities and other assets and liabilities at the end of the reporting period, resulting from changes in the exchange rates. C. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- Global Series and International Series may enter into forward foreign exchange contracts in order to manage foreign currency risk from purchase or sale of securities denominated in foreign currency. These funds may also enter into such contracts to manage changes in foreign currency exchange rates on portfolio positions. These contracts are marked to market daily, by recognizing the difference between the contract exchange rate and the current market rate as unrealized gains or losses. Realized gains or losses are recognized when contracts are settled and are reflected in the statement of operations. These contracts involve market risk in excess of the amount reflected in the balance sheet. The face or contract amount in U.S. dollars reflects the total exposure these funds have in that particular currency contract. Losses may arise due to changes in the value of the foreign currency or if the counterparty does not perform under the contract. D. FUTURES -- Growth & Income Fund, Social Awareness Series, Small Company Series, Enhanced Index Series, International Series, and Ultra Fund utilize futures contracts to a limited extent, with the objectives of maintaining full exposure to the underlying stock market, enhancing returns, maintaining liquidity, and minimizing transaction costs. These funds may purchase futures contracts to immediately position incoming cash in the market, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. In the event of redemptions, the Funds may pay departing shareholders from its cash balances and reduce their futures positions accordingly. Returns may be enhanced by purchasing futures contracts instead of the underlying securities when futures are believed to be priced more attractively than the underlying securities. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks contained in the indexes and the prices - -------------------------------------------------------------------------------- 85 87 NOTES TO FINANCIAL STATEMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 of futures contracts, and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Funds are required to deposit and maintain as collateral either cash or securities, representing the initial margin, equal to a certain percentage of the contract value. Subsequent changes in the value of the contract, or variation margin, are recorded as unrealized gains or losses. The variation margin is paid or received in cash daily by the Funds. The Funds realize a gain or loss when the contract is closed or expires. E. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on the date the securities are purchased or sold. Realized gains and losses are reported on an identified cost basis. Dividend income less foreign taxes withheld (if any) plus foreign taxes recoverable (if any) are recorded on the ex-dividend date. Interest income is recognized on the accrual basis. Premium and discounts (except original issue discounts) on debt securities are not amortized. F. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders are recorded on the ex-dividend date. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences are primarily due to differing treatments relating to the expiration of net operating losses and the recharacterization of foreign currency gains and losses. G. TAXES -- The Funds complied with the requirements of the Internal Revenue Code applicable to regulated investment companies and distributed all of their taxable net income and net realized gains sufficient to relieve them from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax is required. H. USE OF ESTIMATES -- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. 2. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Under terms of the investment advisory contract, Security Management Company, LLC (SMC) agrees to provide, or arrange for others to provide, all the services required by the Growth & Income Fund, Equity Series, Global Series, and Ultra Fund for a single fee, including investment advisory services, transfer agent services and certain other administrative services. For Growth and Income Fund, Equity Series and Ultra Fund this fee is equal to 2% of the first $10 million of the average daily closing value of each Fund's net assets, 1 1/2% of the next $20 million, and 1% of the remaining net assets of the Fund for the fiscal year. For Global Series this fee is equal to 2% of the first $70 million of the average daily closing value of the Series' net assets and 1 1/2% of the remaining average net assets of the Series for the fiscal year. Additionally, SMC agrees to assume all of the Funds' expenses, except for its fee and the expenses of interest, taxes, brokerage commissions and extraordinary items and Class B and Class C distribution fees. Management fees are payable to SMC under an investment advisory contract at an annual rate of 0.75% of the average daily net assets for Total Return, Enhanced Index and Select 25 Series, 1.00% for Social Awareness, Value and Small Company Series, and 1.10% for International Series. SMC also acts as the administrative agent and transfer agent for the Funds, and as such performs administrative functions, transfer agency and dividend disbursing services, and the bookkeeping, accounting and pricing functions for each Fund. For these services, the Investment Manager receives, from Total Return Series, an administrative fee equal to .045% of the average daily net assets of the Series plus, the greater of .10% of its average net assets or $60,000. For the International Series, the administrative fee is equal to .045% of the average daily net assets of the Series plus the greater of .10% of the average net assets for (i) $30,000 for the year ended 1/31/00, (ii) $45,000 for the year ended 1/31/01 and (iii) $60,000 for the year ended 1/31/02. For administrative services provided to the Total Return Series, Social Awareness Series, Value Series, Small Company Series, Enhanced Index Series and the Select 25 Series, SMC receives an administrative fee equal to .09% of the average daily net assets of each Series. For transfer agent services, SMC is paid an annual fixed charge per account as well as a transaction fee for all shareholder and dividend payments, except from Growth and Income Fund Equity Series, Global Series and Ultra Fund. SMC pays OppenheimerFunds, Inc. an annual fee equal to a percentage of the average daily closing value of the combined average daily net assets of Global Series and another Fund managed by SMC, SBL Series D, computed on a daily basis as follows:
Combined Average Daily Net Assets Annual Fees --------------------------------- ----------- $0 to $300 Million.......................................... .35% $300 Million to $750 Million................................ .30% $750 Million or more........................................ .25%
SMC pays Strong Capital Management, Inc. ("Strong") with respect to Small Company Series, an annual fee based on the combined average net assets of the Series and another fund managed by SMC, SBL Series X. The fee is equal to:
Combined Average Daily Net Assets Annual Fees --------------------------------- ----------- Less Than $150 Million...................................... .50% $150 Million to $500 Million................................ .45% $500 Million or more........................................ .40%
- -------------------------------------------------------------------------------- 86 88 NOTES TO FINANCIAL STATEMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 Bankers Trust company furnishes investment advisory services to Enhanced Index Series and International Series. For such services to the Enhanced Index Series SMC pays Bankers trust an annual fee equal to a percentage of the average daily closing value of the combined net assets of Enhanced Index Series and another Fund, managed by SMC, SBL Series H as follows:
Combined Average Daily Net Assets Annual Fees --------------------------------- ----------- $0 to $100 Million.......................................... .20% $100 Million to $300 Million................................ .15% $300 Million or more........................................ .13%
SMC will also pay Bankers Trust the following minimum fees with respect to the Enhanced Index Series: (i) no minimum fee in the first year the Enhanced Index begins operations; and (ii) $100,000 in the Series' second year of operations; and (iii) $200,000 in the third and following years of the Series' operations. For the services provided to the International Series, SMC pays Bankers Trust an annual fee equal to a percentage of the average daily closing value of the combined net assets of International Series and another Fund managed by SMC, SBL Series I, computed on a daily basis as follows:
Combined Average Daily Net Assets Annual Fees --------------------------------- ----------- $0 to $200 Million.......................................... .60% $200 Million or more........................................ .55%
SMC has agreed to limit the total expenses of the Enhanced Index Series and Select 25 Series to 1.75%, Total Return Series, Social Awareness Series, Value Series, and the Small Company Series to 2.00%, and the International Series to 2.25%, in each case exclusive of interest, taxes, extraordinary expenses, brokerage fees and commissions and 12b-1 fees. The expense limits other than those for Enhanced Index, Select 25 and International Series are voluntary limits which may be limited at any time without notice to shareholders. SMC waived management fees for the Small Company Series through November 30, 1999. The Funds have adopted Distribution Plans related to the offering of Class B and Class C shares pursuant to Rule 12b-1 under the Investment Company Act of 1940 and Small Company, Enhanced Index, International and the Select 25 Series have also adopted such a Plan with respect to their Class A Shares. The plans provide for payments at an annual rate of 1.00% of the average daily net assets of each Fund's Class B and Class C shares and 0.25% of the average daily net assets of the Small Company, Enhanced Index, International and Select 25 Series Class A shares. The Class A share 12b-1 fees of Small Company Series are not currently being charged. Security Distributors, Inc. (SDl), a wholly-owned subsidiary of Security Benefit Group, Inc. and the national distributor of the Funds, received net underwriting commissions on sales of Class A shares and contingent deferred sales charges on redemptions occurring within 5 years of the date of purchase of Class B shares and within 1 year of the date of purchase for Class C shares, after allowances to brokers and dealers in the amounts presented in the following table:
SDI BROKER/ BROKER/ BROKER/ UNDERWRITING CDSC CDSC DEALER DEALER DEALER (CLASS A) (CLASS B) (CLASS C) (CLASS A) (CLASS B) (CLASS C) ------------ --------- --------- --------- --------- --------- Growth & Income Fund:................................ $ 1,612 $ 13,850 $ 0 $ 24,282 $ 29,860 $ 2,564 Security Equity Fund: Equity Series...................................... 32,845 183,336 9,852 429,869 681,523 48,189 Global Series...................................... 1,543 9,975 0 23,040 62,265 9,772 Total Return Series.................................. 101 1,850 0 2,380 5,225 116 Social Awareness Series............................ 1,284 4,027 22 59,851 56,284 879 Value Series....................................... 1,833 5,286 451 31,278 50,750 5,890 Small Company Series............................... 1,651 505 0 39,862 41,667 10,509 Enhanced Index Series.............................. 2,238 7,847 1,039 24,458 42,709 4,549 International Series............................... 268 489 51 4,517 5,855 2,426 Select 25 Series................................... 16,196 23,333 2,731 194,304 146,887 14,665 Security Ultra Fund:................................. 6,449 0 3,047 70,246 90,931 6,644
Certain officers and directors of the Funds are also officers and/or directors of Security Benefit Life Insurance Company and its subsidiaries, which include SMC and SDI. - -------------------------------------------------------------------------------- 87 89 NOTES TO FINANCIAL STATEMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 3. FEDERAL UNREALIZED APPRECIATION/DEPRECIATION For federal income tax purposes, the amounts of unrealized appreciation (depreciation) at March 31, 2000, were as follows:
NET GROSS GROSS UNREALIZED UNREALIZED UNREALIZED APPRECIATION APPRECIATION DEPRECIATION (DEPRECIATION) ------------ ------------ -------------- Growth & Income Fund........................................ $ 4,638,584 ($2,600,026) $ 2,038,558 Security Equity Fund: Equity Series............................................. 454,421,723 (23,322,822) 431,098,901 Global Series............................................. 23,625,731 (3,929,890) 19,695,841 Total Return Series....................................... 1,446,951 (379,227) 1,067,724 Social Awareness Series................................... 10,489,674 (836,335) 9,653,339 Value Series.............................................. 8,742,704 (3,293,415) 5,449,289 Small Company Series...................................... 14,097,222 (812,394) 13,284,828 Enhanced Index Series..................................... 4,871,210 (1,515,632) 3,355,578 International Series...................................... 2,939,827 (319,567) 2,620,260 Select 25 Series.......................................... 8,731,961 (803,269) 7,928,692 Security Ultra Fund......................................... 92,789,218 (8,520,925) 84,268,293
4. INVESTMENT TRANSACTIONS Investment transactions for the six months ended March 31, 2000, (excluding overnight investments and short-term commercial paper) are as follows:
PROCEEDS PURCHASES FROM SALES --------- ---------- Growth & Income Fund........................................ $ 71,878,416 $ 82,067,533 Security Equity Fund: Equity Series............................................. 370,261,946 414,478,643 Global Series............................................. 40,588,932 28,325,266 Total Return Series....................................... 2,604,709 2,803,708 Social Awareness Series................................... 7,457,728 4,162,266 Value Series.............................................. 15,835,709 15,433,653 Small Company Series...................................... 51,913,731 44,748,507 Enhanced Index Series..................................... 8,598,553 8,198,043 International Series...................................... 6,119,655 4,846,790 Select 25 Series.......................................... 27,455,397 19,016,406 Security Ultra Fund......................................... 53,021,249 32,354,113
5. FORWARD FOREIGN EXCHANGE CONTRACTS At March 31, 2000, Global Series and International Series had the following open forward foreign exchange contracts to buy or sell currency (excluding foreign currency contracts used for purchase and sale settlements):
NET UNREALIZED CONTRACTS SETTLEMENT FOREIGN CURRENCY AMOUNT TO BE U.S. $ VALUE APPRECIATION TO BUY DATE TO BE DELIVERED IN U.S. $ PAID IN U.S. $ AS OF 03/31/00 (DEPRECIATION) --------- ---------- ------------------------- -------------- -------------- -------------- International Series British Pound............ 04/04/2000 35,000 $ 55,565 $ 55,636 $ 271 British Pound............ 04/05/2000 13,000 20,713 20,739 26 British Pound............ 04/14/2000 225,000 356,513 358,938 2,425 European Monetary Unit... 04/14/2000 371,669 360,011 355,865 (4,146) European Monetary Unit... 05/06/2000 51,462 50,000 49,347 (653) Japanese Yen............. 05/08/2000 10,636,000 100,000 104,384 4,384 Swiss Franc.............. 05/08/2000 165,090 100,000 99,649 (351) -------- $ 1,956 ========
- -------------------------------------------------------------------------------- 88 90 NOTES TO FINANCIAL STATEMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000
NET UNREALIZED CONTRACTS SETTLEMENT FOREIGN CURRENCY AMOUNT TO BE U.S. $ VALUE APPRECIATION TO SELL DATE TO BE DELIVERED IN U.S. $ PAID IN U.S. $ AS OF 03/31/00 (DEPRECIATION) --------- ---------- ------------------------- -------------- -------------- -------------- International Series Australian Dollar........ 05/08/2000 (82,153) $ (50,000) $ (49,844) $ 156 British Pound............ 04/14/2000 (125,055) (200,000) (199,497) 503 British Pound............ 05/08/2000 (31,669) (50,000) (50,520) (520) European Monetary Unit... 04/14/2000 (371,669) (360,000) (355,866) 4,134 European Monetary Unit... 04/28/2000 (4,000) (3,867) (3,833) 34 Japanese Yen............. 04/14/2000 (38,144,256) (356,512) (372,642) (16,130) New Zealand Dollar....... 05/06/2000 (102,642) (50,000) (50,948) (948) Norwegian Kroner......... 05/06/2000 (418,190) (50,000) (49,575) 425 -------- $(12,346) ========
6. OPEN FUTURE CONTRACTS
NUMBER OF CONTRACT MARKET UNREALIZED CURRENCY CONTRACTS EXPIRATION DATE AMOUNT VALUE GAIN/LOSS -------- --------- --------------- -------- ------ ---------- INTERNATIONAL SERIES NASDAQ 100 Index Future (Short)................... 2 6/15/2000 $869,007 $891,470 $22,463
At March 31, 2000, the market value of assets pledged to cover margin requirements for open contracts was $1,459,112. ENHANCED INDEX SERIES S&P 500 E-Mini Future............................ 1 6/15/2000 $ 78,256 $ 75,763 $ 2,493 S&P 500 Index Future............................. 9 6/15/2000 3,205,702 3,409,425 127,960 -------- $130,453 ========
At March 31, 2000, the market value of assets pledged to cover margin requirements for open contracts was $5,789,659. - -------------------------------------------------------------------------------- 89 91 NOTES TO FINANCIAL STATEMENTS (CONTINUED) - ------------------------------------------------------------------------------- MARCH 31, 2000 7. CAPITAL SHARE TRANSACTIONS The Funds are authorized to issue unlimited number of shares in an unlimited number of classes. Transactions in the capital shares of the Funds were as follows:
2000 2000 2000 2000 2000 2000 Shares Amount Shares Amount Shares Amount Sold Sold Reinvested Reinvested Redeemed Redeemed ---------- ------------ ---------- ----------- ----------- ------------- Growth & Income Fund Class A shares.................... 399,232 $ 2,681,072 334,927 $ 2,254,392 (1,232,676) $ (8,076,508) Class B shares.................... 190,521 1,111,239 13,805 232,980 (343,765) (2,181,765) Class C shares.................... 31,786 209,412 1,771 11,805 (26,291) (169,742) ---------- ------------ --------- ----------- ----------- ------------- Total........................... 621,539 $ 4,001,723 350,503 $ 2,499,177 (1,602,732) $ (10,428,015) ========== ============ ========= =========== =========== ============= Equity Series Class A shares.................... 6,558,875 $ 68,010,485 2,954,485 $30,481,412 (14,499,526) $(148,200,614) Class B shares.................... 3,438,197 33,839,002 643,511 6,291,607 (4,760,279) (46,252,680) Class C shares.................... 331,027 3,435,725 18,826 191,967 (331,999) (3,447,215) ---------- ------------ --------- ----------- ----------- ------------- Total........................... 10,328,099 $105,285,212 3,616,822 $36,964,986 (19,591,804) $(197,900,509) ========== ============ ========= =========== =========== ============= Global Series Class A shares.................... 803,382 $ 14,771,453 168,184 $ 2,757,048 (356,443) $ (5,567,214) Class B shares.................... 767,841 13,447,168 126,914 1,989,122 (371,658) (5,485,864) Class C shares.................... 53,295 986,245 1,681 27,302 (1,284) (22,855) ---------- ------------ --------- ----------- ----------- ------------- Total........................... 1,624,518 $ 29,204,866 296,779 $ 4,773,472 (729,385) $ (11,075,933) ========== ============ ========= =========== =========== ============= Total Return Series Class A shares.................... 13,576 $ 162,812 16,654 $ 196,239 (32,558) $ (385,910) Class B shares.................... 25,818 307,171 17,284 200,891 (18,734) (215,186) Class C shares.................... 2,152 25,327 59 692 0 0 ---------- ------------ --------- ----------- ----------- ------------- Total........................... 41,546 $ 495,310 33,997 $ 397,822 (51,292) $ (601,096) ========== ============ ========= =========== =========== ============= Social Awareness Series Class A shares.................... 121,319 $ 3,145,759 8,781 $ 225,141 (79,879) $ (2,059,674) Class B shares.................... 69,761 1,749,311 6,210 154,141 (13,823) (347,642) Class C shares.................... 4,399 111,921 286 7,240 (565) (14,580) ---------- ------------ --------- ----------- ----------- ------------- Total........................... 195,479 $ 5,006,991 15,277 $ 386,522 (94,267) $ (2,421,896) ========== ============ ========= =========== =========== ============= Value Series Class A shares.................... 230,039 $ 3,918,100 56,966 $ 907,177 (210,834) $ (3,504,021) Class B shares.................... 92,487 1,539,990 24,287 377,784 (103,272) (1,655,301) Class C shares.................... 28,614 487,828 2,976 47,000 (4,136) (66,099) ---------- ------------ --------- ----------- ----------- ------------- Total........................... 351,142 $ 5,945,918 84,229 $ 1,331,961 (318,242) $ (5,225,421) ========== ============ ========= =========== =========== ============= Small Company Series Class A shares.................... 407,483 $ 11,622,426 32,034 $ 561,850 (161,699) $ (2,674,814) Class B shares.................... 240,478 5,271,091 2,531 43,257 (131,729) (1,854,272) Class C shares.................... 58,484 1,209,783 2,240 38,867 (7,903) (157,423) ---------- ------------ --------- ----------- ----------- ------------- Total........................... 796,445 $ 18,103,300 36,805 $ 643,974 (301,331) $ (4,686,509) ========== ============ ========= =========== =========== ============= Enhanced Index Series Class A shares.................... 139,154 $ 1,509,666 7,667 $ 84,510 (167,841) $ (1,856,265) Class B shares.................... 142,358 1,554,552 10,742 117,646 (98,054) (1,074,177) Class C shares.................... 55,995 614,713 5,675 62,264 (15,792) (173,495) ---------- ------------ --------- ----------- ----------- ------------- Total........................... 337,507 $ 3,678,931 24,084 $ 264,420 (281,687) $ (3,103,937) ========== ============ ========= =========== =========== ============= International Series Class A shares.................... 79,181 $ 1,042,479 0 0 (6,773) $ (87,753) Class B shares.................... 24,614 309,353 0 0 (1,918) (24,202) Class C shares.................... 31,723 384,393 0 0 (1,038) (11,365) ---------- ------------ --------- ----------- ----------- ------------- Total........................... 135,518 $ 1,736,225 0 $ 0 (9,729) $ (123,320) ========== ============ ========= =========== =========== ============= Select 25 Series Class A shares.................... 795,064 $ 9,326,140 0 $ 0 (384,988) $ (4,475,302) Class B shares.................... 538,186 6,249,754 0 0 (203,898) (2,369,601) Class C shares.................... 228,570 2,661,248 0 0 (120,193) (1,405,153) ---------- ------------ --------- ----------- ----------- ------------- Total........................... 1,561,820 $ 18,237,142 0 $ 0 (709,079) $ (8,250,056) ========== ============ ========= =========== =========== ============= Security Ultra Fund Class A shares.................... 2,891,439 $ 34,605,354 411,423 $ 4,476,694 (1,808,126) $ (21,471,860) Class B shares.................... 1,277,306 14,624,588 59,868 602,335 (285,495) (3,365,491) Class C shares.................... 82,199 1,127,445 670 7,207 (755) (8,841) ---------- ------------ --------- ----------- ----------- ------------- Total........................... 4,250,944 $ 50,357,387 471,961 $ 5,086,236 (2,094,376) $ (24,846,192) ========== ============ ========= =========== =========== ============= 2000 Total 2000 Total Increase/Decrease Increase/Decrease Shares Amount ----------------- ----------------- Growth & Income Fund Class A shares.................... (498,517) $ (3,141,044) Class B shares.................... (139,439) (837,546) Class C shares.................... 7,266 51,475 ---------- ------------ Total........................... (630,690) $ (3,927,115) ========== ============ Equity Series Class A shares.................... (4,986,166) $(49,708,717) Class B shares.................... (678,571) (6,122,071) Class C shares.................... 17,854 180,477 ---------- ------------ Total........................... (5,646,883) $(55,650,311) ========== ============ Global Series Class A shares.................... 615,123 $ 11,961,287 Class B shares.................... 523,097 9,950,426 Class C shares.................... 53,692 990,692 ---------- ------------ Total........................... 1,191,912 $ 22,902,405 ========== ============ Total Return Series Class A shares.................... (2,328) $ (26,859) Class B shares.................... 24,368 292,876 Class C shares.................... 2,211 26,019 ---------- ------------ Total........................... 24,251 $ 292,036 ========== ============ Social Awareness Series Class A shares.................... 50,221 $ 1,311,226 Class B shares.................... 62,148 1,555,810 Class C shares.................... 4,120 104,581 ---------- ------------ Total........................... 116,489 $ 2,971,617 ========== ============ Value Series Class A shares.................... 76,171 $ 1,321,256 Class B shares.................... 13,502 262,473 Class C shares.................... 27,454 468,729 ---------- ------------ Total........................... 117,127 $ 2,052,458 ========== ============ Small Company Series Class A shares.................... 367,818 $ 9,509,462 Class B shares.................... 111,280 3,460,077 Class C shares.................... 52,821 1,091,226 ---------- ------------ Total........................... 531,919 $ 14,060,765 ========== ============ Enhanced Index Series Class A shares.................... (21,020) $ (262,089) Class B shares.................... 55,046 598,021 Class C shares.................... 45,878 503,482 ---------- ------------ Total........................... 79,904 $ 839,414 ========== ============ International Series Class A shares.................... 72,408 $ 954,726 Class B shares.................... 22,696 285,151 Class C shares.................... 30,685 373,028 ---------- ------------ Total........................... 125,789 $ 1,612,905 ========== ============ Select 25 Series Class A shares.................... 410,076 $ 4,850,838 Class B shares.................... 334,288 3,880,153 Class C shares.................... 108,377 1,256,095 ---------- ------------ Total........................... 852,741 $ 9,987,086 ========== ============ Security Ultra Fund Class A shares.................... 1,494,736 $ 17,610,188 Class B shares.................... 1,051,679 11,861,432 Class C shares.................... 82,114 1,125,811 ---------- ------------ Total........................... 2,628,529 $ 30,597,431 ========== ============
- -------------------------------------------------------------------------------- 90 92 NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2000 c-------------------------------------------------------------------------------
1999 1999 1999 1999 1999 1999 Shares Amount Shares Amount Shares Amount Sold Sold Reinvested Reinvested Redeemed Redeemed ---------- ------------ ---------- ----------- ----------- ------------- Growth & Income Fund Class A shares................... 673,512 $ 5,147,174 1,799,088 $12,417,291 (1,994,458) $ (14,859,162) Class B shares................... 383,324 2,857,782 247,855 1,670,300 (444,025) (3,216,919) Class C shares................... 43,144 332,472 0 0 (1,433) (11,201) ---------- ------------ --------- ----------- ----------- ------------- Total.......................... 1,099,980 $ 8,337,428 2,046,943 $14,087,591 (2,439,916) $ (18,087,282) ========== ============ ========= =========== =========== ============= Equity Series Class A shares................... 13,420,421 $132,649,509 6,045,433 $59,027,585 (14,665,109) $(147,063,933) Class B shares................... 8,372,638 79,823,484 1,056,640 9,899,655 (5,823,017) (55,932,934) Class C shares................... 466,193 4,768,942 0 0 (10,366) (105,580) ---------- ------------ --------- ----------- ----------- ------------- Total.......................... 22,259,252 $217,241,935 7,102,073 $68,927,240 (20,498,492) $(203,102,447) ========== ============ ========= =========== =========== ============= Global Series Class A shares................... 695,668 $ 8,911,418 130,230 $ 1,583,863 (490,657) $ (6,276,602) Class B shares................... 692,033 8,616,997 86,877 1,024,274 (407,260) (5,056,378) Class C shares................... 14,520 197,823 0 0 0 0 ---------- ------------ --------- ----------- ----------- ------------- Total.......................... 1,402,221 $ 17,726,238 217,107 $ 2,608,137 (897,917) (11,332,980) ========== ============ ========= =========== =========== ============= Total Return Series Class A shares................... 31,506 $ 368,718 24,537 $ 271,998 (56,089) $ (652,076) Class B shares................... 27,410 315,455 21,691 239,384 (44,246) (505,377) Class C shares................... 709 8,553 0 0 0 0 ---------- ------------ --------- ----------- ----------- ------------- Total.......................... 59,625 $ 692,726 46,228 $ 511,382 (100,335) $ (1,157,453) ========== ============ ========= =========== =========== ============= Social Awareness Series Class A shares................... 306,741 $ 7,392,701 6,458 $ 147,295 (149,302) $ (3,600,362) Class B shares................... 204,928 4,817,870 4,916 109,778 (94,506) (2,217,147) Class C shares................... 16,960 418,879 0 0 (12) (303) ---------- ------------ --------- ----------- ----------- ------------- Total.......................... 528,629 $ 12,629,450 11,374 $ 257,073 (243,820) $ (5,817,812) ========== ============ ========= =========== =========== ============= Value Series Class A shares................... 749,287 $ 11,366,515 3,927 $ 54,487 (283,023) $ (4,222,754) Class B shares................... 177,704 2,663,313 2,087 28,595 (138,360) $ (1,970,978) Class C shares................... 69,766 1,117,339 0 0 (822) (13,409) ---------- ------------ --------- ----------- ----------- ------------- Total.......................... 996,757 $ 15,147,167 6,014 $ 83,082 (422,205) $ (6,207,141) ========== ============ ========= =========== =========== ============= Small Company Series Class A shares................... 1,039,226 $ 10,583,204 0 $ 0 (46,168) $ (479,808) Class B shares................... 29,971 312,814 0 0 (12,838) (128,932) Class C shares................... 69,336 738,707 0 0 (127) (1,457) ---------- ------------ --------- ----------- ----------- ------------- Total.......................... 1,138,533 $ 11,634,725 0 $ 0 (59,133) $ (610,197) ========== ============ ========= =========== =========== ============= Enhanced Index Series Class A shares................... 814,143 $ 8,317,912 0 $ 0 (58,104) $ (609,377) Class B shares................... 973,729 9,959,395 0 0 (13,517) (140,440) Class C shares................... 521,068 5,288,712 0 0 (807) (8,246) ---------- ------------ --------- ----------- ----------- ------------- Total.......................... 2,308,940 $ 23,566,019 0 $ 0 (72,428) $ (758,063) ========== ============ ========= =========== =========== ============= International Series Class A shares................... 307,889 $ 3,015,685 0 0 (5,768) $ (55,982) Class B shares................... 210,293 2,081,770 0 0 (208) $ (2,000) Class C shares................... 258,214 2,545,289 0 0 (609) $ (5,792) ---------- ------------ --------- ----------- ----------- ------------- Total.......................... 776,396 $ 7,642,744 0 $ 0 (6,585) $ (63,774) ========== ============ ========= =========== =========== ============= Select 25 Series Class A shares................... 1,447,176 $ 14,845,141 0 $ 0 (120,570) $ (1,239,696) Class B shares................... 1,278,626 13,090,317 0 0 (49,213) (515,290) Class C shares................... 426,772 4,350,090 0 0 (5,870) (61,895) ---------- ------------ --------- ----------- ----------- ------------- Total.......................... 3,152,574 $ 32,285,548 0 $ 0 (175,653) $ (1,816,881) ========== ============ ========= =========== =========== ============= Security Ultra Fund Class A shares................... 3,546,126 $ 30,558,438 2,215,618 $16,490,845 (4,118,483) $ (35,203,189) Class B shares................... 881,272 7,056,830 280,843 1,958,316 (1,016,884) (7,863,259) Class C shares................... 11,687 105,168 0 0 (1,234) (10,906) ---------- ------------ --------- ----------- ----------- ------------- Total.......................... 4,439,085 $ 37,720,436 2,496,461 $18,449,161 (5,136,601) $ (43,077,354) ========== ============ ========= =========== =========== ============= 1999 1999 Increase/Decrease Increase/Decrease Shares Amount ----------------- ----------------- Growth & Income Fund Class A shares................... 478,142 $ 2,705,303 Class B shares................... 187,154 1,311,163 Class C shares................... 41,711 321,271 --------- ----------- Total.......................... 707,007 $ 4,337,737 ========= =========== Equity Series Class A shares................... 4,800,745 $44,613,161 Class B shares................... 3,606,261 33,790,205 Class C shares................... 455,827 4,663,362 --------- ----------- Total.......................... 8,862,833 $83,066,728 ========= =========== Global Series Class A shares................... 335,241 $ 4,218,679 Class B shares................... 371,650 4,584,893 Class C shares................... 14,520 197,823 --------- ----------- Total.......................... 721,411 $ 9,001,395 ========= =========== Total Return Series Class A shares................... (46) $ (11,360) Class B shares................... 4,855 49,462 Class C shares................... 709 8,553 --------- ----------- Total.......................... 5,518 $ 46,655 ========= =========== Social Awareness Series Class A shares................... 163,896 $ 3,939,634 Class B shares................... 115,339 2,710,501 Class C shares................... 16,948 418,576 --------- ----------- Total.......................... 296,183 $ 7,068,711 ========= =========== Value Series Class A shares................... 470,191 $ 7,198,248 Class B shares................... 41,431 720,930 Class C shares................... 68,944 1,103,930 --------- ----------- Total.......................... 580,566 $ 9,023,108 ========= =========== Small Company Series Class A shares................... 993,058 $10,103,396 Class B shares................... 17,133 183,882 Class C shares................... 69,209 737,250 --------- ----------- Total.......................... 1,079,400 $11,024,528 ========= =========== Enhanced Index Series Class A shares................... 756,039 $ 7,708,535 Class B shares................... 960,212 9,818,955 Class C shares................... 520,261 5,280,466 --------- ----------- Total.......................... 2,236,512 $22,807,956 ========= =========== International Series Class A shares................... 302,121 $ 2,959,703 Class B shares................... 210,085 2,079,770 Class C shares................... 257,605 2,539,497 --------- ----------- Total.......................... 769,811 $ 7,578,970 ========= =========== Select 25 Series Class A shares................... 1,326,606 $13,605,445 Class B shares................... 1,229,413 12,575,027 Class C shares................... 420,902 4,288,195 --------- ----------- Total.......................... 2,976,921 $30,468,667 ========= =========== Security Ultra Fund Class A shares................... 1,643,261 $11,846,094 Class B shares................... 145,231 1,151,887 Class C shares................... 10,453 94,262 --------- ----------- Total.......................... 1,798,945 $13,092,243 ========= ===========
- -------------------------------------------------------------------------------- 91 93 NOTES TO FINANCIAL STATEMENTS (CONTINUED) MARCH 31, 2000 c------------------------------------------------------------------------------- 8. FEES PAID INDIRECTLY The Funds have directed certain portfolio trades to brokers who paid a portion of each Fund's expenses. Fund expenses were reduced as indicated in the table below:
Six Months Fiscal Year Ended 3/31/00 Ended 9/30/99 ------------- ------------- Growth & Income Fund........................................ $ 150 $ 670 Equity Series............................................... 2,044 7,860 Total Return Series......................................... 14 54 Social Awareness Series..................................... 46 135 Value Series................................................ 59 183 Select 25 Series............................................ 63 90 Ultra Fund.................................................. 226 690 ------ ------ $2,602 $9,682 ====== ======
9. OPTIONS WRITTEN The following options written were outstanding for the International Series for the period ended March 31, 2000: Put Options Written
Expiration Exercise Number of Market Currency Date Price Contracts Value -------- ---------- -------- --------- ------ British Sterling Pound...................................... 04/14/2000 1.55 250,000 $(130) Japanese Yen................................................ 04/11/2000 111.50 300,000 (30) Swiss Franc................................................. 04/14/2000 1.69 100,000 (350) ----- Total put options outstanding (premiums received, $4,107)... $(510) =====
Call Options Written
Expiration Exercise Number of Market Currency Date Price Contracts Value -------- ---------- -------- --------- -------- Japanese Yen................................................ 04/11/2000 106.00 300,000 $(10,800) Swiss Franc................................................. 04/14/2000 1.59 100,000 (60) -------- Total call options outstanding (premiums received, $4,603)................................................... $(10,860) ========
Transactions in options written for the International Series for the period ended March 31, 2000 were as follows:
Call Options Written Number of Premium Contracts Amount --------- ------- Balance at Sept. 30, 1999................................... -- $ -- Opened...................................................... 1,048,064 6,828 Expired..................................................... (648,064) (2,295) Exercised................................................... -- -- --------- ------ Balance at March 31, 2000................................... 400,000 $4,603 ========= ======
Put Options Written Number of Premium Contracts Amount --------- ------- Balance at Sept. 30, 1999................................... -- $ -- Opened...................................................... 650,000 4,107 Expired..................................................... -- -- Exercised................................................... -- -- ------- ------ Balance at March 31, 2000................................... 650,000 $4,107 ======= ======
- -------------------------------------------------------------------------------- 92 94 THIS PAGE LEFT INTENTIONALLY BLANK 95 THE SECURITY GROUP OF MUTUAL FUNDS Security Growth and Income Fund Security Equity Fund - Equity Series - Global Series - Total Return Series - Social Awareness Series - Value Series - Small Company Series - Enhanced Index Series - International Series - Select 25 Series Security Ultra Fund Security Income Fund - Diversified Income Series - High Yield Series Security Municipal Bond Fund Security Cash Fund This report is submitted for the general information of the shareholders of the Funds. The report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus which contains details concerning the sales charges and other pertinent information. SECURITY FUNDS OFFICERS AND DIRECTORS DIRECTORS Donald A. Chubb, Jr. John D. Cleland Penny A. Lumpkin Mark L. Morris, Jr., D.V.M. Maynard F. Oliverius James R. Schmank OFFICERS John D. Cleland, Chairman of the Board James R. Schmank, President Terry A. Milberger, Vice President, Equity Fund James P. Schier, Vice President, Equity and Ultra Fund Cindy L. Shields, Vice President, Equity Fund Amy J. Lee, Secretary Christopher D. Swickard, Assistant Secretary Brenda M. Harwood, Treasurer www.securitybenefit.com SECURITY DISTRIBUTORS, INC. A Member of The Security Benefit Group of Companies [SECURITY DISTRIBUTORS, INC. LOGO] 700 SW Harrison St. Topeka, KS 66636-0001 PRESORTED STANDARD U.S. POSTAGE PAID CHICAGO, IL PERMIT NO. 941 SDI 604A (R3-00) 46-06040-01 -----END PRIVACY-ENHANCED MESSAGE-----